time remaining 39 minutes 13 seconds00:39:13 item 19 time remaining 39 minutes 13 seconds00:39:13 the following information is available for birch company at december 31: cash in registers $ 2,790 investment maturing in 9 years $ 10,000 accounts receivable $ 1,475 cash in bank account $ 21,430 accounts payable $ 650 cash in petty cash fund $ 200 inventory of postage stamps $ 24 u.s. treasury bill maturing in 15 days $ 5,000 based on this information, birch company should report cash and cash equivalents on december 31 of: multiple choice $38,770 $31,345 $41,345 $29,420 $39,420
Answers
Based on the give accounting information, Birch company should report cash and cash equivalents on December 31 of $29,420.
What is known as cash and cash equivalents in finance?The term "cash and cash equivalents" means the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. These cash equivalents include bank accounts and marketable securities which are debt securities with maturities of less than 90 days.
But often times, the cash equivalents do not include equity or stock holdings because they can fluctuate in value. The computation of the Cash & Cash Equivalents is shown as below:
Cash & Cash Equivalents = Money market fund balance + Cash in bank account + Cash in petty cash fund + U.S. Treasury bill
Cash & Cash Equivalents = $2,790 + $21,430 + $200 + $5,000
Cash & Cash Equivalents = $29,420
Therefore, the Option D is correct.
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Related Questions
The high-low method is often employed in analyzing a. mixed costs b. variable costs c. fixed costs d. conversion costs
Answers
The high-low method is often employed in analyzing mixed costs. The correct answer is option (A)
The mixed costs can be referred to as semi-variable costs that comprise both fixed and variable components. The high-low method aids in separating the fixed and variable cost elements within the mixed costs. This method of cost analysis is an accounting technique that helps in the separation of a mixed cost into its fixed and variable components by analyzing the changes in the cost that correspond to changes in an organization's activity level. A business may use the high-low method in analyzing the mixed costs to plan its budget, set prices for its goods and services, and make managerial decisions. The high-low method entails the use of data from the highest and lowest levels of production and the related costs.
Therefore, it helps in determining the variable cost per unit of production by analyzing the change in the total cost incurred and the changes in the level of production. The high-low method involves the following steps: Identifying the highest and lowest levels of production and their associated costs. Calculating the variable cost per unit of production by dividing the change in the cost by the change in the units of production. Calculating the fixed cost component by subtracting the variable cost per unit of production from the total cost of production.
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Fill the Blank ? if a residual is negative, then that data point lies _________________ the regression line.
Answers
If a residual is negative, then that data point lies below the regression line.
In linear regression, residuals are the differences between the actual values and the predicted values of the response variable. A residual can be either positive or negative, depending on whether the actual value is greater or smaller than the predicted value. If a residual is negative, then the actual value is below the regression line, and if it is positive, then the actual value is above the regression line.
A negative residual indicates that the model underestimates the actual value, which means that the data point lies below the regression line. Understanding residuals is essential to assess the accuracy of the regression model and identify any outliers or influential data points that may affect the model's performance.
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Explain two ways a business could extend a product's life cycle.
Answers
Answer: Extension strategies extend the life of the product before it goes into decline. Again businesses use marketing techniques to improve sales. ... Adding value – add new features to the current product, e.g. video messaging on mobile phones. Explore new markets – try selling abroad. hope this helps. Can you give me brainliest. Pls
Explanation:
"Bronson Manufacturing is planning to issue $12 million in bonds. Based on a poll of potential investors, they have the highest chance of raising the funds they need with one of four sets of bond characteristics. Which option would cost them the MOST in total interest over the life of the bond
Answers
Answer:
C.eight-year bond with 5.5% annual interest rate
Explanation:
The computation of the total options under each option is as follows:
As we assume the par value be $1,000
For Option A
Total interest
= 9.5% × $1,000 × 3 years
= $285
For Option B
Total interest is
= 7.25% × $1,000 × 4 years
= $290
For Option C
Total interest is
= 5.5% × $1,000 × 8 years
= $440
For Option D
Total interest is
= 6% × $1,000 × 6 years
= $360
As we can see that the option C contains high value of the total interest. So the same is to be selected
What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.
Answers
Answer:
A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOUThe variance of a series of numbers is the sum of the squares of their differences from the mean (average) of the numbers divided by the number of items in the series. Variance is a common measure of risk. What is the variance of these investment returns? 10, 30, 20
Answers
Answer: 66.67
Explanation:
Numbers given = 10, 30, 20
Mean = (10 + 30 + 20) / 3
= 60/3
= 20
Then, the differences from the mean will be:
= (10 - 20), (30 - 20), (20 - 20)
= -10, 10, 0
We then calculate the square of the mean which will be:
= 100, 100, 0
We then add the square of the mean which will be:
= 100 + 100 + 0
= 200
The variance will then be:
= 200/3
= 66.67
Answer: 66.7
Explanation:
The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows:
Answers
Based on the information provided, the Martin-Beck Company is currently operating a plant in St. Louis with an annual capacity of 30,000 units. The product is then shipped to regional distribution centers located in Boston, Atlanta, and Houston. Martin-Beck plans to increase capacity due to an anticipated increase in demand by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City.
The estimated annual fixed cost and annual capacity for the proposed plants are as follows:
- Detroit: Annual fixed cost of $800,000 and an annual capacity of 25,000 units.
- Toledo: Annual fixed cost of $700,000 and an annual capacity of 20,000 units.
- Denver: Annual fixed cost of $900,000 and an annual capacity of 35,000 units.
- Kansas City: Annual fixed cost of $750,000 and an annual capacity of 22,000 units.
It is important for Martin-Beck to consider not only the fixed cost and capacity of each plant, but also the location and proximity to their distribution centers in Boston, Atlanta, and Houston. The company may also want to analyze market demand and potential growth in each city before making a final decision on where to construct a new plant.
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In a manufacturing company , the budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories . ( enter only one word per blank )
Answers
In a manufacturing company , the direct materials budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.
Components that go into a manufactured good are known as direct materials. For instance, the direct materials used in the creation of a smartphone are the screen, integrated circuits, camera modules, and buttons. Direct material refers to the tangible components that make up a production. For instance, water are direct materials for a baker. Cost accounting uses the direct materials concept to categorize this cost independently for various forms of financial analysis.
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Is Relative value when two absolute values are compared one to another?
Answers
Relative value is the opposite of absolute value. while absolute cost examines the cost of an asset or organisation with out evaluating it to any others, relative fee is primarily based on the value of similar assets or businesses.
Relative value is a technique of determining an asset's worth that takes into account the value of similar belongings. that is in contrast with absolute price, which seems most effective at an asset's intrinsic value and does not evaluate it to other assets. Absolute change refers to the easy difference inside the indicator over two intervals in time, i.e. Relative change expresses the absolute exchange as a percentage of the price of the indicator in the earlier length. A relative maximum or minimum happens at turning factors at the curve wherein because the absolute minimal and most are the proper values over the entire area of the function. In different words the absolute minimum and most are bounded by means of the area of the function.
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what is measured by the level of real gdp divided by hours worked over that year? a.productivity for a given year. b.growth rate of real gdp. c.nominal gdp per person. d.real gdp per person.
Answers
b.growth rate of real gdp is measured by the level of real gdp divided by hours worked over that year.
Gross domestic product is a financial degree of the market fee of all the very last goods and services produced and offered in a particular time period via international locations. due to its complicated and subjective nature this measure is often revised earlier than being considered a dependable indicator.
GDP measures the financial value of very last items and offerings—that is, the ones that are sold by means of the very last consumer—produced in a country in a given time frame (say 1 / 4 or a yr). It counts all of the output generated inside the borders of a rustic
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Joseph is a friend of yours. He has plenty of money but little financial sense. He received a gift of $12,000 for his recent graduation and is looking for a bank in which to develop the funds. Partner savings Bank offers an account with an annual interest rates of 3% compound semiannually , while Selwyn offers an account with a 2. 75% annual interest rates compounded continuously. Calculate the value of the two accounts at the end of one year, and recommend to Joseph which account he should choose
Answers
1) The future value, FVn, of the deposit with Partners' Savings Bank is $12,468.49. 2) The FVn, of the deposit with Selwyn's Savings Bank is $12,464.43. 3) Joseph should choose Partners' Savings Bank.
To calculate the future values, we can use the formula for compound interest:
1. For Partners' Savings Bank:
\(FV_n = P \times \left(1 + \frac{r}{n}\right)^{nt}\)
where P is the principal amount ($12,000), r is the annual interest rate (3.75%), n is the number of compounding periods per year (2 for semiannual compounding), and t is the time in years (1 year).
Plugging in the values, we get:
FVn = \(12,000 \times \left(1 + \frac{0.0375}{2}\right)^{2 \times 1}\) = $12,468.49
2. For Selwyn's Savings Bank (compounded continuously):
FVn = P x \(e^{rt}\)
where P is the principal amount ($12,000), r is the annual interest rate (3.50%), e is the base of the natural logarithm (approximately 2.71828), and t is the time in years (1 year).
Plugging in the values, we get:
FVn = \(12,000 \times e^{0.0350 \times 1}\) = $12,464.43
3. Comparing the future values, we see that Partners' Savings Bank provides a slightly higher value of $12,468.49, while Selwyn's Savings Bank offers $12,464.43. Therefore, Joseph should choose Partners' Savings Bank since it provides a slightly higher return on his $12,000 deposit after one year.
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The complete question is: Joseph is a friend of yours. He has plenty of money but little financial sense. He received a gift of $12,000 for his recent graduation and is looking for a bank in which to deposit the funds. Partners' Savings Bank offers an account with an annual interest rate of 3.75% compounded semiannually, while Selwyn's offers an account with a 3.50% annual interest rate compounded continuously. Calculate the value of the two accounts at the end of one year, and recommend to Joseph which account he should choose.
1. The future value, FVn, of the$12,000 deposit with the Partners' Savings Bank is ______? (Round to the nearest cent.)
2. The future value, FVn, of the$12,000 deposit with the Selwyn Savings Bank is ______? (Round to the nearest cent.)
3. Which bank should Joseph choose? Partners or Selwyn?
__________ visually shows that the total revenue curve and the total cost curve intersect at a point of zero profit.
A) break-even chart
B) Gantt chart
C) sales response function
D) cross tabulation
E) demand curve
Answers
Answer:
C it would be hope this helped
a merchant sold an item for $18.50. if 30%of the selling price was profit how much did the merchant make on the sale
Answers
The merchant made a profit of $5.55 on the sale of the item, given that 30% of the selling price was profit and the selling price was $18.50.
If 30% of the selling price was profit, then the cost of the item to the merchant must have been 70% of the selling price.
Let's start by finding out what 70% of $18.50 is:
70% of $18.50 = 0.70 x $18.50 = $12.95
Therefore, the cost of the item to the merchant was $12.95, and the profit made on the sale was:
Profit = Selling price - Cost
Profit = $18.50 - $12.95
Profit = $5.55
Therefore, the merchant made a profit of $5.55 given that 30% of the selling price was profit and the selling price was $18.50. This was calculated by first finding that the cost of the item to the merchant was $12.95, and then subtracting the cost from the selling price to find the profit.
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Who do YOU like more
Joseph Biden or Donald Trump?
Please answer with you honest opinion.
Answers
Answer:
Explanation:
Joseph biden
(100 POINTS)How much money will i make my first week from dropshipping
Answers
Pls asp
In the United States, which of the following is only provided by the government?
O Health Care
O Police
O Railroads
O Housing
Answers
Answer:
Police
Explanation:
I asked Alexa and that's what she said xD
Jannah is reviewing a report that a new marketing manager put together after assessing her small business. If Jannah wants to learn how familiar a customer market is with her company’s products or services, what section of the marketing report should she review?
A.
Financial
B.
Quality control
C.
Brand recognition
D.
Profit margins
Answers
place rock unit events in order.
3. (Note: The surface is not a layer. It is ground-level, complete with happy little trees.) \( \mathrm{A} 3 \) Homework \( - \) Unanswered Place the rock units events in order from oldest on bottom t
Answers
To place the rock unit events in order from oldest to youngest, we need to consider the principle of superposition, which states that in an undisturbed sequence of rock layers.
1. Homework: This event is the most recent one as it is mentioned last in the given list.2. A3: This event is mentioned before Homework, suggesting that it occurred earlier than Homework.3. Unanswered: This event is mentioned before A3, indicating that it happened before A3.Therefore, the correct order from oldest to youngest is: Unanswered → A3 → Homework.we need to consider the principle of superposition, which states that in an undisturbed sequence of rock layers, the youngest rocks are on top, while the oldest rocks are at the bottom.
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Select the response that corrects the capitalization error in the sentence below. I live in Kentwood, louisiana. a. i b. kentwood c. Louisiana Please select the best answer from the choices provided A B C
Answers
Answer:
a) I
Explanation:
The letter I continues to be capitalized because it is the only single letter pronoun. Because the pronouns I and me have different uses, it's easy to distinguish between the two in terms of capitalization rules.
what needs to happen before you import your custom audiences into bing ads for search remarketing?
Answers
Before importing custom audiences into Bing Ads for search remarketing, you need to ensure that you have created the custom audiences using the Bing Ads Universal Event Tracking (UET) tag on your website. This tag tracks visitor behavior on your website and allows you to create custom audiences based on their actions.
In addition to creating the custom audiences, you also need to ensure that your Bing Ads account is set up correctly for search remarketing. This includes enabling remarketing, setting up conversion tracking, and linking your Bing Ads account to your UET tag.
1. Create a UET tag on your website using Bing Ads.
2. Use the UET tag to track visitor behavior on your website, such as page views, add-to-carts, and purchases.
3. Create custom audiences in Bing Ads based on the actions tracked by the UET tag.
4. Ensure that your Bing Ads account is set up correctly for search remarketing, including enabling remarketing, setting up conversion tracking, and linking your Bing Ads account to your UET tag.
5. Export your custom audiences from Bing Ads as a CSV file.
6. Modify the CSV file to match the format required by Bing Ads for importing custom audiences.
7. Import the modified CSV file into Bing Ads as a custom audience for search remarketing.
By following these steps, you can effectively use custom audiences in Bing Ads for search remarketing, which can help you target your advertising to users who have already shown interest in your products or services.
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The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the effort to promote positive social change? Explain.
Answers
yes, no matter what company say, they need money for funding for "social change"
Jocelyn takes home $2600 per month from her job as a paralegal. If her only debt obligations are a car loan payment of $480 and a credit card payment of $80 every month, is she in danger of credit overload?.
Answers
Over $520 is the sum of $480 and $80.
One-fifth will be used to pay taxes: one-fifth of $2600 520
What is meant by used to Pay Taxes?The filing of taxes is not required for everyone. There are four factors that determine whether you need to file your taxes: your age, income, and filing status, as well as whether you are in a special category. You may want to file for tax credits and other benefits even if you are not required to.
Income tax must be paid by Indians under the age of 60 who earn more than Rs 2.5 lakh.
We accept payments in full and in part, as well as contributions to a payment plan (including installment agreements). Until you pay off the entire balance, you will continue to accrue interest and penalties.
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On june 1 of the current year, chris bates established a business to manage rental property. The following transactions were completed during june:
Answers
An commitment between a buyer and a seller defines a transaction. In a transaction, the sellers pays cash for the shipment of products, services, or other investment securities.
The impact of each transaction and resulting balance is as follows:
Transaction 1: Exchanged common shares for a deposit of $75,000 to open a company bank account.
Effect: Cash and Common Stock both increase by $75,000 each.
$75,000 in cash and $75,000 in common stock.
Transaction 2: Spent $2,200 on office supplies using a credit card.
Effect: The cost of office supplies and accounts payable both rise by $2,200.
Balances: $75,000 in cash, $75,000 in common stock, $2,200 in office supplies, $2,200 in supplies for accounts, and $2,200 in payables.
-Transaction 3: Received $19,500 in cash as payment for management fees.
Effect: A $19,500 increase in service revenue and a $19,500 increase in cash purchases.
Balances: $94,500 in cash, $75,000 in common stock, $2,200 for office supplies, $2,200 for accounts payable, and $19,500 for service revenue.
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A simple index of three stocks have opening values on day 1 and
day 8 as shown in the table below.
What is the rate of change of this simple index over one week?
Round your answer to the nearest tenth.
A. 2.0%
B. 1.2%
C. -1.2%
D. -2.0%
Answers
The rate of change of this simple index over one week is option D. -2.0% (to the nearest tenth)
How did we get the value?To calculate the rate of change of the simple index over one week, calculate the value of the index on day 1 and day 8.
On day 1, the value of the index is:
(4000*$3.15 + 5000*$4.30 + 6000*$4.60) / (4000 + 5000 + 6000) = $4.19
On day 8, the value of the index is:
(4000*$3.50 + 5000*$3.90 + 6000*$4.50) / (4000 + 5000 + 6000) = $4.11
The rate of change of the simple index over one week is:
($4.11 - $4.19) / $4.19 * 100% = -1.9% ≈ -2.0% (rounded to the nearest tenth)
Therefore, the answer is D. -2.0%.
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Which of the following is a positive externality?
Answers
Answer:
Research and development (R&D) conducted by a company can be a positive externality. R&D increases the private profits of a company but also has the added benefit of increasing the general level of knowledge within a society. Similarly, the emphasis on education is also a positive externality.
Explanation:
Choosing a beautiful design for a building will give benefits to everybody in society. Education or learning new skills. With better education, you are more productive and can gain more skills. But, also the rest of society benefits from your new skills
write the different profession and human resources related to engineering and explain any two of them
Answers
Answer:
The professions related to engineering includes
Mechanical engineering
Biomedical engineering
Electronics engineering
Chemical (process) engineering
Petroleum engineering
Materials engineering
Human resources related to engineering includes
Welders
Mechanics
Plumbers
Electricians
Fitters
Carpenters
Brick layers
Operators
Machinist
Explanation:
Mechanical engineering profession
Mechanical engineering profession focuses on the branch of engineering that is related to designing, construction, and implementation of machine that provides energy, force or motion, in industry, homes, school, or office to meet the needs of the society
Welder
A welder is a person that regularly makes use of equipment meant for welding to create acceptable quality welds
Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?
Answers
Answer:
Option A
Explanation:
The complete question is
Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?
a) 2 hours
b) 1 hour
c) 1 hour and 40 minutes
d) 90 minutes
Solution
There are four lanes.
Capacity of one lane is equal to 1,000 vehicles/lane/hour.
Let us say that each lane will provide access to equal number of vehicles
Thus, each lane will allow 10,000/4 = 2500 vehicles per hour
Time taken by 2500 vehicles on road to reach parking is equal to 2.5 hours.
The nearest answer to this option A i.e two hours
NIKE, Incorporated, is the best-known sports shoe, apparel, and equipment company in the world because of its association with athletes such as LeBron James, Brooks Koepka, and Bianca Andreescu. Some of the items included in its recent statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the operating activities, investing activities, or financing activities section of the statement or use (NA) if the item does not appear on the statement. 1. Additions to long-term debt. 2. Depreciation. 3. Additions to equipment. 4. Increase (decrease) in notes payable. (The amount is owed to financial institutions.) 5. (Increase) decrease in other current assets. 6. Cash received from disposal of equipment. 7. Reductions in long-term debt. 8. Issuance of stock 9. (Increase) decrease in inventory. 10. Net income.
Answers
Classifying each item in the statement of cash flows, we get : 1. Financing Activities 2. Operating Activities 3. Investing Activities 4. Financing Activities 5. Operating Activities 6. Investing Activities 7. Financing Activities 8. Financing Activities 9. Operating Activities 10. Operating Activities
1. Additions to long-term debt - Financing activities
This item refers to the borrowing of funds by Nike, which would be classified under financing activities on the statement of cash flows. Additions to long-term debt represent an inflow of cash and would be listed as a positive figure in the financing activities section.
2. Depreciation - Operating activities
Depreciation is a non-cash expense that represents the wear and tear on Nike's assets over time. As such, it is included in the operating activities section of the statement of cash flows. It is added back to net income in order to reconcile net income with cash flow from operating activities.
3. Additions to equipment - Investing activities
Additions to equipment, which refers to purchases of new property, plant, and equipment, are classified as investing activities on the statement of cash flows. This is because they represent cash outflows related to the acquisition of long-term assets.
4. Increase (decrease) in notes payable - Operating activities
The increase or decrease in notes payable, which represents amounts owed to financial institutions, is classified as an operating activity on the statement of cash flows. This is because it reflects changes in the cash flow resulting from the company's day-to-day operations.
5. (Increase) decrease in other current assets - Operating activities
Changes in other current assets, such as prepaid expenses or deferred charges, are also classified as operating activities on the statement of cash flows.
These items reflect changes in the company's short-term cash position and are closely tied to the company's day-to-day operations.
6. Cash received from disposal of equipment - Investing activities
When Nike sells equipment or other long-term assets, the cash proceeds from the sale are classified as investing activities on the statement of cash flows. This is because they represent a cash inflow resulting from the disposal of a long-term asset.
7. Reductions in long-term debt - Financing activities
Reductions in long-term debt are classified as financing activities on the statement of cash flows. This is because they represent cash outflows related to the repayment of long-term liabilities.
8. Issuance of stock - Financing activities
When Nike issues new stock, the cash proceeds from the sale are classified as financing activities on the statement of cash flows. This is because the issuance of new equity represents a cash inflow to the company.
9. (Increase) decrease in inventory - Operating activities
Changes in inventory levels are classified as operating activities on the statement of cash flows. This is because inventory is a current asset that is closely tied to the company's day-to-day operations.
10. Net income - Operating activities
Net income, which represents Nike's earnings after all expenses have been subtracted from revenues, is the starting point for the statement of cash flows. Net income is included in the operating activities section of the statement and is adjusted for non-cash items, such as depreciation, to arrive at cash flow from operating activities.
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what is the future value of $3,325 per year for 20 years at an interest rate of 7.29 percent?
Answers
The future value of $3,325 per year for 20 years at an interest rate of 7.29 per cent can be calculated using the formula for the future value of an annuity. This formula is:
FV = Pmt x (((1 + r)^n) - 1) / r
Where:
FV = Future Value
Pmt = Payment per period
r = Interest rate per period
n = Number of periods
In this case, Pmt is $3,325, r is 7.29% per year (or 0.0729 per year), and n is 20 years. We need to convert the interest rate to a per-period rate by dividing it by the number of compounding periods per year. Assuming annual compounding, the per-period rate is 7.29%/1 = 7.29% per year.
Substituting these values into the formula, we get:
FV = $3,325 x (((1 + 0.0729)^20) - 1) / 0.0729
FV = $3,325 x (4.583 - 1) / 0.0729
FV = $3,325 x 45.778
FV = $152,402.15
Therefore, the future value of $3,325 per year for 20 years at an interest rate of 7.29 per cent is $152,402.15.
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The Counting Crows Company uses normal costing. The company began operations at the beginning of Year 1. Because the company is new and because they only make one product, overhead is charged to production on the basis of product units. The denominator level for both Year 1 and Year 2 is 20,000 product units. The budgeted overhead at 20,000 units for both Year 1 and for Year 2 is $60,000 variable and $100,000 fixed. During Year 1, the company actually produced 21,000 units and sold 18,000 units. During Year 2, the company actually produced 22,000 and sold 21,000 units. The company carries no Work in Process inventories and uses the FIFO method to assign costs to Finished Goods as needed. Any underallocated or overallocated overhead is charged totally to Cost of Goods Sold at the end of the year. For both years, the actual direct materials cost was $8 per unit and the actual direct labor cost was $6 per unit. The actual variable overhead cost in Year 2 was $64,000 and the actual fixed overhead cost in Year 2 was $102,000. Question 1 2 pts Assume that the Unadjusted Cost of Goods Sold for Year 2 was $357,000 using variable costing. Compute the Adjusted Cost of Goods Sold using variable costing for Year 2. Do not put a dollar sign in your answer. D Question 2 2 pts Assume that the Unadjusted Cost of Goods Sold for Year 2 was $462,000 using absorption costing. Compute the Adjusted Cost of Goods sold using absorption costing for Year 2. Do not put a dollar sign in your answer. Question 3 2 pts Using absorption costing, how much fixed overhead that happened in Year 2 would be carried over into Year 3? Do not put a dollar sign in your answer. D Question 4 2 pts In Year 1, the net operating income for the company was $35,000 using absorption costing. What would the net operating income for Year 1 be using variable costing? Note: This question is for Year 1 NOT YEAR 2. You should use a reconciliation to find this answer. Do not put a dollar sign in your answer. Question 5 2 pts For external purposes, the company O must use absorption costing O must use variable costing may use either variable costing or absorption costing
Answers
The Adjusted Cost of Goods Sold using variable costing for Year 2 is $361,000.The Adjusted Cost of Goods Sold using absorption costing for Year 2 is $466,000.The net operating income for Year 1 using variable costing would be $40,000.
1. To compute the Adjusted Cost of Goods Sold using variable costing for Year 2, we need to consider the underallocated or overallocated overhead. The unadjusted Cost of Goods Sold is given as $357,000. Since the actual variable overhead cost for Year 2 is $64,000, the overhead variance is $4,000 (overallocated). Thus, the Adjusted Cost of Goods Sold is $357,000 + $4,000 = $361,000.
2. The Adjusted Cost of Goods Sold using absorption costing for Year 2 can be calculated by adding the underallocated or overallocated overhead to the unadjusted Cost of Goods Sold. The unadjusted Cost of Goods Sold is given as $462,000. Since the actual fixed overhead cost for Year 2 is $102,000, the overhead variance is $2,000 (underallocated). Therefore, the Adjusted Cost of Goods Sold is $462,000 + $2,000 = $466,000.
3. Under absorption costing, all fixed overhead costs are allocated to the units produced and included in the cost of goods sold. There is no carryover of fixed overhead from one period to another. Therefore, none of the fixed overhead that occurred in Year 2 would be carried over into Year 3.
4. To determine the net operating income for Year 1 using variable costing, we can use a reconciliation statement. The net operating income under absorption costing is given as $35,000. The difference between the net operating income under absorption costing and variable costing is the fixed overhead deferred in inventory, which is $5,000. Therefore, the net operating income for Year 1 using variable costing is $35,000 + $5,000 = $40,000.
5. For external reporting purposes, the company must use absorption costing. Absorption costing is the generally accepted accounting principle (GAAP) method for reporting financial statements. It allocates all manufacturing costs, including fixed overhead, to the cost of goods sold. This method provides a more comprehensive view of the costs incurred in producing goods and is required by external stakeholders, such as investors, creditors, and regulatory authorities. Variable costing, on the other hand, treats fixed overhead as a period expense and only includes variable production costs in the cost of goods sold. While variable costing can be useful for internal decision-making and cost analysis, it is not compliant with external reporting requirements.
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