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IRISSAK [1]
2 years ago
9

Alpaca Corporation had revenues of $250,000 in its first year of operations. The company has not collected on $18,900 of its sal

es and still owes $27,000 on $96,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $12,700 in salaries. Owners invested $14,000 in the business and $14,000 was borrowed on a five-year note. The company paid $3,800 in interest that was the amount owed for the year, and paid $7,800 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. (Assume taxes are paid in the same year). Compute the cash balance at the end of the first year for Alpaca Corporation.
Business
1 answer:
Sever21 [200]2 years ago
4 0

Answer:

$84,360.00  

Explanation:

The cash balance at the end of the year is simply total cash receipts minus total cash payments which is further analyzed below:

Cash receipt from sales=total sales-accounts receivable=$250,000-$18,900=$ 231,100.00  

Cash paid for merchandise purchase=purchases-accounts payable=$96,000-$27,000=$69,000

Salaries paid     $12,700

Cash from  owners is $14,000

cash from borrowing is $14,000

interest paid is $3800

insurance paid is $7,800

Tax paid=(sales-purchases-salaries paid-insurance cost(one year)-interest paid)*tax rate

insurance for one year=$7800*1/2=$3,900

tax paid=($250,000-$96,000-$12,700-$3,800-$3,900)*40%=$53440

Cash balance=$231,100-$69,000-$12,700+$14,000-$14,000-$3800-$7800-$53440=$84,360.00  

 

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Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that _
liubo4ka [24]

Answer:

P = Average Total Cost

Explanation:

Because the market is monopolistically competitive market, one can tell that it is in long run equilibirum by the fact that P = ATC at the optimal quantity. Furthermore, the quantity he firm produces in long run equilibrium is less than efficient scale.

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3 years ago
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natka813 [3]
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4 0
2 years ago
Annual manufacturing cost data (1000s) for four product lines are as follows:
nadezda [96]

Answer:

1st rank Line 3

2nd rank Line 1

3rd rank  Line 2

4th rank Line 4

Explanation:

Using a spreadsheet approach all of the costs information can be set in excel such that it starts with costs of direct materials followed by the cost of direct labor with summing up to be prime costs of production.

However,the total indirect is then apportioned to the product in proportion of the product's total direct costs(the prime costs) as done in the attached spreadsheet.

The manufacturing cost per unit is the total manufacturing costs divided by annual production in each case.

Find attached.

Download xlsx
7 0
3 years ago
An operations costing system is:
frosja888 [35]

Answer:

C. An operations costing system is the same as job  order costing system except that materials are accounted for in the same way as they are in process costing system

Explanation:

Operation costing is a hybrid of both job costing and process costing which can either used for:

  • products which use different materials initially but ends up using a common process for production that is same process for different group of products.
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8 0
3 years ago
The Reuschel Company began 2018 with inventory of 21,000 units at a cost of $8 per unit. During 2018, 61,000 units were purchase
PtichkaEL [24]

Answer:

1. The Cost of Goods Sold for the period ended 2018 is 682,950.

2. If FIFO method has been used, the Cost of Goods Sold would have been 660,525. Hence, LIFO method has reduced Gross Profit by 22,425 (682,950 - 660,525).

Explanation:

LIFO is one of the methods to calculate cost of goods sold. It assumes that the recently purchased stock is sold first. When a company uses LIFO method, it gets a higher cost of goods sold figure because of Inflation factor.

In the example shared, the company has opening stock of 21,000 units which were purchased at a unit price of $8. During the Year, further units were purchased but this time at a unit cost of $9.95. It is given that the Sales were of 70,500 units. Since the company uses LIFO method, it must remove the recently purchased stock from its books first. So,

61,000 * 9.95 = $606,950.

But the company sold 70,500 units. It means that 61,000 of recently purchased goods were sold and the remaining (70,500 - 61,000) from opening stock.

9,500 * 8 = $76,000. This gives us total CGS of $682,950 (606,950 + 76,000).

If you have any further queries, feel free to ask me. Thanks!

5 0
2 years ago
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