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When a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making adjustments on the consolidated worksheet? A. Parent company net income equals controlling interest in consolidated net income. B. Parent company retained earnings equals consolidated retained earnings. C. Parent company total assets equals consolidated total assets. D. Parent company dividends equals consolidated dividends. E. Goodwill will not be recorded on the parent's books.
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Hill Company uses job-order costing. At the end of the month, the following data was gathered: Job # Total Cost Complete? Sold? 803 $611 yes yes 804 423 yes no 805 805 no no 806 682 yes yes 807 525 yes no 808 250 no no 809 440 yes yes 810 773 yes no 811 267 no no 812 341 no no Hill's selling price is cost plus 50% for each of its products. What is the total in Finished Goods? a.$1,860 b.$1,721 c.$1,700 d.$2,163 e.$2,230
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Answer:
Debit to loss on sale of equipment of $20,000
Explanation:
Data provided in the question:
Selling cost of the equipment = $100,000
Cost of the equipment = $300,000
Accumulated depreciation of the equipment = $180,000
Now,
The book value of the equipment
= Cost of the equipment - Accumulated depreciation
= $300,000 - $180,000
= $120,000
Therefore,
Proceeds for selling
= Selling cost of the equipment - Book value of the equipment
= $100,000 - $120,000
= - $20,000
Here, the negative sign depicts a loss
Hence,
The company’s journal entry to record the sale of the equipment would include a Debit to loss on sale of equipment of $20,000
Final answer:
The company's journal entry would include a debit to Accumulated Depreciation, a debit to Loss on Sale of Equipment, and credits to Equipment and Cash.
Explanation:
The company would record the sale of the equipment with the following journal entry:
Debit: Accumulated Depreciation - $180,000
Debit: Loss on Sale of Equipment - (Sale Price - Book Value)
Credit: Equipment - $300,000
Credit: Cash - $100,000
The debit to Accumulated Depreciation reduces the accumulated depreciation on the balance sheet. The debit to Loss on Sale of Equipment records the difference between the sale price and the book value as a loss. The credit to Equipment removes the asset from the balance sheet. The credit to Cash reflects the cash received from the sale.
Learn more about journal entry here:
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Answer:
10.75%
Explanation:
The computation of the effective annual interest rate is shown below:
= Interest ÷ total net amount available
where,
Total net amount available would be
= Loan amount - Loan amount × interest rate - loan amount × compensating percentage
= $25,000,000 - $25,000,000 × 8.25% - $25,000,000 × 15%
= $25,000,000 - $2062,500 - $3,750,000
= $19,187,500
And, the interest would be $2,062,500
Now put these values to the above formula
So, the rate would equal to
= $2,062,500 ÷ $19,187,500
= 10.75%
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Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
where PMT=$800; i= 5%, n= 10
= 6,177.39
a2- = 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1- = 3,353.98
b2- =2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
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Answer:
The answer is option C) Managers find operation costing useful in cost management because it uses job costing to account for the conversion costs and process costing for the material and customizable components.
Explanation:
Operation costing is a mix of job costing and process costing,
In Process Costing, each process or stage of production is costed separately. while Job costing is used to calculate and assign the total cost of materials, labor, and overhead of a specific job.
The manufacture of a product may consist of several operations. In Operation Costing, costs are collected for each operation instead of each process or stage of manufacture.
Therefore, Managers find operation costing useful in cost management because it uses job costing to account for the conversion costs and process costing for the material and customizable components.
Operating assets $164,101 $153,211
Operating liabilities 120,785 114,836
Net cash flow from operations 46,709 39,540
Net operating profit after tax (NOPAT) 33,371 31,742
Discount factor 6.0% 6.0%
What are the company's free cash flows to the firm (FCFF) for 2017?
A. $28,430
B. $24,638
C. $28,907
D. $25,797
E. None of the above
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Answer:
Option (A) is correct.
Explanation:
Net Operating assets in 2017:
= Operating assets - Operating liabilities
= $164,101 - $120,785
= $43,316
Net Operating assets in 2016:
= Operating assets - Operating liabilities
= $153,211 - $114,836
= $38,375
Increase in net operating assets:
= $43,316 - $38,375
= $4,941
Company's free cash flows to the firm (FCFF) for 2017:
= Net operating profit after tax 2017 - Increase in net operating assets
= $33,371 - $4,941
= $28,430
Answers
Answer:
D. Price or Loss leader pricing
Explanation:
A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. ... The loss leader is offered at a price below its minimum profit margin—not necessarily below cost.