Thomas Company had the following information related to September 2020:

1) Depreciation on the store equipment was $60,000 for the month.

2) Sales of merchandise inventory for the month of September were $1,800,000, of which $1,200,000 was paid in cash and the remaining amount sold on credit. The cost of the merchandise sold was $1,080,000.

3) The next payroll will be $144,000 and will be paid on October 12. This payroll will cover wages earned during the last week of September and the first week of October.

4) The utility bill of $72,000 for the month of September was both received and paid in early October.

5) Thomas sold a company car for a gain of $12,000 on September 22.

6) On September 3, Thomas paid $6,000 for August’s telephone bill.

7) On October 1, Thomas received the September telephone bill, which totaled $12,000. The bill will be paid in mid-October.

8) Wages paid in cash to employees during the month totaled $288,000. This amount included $60,000 paid for work done in the month of August. This amount is separate from item (3) above.

9) The company had a $120,000 note payable related to cash that was borrowed on March 1, 2010; both the interest and principal related to the note are to be paid on February 29, 2021. The interest rate on the note is 6%.

10) On September 1, Thomas paid a total of $72,000 cash for three months’ rent covering the period of September through November.

11) The company recorded its income tax liability for the month of September. Assume Thomas Company’s tax rate is 30%

Based on the information above, answer the following questions. Round all answers to the nearest dollar.

What was revenue for the month?

What was wages expense for the month?

How much was interest expense for the month?

What was operating income for the month?

What was net income for the month?

BLUEBOX LIMITED has reported net income of R54 million for the 2020 financial year.

The company is considering the following divisible projects for the 2021 financial year:

BLUEBOX Limited’s cost of capital is 12.5%.

The company has a capital budget of R75m. Its target capital structure is a debt-to-equity ratio of 66.67%.

WHAT IS THE COMBINED NPV AND IN WHICH PROJECTS MUST BE INVESTED IN.

On December 31, 2020, Teal Company signed a $1,022,000 note to Flint Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Teal’s financial situation worsened. On December 31, 2022, Flint Bank determined that it was probable that the company would pay back only $613,200 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,022,000 loan.

(a)

Correct answer iconYour answer is correct.

Determine the amount of cash Teal received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.)

946455

Attempts: 1 of 3 used

(b)

• Your Answer
• Correct Answer

Partially correct answer iconYour answer is partially correct.

Prepare a note amortization schedule for Flint Bank up to December 31, 2022. (Round answers to 0 decimal places, e.g. 5,275.)

eTextbook and Media

Attempts: 3 of 3 used

(c)

Incorrect answer iconYour answer is incorrect.

Determine the loss on impairment that Flint Bank should recognize on December 31, 2022. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answer to 0 decimal places, e.g. 5,275.)

I just need C answered

On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the following transactions during January.

Identify the items in the cash-basis financial statements that make cash-basis accounting inconsistent with the theory underlying the elements of financial statements.

Carla Vista Company leases a building to Walsh, Inc. on January 1, 2020. The following facts pertain to the lease agreement.

(b)

Using the original facts of the lease, show the journal entries to be made by both Carla Vista and Walsh in 2020. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Simnet Solutions Inc. manufactures and sells cell phones. For the 2020 business plan, the company estimated the following:

Selling Price per Unit   $750
Variable Cost per Unit   $450
Annual Fixed Cost   $180,000
Net Income After Tax   $360,000
Tax Rate   25%
The January financial statements reported that sales were not meeting expectations. For the first 3 months of the year, only 400 units had been sold at the established price. With variable cost staying as planned, it was clear that 2020 after tax projection would not be reached unless some action was taken. A management committee presented the following mutually exclusive alternatives to the president.
Reduce the selling price by $60. The sales team forecast that with a significantly reduced selling price 3,000 units can be sold in the remainder of the year. Total fixed and variable unit cost will stay as budgeted.
Lower variable cost per unit by $20 through the use of less expensive direct materials. The selling price will also be reduced by $40, and sales of 2,800 units are expected for the remainder of the year.
Cut fixed costs by $20,000 and lower the selling price by 5%. Variable cost per unit will be unchanged and sales of 2,500 units are expected for the remainder of the year.
PROBLEM 3 INSTRUCTIONS
Under the current production, policy determines the number of units that the company must sell to:
break-even
achieve its desired operating income
Determine which alternative the company should select to achieve its desired operating income.

These financial statement items are for Rugen Company at year-end, July 31, 2020.
Prepare a owner’s equity statement for the year.

Prepare a classified balance sheet at July 31.

Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company’s Assembling Department is as follows.

The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were produced.

In September, 64,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August.

Sheffield Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

Additional information:

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

. On December 31, 2020, Heffner Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $100 par, cumulative preferred stock outstanding. On February 28, 2021, Heffner purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. Heffner sold 6,000 of the treasury shares on September 30, 2021, for $47 per share. Net income for 2021 was $540,000. The income tax rate is 25%. Also outstanding at December 31, 2020, were fully vested incentive stock options giving key employees the option to buy 50,000 common shares at $40. The market price of the common shares averaged $50 during 2021. Five thousand 6% bonds were issued at par on January 1, 2021. Each $1,000 bond is convertible into 125 shares of common stock. None of the bonds had been converted by December 31, 2021, and no stock options were exercised during the year.

Required:

Compute basic and diluted earnings per share (rounded to 2 decimal places) for Heffner Company for 2021.