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3 years ago

The management team of Wickersham Brothers Inc. is preparing its annual financial statements.

Business

1 answer:

scoundrel [369]3 years ago

7 0

Answer:

Wickersham Brothers Inc.

Statement of Cash Flows, indirect method:

Operating Activities:

Adjustment of Net Income $70,360

Add Depreciation 24,640

Cash from operations $95,000

Working capital adjustments:

Accounts receivable -$15,500

Inventory 7,750

Accounts Payable -$3,100

Salaries & Wages Payable 1,550

Income Tax expense -$17,590

Interest expense -$4,650

Cash flow from operating activities $64,460

Financing Activities:

Long-term note payable -$15,500

Common Stock $20,000

Dividend -$26,400

Cash flow from financing activities -$21,900

Investing Activities:

Equipment -$83,000

Net Cash flows ($40,440)

Explanation:

a) Balance Sheet

Assets: Current Year Prior Year

Cash $95,700 $114,900

Accounts receivable 124,000 108,500

Merchandise inventory 93,000 100,750

Property and equipment 176,000 93,000

Less: Accumulated

depreciation (50,640) (26,000)

Total assets $438,060 $391,150

Liabilities:

Accounts payable $15,500 $18,600

Salaries & Wages Payable 3,100 1,550

Notes payable, long-term 77,500 93,000

Stockholders' Equity:

Common stock 144,000 124,000

Retained earnings 197,960 154,000

Total Liabilities and

Stockholders' Equity $438,060 $391,150

b) Income Statement

Sales $420,000

Cost of goods sold 220,000

Depreciation expense 24,640

Other expenses 105,000

Net income $70,360

c) Operating Activities:

Accounts receivable -$15,500

Inventory 7,750

Accounts Payable -$3,100

Salaries & Wages Payable 1,550

Income Tax expense -$17,590

Interest expense -$4,650

Net Income $70,360

Add Depreciation 24,640

Cash from operations $95,000

d) Financing Activities:

Long-term note payable -$15,500

Common Stock $20,000

Dividend -$26,400

e) Investing Activities:

Equipment -$83,000

f) The indirect method is one of the two methods for preparing the Statement of Cash Flows. This method takes the net income and adjusts non-cash flow expenses, like depreciation. It is prepared through a reconciliation of balances, of inflows and outflows during two periods.

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After evaluating Null Company’s manufacturing process, management decides to establish standards of 3 hours of direct labor per

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Answer:

Direct labor rate variance = (SR - AR) $\times$ AH

October = ($15 - $15.20) $\times$ 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25) $\times$ 22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH) $\times$ SR

October = (16,800 - 16,250) $\times$ $15 = 8,250 Favorable

November = (18,000 - 22,000) $\times$ $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

Explanation:

Computing variances for each month

Particulars October November Equation

Total units produced 5,600 units 6,000 units (a)

Standard hour per unit 3 hours 3 hours (b)

Total standard hour SH 16,800 18,000 (c) = (a)*(b)

Total standard cost

of labor @ $15 SR per hour $252,000 $270,000 (d) = (c) * 15

Actual hours used AH 16,250 22,000 (e)

Actual cost $247,000 $335,500 (f)

Actual Rate per hour AR $15.20 $15.25 (g) = (f)/(e)

Using the above information we have

Direct labor rate variance = (SR - AR) $\times$ AH

October = ($15 - $15.20) $\times$ 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25) $\times$ 22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH) $\times$ SR

October = (16,800 - 16,250) $\times$ $15 = 8,250 Favorable

November = (18,000 - 22,000) $\times$ $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

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3 years ago

What is a BFOQ? Should BFOQs be allowed?

Ulleksa [173]

Answer:

In employment law, a bona fide occupational qualification (BFOQ) (US) or bona fide occupational requirement (BFOR) (Canada) or genuine occupational qualification (GOQ) (UK) is a quality or an attribute that employers are allowed to consider when making decisions on the hiring and retention of employees—a quality that when considered in other contexts would constitute discrimination and thus be in violation of civil rights employment law. Such qualifications must be listed in the employment offering.[citation needed]

Explanation:

Canada

The law of Canada regarding bona fide occupational requirements was considered in a 1985 Canadian court case involving an employee of the Canadian National Railway, K. S. Bhinder, a Sikh whose religion required that he wear a turban, lost his challenge of the CNR policy that required him to wear a hard hat.[1] In 1990, in deciding another case, the Supreme Court of Canada amended the Bhinder decision: "An employer that has not adopted a policy with respect to accommodation and cannot otherwise satisfy the trier of fact that individual accommodation would result in undue hardship will be required to justify his conduct with respect to the individual complainant. Even then the employer can invoke the BFOQ defence."[2]

United States

In employment discrimination law in the United States, both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act contain a BFOQ defense. The BFOQ provision of Title VII provides that:

[I]t shall not be an unlawful employment practice for an employer to hire and employ employees, for an employment agency to classify, or refer for employment any individual, for a labor organization to classify its membership or to classify or refer for employment any individual, or for an employer, labor organization, or joint labor-management committee controlling apprenticeship or other training or retraining programs to admit or employ any individual in any such program, on the basis of his religion, sex, or national origin in those certain instances where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of that particular business or enterprise ...[3]

i'm not able to add the balance of the answer so pls go to https://en.wikipedia.org/wiki/Bona_fide_occupational_qualification

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With which two key issues is corporate-level strategy concerned?

Andrej [43]

Answer:

Option B What businesses a firm should be in and how the corporate office should manage its group of businesses

Explanation:

The reason is that corporate level strategy helps in managing the all of the business units of the company which means that the strategy is to maximize the gains arising by increasing the effectiveness and efficiency of the business operations of the business units. So the question certainly would include the decision of whether or not we should close a business unit or that we should continue with it. It would also question whether the group business is well managed or there are any other better alternatives as well.

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3 years ago

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The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicate

Nikitich [7]

Answer: $164,300

Explanation:

Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.

= Beginning dividends payable + Dividends for the year - Ending dividends

= 43,200 + 160,000 - 38,900

= $164,300

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3 years ago

All of the following are examples of current account transactions EXCEPT: Elimination Tool Select one answer A The United States

9966 [12]

Answer:

Explanation:

the current account of a country measures the value of the trade balance, transfers and the net income

the component of the current account includes

trade balance - it measures the value of the import and export of goods and services of a country.

net income - measures the value of the income received by a country's residents less the income paid to foreigners

transfers - it includes income sent home by a country's citizens working outside the country

Asset income - measures changes in the asset income

this transaction - China purchases $10 billion of United States government securities - would be included in the capital account

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3 years ago