Which is a question associated with the saving component of financial planning?

Hahn Co. prepared financial statements on the cash basis of accounting. The cash basis was modified so that an accrual of income

jeyben [28]

Answer: the answer is A. Yes.

Explanation:

Under a strict cash basis of accounting, revenues and expenses are recorded only when cash is received or paid. Under a modified cash basis of accounting, certain accruals and/or deferrals are recorded for financial-statement purposes.

The most common modifications are the capitalization and amortization of long-lived assets and the accrual for income taxes (recognition of income tax expense and related liability).

8 0

4 years ago

The Bears Corporation has provided you the following information:Increase in accounts receivable balance 50,000 Net sales 500,00

Sliva [168]

Answer:

A. cash collected is 442,500

B. Cash paid to suppliers is 62,000

Explanation:

A. To determine the cash collected for the period, the account that we should analyze is the accounts receivable.

Net sales 500,000

Less: Increase in accounts receivable 50,000

Less: write off 7,500

total collection 442,500

*increase in accounts receivable means lesser amount of collection than the sale on account

*write off will decrease the accounts receivable which means, it affects the cash collection computation.

B.To determine the cash paid to suppliers, let’s analyze the accounts payable account.

Increase in inventory 45,000

add: decrease in accounts payable 17,000

total cash paid to suppliers is 62,000

*increase in inventory implies an additional purchase made by the company

*decrease in accounts payable resulted from cash payment made to suppliers.

5 0

4 years ago

On January 1, 2022, Harvee Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Harvee Comp

Alexxandr [17]

Answer:

Jan. 5

Dr Account Receivable $4,000

Cr Sales $4,000

(to record sales to Rian)

Feb. 2

Dr Promissory note Receivable $4,000

Cr Account Receivable $4,000

(to record acceptance of Rian company's note)

Feb. 12

Dr Promissory note Receivable $12,000

Cr Sales $12,000

(to record sales to Cato company through acceptance its notes)

Feb. 26

Dr Account Receivable $5,200

Cr Sales $5,200

(to record sales to Malcolm)

Apr. 5

Dr Promissory note Receivable $5,200

Cr Account Receivable $5,200

( to record acceptance of Malcolm notes)

Apr. 12 ( assume Cato's note is collected)

Dr Cash $12,200

Cr Promissory note Receivable $12,000

Cr Interest Income $200

(to record the collection of Cato's note)

June. 2 ( assume Rian's note is collected)

Dr Cash $4,120

Cr Promissory note Receivable $4,000

Cr Interest Income $120

(to record the collection of Rian's note)

Jul. 5

Dr Cash $5,304

Cr Promissory note Receivable $5,200

Cr Interest Income $104

(to record the collection of Malcolm's note)

Explanation:

The calculation of Interest income from the Notes of the three companies as followed:

Rian: 4,000 x 9% x 4/12 = $120

Cato: 12,000 x 10% x 2/12 = $200

Malcolm: 5,200 x 8% x 3/12 = $104.

Further explanation has been put as description under each journal entries listed above.

Cost of goods sold is not included for each sales entries as guided in the question.

5 0

3 years ago

Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (

Fofino [41]

Answer and Explanation:

1.

The direct labor overhead rate using the direct labor hours is shown below:-

Direct labor overhead rate = Total overheads ÷ Direct labor hours

= $220,800 ÷ 1,725

= $128

b. The machine hour overhead rate using the machine hours is

= Total overhead ÷ Machine hours

= $220,800 ÷ 4,600

= $48

2.

The factory overhead costs using direct labor hour is

Particulars Automobile Valve Wheels Total

bumpers covers

Direct labor

hours 730 480 515

Overhead rate $128 $128 $128

Total $ 93,440 $61,440 $65,920 $220,800

For determining the total overhead we simply multiply the direct labor hours with overhead rate.

The factory overhead costs using machine hour is

Particulars Automobile Valve Wheels Total

bumpers covers

Machine hours 1,970 1,270 1,360

Overhead rate $48 $48 $48

Total overhead $94,560 $60,960 $65,280 $220,800

For determining the total overhead we simply multiply the machine hours with overhead rate.

7 0

4 years ago

CarPro is an automobile dealer selling only new cars. CarPro sells three types of vehicles: sedans, SUVs and trucks. CarPro plac

netineya [11]

Answer:

14 truck and 1 suv produce 21,800 profit

Explanation:

We have to solve for the contribution margin considering the constraing resourse which, is the ordering cost:

$\left[\begin{array}{cccc}&sedan&SUV&truck&\\$NRV&19000&21850&20425&\\$Cost&-18000&-20500&-19000&\\$CM&1000&1350&1425&\\$Constrain resource&18000&20500&19000&\\$CM per constrain&0.05556&0.0659&0.075&\\\end{array}\right]$

The card models revenue is calcualted using the net realizable value for each card, which is their sales price less the 5% sales commission.

Then we solve for how many truck will it purchase:

300,000 / 19,000 = 15,78

So the company will purchase 15 trucks

giving 15 x 1,425 = 21,375

This will require 2.5 x 15 = 37.5 hours thus 5 sales man (40 labor)

This creates 2.5 hours unsured

and also 300,000 - 15,000 x 19,000 = 15,000 dollar which are not productive

So, we will try to make a better use to purchase the SUV which is the second best option instead of the 15th truck:

giving 14 x 1,425 + 1350 = 21,300

we subtract the 500 dollar of sales man and get a 21,800 profit

with less unproductive dollar. So this will be the answer

7 0

4 years ago