Answer:
186.10 days
Explanation:
The operating cycle = Days inventory outstanding + days sale outstanding
where,
Day inventory outstanding = (Beginning inventory + ending inventory) ÷ cost of goods sold × number of days in a year
= ($1,205,000) ÷ $(2,940,000) × 365 days
= 149.60 days
Day sale outstanding = (Beginning Accounts receivable + ending Accounts receivable) ÷ Net sales × number of days in a year
= ($660,000) ÷ ($6,600,000) × 365 days
= 36.5 days
Now put these days to the above formula
So, the days would equal to
= 149,60 days + 36.5 days
= 186.10 days
Answer:
Packaging Solutions Corporation
1. Planning Budget
Direct labor $68,460
Indirect labor $12,500
Utilities $7,200
Supplies $2,980
Equipment depreciation $28,600
Factory rent $8,500
Property taxes $2,700
Factory administration $15,820
2. Flexible Budget
Direct labor $65,200
Indirect labor $12,100
Utilities $7,100
Supplies $2,900
Equipment depreciation $28,100
Factory rent $8,500
Property taxes $2,700
Factory administration $15,700
3. Spending Variances:
Flexible Actual Spending
Budget Budget Variance
Direct labor $65,200 $66,780 $1,580 U
Indirect labor $12,100 $11,680 $420 F
Utilities $7,100 $7,590 $490 U
Supplies $2,900 $3,190 $290 U
Equipment depreciation $28,100 $28,100 $0 None
Factory rent $8,500 $8,500 $0 None
Property taxes $2,700 $2,700 $0 None
Factory administration $15,700 $15,050 $650 F
Explanation:
a) Data and Calculations:
Planned labor-hours in March = 4,200
Actual labor-hours in March = 4,000
Cost Formulas
Direct labor $16.30q
Indirect labor $4,100 + $2.00q
Utilities $5,100 + $0.50q
Supplies $1,300 + $0.40q
Equipment depreciation $18,100 + $2.50q
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60q
Actual Cost Incurred In March:
Direct labor $ 66,780
Indirect labor $ 11,680
Utilities $ 7,590
Supplies $ 3,190
Equipment depreciation $ 28,100
Factory rent $ 8,900
Property taxes $ 2,700
Factory administration $ 15,050
Flexible Budget:
Direct labor $16.30 * 4,000 = $65,200
Indirect labor $4,100 + $2.00 * 4,000 = $12,100
Utilities $5,100 + $0.50 * 4,000 = $7,100
Supplies $1,300 + $0.40 * 4,000 = $2,900
Equipment depreciation $18,100 + $2.50 * 4,000 = $28,100
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60 * 4,000 = $15,700
Planning Budget
Direct labor $16.30 * 4,200 = $68,460
Indirect labor $4,100 + $2.00 * 4,200 = $12,500
Utilities $5,100 + $0.50 * 4,200 $7,200
Supplies $1,300 + $0.40 * 4,200 $2,980
Equipment depreciation $18,100 + $2.50 * 4,200 = $28,600
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60 * 4,200 = $15,820
The problem involves calculating the planning budget, flexible budget, and spending variances for the Production Department of Packaging Solutions Corporation. The planning budget is based on the expected output, the flexible budget adjusts according to actual results, and the spending variances give the difference between budgeted and actual costs.
The question falls under the field of cost accounting in Business studies. Here, we'll need to calculate the planning budget, the flexible budget, and the spending variances for the Production Department of Packaging Solutions Corp.
1. Planning Budget: The planning budget is based on the expected labor-hours and the production output associated with those labor-hours. In this case, the planned labor hours were 4,200.
The flexible budget adjusts the planning budget to reflect actual operational results. The actual hours worked in March were 4,000, which is what we'll use for the flexible budget calculations.
Spending variances are the differences between what was budgeted (either in the planning budget or the flexible budget) and actual results. They can be calculated by subtracting the actual costs from the budgeted costs. This will provide insights into areas where spending was over or under the budgeted amounts.
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a) Chart of accounts
Universal Garage
Chart of Accounts
100 ASSETS
110 CURRENT ASSETS
111 Cash
112 Accounts Receivable
114 Supplies
116 Prepaid Rent
117 Prepaid Insurance
120 PLANT ASSETS
121 Land
123 Machinery
123.1 Accumulated Depreciation-Machinery
125 Office Equipment
0.1 Accumulated Depreciation-Office Equipment
200 LIABILITIES
210 CURRENT LIABILITIES
211 Account Payable
213 Salaries Payable
216 Interest Payable
220 NON-CURRENT LIABILITIES
221 Long-term Bank Loan
300 OWNER'S EQUITY
301 Tahir, Capital
302 Tahir, Drawings
303 Incomes Summary
400 REVENUES
401 Fees Earned
410 Other Income
500 EXPENSES
501 Salary Expenses
502 Supplies Expenses
503 Rent Expenses
504 Insurance Expenses
505 Depreciation Expenses
506 Interest Expenses
510 Miscellaneous Expenses
b) Transactions
Mar 1 Received the following assets from its owner, Tahir:
Cash....................................... Br, 8,300
Supplies ................................. 2,000
Office Equipment................... 10,000
2 Borrowed Br 5,000 from Dashen Bank
3 Paid Br 1,800 for rent on a building leased for business purposes
3 Purchased welding and other repair machinery for Br 3,600 cash
4 Paid Br 200 for a radio advertisement
8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200
13 Paid weekly salary Br 1,200
16 Received Br 4,400 from services rendered on cash
20 Paid weekly salary Br 1,200
20 Received Br500 royalties for idle repair machinery it leased to other businesses
20 Delivered service on credit, Br 6,000
21 Purchased additional repair machinery on account for Br 2,000 from Sámi-Engineers
23 Received Br 5,000 additional cash investment from its owner
24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan
26 Purchased supplies for Br 800 cash
27 Paid Br 100 for customer entertainment and other items
27 Paid weekly salary Br 1,200
31 Paid Br 500 for electricity and other utilities consumed during the month
31 Received Br 4,200 cash from credit customers
31 Paid Tahir Br 1,800 for personal uses
Required:
a) Journalize the above transactions in a two-column journal
b) Post the journal entries to “T” accounts
c) Prepare and complete a worksheet based on the following additional information
i. Cost of supplies remained unconsumed on Mar 31 is Br 900
ii. The amount paid on Mar 3 is for a three-month rent
iii. The amounts of depreciation for machinery and office equipment are estimated to be Br 560 and Br 1,900 respectively
iv. Universal Garage usually pays Br 1,200 for employee's salary every saturday for a six-day work week ended on that day
v. Interest on bank loan accrued but not paid on March 31 total Br 100
d) Prepare financial statements for the month
e) Journalize and post adjusting entries
f) Journalize and post closing entries
g) Prepare post-closing trial balance
Answer:
bla boa black sheep have u any wool no sir no sir
b. Du Pont analysis is based on the fact that return on equity (ROE) can be expressed as the sum of four other ratios.
c. It is relatively easy to interpret a ratio in the absence of comparative data.
d. There are no limitations to financial statement analysis, so analysts can always be confident of their conclusions.
e. None of the above statements is correct.
Answer:
The answer is e) None of the above statements is correct.
Explanation:
The current ratio, which measures the coverage of current assets against current liabilities, though used widely faces the limitation that it does not adequately reflect how well a company pays-off its short term debt. In simple terms, a high current ratio indicating how well a company pays short term debt is not forcefully appreciated in a given economic condition. as it is affected by elements such as time for collectinig bills. This is why to move in line with the going-concern principle, the acid test ratio is the best available measure of liquidity.
Du pont analysis is a form of financial ratio tools that comprises of 3 other financial ratios to provide better comprehension of the Return on Equity of a company. That is Net Profit Margin, Asset Turnover and Totat assets to Total equity ratios.
Interpretation of financial ratios requires the use of data so as to provide a comparison and determine the changes in the financial position of a company.
There are existing limitations to financial statement analysis such as the effect of inflation, the fact that data used for comparison is based on past information and it becomes to hard to predict the future. Considering these, analysts should rather be careful when communicating financial information.
The correct answer is 'b' - Du Pont's analysis is based on a relationship between ROE and three other ratios, not four. The statement 'a' isn't entirely true as the current ratio ignores the type and quality of current assets. Statements 'c' and 'd' are incorrect as analyzing a ratio without comparative data is misleading and limitations exist in financial statement analysis.
The correct statement about financial statement analysis is option 'b. Du Pont's analysis is based on the fact that return on equity (ROE) can be expressed as the product of three other ratios: the net profit margin, the total assets turnover, and the financial leverage ratio, not four. It's crucial to note that, while the current ratio can provide insight into a company's liquidity, it's not universally 'the best' measure because it fails to account for the nature and quality of current assets. Statements 'c' and 'd' are also incorrect; interpreting ratio data without comparative data lacks context and can be misleading, and financial statement analysis does have limitations such as not considering non-financial factors or possible manipulation of financial statements.
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Answer:
3.08 years
Explanation:
The computation of the payback period is shown below:
Year Cash flows Cumulative cash flows
0 -$5,500 -$5,500
1 $1,525 -$3,975
2 $1,725 -$2,250
3 $2,125 -$125
4 $1,625 $1,500
Now the pay back period is
= 3 years + $125 ÷ $1,625
= 3.08 years
The payback period of the given cash flows is calculated by subtracting each year's cash inflow from the initial investment until the remaining amount is completely paid off. The payback period is found to be approximately 3.08 years.
The Payback Period is a capital budgeting method that calculates the time required to recoup the cost of an investment. In your case, the cash flow starts with an investment of $5,500 at Year 0, followed by cash inflows in subsequent years. Let's calculate the payback period in years.
At the end of Year 3, there is still $125 remaining from the original investment that has not been recouped. We need a part of the Year 4 cash inflow to pay back the rest. Therefore, the payback period in years is: 3 + ($125 / $1,625) = 3.08 years.
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b) What entry would Bylie make to record the sale of the machine for $15,000 cash?
Answer:
A)
Cash $25000 Dr
Accumulated depreciation-Machine $28000 Dr
Machine $50000 Cr
Gain on disposal $3000 Cr
B)
Cash $15000 Dr
Accumulated depreciation-Machine $28000 Dr
Loss on disposal $7000 Dr
Machine $50000 Cr
Explanation:
The net book value of the machine is cost - accumulated depreciation.
Thus, the NBV = 50000 - 28000 = $22000
a. The gain on disposal = Cash received - NBV
Gain on disposal = 25000 - 22000 = $3000 gain
b. The gain on disposal = 15000 - 22000 = -$7000 (loss on disposal)
How many servings can you make? Whole servings only - round down
rather than using partial servings.
Answer:
to make a servings of roast beef gravy.
Answer:
19.2 serving
Explanation:
Because if you have 24 cups of milk and need 1.25 cups to make 1 serving we would have to divide.
24 cups of milk - 1.25 cups of milk per serving = 19.2