When writing recommendation letters, you should _______

Y3K, Inc., has sales of $7,475, total assets of $3,525, and a debt−equity ratio of .34. Assume the return on equity is 20 percen

azamat

Answer:

Net Income is $485.4

Explanation:

According to the accounting equation

Assets = Equity + Liabilities

So putting value of assets = 3,525, and assuming equity = x, then:

3252 = Liabilities + x

Liabilities = 3252 - x

Now putting this value in the debt to equity formula,

Debt / Equity = 0.34

(3252 - x) / x = 0.34

3252 - x = 0.34x

1.34x = 3252

x = 3252 / 1.34 = $2427 This is the value of equity.

Now

Return on Equity = Net Income / Equity

and return on equity is $2427, so by putting values in the equation, we have:

0.20 = Net Income / 2427

Net Income = $485.4

4 0

3 years ago

Kirk Furniture factors $800000 of receivables to Sulu Factors, Inc. Sulu Factors assesses a 4% service charge on the amount of r

Simora [160]

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr $768,000

Service Charge Expense A/c $32,000

To Accounts Receivable A/c $800,000

(Being the cash is received and the remaining balance is debited to the cash account )

The computation of the service charge expense is shown below:

= Accounts Receivable × service charge percentage

= $800,000 × 4%

= $32,000

6 0

3 years ago

For each of the following companies, specify whether each company would be more likely to use job costing or process costing. a

Oduvanchick [21]

Answer: For each of the following companies, each company would be more likely to use:

a. Janitorial services company - Job costing.

b. Soup manufacturer - Process costing.

c. Commercial plumbing contractor - Job costing.

d. Toothpaste manufacturer - Process costing.

e. Catering service - Job costing.

7 0

3 years ago

You have collected data for the 50 U.S. states and estimated the following relationship between the change in the unemployment r

sleet_krkn [62]

Answer:

[ -0.13, -0.15 ] ( D )

Explanation:

Given data :

sample size ( n ) = 50

Independent variable ( p ) = 1

determine the confidence interval for the slope

Df ( degree of freedom ) = n - p - 1 = ( 50 - 1 - 1 ) = 48

b ( estimated slope ) = -0.23

Standard error of slope = 0.04

confidence interval = 95%

For confidence interval of 95% and Df of 48 ; critical value ( t ) = 2.011

∴ Confidence interval

= -0.23 ± ( 2.011 * 0.04)

= -0.23 ± 0.08044

= [ -0.13, -0.15 ]

4 0

3 years ago

The Assembly Department produced 1,000 units of product during March. Each unit required 1.25 standard direct labor hours. There

frutty [35]

Answer:

Debit Work in process for $15,625

Debit Direct labor time variance for $625

Credit Direct labor rate variance for $650

Credit Wage payable for $15,600

Explanation:

Before preparing the journal, the following calculations are done first:

Wage payable = Actual hours * Actual rate per hour = 1,300 * $12 = $15,600

Direct labor time variance = (Actual hours - Standard hours) * Standard direct labor rate = (1,300 - (1,000 * 1.25)) * $12.50 = $625 Unfavorable

Note: Direct labor time variance is Unfavorable because Actual hours is greater than Standard hours.

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours = ($12 - $12.50) * 1,300 = -$650 Favorable

Note: Direct labor rate variance if Favorable because Actual rate is lower than the Standard rate.

Work in process = Wage payable + Absolute value of direct labor rate variance - Direct labor time variance = $15,600 + $650 - $625 = $15,625

The journal entries will now look as follows:

Date Particulars Debit ($) Credit ($)

Mar. 31 Work in process 15,625

Direct labor time variance 625

Direct labor rate variance 650

Wage payable 15,600

(To record the direct labor in the Assembly Department.)

4 0

3 years ago

When writing recommendation​ letters, you should​ ________.

When writing recommendation letters, you should ________.