Strand Group Inc started business in 2009 and for the year had the following transactions: 1. Started the company with a $100,000 investment. 2. Sold consulting services for $300,000, 25% on account, the remainder for cash 3. Paid wages of $70,000 4. Purchased a new computer for $15,000 (fair market value $20,000) for cash 5. Purchased supplies of $10,000 on account 6. Sold consulting services for $200,000, on account 7. Purchased office furniture for $30,000 by borrowing the money from a bank 8. Collected $100,000 from customers on account 9. Paid the bank 50% of the money it owed them 10. Sold consulting services for $50,000 forcash o 11. Paid dividends of $15,000 12. The company president purchased a personal residence for $150,000. (3, Paid the following expenses: a. Utilities- $20,000. b. Rent- $55,000. c. Insurance- $15,000. Account
Q: Sharon is single, She owns a Florist Shop, She had health insurance coverage for the entire year.…
A: SECA or Self Employment tax Act is a system that ensures that those people engaged in the…
Q: Truman Company acquired machinery on January 1, 2017 which it depreciated under the straight-line…
A: The change in estimated useful life of a fixed asset is a type of change in accounting estimate.
Q: A company declared a cash dividend on its common stock in December 2020, payable in January 2021.…
A: GIVEN A company declared a cash dividend on its common stock in December 2020, payable in January…
Q: Ada is running a store to sell soft-drink and snacks. For one soft-drink, given the daily demand is…
A: The question is related to the Inventory Management. In this question first we will calculate…
Q: A. October 9, issued common stock in exchange for building, $40,000 B. October 12, purchased…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Firsts step…
Q: The following information is available for Zhang Company: Item Units Beginning inventory p00 Unit…
A: Solution.. Total costs of goods available for sale = $2,840 Total units available for sale =…
Q: Form BQ The following is the information on the goods that Baghdad commercial stores trade in for…
A: LIFO Method is the method of Inventory Valuation under which it is assumed that the inventory…
Q: You and the driver of the other car were the only people involved in the accident. You were not…
A: Liability Insurance Coverage:- Liability car insurance is part of a car insurance policy that…
Q: The figure shows the total product curve for the Fruit Bowl food truck. When labor increases from 1…
A: Basic Concept of relationship between labor and production.
Q: . Evaluate each of the items a through e and prepare the journal entry that should be made to record…
A: On January 1, 2021, Stewart Corp. acquires a small local company Miller Inc. for $500,000 cash. Let…
Q: Explain how cost-benefit analysis might be used to judge the viability of an economic decision and…
A: Answer Introduction Cost benefit analysis The cost benefit analysis is a analytical…
Q: c. What will the balance sheet look like after the dividends are paid? (Do not round intermediate…
A: Introduction: A balance sheet is a financial statement that conveys an organization's "book value,"…
Q: For the year just completed, Hanna Company had net income of $104,500. Balances in the company’s…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: Denver, Incorporated, has sales of $27 million, total assets of $24.9 million, and total debt of…
A: Net income is the amount of accounting profit that a firm has left over after paying all of its…
Q: r answers in the tabs below. as from sales, by month and in total, for the second quarter. sh…
A:
Q: The computer system for Number 14, LLC, a manufacturer of basketball jerseys, fell victim to an…
A: The question requires standard quantity of material allowed per jersey produced. In the given…
Q: Sheffield Consulting Inc's gross salaries for the biweekly period ended August 24 were $12,500.…
A: Salaries expenses include the following deduction = CPP Payable + EI payable + income tax payable…
Q: 1. Yum Yum Bake Shop makes birthday chocolate chip cookies that cost $2.00 each to prepare. It…
A: As mentioned that 8% of cookies is normal loss. So extra cost incurred for 8% is $2*0.08= )= $ 0.16…
Q: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: disbursements in a month in 2021: Non-life insurance P145,700 34,600 Life insurance P 150,000 45,000…
A: Here to taken consider the percentage of taxes for life insurance business which has the tax base…
Q: Tart Restaurant Holdings, Incorporated began the year with a retained earnings balance of $950,000.…
A: Formula: Ending Retained Earnings = Beginning Retained Earnings + net income - Dividends paid
Q: 56 What do an appropriation of retained earnings and a declaration of a cash dividend (for the same…
A: Solution Appropriation of the retained earnings means the Appropriation of retained earning for…
Q: If Division C has a 10% return on sales, income of $10,000, and an investment turnover of 4 times,…
A: Sales = $10,000 / 10% = $100,000 Investment = $100,000 / 4 = $25,000
Q: ERCISE 6-12 Target Profit and Break-Even Analysis; Margin of Safety; CM Ratio 6, LO7] enlo Company…
A: Disclaimer : “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…
A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…
Q: paid a salary and earned $48,500 in 2021, what is the gross monthly earnings? What is the net…
A: The answer has been mentioned below.
Q: The following balances were extracted from the books of Chanda at 31/12/19…
A: To calculate above ratios, first we have to prepare the Profit & loss statement and Balance…
Q: Rapir khe system if the software will save the company Php150000 per year for the next 5 years? Use…
A: The maximum amount that the company can afford to spend will be amount accumulated at the end of 5…
Q: What is the difference between a balance sheet and an income statement?
A: We all know how crucial financial statements are for any business. There are various types of…
Q: Which type of deduction does not require the employer to have the employee's written permiss O…
A: From the employees paycheck, there are various deduction which are required to be deducted by the…
Q: Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018, for…
A: Intangible assets shall be amortized over the useful life of intangible assets. Amortization…
Q: Alfredo Incorporated reports net income of $233,000 for the year ended December 31. It also reports…
A: Indirect Method of Cash Flow Statement is the method that reconciles the net profit with the cash…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105,…
A: Fixed overhead is a collection of costs that do not change as a result of exercise increases. The…
Q: Prepare journal entries to record the following business transaction and related adjusting entry. If…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM…
A: LLC interest means the entire ownership or membership interest in a limited liability company. Such…
Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: generating unit at carrying amount: Problem 19-7 (IFRS) Palawan Company determined that the…
A: Given information, Carrying amount: •Building =5,000,000 •Equipment =3,000,000 •Inventory =2,000,000…
Q: Long-term debt that matures within one year and is to be converted into shares should be reported…
A: Current Liability: Current liabilities are financial commitments owed by a corporation that are due…
Q: Please provide journal entries for the following: Jessica Johansen started Sewn for You, a…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: On January 3. 2019. Cullumber Company purchased for $s05.000 cash a 10% interest in Riverbed Corp.…
A: Here discuss about the accounting treatment of the Equity investment which are classified for the…
Q: Required: Preparea multiple-step income statement for the month of March by completing the following…
A: Solution:- Calculation of multiple income statement as follows under:-
Q: In June on this year, Chase purchases a new car for $40,000. He uses the car 75 percent for business…
A: The term depreciation refers to the accounting method used to spread the cost of a tangible or…
Q: 1. Under individual employee coverage, the worker is covered by the FLSA if: a.the worker is a…
A: The Fair Labor Standards Act (FLSA) is an employment law organization that defines the employer's…
Q: Problem 2 - Below is the transaction of Starla Company. For the first month of operation,…
A: Financial Recording: Financial Recording includes recording of all the financial transactions…
Q: Mosa joined Avion Electronics in April 1983. Her employment was terminated on November 30, 2016 and…
A: Calculate the amount of retiring allowance eligible for transfer as follows: Step 1: $2,000 × 13…
Q: 2. Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively.…
A: Liquidation- Liquidation is the process of converting non-liquid assets to liquid assets...that is,…
Q: The following partial budget versus actual report was prepared for Otis the Great, a manufacturer of…
A: Actual Flexible budget variance Flexible budget Volume variance Master budget Sales…
Q: what is accounting and why do we need it?
A: Accounting is the art of recording, classifying and summarizing business transactions to take…
Q: The purchase of treasury share does not affect Group of answer choices the amount of share issued.…
A: Treasury stock are those stocks which have been repurchased by the company.
Q: On January 1, 2020, Johny Industries issued ten-year bonds with a face value of $2,000,000 and a…
A: The bonds are the financial instruments for the business which are used to raise money from the…
Step by step
Solved in 2 steps
- Instructions Please solve the following Question by printing this document, answering it and submitting it back to this Blackboard. Information on the Crum Company: 2001 2000 Factor Ist pass Sales $1,000,00 х1.5 Operating costs 800.00 х1.5 EBIT $ 200.00 Interest 16.00 EBT $ 184,00 Taxes (40%) 73.60 Net Income $ 110.40 Dividends (60%) 66.24 Addition to R.E. $ 4.16 Current Assets $ 700.00 x1.5 Net fixed Assets 300.00 Total assets $1,000,00 Accounts Payable $ 150.00 Notes Payable 200.00 Common stock 150.00 Retained earnings 500,00 Total Liab & Equity $1,000.00 1. Refer to Crum Company's financial statements above. Crum expects sales to grow by 50% in 2001, and operating costs should increase at the same rate (50%). Fixed assets and Notes Payable will stay the same. Current assets should increase at the same rate as sales during 2001 (increase at 50%). The company plans to finance any external funds needed as 40% notes payable and 60% accounts payable. There is no need to consider…Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Uptons balance sheet as of December 31, 2019, is shown here (millions of dollars): Sales for 2019 were 350 million, and net income for the year was 10.5 million, so the firms profit margin was 3.0%. Upton paid dividends of 4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2020. a. If sales are projected to increase by 70 million, or 20%, during 2020, use the AFN equation to determine Uptons projected external capital requirements. b. Using the AFN equation, determine Uptons self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? c. Use the forecasted financial statement method to forecast Uptons balance sheet for December 31, 2020. Assume that all additional external capital is raised as a line of credit at the end of the year. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Uptons profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. What is the amount of the line of credit reported on the 2020 forecasted balance sheets? (Hint: You dont need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually constructing a full income statement.)Last year, Hassan's Madhatter, Incorporated had an ROA of 6.6 percent, a profit margin of 11.55 percent, and sales of $20 million. Calculate Hassan's Madhatter's total assets. Note: Enter your answer in millions. Total assets 5 million APR 7 n 253 tv N A W -
- Why are Old Men so Daggum Stubborn (OMDS) had the following information for the previous calendar year: Operating income: $66,880 Invested assets: $167,200 Sales: $836,000 What is OMDS' return on investment? For percentages, please enter your answer as a decimal (i.e., 20% is 0.20). For dollar amounts, please provide your answer to two decimal places (i.e. $3.00 is 3.00)1. Aboridor company had the following results last year: Sales, P700,000; Return on Investment, 28%; and profit margin of 8%. How much was the operating assets last year? 2. Jadafe makes all purchases on account, subject to the following payment pattern:Paid in the month of purchase .................. ..... 30%Paid in the first month following the purchase ....... 60%Paid in the second month following the purchase .. 10%If purchases for January, February and March were P200,000; P180,000; and P230,000,respectively, what were the firm’s budgeted payments in March? 3. Ariba Company Consists of two stores, Amina and Ramina. Store Amina has a sales of P80,000 during April,a contribution margin ratio of 30% and a segment margin of P11,000. The company as awhole had sales of P200,000, a contribution margin of 36%, segment margin for the twostores totalling P31,000. If the net income of the company was P15,000 for the month, whatmust have been the traceable fixed expenses in Store Ramina.Hey, I'm having problems trying to find the solution for e and f. can you guys help! Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Mortgage note payable, 6%, issued 2005, due 2021 2,000,000 Total liabilities $3,000,000 Stockholders’ equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year $1,570,000 Net income 930,000 $2,500,000 Preferred dividends $100,000 Common dividends 400,000 500,000 Balance, end of year 2,000,000 Total stockholders’ equity $5,000,000 Sales $18,900,000 Interest expense…
- You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex CompanyComparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 890,000 $ 1,020,000 Marketable securities 0 300,000 Accounts receivable, net 2,420,000 1,520,000 Inventory 3,530,000 2,300,000 Prepaid expenses 240,000 180,000 Total current assets 7,080,000 5,320,000 Plant and equipment, net 9,380,000 8,980,000 Total assets $ 16,460,000 $ 14,300,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,960,000 $ 2,860,000 Note payable, 10% 3,620,000 3,020,000 Total liabilities 7,580,000 5,880,000 Stockholders' equity: Common stock, $70 par value…During the year, a merchandising company had the following transactions: Generated 300.000 TL revenue and incurred 225.000 TL expense. Issued new shares of 20.000 at a price of 1,2 TL (par value is 1 TL). Repurchased 10.000 of these new shares at a price of 1,1 TL. Sold these repurchased shares at a price of 0,5 TL. Revalued its headquarters building as well as its one of the rental properties. The increases in the relevant equity and income items have been found to be 15.000 TL and 20.000 TL. Suppose that the ending retained earnings balance in the Statement of Changes in Shareholders Equity is 105.000 TL. Then, what was the opening balance of the retained earnings at the beginning of the year? a) 10.000 TL b) 16.000 TL c) 20.000 TL d) 26.000 TLYou have just obtained financial information for the past 2 years for Treet Corporation. Treet Corporation Income Statements For Year Ending December 31 (Millions Of Dollars) 2012 2011 Sales 3,000.00 3,500.00 Operating costs (excluding depreciation and amortization) 2,500.00 3,100.00 EBITDA 500.00 400.00 Depreciation and amortization 90.00 75.00 Earnings before interest and taxes 410.00 325.00 Interest 70.00 60.00 Earnings before taxes 340.00 265.00 Taxes (40%) 136.00 126.00 Net income available to common stockholders 204.00 139.00 Common dividends 180.00 13.20 Treet Corporation Balance Sheets As at December 31 (Millions Of Dollars) 2012 2013 Assets: Cash and marketable securities 120.00 30.00 Accounts receivable 540.00 400.00 Inventories 540.00 620.00…
- Best Feeds, Inc. has the following information on their income statement: Sales $2,000,000 Cash Costs 1,200,000 Depreciation 100,000 EBIT 700,000 Interest Expense 200,000 EBT 500,000 Taxes (25%) 125,000 Net Income $ 375,000 What is their NOPAT? Group of answer choices $427,620 $450,120 $375,000 $498,750 $525,000Why are Old Men so Daggum Stubborn (OMDS) had the following information for the previous calendar year: Operating income: $66,880 Invested assets: $167,200 Sales: $836,000 What is OMDS' investment turnover? For percentages, please enter your answer as a decimal (i.e., 20% is 0.20). For dollar amounts, please provide your answer to two decimal places (i.e. $3.00 is 3.00)Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): InvestorServices AdvisorServices Revenues $5,411 $2,067 Operating income 2,031 962 Depreciation 180 54 Investor Services(in millions) Advisor Services(in millions) Estimated contribution margin 2211 1016 d. If Schwab decided to sell its “Advisor Services” accounts to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve Advisor investors would not be sold but would be used by the other sector: ____________ Assume the fixed assets were “sold”: ________________