If taxpayers are married and living together at the end of the year, they must file a joint tax return. True False

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,817 $ 40,739 $ 42,

SOVA2 [1]

Answer:

Simon Company's

Balance Sheets at December 31L

Current Yr % 1 Yr Ago % 2 Yrs Ago %

Assets

Cash $ 33,817 6 $ 40,739 8 $ 42,420 10

Accounts receivable, net 100,012 17 69,175 14 53,814 13 Merchandise inventory 128,260 22 91,410 18 59,663 14

Prepaid expenses 11,001 2 10,482 2 4,576 1

Plant assets, net 311,773 53 292,386 57 255,527 61

Total assets $ 584,863 100 $ 504,192 100 $ 416,000 100

Liabilities and Equity

Accounts payable $ 141,262 24 $ 85,208 17 $ 56,010 13

Long-term notes payable 108,855 19 118,283 23 91,936 22 Common stock,

$10 par value 163,500 28 163,500 32 163,500 39 Retained earnings 171,246 29 137,201 27 104,554 25

Total liabilities & equity$ 584,863 100 $ 504,192 100 $ 416,000 100

2. Assuming annual sales have not changed in the last three years, the change in accounts receivable as a percentage of total assets is favorable. It is always better to maintain low accounts receivable, thereby reducing credit risk exposures.

3. Assuming annual sales have not changed in the last three years, the change in merchandise inventory as a percentage of total assets is favorable. Less inventory means that working capital is not being tied down to inventory.

Explanation:

Common-size percentages are used in analyzing the balance sheet. The calculations set each line item as a percent of the total assets.

7 0

3 years ago

Professor Shethinks Shesverybusy needs to allocate time this week for office appointments, so she needs to forecast the number o

Burka [1]

Answer: This Week's forecast = 78 appointments

Explanation:

4 Weeks ago = 95 , 3 Weeks ago =80 , 2 Weeks ago = 65 , last Week = 50

forecast : 2 weeks ago = 90

alpha = 0.20

exponential smoothing = recent previous appointment x a + forecast(1-a)

Forecast (last week) = 65 x 0.20 + 90 x (1 - 0.20)

Forecast (last week) = 13 + 72 = 85

Forecast for this week = 50 x 0.20 + 85 x (1 - 0.20)

Forecast for this week = 10 + 68 = 78

This Week's forecast would be 78 appointments

7 0

3 years ago

Steve's Outdoor Company purchased a new delivery van on January 1 for $45,000 plus $3,800 in sales tax. The company paid $12,800

gizmo_the_mogwai [7]

Answer:

a. Compute the acquisition cost of the van.

van's basis = $45,000 (the van) + $3,800 (sales tax) + $700 (logo) = $49,500

When you purchase an asset, its basis must include the cost of the asset, any freight costs, taxes associated with the sale, any applicable insurance expense, installation costs and or any modifications necessary.

b. Compute the depreciation expense to be reported for Year 1.

depreciable value = $49,500 - $4,500 = $45,000

depreciation expense per year = $45,000 / 5 = $9,000

December 31, 202x, depreciation expense

Dr Deprecation expense 9,000

Cr Accumulated depreciation: van 9,000

3 0

3 years ago

Which of the following is true about multicollinearity?

Komok [63]

Answer:

d. It is best measured using the statistic variance inflation factor (VIF).

Explanation:

Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance

Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.

VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5 implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
VIF as a multicollinearity correction : Calculating $Var (\beta j )$ = σ^2 / $[TSS j (1 - R^2j)]$ ; where TSS = total sum of square of variable j , σ^2 = j variance, R^2 j = R^2 from regressing all other independent variable on variable j

3 0

3 years ago

Computers makes 5 comma 900 units of a circuit board, CB76 at a cost of $ 290 each. Variable cost per unit is $ 220 and fixed c

blondinia [14]

Answer:

There is a loss on buying from outside supplier ,Peach's offer should not be accepted.

Explanation:

Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.

Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.

Incremental savings

Saving in variable cost 220

saving in fixed cost 25

Total saving 245

less: Incremental cost (270)

Incremental profit /(loss) on buying from outside supplier (25)

Total loss 25*5900= -147500

Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.

4 0

3 years ago