To calculate:
1) Net income (loss) for 2010.
2) Operating cash flow
Solution: 1)
Sales = $850000
Less: Cost of goods sold = $610000
Gross profit = $240000
Less: Administrative and selling expenses = $110000
Earning before Interest, Tax and Depreciation = $130000
Less: Depreciation = $140000
Earning before Interest and Tax (EBIT) = ($10000)
Less: Interest expense = $85000
Earning before tax (EBT) = ($95000)
Less: Tax = $0 (as company is having negative EBT or loss hence no tax)
Net loss = $95000
2) Operating cash flow
EBIT + Depreciation - Tax
Wherein, EBIT = Earning before Interest and Tax
($10000) + 140000 - 0 = $130000
Answer:
False
Explanation:
4PL is the term used for fourth party logistics. It has nothing to do with a truck company. Rather it refers to the party of logistics services provider who provides the services in which it further takes the charge of goods from 3rd party of logistics service provider.
It not only delivers the goods but rather provides the entire facility of storage and care in the entire process.
This basically is not a function of trucking company, but a company which manages the goods transportation in complete sense. It even includes insurance during transportation many times.
Answer:
The journal entry is shown below:
Explanation:
Journal Entry.
Jan.1 Cash A/c Dr $460,000
To Bonds payable A/c $460,000
(Bond issue is being recorded)
Jun.30 Interest Expense A/c Dr $18,400
To Cash A/c $18,400 ($460,000×4% = $18,400)
(Interest is being recorded)
Dec.31 Interest Expense A/c Dr $18,400
To Cash A/c $18,400 ($460,000×4% = $18,400)
(Interest is being recorded)
Answer:
Yield to maturity is 7.93%
Yield to call is 7.83%
Explanation:
I calculated both the yield to maturity and yield to call using the rate formula in excel which is =rate(nper,pmt,pv,-fv)
nper is the year to maturity and year to call of 18 years and 8 years respectively.
pmt is the periodic coupon payment is 9%*1000=$90 in each case.
pv is the present value in each case of $1100.35
The future value which is the redemption value is $1000 for yield to maturity and $1060 for yield to call
Find attached detailed calculation
Answer:
The manufacturing overhead applied to work in process is:
D. $79,000
Explanation:
a) Data and Calculations:
Beginning work in process inventory 30,000
Direct materials used in production 50,000
Direct labor 60,000
Total manufacturing costs to account for 219,000
Manufacturing overhead applied to WIP 79,000 (219,000 - 140,000)
Ending work in process inventory 72,000
b) The manufacturing overhead applied to Work in Process is the difference between the total manufacturing costs to account for and the costs of beginning work in process, direct materials, and direct labor for the period. When the ending work in process is deducted from the total manufacturing costs, the resulting figure represents the cost of goods transferred to finished goods inventory.
