GAAP? Explain in detail. (TCO C) (TCO C) Blue Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 201X, included the following expense accounts. Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers’ salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department.
Question : (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computed by adding a 20% markup to full cost. How much should the selling price be per unit for 300,000 units? 6.
The business required £30,000 cash for working capital. The company gets a loan of £450,000 which was transfer into the business bank account in January as shown in appendix 6. The cash budget shows a balance of £3,918 in January and £16,335 February. The loan calculation is shown in appendix 8. This is expected to be paid back within 8 years by monthly paid instalments of £5.718.41 which was calculated on a 5.1% interest rate.
Redo questions a, b, c, and d under these conditions. a. Total revenue | (100x7500) | | $750,000 | Total Var Cost | (25x7500) | | 187,500 | Total contribution margin | | $562,500 | Fixed Costs | | | 500,000 | Profit | | | $62,500 | b. Contribution margin: $75; breakeven point: Contribution margin x Volume=FC $75 x Volume = $500,000 Volume = 6,667 c. ($75 x Volume)-$500,000 = $100,000 $75 x Volume = $600,000 Volume = 8,000 ($75 x Volume)-$500,000 = $200,000 $75 x Volume = $700,000 Volume = 9,333 d. | | | | | | | | | | | | e. Total revenue | (80x7500) | | $600,000 | Total Var Cost | (25x7500) | | 187,500 | Total contribution margin | | $412,500 | Fixed Costs | | | 500,000
ACCT 550 Week 7 Homework Chapter 11: E11-4, E11-9, E11-11, E11-17 E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round to the nearest dollar.)
EAR= 10.516%; 11051.56 e. What nominal rate would the First National Bank have to offer to make its semiannual compounding CD competitive with Pacific’s daily-compounding CD? R=10.253% 2. Now consider a 5-year CD. Rework Parts a through d of Question 1 using a 5-year ending date. Part a: 16105.1; Part b: 12762.82, 20113.57 3.
What is the amount of its credit carryover and the last year to which the carryover could be used? Answer: $7,750 carried over to 2004 or 2025 4. Margolin Corporation has a regular taxable income of $120,000. It has a positive adjustment of $90,000, preference items of $50,000 and negative adjustments of $40,000. What is its alternative minimum tax?
Problems (p.112) (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Ans: DSO (Days Sales Outstanding) = Accounts Receivables/Average Sales per day Accounts Receivables = 20 * 20000 = $400,000 (3-2) Debt Ratio Vigo Vacations has an equity multiplier of 2.5.
| | | | | * Question 4 2 out of 2 points | | | Using the data below, determine the amount of consumer surplus, if any, in the market. The market clearing price for matinee tickets is $3 | Matinee TicketsWilling to Pay(WTP) | Tony | $1 | George | $2 | Deshon | $3 | Mario | $4 | Antonio | $5 | Brittney | $6 | | | | | | Selected Answer: | $6 | | | | | * Question 5 2 out of 2 points | | | Examine the graph below. The government has placed a $200 tariff on product z. The new equilibrium price is $600. What has happened to consumer surplus?
Now by deducting the EBIT I can figure out the net earnings and adding the depreciation back I got the C.F. OP. Now I had to figure out the discount rate and did all this for five years so I could show the NPV and IRR. All these same steps were done for Corporation “B” to find out which company is worth acquiring. The net present value for company “A” was $29,425.85with a IRR of 6% while company “B” had a NPV of $12,656.03 with an IRR of 13%.