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bonufazy [111]
3 years ago
11

Alpaca Corporation had revenues of $300000 in its first year of operations. The company has not collected on $19900 of its sales

and still owes 26500 on 85000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $15000 in salaries. Owners invested $30000 in the buisness and $30000 was borrowed on a five-year note. The company paid $3300 in interest that was the amount owed for the year, and paid $7800 for two-year insurance policy on the first day of buisness. Alpaca has an effective income tax rate of 9%.
Compute the cash balance at the end of the first year for alpaca Corporation.

A 231548

B 263300

C 238499

D 248900
Business
1 answer:
lyudmila [28]3 years ago
6 0

Answer:

$238,148

Explanation:

Total expenses:

= Inventory purchased + Salaries expense + Interest expenses + Insurance expense

= $85,000 + $15,000 + $3,300 + $3,900

= $107,200

Net income:

= Total revenue - Total expenses

= $300,000 - $107,200

= $192,800

Net income after tax:

= Net income - Taxes

= $192,800 - ($192,800 × 9%)

= $192,800 - $17,352

= $175,448

Cash balance:

= Net income after tax - Amount not collected on accounts receivable + Amount not paid on purchases - Prepaid insurance + Money invested by owners + Money borrowed

= $175,448 - $19,900 + $26,500 - $3,900 + $30,000 + $30,000

= $238,148

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3 years ago
Mary expects the inflation rate to be 5%, and she is willing to pay a real interest rate of 3%. Joe expects the inflation rate t
dezoksy [38]

Answer:

c)Mary is glad she borrowed the funds because her real interest rate has fallen.

Explanation:

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Joe is willing to accept 3% but receives 2% in the end. Therefore, he doesn't earn a producer surplus.

I hope my answer helps you

8 0
3 years ago
A. On March 2, Sheridan Company purchased $862,000 of merchandise from Skysong Company, terms 2/10, n/30.
Delicious77 [7]

Answer:

Sheridan Company

Journal Entries:

a.  March 2: Debit Inventory $862,000

Credit Accounts Payable (Skysong Company) $862,000

To record the purchase of merchandise on credit terms 2/10, n/30.

b. March 6: Debit Accounts Payable (Skysong Company) $110,700

Credit Inventory $110,700

To record the return of merchandise on account.

c. March 12: Debit Accounts Payable (Skysong Company) $751,300

Credit Cash $736,274

Credit Cash Discounts $15,026

To record the payment on account in full settlement, including cash discounts.

Explanation:

1) Data and Analysis:

a.  March 2: Inventory $862,000 Accounts Payable (Skysong Company) $862,000 terms 2/10, n/30.

b. March 6: Accounts Payable (Skysong Company) $110,700 Inventory $110,700

c. March 12: Accounts Payable (Skysong Company) $751,300 Cash $736,274 Cash Discounts $15,026

3 0
3 years ago
The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per
Alenkasestr [34]

Answer:

C

Explanation:

Material price variance

Actual cost of materials =$ 6,888

Standard cost of material = 8200*0.8 =$6560

Variance ( Difference between the actual and budgeted price for materials)

= (6888-6560)

= $328 unfavorable variance.

Material quantity variance

Standard material per unit = 8 kilogram

Actual units produced = 870

Standard material = 6960

Actual material used =  7150

Material quantity variance = Difference in quantity of material used multiplied by the standard cost of material (7150-6960)*0.8

=$ 152 unfavorable variance

The two variances are unfavorable as they exceeded the budget

4 0
3 years ago
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