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3 years ago

Morganton Company makes one product and it provided the following information to help prepare the master budget:

Business

1 answer:

TiliK225 [7]3 years ago

8 0

Answer:

1. $1,540,000

2. $998,200

3. $924,000

Explanation:

1. The computation of the budgeted sales for July is shown below:-

Budgeted sales for July = Number of units × Sale price

= 22,000 × $70

= $1,540,000

2. The computation of expected cash collections for July is shown below:-

Expected cash collection for July = June accounts receivables + July cash sales

= (9,100 × $70 × 60%) + (22,000 × $70 × 40%)

= $998,200

3. The computation of the accounts receivable balance at the end of July is shown below:-

Accounts receivable for July = Number of units × Sale price × Budgeted selling price per unit

= 22,000 × $70 × 60%

= $924,000

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If the “asset” price is $3.50 and the “strike” price is $3.75, how much of the premium cost is its “intrinsic” value?

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The premium cost would be $0.25.

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4 years ago

In its cash flow statement for the current year, Fox Co. reported cash paid for interest of $70,000. Fox did not capitalize any

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Answer:

$76,000

Explanation:

The calculation of the interest expense is shown below:

= Reported amount of cash paid for interest + Decrease in prepaid interest - decrease in accrued interest payable

= $70,000 + $23,000 - $17,000

= $76,000

The decrease in prepaid interest is classified as a current asset and the accrued interest payable is current liabilities and we know that the rise in current assets and a decline in current liabilities are excluded, while the decline in current assets and an increase in current liabilities are included.

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3 years ago

The primary objective of financial reporting is to provide information:___________.

zimovet [89]

Answer:

b. Useful to capital providers.

Explanation:

Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

The objective of financial reporting include all of the following to provide information that:

1. Is useful to those making investment decisions. This information would help creditors to determine whether they should lend to a client or not; or assist investors in deciding whether they should invest in a business or not.

2. Is useful to those lending out money to business entities. When investors and creditors are well furnished with financial information about an organization, they would be able to assess the amounts of cash, timing, and uncertainty of cash flows from dividends or interest.

3. Is useful to creditors in making decisions about providing resources to business entities.

Hence, the primary objective of financial reporting is to provide information useful to capital providers.

Additionally, financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining financial accounting and reporting standards for general guidance of individuals or capital providers such as investors, issuers and auditors.

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4 years ago

A CARTEL IS DEFINED AS A FORMAL ORGANIZATION OF PRODUCERS THAT AGREE TO COORDINATE PRICES & PRODUCTION.

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Answer:

cartel - an agreement by a formal organization of producers to coordinate prices and production

Explanation:

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Currently, the Organization comprises 15 Member Countries – namely Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, IR Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

Member: Iran, Iraq, Ecuador

Place founded: Baghdad

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3 years ago

A quality control activity analysis indicated the following four activity costs of an administrative department:

asambeis [7]

Answer:

Given:

Cost of Redesigning a form to reduce errors = $15,000

Cost of Responding to customer complaints = $75,000

Cost of Verifying the accuracy of a form = $30,000

Cost of Correcting errors in forms = $60,000

Sales = $3,000,000

Prevention costs is defined as the costs that incur to obviate or decrease the number of flaw at first places. is defined as the costs that incur to obviate or decrease the number of flaw at first places.

Here Prevention cost is computed as :

Prevention cost = Cost of Redesigning a form to reduce errors + Cost of Responding to customer complaints + Cost of Correcting errors in forms

Prevention cost = $15,000 + $75,000 + $60,000

Prevention cost = $ 150,000

∴ Prevention cost to total sales ratio = $\frac{Prevention \: cost}{total \:sales\: ratio}$

Prevention cost to total sales ratio = $\frac{150000}{3000000}$

Prevention cost to total sales ratio = 0.05

% Prevention cost to total sales = 5%

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3 years ago