9.Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $300,000 if credit is extended to these new customers. Of the new accounts receivable generated, 6 percent will prove to be uncollectible. Additional collection costs will be 5 percent of sales, and production and selling costs will be 78 percent of sales. The firm is in the 25 percent tax bracket.
a. Compute the incremental income after taxes.
|
b. What will Johnson’s incremental return on sales be if these new credit customers are accepted? (Input your answer as a percent rounded to 2 decimal places.)
|
c. If the accounts receivable turnover ratio is 3 to 1, and no other asset buildup is needed to serve the new customers, what will Johnson’s incremental return on new average investment be? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
|
In: Accounting
Comparative balance sheets for 2021 and 2020 and a statement of
income for 2021 are given below for Metagrobolize Industries.
Additional information from the accounting records of Metagrobolize
also is provided.
| METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 400 | $ | 170 | ||||
| Accounts receivable | 430 | 230 | ||||||
| Inventory | 580 | 370 | ||||||
| Land | 550 | 545 | ||||||
| Building | 900 | 900 | ||||||
| Less: Accumulated depreciation | (250 | ) | (210) | |||||
| Equipment | 2,700 | 2,390 | ||||||
| Less: Accumulated depreciation | (409 | ) | (380 | ) | ||||
| Patent | 1,400 | 1,500 | ||||||
| $ | 6,301 | $ | 5,515 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 680 | $ | 480 | ||||
| Accrued liabilities | 190 | 115 | ||||||
| Lease liability—land | 130 | 0 | ||||||
| Shareholders' Equity | ||||||||
| Common stock | 3,160 | 3,000 | ||||||
| Paid-in capital—excess of par | 500 | 490 | ||||||
| Retained earnings | 1,641 | 1,430 | ||||||
| $ | 6,301 | $ | 5,515 | |||||
| METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) |
||||||
| Revenues | ||||||
| Sales revenue | $ | 2,608 | ||||
| Gain on sale of land | 50 | $ | 2,658 | |||
| Expenses | ||||||
| Cost of goods sold | $ | 880 | ||||
| Depreciation expense—building | 40 | |||||
| Depreciation expense—equipment | 272 | |||||
| Loss on sale of equipment | 10 | |||||
| Amortization of patent | 100 | |||||
| Operating expenses | 550 | 1,852 | ||||
| Net income | $ | 806 | ||||
Additional information from the accounting records:
Required:
Prepare the statement of cash flows of Metagrobolize for the year
ended December 31, 2021. Present cash flows from operating
activities by the direct method. (Enter your answers in
thousands (i.e., 10,000 should be entered as 10). Amounts to be
deducted should be indicated with a minus sign.)
In: Accounting
If a 0.200 M solution of KOH is added to a solution containing 0.100 M Ni2+, 0.100 M Ce3+, and 0.100 M Cu2+, which metal hydroxide will precipitate first? Calculate the concentration of the first precipitated ion when the second soluble ion begins to precipitate. When the most soluble ion starts to precipitate, what is the concentration for the second soluble ion in the solution?
Ksp Ni(OH)2 = 6.0 X 10-16, Ksp Ce(OH)3 = 6.0 X 10-22, Ksp Cu(OH)2 = 4.8 X 10-20
In: Chemistry
Externalities
1) Amanda owns an electric power plant in the city of Wetaskiwin. Francesca owns a laundry service next door to the power plant. Francesca's specialty in town is the “spring fresh” scent he achieves by air-drying laundry outside. In producing electricity, Amanda also produces smoke. Unfortunately, Amanda’s smoke dirties Francesca’s laundry, creating costs for Francesca of for each kwh Amanda produces.
(a) Draw a figure, with lines indicating the private and social cost to supply electricity as well as the private and social marginal benefit of producing electricity
(b) In your figure, shade in the social cost to society (total social and private costs) from producing the market equilibrium quantity of electricity.
(c) Suggest some possible solutions for this market failure.
In: Economics
Indicate each statement as No Evolution or Evolution Occurring (If Evolution is Occurring indicate by Selection or No Selection) with a brief explanation:
In: Biology
can anyone give me an example of an Array and its usage in Visual Basic programming
In: Computer Science
Can you describe one agonist and one antagonist for each of the neurotransmitters listed here, other than the ones mentioned in the text? How do they affect NT activity?
In: Biology
A rock is suspended by a light string. When the rock is in air, the tension in the string is 45.0 N . When the rock is totally immersed in water, the tension is 29.2 N . When the rock is totally immersed in an unknown liquid, the tension is 21.0 N .
What is the density of the unknown liquid?
In: Physics
An employer fired one of the employees because the employer did not like the employee's husband, who was a rather loud and obnoxious type. When he came to office parties, he routinely wore everyone's nerves to a frazzle. The employee does not have a contract with the employer and is not in a union. Does she have a cause of action for unjust dismissal?
In: Economics
I struggle with javascript but for this assingment, I was supposed to create a website with at least 10 HTML files, of course with javascript included. I may be confused but not sure what is the difference between HTML Files and tags. I know what tags are but may have misunderstood the assignment with HTML files.
Your final project is to develop a web site of your choice. It is entirely up to you on what type of web site you want to develop. In the past, I saw students developed their personal web site, a site they developed for their work, family, church, or a site that promoted a friend's business, etc. The choice is yours. Your site must have the following features:
Some functionality of your web site can be only a prototype, but not fully functioning. For example, you might have a "Contact Us" page that allows users to send an email to your company. The page will have several input fields, such as Name, Subject, Message, and a Send button. However, when clicking on the Send button, no email is actually sent out. Similarly, you might create a payment processing page that allows the user to enter payment information, such as credit card number, expiration date, etc. But no payment is processed after the user clicks on the submit button.
In: Computer Science
Reflect on the Ellen Moore (A) case in light of what you've read this week on conflict and in the previous module and answer the following questions:
In: Computer Science
Boomerang Corporation, a New Zealand corporation, is owned by the following unrelated persons: 40 percent by a U.S. corporation, 15 percent by a U.S. individual, and 45 percent by an Australian corporation. During the year, Boomerang earned $3,000,000 of subpart F income. Which of the following statements is true about the application of subpart F to the income earned by Boomerang?
Multiple Choice Boomerang is a CFC and the U.S. corporation and U.S. individual will have a deemed dividend of $1,200,000 and $450,000, respectively. Boomerang is a CFC and only the U.S. corporation will have a deemed dividend of $1,200,000. Boomerang is a CFC and the U.S. corporation, U.S. individual, and Australian corporation will have a deemed dividend of $1,200,000, $450,000, and $1,350,000, respectively. Boomerang is not a CFC and none of the shareholders will have a deemed dividend under subpart F.
In: Accounting
A luge and its rider, with a total mass of 84 kg, emerge from a downhill track onto a horizontal straight track with an initial speed of 33 m/s. If a force slows them to a stop at a constant rate of 1.1 m/s2, (a) what magnitude F is required for the force, (b) what distance d do they travel while slowing, and (c) what work W is done on them by the force? What are (d)F, (e)d, and (f)W if they, instead, slow at 2.2 m/s2?
In: Physics
Discuss the legal rights and responsibilities of both teachers and students and the implications of each on the teaching field.
In: Psychology