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3 years ago

Warrick Boards calculated pension expense for its underfunded pension plan as follows:

Business

1 answer:

faltersainse [42]3 years ago

7 0

Answer:

(i) PBO - Projected Benefit Obligation.

(ii) Pension Liability.

(iii) OCI - Other Comprehensive Income.

(iv) Retained Earnings.

Explanation:

(i) Service Cost and Interest Cost would result in increase of Projected Benefit Obligation (PBO), So;

PBO = Service Cost + Interest Cost

PBO = $354,000,000 + $215,000,000

PBO = $569,000,000

(ii) Plan Assets are increase by Expected Return of $154,000,000, and this amount will be deducted from the PBO because this has already been included in the Balance Sheet under Assets;

Pension Liability = PBO - Plan Assets

Pension Liability = $569,000,000 - $154,000,000

Pension Liability = $415,000,000

(iii) Other Comprehensive Income - OCI is the amortization of the Prior Service Cost that will reduce the OCI account during the period of time along with the loss on OCI which will also be accounted for, as follows;

OCI = Prior Service Cost + Net Loss

OCI = $21,000,000 + $4,000,000

OCI = $25,000,000

(iv) Retained Earnings will be decreased as pension will be paid from the retained earnings account and can be calculated as follows;

Retained Earnings = - Pension Expense + Prior Service Cost + Net Gain on plan assets + Net Loss on OCI

Retained Earnings = - $440,000,000 + $21,000,000 + $11,000,000 + $4,000,000

Retained Earnings = - $404,000,000

Hence Share holders' Equity will be reduced by $404,000,000.

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Hazelwood Company had beginning inventory of $54,000. During the period the company purchased $109,800 of merchandise. At the en

Ilia_Sergeevich [38]

Answer:

$207000 is the sales revenue for the year.

Explanation:

The given situation is:

Sales Revenue 100%

Cost Of Goods sold 60%

Profit Margin 40%

Now we neither have sales revenue figure nor the profit margin figures but we can calculate cost of goods sold from the following formula:

Cost Of Goods Sold = Opening Inventory + Purchases - Closing Inventory

By putting values we have:

Cost Of Goods Sold = $54,000 + $109,800 - $39,600

Cost Of Goods Sold = $124,200

Now cost of goods sold is 60% which means if we want to go at 100% we will divide with the percentage at which we are standing (60%) and multiply with the percentage which we want to calculate (Sales is 100%).

Sales revenue = Cost of goods sold * 100% / 60%

Sales revenue = $124200 * 100% / 60% = $207,000

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3 years ago

1) Torria wants to open a hair salon.

AnnyKZ [126]

Answer:

Case 1: Torria wants to open a hair salon

a. 2 possible sources of revenue the business may have.

As a hair salon, there are several sources of revenue as following:

+) First is the revenue from providing hair care services for customers. This is the main sources, generated by providing services such as cutting, dyeing, etc.

+) The second source is from training. Torria can open courses for people who want to learn about hair care skills.

b. 5 possible expenses the business may have

To establish and operate a business, Torria may face these expense:

+) First is the fee for place. Torria will have to pay regularly fee to borrow rooms/ house to place the salon.

+) Second is the initial investment in interior and facilities such as chair, bed, mirror; the hair care products like shampoo, essential oils, etc.

+) Third is the salary Torria has to pay for the employees.

+) Fourth is the expense for advertising including: printing posters/ online advertisement, etc.

+) Last but not least is billing on electricity or water

Case 2: Mykeda wants to open an electronic store selling Apple products.

a. Other source of revenue than selling electronics

Other than selling electronic product, Mykeda can provide the services of repairing electronics to generate revenue. In this services, users can bring their broken phone to Mykeda's store to fix it and pay for that.

b. 4 expenses

4 expenses that Mykeda may have when opening a store are:

First, Mykeda has to pay for borrowing location on a street or in a mall to open the store.

In addition, there would be cost for the furniture of the store such as sofas, shelves, etc.

The third expense is on the investment to buy Apple products to resell.

And the fourth one is salary that Mykeda has to pay for salesman or other staffs in the store.

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3 years ago

.3Simba and Zola are married but file separate returns. Simba received $80,000 of salary and $1,200 of taxable dividends on stoc

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Answer:

Zola's gross income is worked out under community property state;

Explanation:

community property state

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Under community law system, all the property is deemed to be community property and is held jointly by the spouses unless the property is acquired before marriage or inheritance or gift.

For federal tax purposes, each spouse is taxed one and half of the property belonging to community. Therefore Zola is taxed 50% for the incomes of her spouse as well including the interest on certificate of deposit.

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