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2 years ago

in creating the master budget, the second budget a company prepares is the production budget. a. True b. False

Business

1 answer:

Rzqust [24]2 years ago

5 0

Answer:

In creating the master budget, the second budget a company prepares is the production budget.

a. True

Explanation:

When a company prepares the master budget, it first prepares the sales budget, followed by the production budget. The production budget calculates the costs of materials, labor, and overhead based on the number of units to be manufactured within the budget period. The units of products are derived from the sales forecast and the planned amount of ending finished goods inventory.

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Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r

ahrayia [7]

Answer:

The most I could pay for the investment is $12,960.09

Explanation:

The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.

In the case, the present of all cash flows is calculated thus:

Years Cashflows [email protected] 12% PV

1 5000 0.892857143 4,464.29

2 5300 0.797193878 4,225.13

3 6000 0.711780248 4,270.68

Total of present values 12,960.09

The discounting factor is calculated using the formula :

1/(1+r)^n where r and n are rate and number of years respectively.

8 0

3 years ago

Sellers allow customers to use credit cards for all of the following reasons: (You may select more than one answer. Single click

Tasya [4]

Answer:

c. seller receives cash sooner than if credit is granted directly to the customers

d. may allow seller to increase sales volume

Explanation:

When a customer uses a credit card, the bank that issued the card pays the seller immediately, and later, the bank recovers the money plus interest from the customer.

So this method allows for a faster collection of cash (basically immediatly) than if the seller granted the credit directly to the customer.

Credit cards also allow seller to increase sales volume because many people lack the cash necessary to pay down the full value of the purchase.

7 0

3 years ago

John Joos is the owner and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, D

ivolga24 [154]

Answer:

a) December 31, 2013 Owner's equity = 508,000

b) December 31, 2014 Owner's equity = 420,000

Explanation:

Accounting Equation Formula: Owner's Equity = Assets - Liabilities

A) Way to Go LLC December 31, 2013

Owner's Equity = Assets – Liabilities

Owner's Equity = 669,000 – 161,000

Owner's Equity = 508,000

B) Way to Go LLC December 31, 2014

Owner's Equity = Assets – Liabilities

Owner's Equity = (669,000-127,000) – (161,000-39,000)

Owner's Equity = 420,000

6 0

2 years ago

The Sisyphean Company has a bond outstanding with a face value of $ 5 comma 000 $5,000 that reaches maturity in 5 5 years. The b

lilavasa [31]

Answer: $5,219.59905

the price that the bond traded for would be closest to

$5,220 (rounded to whole number)

Explanation:

Using the price of bond formula below:

Price = C × 1 - [(1+r)^-n] /r + F/ (1+r)^n

C = coupon rate = 9.1% of face values ($5,000)

F= Face value(par value) = $5,000

n = number of years to maturity; 5

r = YTM (yield to maturity) = 8% = 0.08

Price = 455 × 1 - [(1+0.08)^-5]/0.08 + 5,000/(1+0.08)^5

Price = 455 × 1 - [(1.08)^-5]/0.08 + 5,000/(1.08)^5

Price= 455 × ( 1 - 0.680583197)/0.08 + 5,000 / 1.46932808

Price= 455 × (0.319416803)/0.08 + 3,402.91598

Price = 1,816.68307 + 3,402.91598

Price= $5,219.59905

≈$5,220 to the nearest whole number.

8 0

2 years ago

If consideration is received before a contract is identified and the consideration is nonrefundable, revenue may be recognized i

Studentka2010 [4]

Answer: Any of these answer choice is correct.

Explanation:

You didn't put the options to the question. The options are:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered.

• Any of these answer choice is correct.

When consideration has been received before a contract is identified and the consideration is nonrefundable, then the revenue may be recognized when:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered

Therefore, the correct option is any of the answer choice is correct.

3 0

2 years ago