The accounting book or computer program where each days transactions are first recorded is called a(n): Journal
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Answer:
Results are below.
Explanation:
<u>To calculate the direct material price and quantity variance, we need to use the following formulas:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5.9 - 5.65)*26,600
Direct material price variance= $6,650 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7,300*3.6 - 26,600)*5.9
Direct material quantity variance= $1,888 unfavorable
Answer:
(a) Income Statement
Belyk Paving Co.
Income statement for the year xxxx
Sales $2,384,000
Cost of goods sold $1,441,000
Gross Profit $943,000
Administrative and selling expenses $436,600
Depreciation expense $491,600
Operating Income 14,800
Interest expense $216,600
Income before Tax ($201,8000)
Tax rate 35% <u> $0 </u>
Net Loss <u>($201,800)</u>
(b) operating Cash flow
Net Loss ($201,800)
Add: Non cash Expenses (Depreciation) <u> $491,600</u>
Cash flow from operating activities <u> $289,800 </u>
In order to compute for the effective annual rate, the
working equation would be [( 1 + i/n)^n] – 1. The i
corresponds to the nominal rate while n is the number of compounding periods
per year which in this case is 12. The answer would be 5.116%.
Answer:
The firm should pay $46907.57 for the given project.
Explanation:
Given information:
Return = $15000 annually
Time = 5 years
Opportunity cost = 18%
The formula for payment is
where, R is return, OC is opportunity cost, t is time in years.
Substitute R=15000, t=5 and OC=0.18 in the above formula.
Therefore the firm should pay $46907.57 for the given project.
