Ultimate Business Study Guide - Questions & Answers
Suppose the following items were taken from the December 31, 2017, assets section of the Boeing Company balance sheet. (All dollars are in millions.) Inventory $16,933 Patents $12,528 Notes receivabledue after December 31, 2018 5,466 Buildings 21,579 Notes receivabledue before December 31, 2018 368 Cash 9,215 Accumulated depreciationbuildings 12,795 Accounts receivable 5,785 Debt investments (short term) 2,008 Required:1. Prepare the assets section of a classified balance sheet, listing the current assets in order of their liquidity.
Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 10,000 dlh 90,000 dlh Machine-hours 100,000 mah 5,000 mh Direct labor cost $ 80,000 $720,000 Manufacturing overhead costs $250,000 $360,000 The accounting records of the company show the following data for Job #846: Machining Assembly Direct labor-hours 50 dlh 120 dlh Machine-hours 170 mh 10 mh Direct material cost $2,700 $1,600 Direct labor cost $ 400 $ 900Required:a. Compute the manufacturing overhead allocation rate for each department.b .Compute the total cost of Job #846
The following accounts appear in the ledger of Oriole Company after the books are closed at December 31, 2020. Common Stock, no par, $2 stated value, 393,000 shares authorized; 284,000 shares issued $ 568,000 Common Stock Dividends Distributable 25,000 Paid-in Capital in Excess of Stated ValueCommon Stock 1,110,000 Preferred Stock, $5 par value, 8%, 38,000 shares authorized; 28,700 shares issued 143,500 Retained Earnings 758,000 Treasury Stock (13,800 common shares) 96,600 Paid-in Capital in Excess of ParPreferred Stock 343,000 Accumulated Other Comprehensive Loss 34,500 Prepare the stockholders equity section at December 31, 2020, assuming retained earnings is restricted for plant expansion in the amount of $112,000. For capital stock first enter the preferred stock details.
1. For each of the following payment schemes, choose which is better at an interest rate of 5% a. Receiving $7,000 right now, or $750 per year for 12 years, starting next year. b. Receiving $10,000 in 10 years, or receiving $1,000 per year for 5 years, starting now. 2. For each of the following pairs of options, find the interest rate which would make you indifferent between them. a. Receiving $1,000 now, or $1,402.55 in five years. b. Receiving $166,666.67 now, or $15,000 per year in perpetuity starting next year.
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, raskels, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of kipples sold increases by 5%. Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.1. Complete the first column of the following table by computing the cross-price elasticity between penguin patties and raskels, and then between penguin patties and kipples. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.Relative to Penguin PattiesCross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Penguin Patties (Yes or No)Raskels Kipples
Grayson Bank agrees to lend the Trust Company $100,000 on January 1.Trust Company signs a $100,000, 8%, 9-month note.The entry made by Trust Company on January 1 to record the proceeds and issuance of the note isa. Notes Payable 100,000 Interest Payable 6,000 Cash 100,000 Interest Expense 6,000b. Interest Expense 8,000 Cash 92,000 Notes Payable 100,000c. Cash 100,000 Notes Payable 100,000d. Cash 108,000 Interest Expense 8,000 Notes Payable 108,000
The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows: Blink Division Blur Division Total Sales $ 295,000 $ 174,000 $ 469,000 Variable costs 101,000 80,000 181,000 Contribution margin $ 194,000 $ 94,000 $ 288,000 Direct fixed costs 87,000 73,000 160,000 Segment margin $ 107,000 $ 21,000 $ 128,000 Allocated common costs 42,000 34,500 76,500 Operating income (loss) $ 65,000 $ (13,500 ) $ 51,500 Required:1. If the Blur Division were dropped, Blink Division's sales would increase by 30%. If this happened, the operating income for Winston Corporation, as a whole, would be ___________.A) $84,500. B) $65,000. C) $88,700. D) $66,950.
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1 Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31 Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. Jul. 1 Purchased tools by issuing a $45,000, 60-day note to Poulin Co., which discounted the note at the rate of 7%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6% note for $400,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series of ten 9% notes for $22,000 each, coming due at 30-day intervals. 22 Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the loss in a litigation claims payable account. 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Required:1.Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.2.Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):a. Product warranty cost, $80,000.b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.help needed please
On July 31, 2020, Cullumber Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31 Cullumber issued a $324,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $216,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Cullumber made a final $108,000 payment to Minsk. Other than the note to Netherlands, Cullumbers only outstanding liability at December 31, 2020, is a $29,500, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31.Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020.