Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250). Beginning inventory for the month was $60,000; purchases for the month were $175,000; and gross profit was 43%. What was the ending inventory for the month?

Answers

Answer 1

Answer:

Answer:

Ending Inventory $ 64,000

Explanation:

To define the final inventory of the company it's necessary to find the cost of good of the period.

As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.

Total Sales Revenue had to be the net value after returns and discounts as it's detailed.

Income Statement

Sales revenue $ 300,000

Cost of goods sold -$ 171,000

Gross Profit $ 129,000 43%

Beginning Inventory $ 60,000

Purchases $ 175,000

Cost of goods sold -$ 171,000

Ending Inventory $ 64,000

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11) Individual Web pages or clusters of pages that function as supplements to a primary site are ________. A) search engine optimization B) pay-per-click ads C) delighters D) microsites E) touch points
Suppose you invest equal amounts in a risky asset with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%. Calculate the standard deviation of the returns on the resulting portfolio.
For an all-equity firm: (a) as earnings before interest and taxes (EBIT) increase, the earnings per share (EPS) increases by the same percentage. (b) as EBIT increases, the EPS increases by a larger percentage. (c) as EBIT increases, the EPS decreases at the same rate. (d) as EBIT increases, the EPS decreases by a larger percentage. (e) as EBIT increases, the EPS might either increase or decrease
Peartree Inc. provides the following data: 2015 2014 Cash $47,000 $25,000 Accounts Receivable, Net 99,000 62,000 Merchandise Inventory 79,000 50,000 Property, Plant, and Equipment, Net 181,000 120,000 Total assets $406,000 $257,000 Additional information: Net sales $530,000 Cost of Goods Sold 150,000 Interest expense 24,000 Net income 181,000 Calculate the return on total assets for the year 2015. A. 62.03%.B. 45.79%.C. 50.74%.D. 71.98%.

Boilermaker House Painting Company1. Sep 3 Paint houses in the current month for $20,000 on account.

2. Sep 8 Purchase painting equipment for $21,000 cash.

3. Sep 12 Purchase office supplies on account for $3,500.

4. Sep 15 Pay employee salaries of $4,200 for the current month.

5. Sept 19 Purchase advertising to appear in the current month for $1,000 cash.

6. Sep 22 Pay office rent of $5,400 for the current month.

7. Sep 26 Receive $15,000 from customers in (1) above.

8. Sep 30 Receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month.

a) Record each transaction. The company uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Deferred Revenue, Common Stock, Retained Earnings, Service Revenue, Salaries Expense, Advertising Expense, Rent Expense.

Answers

Answer:

Explanation:

The journal entries are shown below:

1. Account receivable A/c Dr $20,000

To Deferred revenue A/c $20,000

(Being the paint house on account is recorded)

2. Equipment A/c Dr $21,000

To Cash A/c $21,000

(Being the equipment is purchased for cash)

3. Supplies A/c Dr $3,500

To Accounts Payable A/c $3,500

(Being the office supplies are purchased on credit basis)

4. Salaries expense A/c Dr $4,200

To Cash A/c $4,200

(Being the employees salaries are paid for cash)

5. Advertising expense A/c Dr $1,000

To Cash A/c $1,000

(Being the advertising are purchase for cash)

6. Rent expense A/c $5,400

To Cash A/c $5,400

(Being the rent is paid for cash)

7. Cash A/c Dr $15,000

To Account receivable A/c $15,000

(Being the cash is received)

8. Cash A/c Dr $6,0000

To Deferred revenue $6,000

(Being the cash is received)

Final answer:

The transactions of the Boilermaker House Painting Company are recorded considering the cash flow, accounts receivable, and deferred revenues with specific monetary changes respective of each transaction.

Explanation:

The transactions for Boilermaker House Painting Company can be recorded as follows:

Accounts Receivable $20,000 | Service Revenue $20,000 - the company painted houses on credit.
Equipment $21,000 | Cash $21,000 - the company purchased equipment for cash.
Supplies $3,500 | Accounts Payable $3,500 - the company purchased office supplies on credit.
Salaries Expense $4,200 | Cash $4,200 - the company paid employee salaries.
Advertising Expense $1,000 | Cash $1,000 - the company purchased advertising for cash.
Rent Expense $5,400 | Cash $5,400 - the company paid office rent.
Cash $15,000 | Accounts Receivable $15,000 - the company received cash from customers.
Deferred Revenue $6,000 | Cash $6,000 - the company received cash in advance from a customer.

Learn more about Accounting Transactions here:

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Fig Garden is a popular chain of restaurants for authentic Italian food. Recently, a customer found a dead insect in the pasta he was served. The customer's negative review about the restaurant went viral. Fig Garden's chief executive officer (CEO) publicly apologized for the mishap and posted pictures of the restaurant's kitchen, after being fumigated, on several social networking websites. In this scenario, which of the following does Fig Garden's CEO demonstrate? A. Audience control
B. Crisis management
C. Letharsy
D. Experiential selling

Answers

Answer:

B. Crisis management

Explanation:

In this scenario, the CEO of Fig Garden demonstrates crisis management, which is a strategy used by organizations when there is a negative situation that involves the company and can put their credibility at risk with their stakeholders.

In crisis management, there is the development of a plan that seeks to solve and minimize the negative impacts caused by a problem, anticipating solutions and reducing the negative impacts caused in the internal or external environment of the organization. Crisis management is pre-planning that helps companies to act more effectively in business when there is a crisis that they need to deal with quickly.

Your best friend wants to borrow $2000 from you today for an emergency purchase they need to make that requires a cash payment. They promise to pay you back $1000 in 1 year (i.e. 12 months) and then pay you $1100 in two years (i.e. in 24 months). You would have to remove the money from your stock investment account which is earning on average a return of 5% (i.e. the effective yearly interest rate you are getting on your money is 0.05). Required:
a. Is this a fair deal for you? Justify your answer with an engineering economics analysis and discussion of the situation by calculating the Net Present Value (NPV) for the scenario.
b. Draw a Cash Flow Diagram for this situation.

Answers

Answer:

a. It is not a fair deal for me.

The question is how much is $1,000 today when received in 12 months' time from now. The present value of $1,000 at 5% effective interest rate is $952 ($1,000 * 0.952). The other repayment of $1,100 in 2 years' time from now is worth $997.70 today at the 5% effective interest rate. This implies that my friend is repaying me $1,949.70 in present value terms.

For friendship sake, I may lend her the money, but in economic analysis terms, the NPV value will yield a negative value of $50.30 ($2,000 - $1,949.70). My friend is not actually paying me back the amount I would lend to her. She is paying me less than I actually would lend to her.

b. Cash Flow Diagram:

Year 1 Year 2

F1 F2

$1,000 $1,100 (Inflows)

Fo⇵.................⇵.......................⇵...........................⇵n period

Year 0

$2,000 (outflows)

Explanation:

The cash flow diagram for this loan is the graphical representation of the timing of the cash flows with a clear marking of the repayments made by my best friend in two instalments and the $2,000 that I lent to her. This cash flow diagram presents the flow of cash as arrows on a timeline scaled to the magnitude of the cash flow, where outflows are down arrows and inflows are up arrows.

The Net present value (NPV) of this loan shows the difference between the present value of repayments by my best friend and the present value of $2,000 that I lent to her over a period of 2 years. To obtain this difference, the present values of cash inflows of $1,000 in a year's time and $1,100 in two years' time are determined using the discount factor table based on the given interest rate of 5%.

g On January 1 the company had office supplies costing $2,700 recorded as an asset. During the year $9,600 of office supplies were purchased and recorded as an asset, but the company did not make any journal entries to record the use of supplies during the year. The physical count on December 31 revealed that supplies of $3,100 were remaining. What adjusting entry would be necessary on December 31

Answers

Answer:

Debit Supplies expense $9200

Credit Supplies account $9200

Explanation:

The adjustment required is for the recognition of supplies used. When supplies are purchased, Debit Supplies account, credit cash or accounts payable. On use of supplies, Debit Supplies expense, credit Supplies account

The movement in the balance of supplies at the start and end of a period is as a result of usage and purchases. While usage reduces the balance in supplies, purchases increases the balance. This may be expressed mathematically as

Opening balance + purchases - units used = closing balance

$2,700 + $9,600 - Units used = $3,100

Units used = $2,700 + $9,600 - $3,100

= $9,200

Leilani enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract’s writing is clear and unequivocal, the meaning of the terms must be determined from a. any relevant extrinsic evidence. b. only evidence not contained in the document. c. the later testimony of the parties. d. only the face of the instrument.

Answers

Answer:

The correct option is d) only the face of the instrument

Explanation:

Here when Leilani is entering in to a contract with Metro taxi company to work as a cabdriver, the contract made by the Metro taxi company has clearly stated the terms of condition for the job of cabdriver and it is told in the question that the terms of contract were unequivocal which means all the terms and condition were clearly stated and there was no confusion regarding any of the detail.

So when under the plain meaning rule, the meaning of the terms would be determined only the basis of what is written in the contract not on any extrinsic evidence or something which is not there but only on the face of the instrument.

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 35,900 machine-hours. The estimated variable manufacturing overhead was $4.80 per machine-hour and the estimated total fixed manufacturing overhead was $945,606. The predetermined overhead rate for the recently completed year was closest to:

Answers

Answer:

Predetermined manufacturing overhead rate= $31.14 per machine-hour

Explanation:

Giving the following information:

Estimated machine-hour= 35,900 machine-hours

Estimated variable overhead= $4.80 per machine-hour

Total fixed manufacturing overhead was $945,606.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (945,606/35,900) + 4.8

Predetermined manufacturing overhead rate= $31.14 per machine-hour

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The wages payable related to the factory workers for Larkin Company during the month of January are $76,000. The employer's payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by the employer on this payroll are $6,000. Of the total accumulated cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor. Prepare entries for factory labor. Instructions a. Prepare the entry to record the factory labor costs for the month of January. b. Prepare the entry to assign factory labor to production. (Weygandt, 12/2017, p. 20-31) Weygandt, J. J., Kimmel, P. D., Kieso, D. E. (2017). Accounting Principles, 13th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119411017 Always check citation for accuracy before use.

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Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $28 million per year. Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of $27 million per year. Shao plans to serve the route for only 10 years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is 9%. By how much would the value of the company increase if it accepted the better project (plane)

Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $154,500, allowance for doubtful accounts of $1,165 (credit) and sales of $1,175,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry?