Answer: long term financing needs
Explanation:
Long-term financing are the capital requirements for an organization for a period of five or more years. Long term financing needs are utilized for the capital expenditures in fixed assets such as the land and building, plant and machinery etc.
Therefore, Jones Manufacturing needs $450,000 to build a new plant. It must also spend $200,000 on new equipment for the plant. Both of these needs are examples of long term financing needs.
Calculation of amount of stockholders' equity at the end of the year;
We can calculate the amount of stockholders' equity at the end of the year with the help of following formula:
Stockholders' equity at the end of the year = Total Assets at the end of the year – Total Liabilities at the end of the year
At the beginning of the year, Morales Company had total assets of $845,000 and total assets increased $150,000 during the year. Hence Total Assets at the end of the year shall be (845000+150000) = $995,000
At the beginning of the year, Morales Company had total liabilities of $532,000 and total liabilities decreased $75,000 during the year. Hence Total Liabilities at the end of the year shall be (532000-75000) = $457,000
Now we can calculate:
Stockholders' equity at the end of the year = Total Assets at the end of the year – Total Liabilities at the end of the year
= 995000-457000 = $538,000
Hence, Stockholders' equity at the end of the year is <u>$538,000</u>
Answer:
Overheads have been Over applied by $27,400
Explanation:
Overhead Applied = Predetermined Overhead Rate × Actual Activity
Predetermined Overhead Rate = Budgeted Overheads / Budgeted Activity
= $43,500 / 4,000 direct labor hours
= $ 10,88 per direct labor hour
Overhead Applied = $ 10,88 × 6,250 hours
= $68,000
Actual Overheads = $40,600
Actual Overheads $40,600 < Overhead Applied $68,000
Therefore Overheads have been Over applied by $27,400 that is $68,000 - $40,600
This page will help: http://www.grameen.com/data-and-report/balance-sheet-1983-2013-in-usd/