United States paper money is backed by

Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 300 units in J

ZanzabumX [31]

Answer:

Direct material purchase budget for July and August=  $10634

Explanation:

The material purchases budget is determined by adding the the closing stock of materials to the material usage budget and subtracting the opening inventory of materials.

Material purchase budget= Material usage budget + closing inventory - opening inventory

Material budget=

Unit

July = 300×12 = 3600

August = 360 × 12 = 4320

7920

Closing inventory 260

8180

cost per unit × $1.30

$10634

Direct material purchase budget for July and August= $10634

4 0

4 years ago

Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021. The bonds mature

Fantom [35]

Answer:

Most Solutions, Inc.

Amounts related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021:

Operating activities:

Interest payments -$50.4 million

Financing activities:

Bonds issue $375,505,452

Explanation:

a) Data and Calculations:

January 1, 2021:

Face value of bonds issued = $420 million

Maturity period of bonds = 10 years (2031)

Coupon interest rate = 12%

Market yield = 14%

Payment of interest expense = semiannually (June 30 and December 31)

Debit Cash (price) 375,505,452

Debit Discount on bonds (difference) 44,494,548

Credit Bonds payable (face amount) 420,000,000

To record the bonds proceeds and discount.

Cash payments for Bonds Interests:

June 30 $25.2 million

December 31 $25.2 million

3 0

3 years ago

A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term a

ElenaW [278]

Answer:

The computation is shown below:

Explanation:

The computation is shown below:

Current ratio = current assets ÷ current liabilities

where,

Current assets = cash + inventory + account receivables

= $500 + $300 + $200

= $1000

Current liabilities is

= $200 + $400

= $600

So, the current ratio is

= $1,000 ÷ 600

= 1.67 times

Debt Ratio is

= Total Liabilities ÷ Total Assets

= $600 ÷ $1,500

= 40%

TIE is Time Interest Earned ratio

= EBIT ÷ Interest Expense

= $5,000 ÷ $2,000

= 2.5

Profit margin is

= Net Income ÷ Total Sales

= $800 ÷$10,000

= 8%

And,

Total asset turnover is

= Sales ÷ Total Assets

= $10,000 ÷ $1,500

= 6.67

7 0

3 years ago

Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, minin

tamaranim1 [39]

Answer:

a. The earnings per share in Year 2 and Year 1 for Dakota would be as follows:

earnings per share in Year 1 is $6.29

earnings per share in Year 2 is $3.57

The earnings per share in Year 2 and Year 1 for Jersey would be as follows:

earnings per share in Year 1 is $8.75

earnings per share in Year 2 is 5.79

b. Dakota is the company with more profitability

Explanation:

a. In order to calculate the earnings per share in Year 2 and Year 1 for each company we would have to use the following formula:

earnings per share in Year x=Net income year x/Average number of common shares outstanding

Therefore, the earnings per share in Year 2 and Year 1 for Dakota would be as follows:

earnings per share in Year 1=$3,765/599=$6.29

earnings per share in Year 2=$2,122/594=$3.57

The earnings per share in Year 2 and Year 1 for Jersey would be as follows:

earnings per share in Year 1=$3,177/363=$8.75

earnings per share in Year 2=$1,935/334=5.79

b. The net income from Year 1 Year 2 of Dakota are higher than Jersey, so Dakota is the company with more profitability

7 0

3 years ago

"Mr. Z was recently promoted to an executive position by his corporate employer. The corporation now requires him to entertain c

AlladinOne [14]

Answer:

Following description will make you concept clear an help you.

Explanation:

3 0

3 years ago