The break-even point is the sales level at which a company?

Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that throu

Brilliant_brown [7]

Answer:

a. The amount of dollars will the cash management system free up is $10,220,000

b. The income will be of $1,022,000

Explanation:

a. According to the given data in order to calculate the amount of dollars will the cash management system free up we would have to make the following calculation:

Freed-up fund = $3,200,000 * 3 + $1,240,000 * 1/2

Freed-up fund = $10,220,000

The amount of dollars will the cash management system free up is $10,220,000

b. To calculate the income If Neon Light Company can earn 10 percent per annum on freed-up funds we would have to make the following calculation:

Interest on freed-up cash = $10,220,000 * 10%

Interest on freed-up cash=$1,022,000

The income will be of $1,022,000

7 0

3 years ago

Assertions about account balances at year-end typically include _______.A. existence, completeness, and allocationB. existence,

Ksenya-84 [330]

Answer:

The correct answer is letter "B": existence, completeness, and rights and obligations.

Explanation:

Assertions are management claims about certain matters regarding a company. Those claims are raised as a result of auditing the firm's financial statements. There are three (3) types of assertions which are:

Transaction-level assertions: accuracy, classification, completeness, cutoff, and occurrence.
Account balance assertions: completeness, existence, rights and obligations, and valuation.
Presentation and disclosure assertions: accuracy, completeness, occurrence, rights and obligations, and understandability.

7 0

3 years ago

Prepare journal entries to record the following four separate issuances of stock. A corporation issued 7,000 shares of $10 par v

AleksandrR [38]

Answer:

DEBIT $ 84.000 Cash

CREDIT $ 70.000 Common Stock

CREDIT $ 14.000 Paid-In Capital in Excess of Par Value

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 3.500 Common Stock

CREDIT $ 39.500 Paid-In Capital in Excess of Par Value

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 43.000 Common Stock

DEBIT $ 218.000 Cash

CREDIT $ 175.000 Preferred Stock

CREDIT $ 43.000 Paid-In Capital in Excess of Par Value

Explanation:

DEBIT $ 84.000 Cash

CREDIT $ 70.000 Common Stock

CREDIT $ 14.000 Paid-In Capital in Excess of Par Value

As the company declared a par value, it's necessary to split the equity in two accounts, Common Stock

for the stated value ($70,000) and the Paid in Capital for the excess of cash over the Common Stock ($14,000)

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 3.500 Common Stock

CREDIT $ 39.500 Paid-In Capital in Excess of Par Value

As the company declared a par value, it's necessary to split the equity in two accounts, Common Stock

for the stated value ($3,500) and the Paid in Capital for the excess of the price over the Common Stock ($39,500)

In this case there is no cash because the shares are in exchange for the promotions effort (Expenses)

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 43.000 Common Stock

As the company declared no-par value, it's not necessary to split the equity in two accounts, full value to common stocks account

In this case there is no cash because the shares are in exchange for the promotions effort (Expenses)

DEBIT $ 218.000 Cash

CREDIT $ 175.000 Preferred Stock

CREDIT $ 43.000 Paid-In Capital in Excess of Par Value

Last escenario the company declared preffered stock and not Common ones, so the equity account in this case it's Preferred stock

as the par value it's $100 ($175,000) to Preferred Stock and Paid in Capital for the excess of the price ($43,000)

5 0

3 years ago

On January 1, 2021, Casey Corporation exchanged $3,194,000 cash for 100 percent of the outstanding voting stock of Kennedy Corpo

torisob [31]

Question Completion Basis:

On January 1, 2021, Casey Corporation exchanged $3,250,000 cash for 100 percent of the outstanding... "and not $3,194,000".

Answer:

Cassey Corporation

Post Acquisition Balance Sheets

(credit balances in parentheses)

Accounts Casey Kennedy Consolidated

Cash $500,000 $176,250 $676,250

Accounts receivable 1,410,000 345,000 1,755,000

Inventory 1,585,000 375,750 1,960,750

Investment in Kennedy 3,250,000 0 0

Buildings (net) 5,722,500 2,332,000 8,054,500

Licensing agreements 0 2,888,000 2,888,000

Goodwill 693,500 0 1,183,500

Total assets $13,161,000 $6,117,000 $16,518,000

Accounts payable $(391,000) $(377,000) (768,000)

Long-term debt (3,770,000) (2,980,000) (6,750,000)

Common stock (3,000,000) (1,000,000) (3,000,000)

Additional paid-in capital 0 (500,000)

Retained earnings (6,000,000) (1,100,000) (6,000,000)

Total liabilities and equities $(13,161,000) $(5,957,000) $16,518,000

Explanation:

a) Data and Calculations:

Fair-value allocation schedule:

Fair value of Kennedy (consideration transferred) $3,250,000

Carrying amount acquired 2,600,000

Excess fair value 650,000

to buildings (undervalued) $342,000

to licensing agreements (overvalued) (160,000) 160,000

to goodwill (indefinite life) $468,000

Post Acquisition Balance Sheets

(credit balances in parentheses)

Accounts Casey Kennedy

Cash $500,000 $176,250

Accounts receivable 1,410,000 345,000

Inventory 1,585,000 375,750

Investment in Kennedy 3,250,000 0

Buildings (net) 5,722,500 1,990,000

Licensing agreements 0 3,070,000

Goodwill 693,500 0

Total assets $13,161,000 $5,957,000

Accounts payable $(391,000) $(377,000)

Long-term debt (3,770,000) (2,980,000)

Common stock (3,000,000) (1,000,000)

Additional paid-in capital 0 (500,000)

Retained earnings (6,000,000) (1,100,000)

Total liabilities and equities $(13,161,000) $(5,957,000)

b) The reframing of the question somehow complicated its workings and the solution provided here.

5 0

2 years ago

Type the correct answer in the box. Spell all words correctly.

sleet_krkn [62]

Answer: initial stage

Explanation:

The initial stage of financial life cycle is simply the first stage or the beginning phase of the financial cycle. Since he want to save so that he can get a house, thus means that he wants to accumulate asset.

Furthermore, it should be noted that the initial phase of the financial life cycle typically begin at a young age of about 25 years.

5 0

2 years ago