Questions
Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below.

RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018 2017
Assets
Cash $ 25 $ 112
Accounts receivable 180 133
Prepaid insurance 8 4
Inventory 287 176
Buildings and equipment 402 351
Less: Accumulated depreciation (120 ) (241 )
$ 782 $ 535
Liabilities
Accounts payable $ 88 $ 102
Accrued expenses payable 7 13
Notes payable 51 0
Bonds payable 161 0
ShareholdersEquity
Common stock 401 401
Retained earnings 74 19
$ 782 $ 535
RED, INC.
Statement of Income
For Year Ended December 31, 2018
($ in millions)
Revenues
Sales revenue $ 2,010
Expenses
Cost of goods sold $ 1,414
Depreciation expense 41
Operating expenses 449 1,904
Net income $ 106


Additional information from the accounting records:

  1. During 2018, $231 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.
  2. In order to maintain the usual policy of paying cash dividends of $51 million, it was necessary for Red to borrow $51 million from its bank.


Required:
Prepare the statement of cash flows of Red, Inc. using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

In: Accounting

Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and additional information...

Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and additional information from the accounting records of Red, Inc., are provided below.

RED, INC.
Comparative Balance Sheets
December 31, 2021 and 2020 ($ in millions)
2021 2020
Assets
Cash $ 28 $ 114
Accounts receivable 184 136
Prepaid insurance 13 8
Inventory 250 179
Buildings and equipment 451 354
Less: Accumulated depreciation (123 ) (244 )
$ 803 $ 547
Liabilities
Accounts payable $ 93 $ 108
Accrued liabilities 12 18
Notes payable 54 0
Bonds payable 172 0
ShareholdersEquity
Common stock 404 404
Retained earnings 68 17
$ 803 $ 547
RED, INC.
Statement of Income
For Year Ended December 31, 2021
($ in millions)
Revenues
Sales revenue $ 2,020
Expenses
Cost of goods sold $ 1,414
Depreciation expense 41
Operating expenses 460 1,915
Net income $ 105


Additional information from the accounting records:

  1. During 2021, $277 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.
  2. In order to maintain the usual policy of paying cash dividends of $54 million, it was necessary for Red to borrow $54 million from its bank.


Required:
Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

In: Accounting

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below.

RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018 2017
Assets
Cash $ 24 $ 110
Accounts receivable 178 132
Prepaid insurance 7 3
Inventory 285 175
Buildings and equipment 400 350
Less: Accumulated depreciation (119 ) (240 )
$ 775 $ 530
Liabilities
Accounts payable $ 87 $ 100
Accrued expenses payable 6 11
Notes payable 50 0
Bonds payable 160 0
ShareholdersEquity
Common stock 400 400
Retained earnings 72 19
$ 775 $ 530
RED, INC.
Statement of Income
For Year Ended December 31, 2018
($ in millions)
Revenues
Sales revenue $ 2,000
Expenses
Cost of goods sold $ 1,400
Depreciation expense 50
Operating expenses 447 1,897
Net income $ 103


Additional information from the accounting records:

  1. During 2018, $230 million of equipment was purchased to replace $180 million of equipment (95% depreciated) sold at book value.
  2. In order to maintain the usual policy of paying cash dividends of $50 million, it was necessary for Red to borrow $50 million from its bank.


Required:
Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

In: Accounting

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below.

RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018 2017
Assets
Cash $ 43 $ 138
Accounts receivable 196 151
Prepaid insurance 9 4
Inventory 302 194
Buildings and equipment 438 369
Less: Accumulated depreciation (138 ) (259 )
$ 850 $ 597
Liabilities
Accounts payable $ 106 $ 138
Accrued expenses payable 8 15
Notes payable 69 0
Bonds payable 154 0
ShareholdersEquity
Common stock 419 419
Retained earnings 94 25
$ 850 $ 597
RED, INC.
Statement of Income
For Year Ended December 31, 2018
($ in millions)
Revenues
Sales revenue $ 2,190
Expenses
Cost of goods sold $ 1,471
Depreciation expense 41
Operating expenses 540 2,052
Net income $ 138


Additional information from the accounting records:

a.During 2018, $249 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.

b. In order to maintain the usual policy of paying cash dividends of $69 million, it was necessary for Red to borrow $69 million from its bank.


Required:
Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

In: Accounting

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below.

RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018 2017
Assets
Cash $ 42 $ 138
Accounts receivable 194 150
Prepaid insurance 14 8
Inventory 300 193
Buildings and equipment 436 368
Less: Accumulated depreciation (137 ) (258 )
$ 849 $ 599
Liabilities
Accounts payable $ 105 $ 136
Accrued expenses payable 13 21
Notes payable 68 0
Bonds payable 144 0
Shareholders’ Equity
Common stock 418 418
Retained earnings 101 24
$ 849 $ 599
RED, INC.
Statement of Income
For Year Ended December 31, 2018
($ in millions)
Revenues
Sales revenue $ 2,180
Expenses
Cost of goods sold $ 1,468
Depreciation expense 41
Operating expenses 526 2,035
Net income $ 145


Additional information from the accounting records:

During 2018, $248 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.

In order to maintain the usual policy of paying cash dividends of $68 million, it was necessary for Red to borrow $68 million from its bank.


Required:
Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

In: Accounting

For this discussion question you are gong to pick a tax that you or someone you...

For this discussion question you are gong to pick a tax that you or someone you know has to pay and do a little research to determine where that tax goes and what it pays for. You can choose any federal, state or local tax (although state or local taxes may be easier). Once you've picked a tax, make a post below and answer the following questions:

What is the tax you picked?

What type of tax is it? (e.g. excise, percentage, etc.)

Why does this tax exist and where does the tax revenue go? What does the tax fund? (for this one you might have to do a little research)

Based on what the tax funds, do you think it is a tax we should have? (i.e. do you think the tax revenue should go where it does? somewhere else? should the tax be abolished? etc)

NOTE: In your post please include links to any sources where you found information about the tax you are looking at (county web pages, etc.)

In: Economics

Consider the data. xi 2 6 9 13 20 yi 7 19 8 24 22 (a)...

Consider the data.

xi

2 6 9 13 20

yi

7 19 8 24 22

(a)

What is the value of the standard error of the estimate? (Round your answer to three decimal places.)

(b)

Test for a significant relationship by using the t test. Use α = 0.05.

State the null and alternative hypotheses.

H0: β1 ≠ 0
Ha: β1 = 0

H0: β1 ≥ 0
Ha: β1 < 0    

H0: β1 = 0
Ha: β1 ≠ 0

H0: β0 = 0
Ha: β0 ≠ 0

H0: β0 ≠ 0
Ha: β0 = 0

Find the value of the test statistic. (Round your answer to three decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

State your conclusion.

Do not reject H0. We conclude that the relationship between x and y is significant.

Reject H0. We cannot conclude that the relationship between x and y is significant.    

Reject H0. We conclude that the relationship between x and y is significant.

Do not reject H0. We cannot conclude that the relationship between x and y is significant.

(c)

Use the F test to test for a significant relationship. Use α = 0.05.

State the null and alternative hypotheses.

H0: β0 = 0
Ha: β0 ≠ 0

H0: β1 = 0
Ha: β1 ≠ 0    

H0: β0 ≠ 0
Ha: β0 = 0

H0: β1 ≠ 0
Ha: β1 = 0

H0: β1 ≥ 0
Ha: β1 < 0

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

What is your conclusion?

Reject H0. We conclude that the relationship between x and y is significant.

Do not reject H0. We conclude that the relationship between x and y is significant.   

Do not reject H0. We cannot conclude that the relationship between x and y is significant.

Reject H0. We cannot conclude that the relationship between x and y is significant.

In: Statistics and Probability

Consider the data. xi 2 6 9 13 20 yi 7 17 10 28 24 (a)...

Consider the data.

xi

2 6 9 13 20

yi

7 17 10 28 24

(a)

What is the value of the standard error of the estimate? (Round your answer to three decimal places.)

_________

(b)

Test for a significant relationship by using the t test. Use α = 0.05.

State the null and alternative hypotheses.

H0: β0 = 0
Ha: β0 ≠ 0

H0: β1 = 0
Ha: β1 ≠ 0    

H0: β0 ≠ 0
Ha: β0 = 0

H0: β1 ≠ 0
Ha: β1 = 0

H0: β1 ≥ 0
Ha: β1 < 0

Find the value of the test statistic. (Round your answer to three decimal places.)

_______

Find the p-value. (Round your answer to four decimal places.)

p-value = _______

State your conclusion.

Reject H0. We conclude that the relationship between x and y is significant.

Do not reject H0. We conclude that the relationship between x and y is significant.     

Do not reject H0. We cannot conclude that the relationship between x and y is significant.

Reject H0. We cannot conclude that the relationship between x and y is significant.

(c)

Use the F test to test for a significant relationship. Use α = 0.05.

State the null and alternative hypotheses.

H0: β0 = 0
Ha: β0 ≠ 0

H0: β1 = 0
Ha: β1 ≠ 0    

H0: β1 ≠ 0
Ha: β1 = 0

H0: β1 ≥ 0
Ha: β1 < 0

H0: β0 ≠ 0
Ha: β0 = 0

Find the value of the test statistic. (Round your answer to two decimal places.)

_______

Find the p-value. (Round your answer to three decimal places.)

p-value = _______

What is your conclusion?

Do not reject H0. We cannot conclude that the relationship between x and y is significant.

Reject H0. We cannot conclude that the relationship between x and y is significant.     

Do not reject H0. We conclude that the relationship between x and y is significant.

Reject H0. We conclude that the relationship between x and y is significant.

In: Statistics and Probability

A) If you want to increase the capacitance by changing the shape and size of the...

A) If you want to increase the capacitance by changing the shape and size of the capacitor, how would you do that?

B) If you want to increase the capacitance but NOT change the shape and size how could you do it? Explain in some detail why your idea will increase the capacitance.

C) You connect a 4 microfarad capacitor to a 10 volts battery. You then disconnect this capacitor from the battery. You then connect this 4 microfarad capacitor to an uncharged second capacitor. When you measure the voltage across the 4 microfarad capacitor it has dropped to 7.7 Volts. What’s the capacitance of the second capacitor?

In: Physics

Under the loanable funds theory, the equilibrium interest rate is determined by the interaction between the...

Under the loanable funds theory, the equilibrium interest rate is determined by the interaction between the demand for and the supply of funds from financial market participants, mainly the household sector, the business sector and the government sector.

Holding other factors constant, predict the change in domestic interest rates that would occur when facing each of the following situations. Explain your predictions in detail.
i The total wealth of local financial market participants increases.
ii The default risk of loans decreases.
iii Domestic economic growth is thriving.
iv Economic conditions in foreign countries improve.

In: Economics