Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $214,000; and fixed costs $71,800. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income $Enter the net income in dollars 2. Reduce variable costs to 55% of sales. Net income $Enter the net income in dollars 3. Reduce fixed costs by $23,000. Net income $Enter the net income in dollars Which course of action will produce the highest net income? Select an option

Answers

Answer 1

Answer:

$14,200

$44,200

$63,200

$37,200

Explanation:

As per the data given in the question,

                    Presentation of profitability Statement

Particulars               Amount             Per unit

Sales                        $300,000               $60            ($300,000÷5,000)

Less: Variable cost $214,000

Contribution              $86,000

Less: Fixed cost $71,800

Net income             $14,200

Alternative 1 : increase selling price by 10%

Presentation of profitability Statement

Particulars                                                          Amount

Sales ($60+10% of $60) × 5,000                       $330,000

Less: Variable cost                                             $214,000

Contribution                                                      $116,000

Less: Fixed cost                                                $71,800

Net income                                                       $44,200

Alternative 2 : reduce variable cost to 55% sales

                          Presentation of profitability Statement

Particulars                                                           Amount

Sales                                                                     $300,000

Less: Variable cost(300,000×55%)                      $165,000

Contribution                                                         $135,000

Less: Fixed cost                                                    $71,800

Net income                                                            $63,200

Alternative 3 : reduce fixed cost by 23,000

                                   Presentation of profitability Statement

Particulars                                                                  Amount

Sales                                                                        $300,000

Less: Variable cost                                                 $214,000

Contribution                                                            $86,000

Less: Fixed cost($71,800-$23,000)                       $48,800

Net income                                                              $37,200

Therefore alternative 2 produced highest net income.


Related Questions

d. the expectation that the equilibrium price of auto tires will be lower in the future than it is now: (click to select) .

Answers

In the hopes that the equilibrium price of auto tires would drop in the future, businesses are selling their inventory now while the price is still high.

What is supply?

The amount of a resource that businesses, producers, workers, providers of financial assets, or other economic agents are willing and able to offer to the market or to a specific person is known as supply in economics.

Supply can refer to manufactured items, labor hours, raw resources, or any other in-demand or pricey item.

Supply is frequently represented graphically as a supply curve, with the amount supplied as a function of price on the horizontal axis and price per unit on the vertical axis.

It is sad yet a common practice to reverse the dependent and independent variables from their customary positions.

So, in the given situation, the supply increases.

Businesses sell their inventories now while the price is still high in the hopes that the equilibrium price of auto tires would decrease in the future.

Therefore, in the hopes that the equilibrium price of auto tires would drop in the future, businesses are selling their inventory now while the price is still high.

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Correct question:

The expectation that the equilibrium price of auto tires will be lower in the future than it is now: Supply _____

Northern Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. To maintain the $10,000 required balance, during June the company must:

Answers

Answer:

Borrowed amount of $2,500

Explanation:

The computation is shown below;

The Total available balance is

= Beginning balance + Receipts - Disbursements

= $12,000 + $30,000 - $34,500

= $7,500

As the cash should be maintained of $10,000

So,  

The amount to be borrowed is

= $10,000 - $7500

= $2,500

Lux Ladies, Inc., is a company that specializes in expensive and unusual gifts for all occasions. It keeps a large file of information on all of its regular customers, including names, addresses, and type of gifts they have ordered in the past, and the size and frequency of their orders. The electronic file which stores this information is a(n)

Select one:
a. spreadsheet.
b. MP3 file.
c. PERT file.
d. database.

Answers

Option D. The database is the The electronic file which stores this information for the company Lux Ladies, Inc.

What is a database?

A database in computing is a structured collection of data that is electronically accessible and stored. Large databases are housed on computer clusters or cloud storage, whilst small databases can be stored on a file system.

A database is a collection of data that has been organized to make it simple to manage and update. Data records or files containing information, including as sales transactions, customer information, financial data, and product information, are often aggregated and stored in computer databases.

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Question 16 of 40
What is the difference between specialization and cross-training?
A. Specialization is for employees at the top management level of
the company while cross-training is for employees at the entry
level.
B. Specialization is for employees who love what they do while cross-
training is for employees who don't love any one particular area of
their work.
C. Specialization leads employees to focus on a single skill or task
while cross-training deals with training employees in multiple skills
or tasks.
D. Specialization is for employees who have an advanced degree
while cross-training is for those who do not have an advanced
degree.

Answers

The correct answer is C) , Specialization leads employees to focus on a single skill or task while cross-training deals with training employees in multiple skills or tasks.

Specialization and cross-training differ in terms of the focus of training and development. Specialization involves employees focusing on developing expertise in a particular skill or area of work. It often involves becoming highly proficient and knowledgeable in a specific field or task.

Specialization allows employees to become experts in their chosen area and can lead to increased efficiency and productivity in that particular domain.

On the other hand, cross-training involves training employees in multiple skills or tasks that are outside of their primary area of expertise. It aims to provide employees with a broader skill set and the ability to perform different roles within an organization.

Cross-training helps in creating a more flexible workforce that can adapt to changing needs and handle a variety of tasks. It also enhances collaboration and teamwork by enabling employees to understand and appreciate the work of their colleagues in different areas.

Specialization and cross-training are both valuable approaches depending on the organizational needs and employee roles.

Specialization is beneficial when deep expertise and mastery in a specific area are required, while cross-training is advantageous for fostering versatility and adaptability among employees.

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Information related to Pharoah Company is presented below.

a. On April 5, purchased merchandise on account from Riverbed Company for $28,800, terms 3/10, net/30, FOB shipping point.
b. On April 6, paid freight costs of $900 on merchandise purchased from Riverbed.
c. On April 7, purchased equipment on account for $29,000.
d. On April 8, returned $3,400 of merchandise to Riverbed Company.
e. On April 15, paid the amount due to Riverbed Company in full.

Required:
Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system.

Answers

Answer:

April 5

Dr Inventory $28,800

Cr Accounts Payable $28,800

April 6

Dr Inventory $900

Cr Cash $900

April 7

Dr Equipment $29,000

Cr Accounts Payable $29,000

April 8

Dr Accounts Payable $3,400

Cr Inventory credit $3,400

April 15

Dr Accounts Payable 25,400

Cr Cash 24,638

Cr Inventory 762

Explanation:

Preparation of the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system

April 5

Dr Inventory $28,800

Cr Accounts Payable $28,800

April 6

Dr Inventory $900

Cr Cash $900

April 7

Dr Equipment $29,000

Cr Accounts Payable $29,000

April 8

Dr Accounts Payable $3,400

Cr Inventory credit $3,400

April 15

Dr Accounts Payable 25,400

($28,800 - 3,400)

Cr Cash 24,638

(25,400-762)

Cr Inventory 762

(25400 * 0.03 )

The additional components of the marketing mix for marketing a service does not include which of the following?

people
process
popularity
physical environment

Answers

The marketing mix comprises four primary elements: product, price, promotion, and place. However, when marketing services, some additional components are added to the mix. These components are known as the 7Ps of marketing and include people, process, and physical evidence (or physical environment).

Popularity, on the other hand, is not a component of the marketing mix for services. Popularity can be considered a byproduct of the marketing efforts and how successful they are in promoting the service to the target audience. Popularity is a measure of how well a service is known or recognized in the market.

People: This component of the marketing mix is concerned with the people involved in the delivery of the service. These people include the employees, staff, and other personnel involved in providing the service to the customers. These people are critical to the success of the service and need to be trained, managed, and motivated to provide excellent service.

Process: This component of the marketing mix is concerned with the procedures and processes involved in the delivery of the service. The process should be designed to ensure that the service is delivered consistently and efficiently, meeting the needs and expectations of the customers. A well-designed process can enhance the customer experience and help in creating a positive perception of the service.

Physical Environment: This component of the marketing mix is concerned with the physical environment in which the service is delivered. This environment can include the ambiance, decor, lighting, and other factors that contribute to the customer experience.

A well-designed physical environment can enhance the customer experience and contribute to the success of the service.

Popularity: Popularity can be considered a byproduct of the marketing efforts and how successful they are in promoting the service to the target audience. Popularity is a measure of how well a service is known or recognized in the market.

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Your interest rate is compounded annually ,beginning balance $1166.40 annual rate 8%, how much will you earn in interest alone?

Answers

You will earn $93.31 in interest alone.

To calculate the amount of interest you will earn, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (beginning balance)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this case, the beginning balance is $1166.40, the annual interest rate is 8%, and the interest is compounded annually.
First, we need to convert the annual interest rate to a decimal form by dividing it by 100: 8% / 100 = 0.08.
Next, we substitute the values into the formula:
A = 1166.40(1 + 0.08/1)^(1*1)
Simplifying the equation, we have:
A = 1166.40(1.08)
Now, we can calculate the final amount
A = $1166.40 * 1.08
A = $1259.71
To find the amount of interest earned, we subtract the principal amount (beginning balance) from the final amount:
Interest earned = $1259.71 - $1166.40
Interest earned = $93.31
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What is the safest action you could take if you receive a resume on LinkedIn from a candidate who is interested in a position at your organization

Answers

If you receive a resume on Lin-kedIn from a candidate who would be interested in a position at your company, save the attachment immediately to their candidate profile.

This enables you to study the candidate's profile and recruiting activity before determining whether to pursue the candidate further. When uploading your resume online, you should also choose trusted sources that have a direct link to legitimate firms and recruiters.

You can also forward the message to the employment site that was used and advise them that if someone is interested in a position at your organization, they may want to remove the listing.

As a result, the significance of the safest action you could take if you receive a resume on the candidate are the aforementioned.

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Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax rate of 35 percent. What is the net income for the firm? Suppose the company paid out #30,000 in cash dividends. What is the addition to retained earnings?

Answers

Answer:

The Income Statement  is-

Sales = $435,000

Costs = 216,000

Depreciation = 40,000

EBIT= $179,000

Interest = 21,000

EBT = $158,000

Taxes = 55,300

Net income = $102,700

I have done this question before in my "Money Management" Dual enrolled class.

:)

The corporation distributed cash dividends of $30,000. The resulting net income will be $102,700.

What is the calculation?

This is the income statement:

Sales = $435,000

Costs = 216,000

Amount depreciated: 40,000

EBIT= $179,000

Interest equals 21,00

EBT = $158,000

Taxes = 55,300

Profit = $102,700

In finance and business, net income (also known as total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income less its costs of goods sold,  depreciation expenses, and amortization, interest payments, and taxes for a given accounting period.

It is calculated as the sum of all revenues, profits, and losses during the period less all expenses, losses, and gains. It has also been described as the net growth in shareholders' equity as a result of a company's operations. It's not the same as gross income, which solely deducts the cost of the things sold from revenue.

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Which of the following statements is true of browse-wrap agreements?

Answers

Answer:

Im sorry I dont see anything? Theres no pictures.

Crocker Corporation began calendar-year 2016 with stockholders' equity of $450,000, consisting of contributed capital of $315,000 and retained earnings of $135,000. During 2016, it issued additional stock for total cash proceeds of $135,000. It also reported $225,000 of net income, of which $112,500 was paid as a cash dividend to shareholders. Required Prepare the December 31, 2016 statement of stockholders' equity for Crocker Corporation. Use negative signs with answers that reduce the account balance(s).

Answers

Crocker Corporation's statement of stockholders' equity for December 31, 2016 is as follows:

Stockholders' Equity

Contributed capital: $315,000

Add: Issuance of additional stock for cash proceeds $135,000

Total contributed capital: $450,000

Retained earnings: $135,000

Add: Net income for 2016: $225,000

Subtotal: $360,000

Less: Cash dividends paid to shareholders: ($112,500)

Total retained earnings: $247,500

Total stockholders' equity: $697,500

Explanation:

- At the beginning of 2016, Crocker Corporation had contributed capital of $315,000 and retained earnings of $135,000, for a total stockholders' equity of $450,000.

- During 2016, Crocker issued additional stock for $135,000 in cash, which increased the total contributed capital to $450,000 + $135,000 = $585,000.

- Crocker reported net income of $225,000 for 2016, which increased the retained earnings to $135,000 + $225,000 = $360,000.

- Crocker paid $112,500 in cash dividends to shareholders, which reduced the retained earnings to $360,000 - $112,500 = $247,500.

- The total stockholders' equity for Crocker Corporation at December 31, 2016 is the sum of the total contributed capital and total retained earnings, which is $585,000 + $247,500 = $697,500.

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Lisa, a supervisor at a manufacturing facility, suspects that one of her subordinates may be under the influence of drugs or alcohol. Which one of the following, if true, would lead Lisa to this conclusion?

Answers

If Lisa suspects that one of her subordinates is under the influence of drugs or alcohol, she should approach the situation with sensitivity and professionalism.

If Lisa suspects that one of her subordinates may be under the influence of drugs or alcohol, there could be several signs or symptoms that may lead her to this conclusion. One possible indicator is a change in behavior or attitude. For example, if the subordinate has become increasingly moody, agitated, or withdrawn, this could be a sign that they are struggling with substance abuse. Another possible sign could be a decline in job performance, such as missing deadlines, making mistakes, or being frequently absent from work. The subordinate may also exhibit physical symptoms, such as bloodshot eyes, slurred speech, or unsteadiness on their feet. Furthermore, Lisa may observe that the subordinate is experiencing financial problems, as drug and alcohol addiction can be costly and may lead individuals to miss work or spend their money on substances rather than other necessities. Lisa may also notice that the subordinate has become more secretive or defensive, particularly when questioned about their behavior or whereabouts. It is important to gather as much information as possible before making any accusations or taking any disciplinary action. She may also consider seeking guidance from the company's human resources department or employee assistance program to ensure that the subordinate receives the help they need to overcome their addiction.

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Profit equals the total amount of money made minus

the production cost.
the opportunity cost.
the revenue earned.
the price established.

Answers

Answer:

A. Production cost

Explanation:

Profit equals the total amount of money made minus the production cost.

What is profit?

Profit can be defined as the money earn from the sales of goods and service after deducting the money generated from money spent.

Profit can be calculated as:

Profit=Total money-Cost of production

Inconclusion profit equals the total amount of money made minus the production cost.

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Revenue bills can be proposed only by
Othe House.
O the Senate.
O the Speaker.
the President.
k

Answers

The Revanue bill can only be provided by the Senate

Who will be the first Trillonare in this world ?

Answers

The person who is expected to become the first Trillionaire is Jeff Bezos, founder, and CEO of Amazon.

According to a study conducted by Comparison, Jeff Bezos could become the world’s first Trillionaire by the year 2026. This prediction was made on the basis of the average percentage of growth of Bezos’ net worth over the last five years. The study also highlighted that Bezos’ wealth has grown by an average of 34% over the last five years. At this rate of growth, his net worth could reach $1 trillion by the year 2026.

However, the current COVID-19 pandemic has had a negative impact on the economy, and Bezos’ net worth has already decreased by over $20 billion since the start of the pandemic. Despite this, it is still possible that Bezos may become the world’s first Trillionaire in the future, but there are also other contenders who could reach this milestone, such as Elon Musk, CEO of Tesla and SpaceX. However, as of now, there is no confirmed Trillionaire in the world.

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what is business management

Answers

Business management is the process of organizing, planning, leading, and controlling the resources of an organization to achieve its goals and objectives.

Business management involves coordinating human, financial, and technological assets to ensure the organization's success. In business management, managers develop strategies, implement policies, and make decisions to direct the operations of the company. They also monitor performance and make necessary adjustments to achieve desired outcomes. Key components of business management include strategic planning, operational management, human resource management, financial management, and marketing management. By effectively managing these elements, business managers help organizations maximize profits, maintain a competitive edge, and create a sustainable growth path. Overall, business management is crucial for the success and growth of any organization, as it allows for the efficient utilization of resources and the achievement of strategic objectives.

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If the interviewer does not offer a handshake, you should?

A. Initiate a handshake
B. Act as if you did not notice by searching for your interview documents
C. Sit down Immediately
D. Ask if he or she wants to shake hands

Answers

Answer:

D. Ask if he or she wants to shake hands

Explanation:

Because if they don't ask why don't you ask, so they feel good.

the best answer for you will be B

A mortgage can best be defined as?

a
A state loan designated to qualified applicants for personal use.
b
A loan offered by competitive banks to prospective home owners.
c
A private loan provided by credit unions for health related expenses.
d
A federal loan disbursed by the government to assist senior citizens.

Answers

Answer:

B. A loan offered by competitive banks to prospective home owners.

State whether the following statement is true or false, and explain why. If the statement is false, state the true change. If the national economy shrank at an annual rate of 20% per year for three consecutive years, then the economy shrank by 60% over the three-year period.

Answers

Answer:

It's true.

Explanation:

Because every year 20%  is added so after 3 years it's 60%

this is because the percentage changes a certain amount every months which increases the amount of money it's worth or how much the price goes down.

Question 2
During a problem disaggregation process, you find each element
represented in the tree is completely unique. This means that each
element is:
A: collectively exhaustive
B: not collectively exhaustive
C: mutually exclusive
D: not mutually exclusive

Answers

If each element represented in the tree is completely unique, it means that each element is not collectively exhaustive and not mutually exclusive. Option B & D.

Collectively Exhaustive: This term refers to a situation where all possible options or elements within a category or set are included. In other words, if a set of elements is collectively exhaustive, it means that all possible variations or options have been accounted for and represented.

However, if each element in the problem disaggregation process is completely unique, it suggests that there may be other elements or options that are not included, indicating that the elements are not collectively exhaustive.

Mutually Exclusive: This term refers to a situation where two or more options or elements cannot coexist or occur simultaneously. If elements are mutually exclusive, it means that they are distinct and cannot overlap or be present together.

However, if each element in the problem disaggregation process is completely unique, it suggests that there are no overlapping or shared characteristics between the elements, indicating that they are not mutually exclusive.

Therefore, based on the information provided, the correct answer would be (B) not collectively exhaustive and not mutually exclusive. Each element in the tree is unique and does not represent all possible options, and there is no overlap or shared characteristics between the elements. Option B & D is correct.

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The following is an alphabetical list of Blue Spruce’s Bakery’s adjusted account balances at the end of the company’s fiscal year on November 30, 2021:
Accounts payable $32,710 Merchandise inventory $34,360
Accounts receivable 13,670 Mortgage payable 106,000
Accumulated depreciation—building 61,200 Prepaid insurance 4,500
Accumulated depreciation—equipment 19,880 Property tax expense 3,500
Building 175,000 Purchases 627,700
B. Hachey, capital 104,480 Purchase discounts 6,300
B. Hachey, drawings 12,000 Purchase returns and allowances 13,315
Cash 20,700 Rent revenue 3,400
Depreciation expense 14,900 Salaries expense 121,600
Equipment 57,000 Salaries payable 8,500
Freight in 5,110 Sales 872,000
Freight out 8,200 Sales discounts 8,300
Insurance expense 9,000 Sales returns and allowances 9,845
Interest expense 5,700 Unearned revenue 3,000
Land 79,000 Utilities expense 20,700
1.Prepare a multiple-step income statement for the November 30, 2021, year end

2.Prepare a statement of owner’s equity for the November 30, 2021, year end.

3.Prepare a classified balance sheet for the November 30, 2021, year end

4. Prepare the closing journal entries.

5.Post closing entries to the Merchandise Inventory and capital accounts. Check that the balances in these accounts are the same as the amounts on the balance sheet.

Additional information:
1. Blue Spruce’s Bakery uses a periodic inventory system.
2. Of the mortgage payable, $9,200 is due on March 31, 2022.
3. A physical count determined that merchandise inventory on hand at November 30, 2021, was $37,370.
4. The owner made no capital contributions during the year.

Prepare a multiple step income statement for the Nov 30, 2024 year end.

Answers

1. The preparation of the multiple-step income statement for Blue Spruce's Bakery  for the year ended November 30, 2021, is as follows:

Blue Spruce's Bakery  

Multiple-step Income Statement

For the year ended November 30, 2021

Sales                                                             $872,000

Sales discounts                                                 (8,300)

Sales returns and allowances                          (9,845)

Net sales revenue                                       $853,855

Cost of goods sold:

Merchandise inventory               $34,360

Purchases                                    627,700

Freight in                                           5,110

Purchase discounts                       (6,300)

Purchase returns & allowances    (13,315)

Cost of goods available (sale) $647,555

Merchandise inventory               (37,370)  $610,185

Gross profit                                                $243,670

Operating Expenses:

Property tax expense              $3,500

Depreciation expense             14,900

Salaries expense                    121,600

Freight out                                 8,200

Insurance expense                   9,000

Utilities expense                     20,700     $177,900

Operating Income                                     $65,770

Rent revenue                                                3,400

Income before interest                             $69,170

Interest expense                                         (5,700)

Net Income                                              $63,470

2. The preparation of a statement of owner's equity for Blue Spruce's Bakery for the year ended November 30, 2021, is as follows:

Blue Spruce's Bakery

Statement of Owner's Equity

For the year ended November 30, 2021

B. Hachey, capital       $104,480

B. Hachey, drawings      (12,000)

Net income                     63,470

Ending balance          $155,950

3. The preparation of a classified balance sheet for Blue Spruce's Bakery as of November 30, 2021, is as follows:

Blue Spruce's Bakery

Balance Sheet

As of November 30, 2021

Assets

Current Assets:

Cash                                                                           $20,700

Accounts receivable                                                    13,670

Merchandise inventory                                               37,370

Prepaid insurance                                                        4,500

Total current assets                                                 $76,240

Long-term Assets:

Building                             $175,000

Accumulated depreciation  61,200  $113,800

Equipment                           57,000

Accumulated depreciation 19,880      37,120

Land                                                     79,000    $229,920

Total assets                                                         $306,160

Liabilities and Equity

Current Liabilities:

Accounts payable                                                 $32,710

Salaries payable                                                      8,500

Unearned revenue                                                  3,000

Mortgage payable                                                   9,200

Total current liabilities                                         $53,410

Long-term Liabilities:

Mortgage payable                                                96,800

Total liabilities                                                    $150,210

Owner's Equity                                                 $155,950

Total liabilities and equity                               $306,160

4. The closing journal entries are as follows:

Closing Journal Entries:

Account Titles                                 Debit        Credit

Sales                                           $872,000

Income Summary                                        $872,000

To close the gross sales to the income summary.

Account Titles                                 Debit        Credit

Income Summary                       $18,145

Sales discounts                                            $8,300

Sales returns and allowances                     $9,845

To close sales discounts, returns, and allowances to the income summary.

Account Titles                                 Debit        Credit

Rent revenue                               $3,400

Income Summary                                              $3,400

To close the rent revenue to the income summary.

Account Titles                                 Debit        Credit

Income Summary                    $647,555

Merchandise inventory                               $34,360

Purchases                                                    627,700

Freight in                                                           5,110

To close the beginning inventory, purchases, and freight-in to the income summary.

Account Titles                                 Debit        Credit

Purchase discounts                     $6,300

Purchase returns & allowances    13,315

Income Summary                                           $19,615

To close purchases discounts, returns, and allowances to the income summary.

Account Titles                   Debit        Credit

Income Summary          $183,600

Property tax expense                      $3,500

Depreciation expense                     14,900

Salaries expense                            121,600

Freight out                                         8,200

Insurance expense                           9,000

Utilities expense                             20,700

Interest expense                              5,700

To close expenses to the income summary.

5. The post-closing entries to the Merchandise Inventory and Capital accounts are as follows:

Post-Closing Entries:

Account Titles                   Debit        Credit

Merchandise inventory $37,370

Income Summary                              $37,370

To record the closing merchandise balance.

Statement of Equity     $12,000

Owner's drawings                             $12,000

To close the owner's drawings to the statement of equity.

Income Summary       $63,470

Statement of Equity                          $63,470

To close the income summary to the statement of equity.

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What would be the compound interest rate if tom borrowed $6,000 at a 3% interest rate for 2 years?.

Answers

If Tom borrowed $6,000 over two years at a rate of 3%, the compound interest rate would be $365.4.

How Does Compound Interest Work?

Compound interest is the rate of interest on savings that is calculated using both the initial principal and the interest that has accumulated over previous periods.

"Interest on Interest," also known as the power of compound interest, is thought to have been invented in Italy in the 17th century. Compared to simple interest, which only takes into account the principal, it will grow a sum more quickly.

Compound interest is the rate at which money grows at a faster rate when there are more periods of compounding.

Sum acquired = $6,000 .

The interest rate is 3%.

Year is the number of years.

A =\(P[1+r]^{n}\) .

After two years, the amount is 6,000 [1 x 3%]² .

The sum after two years is 6,365.4  .

The sum after two years minus the amount borrowed is 6,365.4  .

The sum after 6,000 is $365.4 .

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Presented below are long-term liability items for Pharoah Company at December 31, 2020. Bonds payable, due 2022 $625,000 Lease liability 60,000 Notes payable, due 2025 70,000 Discount on bonds payable 46,875 Prepare the long-term liabilities section of the balance sheet for Pharoah Company. (Enter account name only and do not provide descriptive information.)

Answers

Answer:

See explanation

Explanation:

Consider liabilities due within period of more than 12 months for the long-term liabilities section of the balance sheet.

How can you begin applying your knowledge of Fiscal Policy with, stabilizing and/or corrective capabilities, to the current political dialog among the many elected Public officials, as well as those who are seeking election, at the Federal and State Levels, who are expressing their Macroeconomic ideas that are thought to be the only possible policy cures that will actually redirect and strengthen the recovery of the U.S. economy?

Answers

Federal and State Levels, are the expressing the recovery of the U.S. economy are the economic growth, and the wages and prices, and the employment.

What is economy?

The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.” The economy is the important part of the country. The primary sector of the economy is the industrial sector and agriculture sector.

According to the Federal and State Levels, there are the express the recovery of the U.S. the employment are the created the wages and the economy of the economic growth.

As a result, in the Federal and State Levels, are the expressing the recovery of the U.S. economy are the economic growth, and the wages and prices, and the employment.

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The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $43,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash $39,000 Liabilities $179,000
Accounts receivable 69,000 Butler, loan 39,000
Office equipment (net) 59,000 Butler, capital (25%) 95,000
Building (net) 155,000 Osman, capital (25%) 39,000
Land 145,000 Ward, capital (50%) 115,000
Total assets $467,000 Total liabilities and capital $467,000

Required:
Prepare a predistribution plan for this partnership

Answers

Answer:

Butler, Osman, and Ward Partnership

Predistribution Plan:

Total assets realized (assumed) $467,000

Less liquidation expenses               43,000

Liabilities                                         179,000

Butler, loan                                      39,000

Cash available for distribution  $206,000

Butler, capital (25%)                       84,250 ($95,000 - $10,750)

Osman, capital (25%)                    28,250 ($39,000 - $10,750)

Ward, capital (50%)                       93,500 ($115,000 - $21,500)

Explanation:

a) Data and Calculations:

Expected liquidation expenses = $43,000

Cash                             $39,000

Accounts receivable      69,000

Office equipment (net)  59,000

Building (net)                155,000

Land                             145,000

Total assets              $467,000

Liabilities                   $179,000

Butler, loan                  39,000

Butler, capital (25%)   95,000

Osman, capital (25%) 39,000

Ward, capital (50%)   115,000

Total liabilities and capital $467,000

Predistribution Plan:

Total assets realized (assumed) $467,000

Less liquidation expenses               43,000

Liabilities                                         179,000

Butler, loan                                      39,000

Cash available for distribution  $206,000

Butler, capital (25%)                       84,250 ($95,000 - $10,750)

Osman, capital (25%)                    28,250 ($39,000 - $10,750)

Ward, capital (50%)                       93,500 ($115,000 - $21,500)

b) Each partner will share in the liquidation expense according to their profits and losses sharing ratios.  This will reduce their capital account balances and show the net cash they will collect upon liquidation.  Note that this plan is based on the assumption that all the assets will be completely realized, that is, without any loss.

Which of the following items would MOST likely be enforced by the forced sale of a property?
A) encroachment
B) easement
C) will
D) judgment

Answers

A property is a belong of any person. The items would most likely be enforced by the forced sale of a property is judgment.

How are judgments been enforced?

In terms of wages, a judgment creditor uses authorization from the court in a document.  Due to this authorization, the judgment creditor directs the police to seize a portion of your wages. The police, in turn, notifies the person involved.

This is the same when it comes to property. A judgement by a court often stands in the sales of any property.

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What do you think are some of the difficulties of adding 25% more employees for the holiday season what kind of planning do you think would be needed 

Answers

Adding 25% more employees for the holiday season can bring some challenges and difficulties for a company. Here are some potential difficulties and the planning needed to address them:

Hiring and Training: The first challenge is to find and hire new employees, which can be time-consuming and costly. Companies should plan ahead and start the hiring process early to ensure they have enough time to select and train new employees.

Cost: The cost of hiring and training new employees can be high, and companies need to ensure they have enough resources to cover the additional expenses. Companies should create a budget and estimate the cost of hiring and training new employees.

Integration and Teamwork: Integrating new employees into the team and ensuring they work effectively with existing employees can be challenging. Companies should plan team-building activities and create a welcoming environment to help new employees feel part of the team.

Workload and Scheduling: Companies need to plan the workload and schedule the additional employees effectively to ensure they are utilized efficiently. This includes ensuring that there is enough work to keep all employees busy and that the schedule allows for an appropriate level of coverage.

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should work or another form of payment be used to satisfy a lien ?

Answers

Explanation:

A lien is a legal claim over an asset until the debt obligation is satisfied.

Tableau DA 9-3: Mini-Case, Analyzing warranty liabilities LO P4
1. Looking at past years, does it appear that Arctica has usually underestimated or overestimated its warranty liabilities?
2. How would we suggest Arctica change its estimates of warranty liabilities in future periods?
3. Management tells us that Arctica plans to keep estimated warranty expense percentages to a minimum next year. Why might management want to keep these percentages low?
4. Alternatively, assume management informs us that Arctica had a great year and has very high net income. However, management is now concerned about high taxes, which are calculated as a percentage of net income. What might management try to do to lower Arctica’s taxes?

Question 1 Options:
a. Neither overestimated nor underestimated
b. Overestimated
c. Underestimated

Question 2 Options:
a. Decrease warranty estimate percentage
b. Increase warranty estimate percentage
c. Keep estimate percentages the same
d. No longer estimate warranty expenses

Question 3 Options:
a. To decrease net income to show a "smooth" earnings pattern
b. To increase management bonus that is based on net income.
c. To limit the amount of parts needing to be purchased.
d. To limit the number of warranty claims

Question 4 Options:
a. Decrease warranty estimate percentages
b. Increase warranty estimate percentages
c. Limit parts purchased for warranty claims
d. Limit the number of warranty claims

I got underestimated for the first question. I need help with the others. Much appreciated.

Answers

Answer:

Answer 2 - Increase Warranty estimate percentages

Answer 3 - To Increase management bonus that is based on net income

Answer 4 - Increase warranty Estimate percentages

Explanation:

Answer 2 - Total Warranty was above their estimate, if they increase the percentage they will be closer to the actual

Answer 3 -  Bonus is based on net income, the higher the net income the better your bonus, you can change this based on the percentage you estimate.

Answer 4 - the more they spend the less taxes they will incur.

financial ratio analysis involves identifying how a firm is performing according to all but which of the following? group of answer choices balance sheet income statement market valuation innovation

Answers

In the following question, the financial ratio analysis involves identifying how a firm is performing according to all but "innovation." from the given options.

Financial ratio analysis is a tool used to evaluate a company's financial performance and health by examining its financial statements. The analysis involves comparing various financial ratios to industry averages, historical data, or the company's performance over time. Financial ratios provide insight into a company's liquidity, profitability, efficiency, and solvency.

In contrast, innovation refers to the development and implementation of new ideas, products, or processes to create value for customers and increase competitiveness. While innovation is critical for a company's long-term success, it is not a factor that is directly measured or evaluated through financial ratio analysis.

Therefore, all of the other options - balance sheet, income statement, and market valuation - are important components of financial ratio analysis as they provide essential information on a company's financial health and performance.

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