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Helen [10]
3 years ago
14

Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside acco

untant prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2014: Account Titles Debit Credit Cash $ 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation $ 9,200 Other assets 8,300 Accounts payable 3,000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Remaining expenses (not detailed; excludes income tax) 33,360 Income tax expense Totals $ 115,960 $ 115,960 Data not yet recorded at December 31, 2014, included: a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015. b. Insurance expired during 2014, $800. c. Depreciation expense for 2014, $3,700. d. Wages earned by employees not yet paid on December 31, 2014, $640. e. Income tax expense, $5,540.
Business
1 answer:
leonid [27]3 years ago
5 0

Answer:

Net income = $16,720

Total assets = Total Stockholders Equity and Liabilities = $68,300

Explanation:

Note: This question is not complete and the data in it are merged together. The complete question with the sorted data is therefore presented before answering the question. See the attached pdf file for the complete question with the sorted data.

Also note: See the attached excel file for the income statement and the classified balance sheet.

A classified balance sheet can be described as a financial statement that show different classifications such intangible assets, fixed assets, current assets, shareholders equity, current liabilities, and long-term liabilities.

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
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Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes
NemiM [27]

Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:

  • A. $333
  • B. $667

a. The machine will take a year to build which means the payoff will only start coming in next year.

First find the present value of the perpetuity:

= 70 / 5%

= $1,400

You then need to find the present value of the above in the current period:

= 1,400 / ( 1 + 5%)

= $1,333

NPV is:

= 1,333 - 1,000 cost

= $333

B. If the amount produced increases by 1%, you should use the Gordon Growth Model:

<em>= Next payoff / ( Interest - Growth)</em>

=70/ ( 5% - 1%)

= $1,750

Take this to current year:

= 1,750 / 1.05

= $1,667

NPV will be:

= 1,667 - 1,000

= $667

Find out more about NPV at brainly.com/question/7254007.

3 0
2 years ago
When the federal reserve decreases the federal funds target rate, it means that
Alex
That it increases the money supply and the inflation is higher. More money can be loaned out by the bank.
5 0
3 years ago
Perez Company reported the following data regarding the product it sells: Sales price $ 56 Contribution margin ratio 25 % Fixed
suter [353]

Answer:

Contribution margin ratio = 1 - variable cost ratio

                                          = 25%

(a) Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}

Break\ even\ in\ dollars=\frac{350,000}{0.25}

                                            = 1,400,000

 Break\ even\ in\ units=\frac{Break\ even\ in\ dollars}{sales\ price}

 Break\ even\ in\ units=\frac{1,400,000}{56}

                                           = 25,000

(b) For profit of $42,000,

sales=\frac{Profit+fixed\ cost}{contribution\ margin\ ratio}

sales=\frac{42,000+350,000}{0.25}

               = 1,568,000

In\ units=\frac{sales}{sales\ price}

In\ units=\frac{1,568,000}{56}

                    = 28,000

(c) variable cost = sales price × variable cost ratio

                           = $56 × 75%

                           = $42

New contribution margin = \frac{New\ sales\ price-variable\ cost}{New\ sales\ price}

New contribution margin = \frac{70-42}{70}

                                          = 0.4

                                          = 40%

New\ Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}

New\ Break\ even\ in\ dollars=\frac{350,000}{0.4}

                                                        = $875,000

New\ Break\ even\ in\ units=\frac{New\ Break\ even\ in\ dollars}{New\ sales\ price}

New\ Break\ even\ in\ units=\frac{875,000}{70}

                                                    = 12,500

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strojnjashka [21]

Answer:

democratic/participative

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Which statements are false? Money comes in different forms. Money is indivisible.
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Saying that money is indivisible is false. As long as its not a penny, money can be divided down to the last cent
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