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TEA [102]
3 years ago
9

PIRs (planned independent requirements) are calculated based on actual and forecasted sales.a) trueb) false

Business
1 answer:
DochEvi [55]3 years ago
4 0

Answer:

A. True

Explanation:

Option A is correct because PIRs (planned independent requirements) are calculated based on actual and forecasted sales.

In PIR, the independent requirement for final goods is calculated by the sales and the activities /operation for material planning process.

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QS 11-9 Recording warranty repairs LO P4 On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty
prisoha [69]

Answer:

<em>On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts</em>

<u>Recording of revenue:</u>

Cash $490 (debit)

Revenue $490 (credit)

<u>Recording of Warranty granted :</u>

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00  (credit)

$490 × 10% = $49.00

<em>On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory</em>

<u>When warranty is subsequently received:</u>

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Explanation:

<em>On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts</em>

<u>Recording of revenue:</u>

Cash $490 (debit)

Revenue $490 (credit)

<em>We Recognise Revenue to depict transfer of control of mower</em>

<u>Recording of Warranty granted :</u>

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00  (credit)

$490 × 10% = $49.00

<em>There is no option for customer to take the warranty or not, so this is a service warranty.The warranty is measured at the best estimate of expenditure required to settle the obligation that is at 10% of sales.</em>

<em>On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory</em>

<u>When warranty is subsequently received:</u>

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

<em>Utilise the Warranty Provision when the warranty claim is subsequently received</em>

<em></em>

7 0
3 years ago
If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?
Jlenok [28]

Answer:

The correct answer would be option C, The price needs to increase.

Explanation:

In order to maintain a balance or equilibrium, there should always be a balance between the quantity demanded and the quantity supplied. If quantity demanded exceeds quantity supplied, it means people are demanding the product more and the supply of that product is not meeting the demand. In this scenario when there is more demand of a product than supply, the price of the product should increase in order to create a balance between the quantity demanded and supplied, because it is the law of demand that when demand increases, the prices of the product also increases and vice versa. So to maintain the equilibrium, the price of the product should increase. In this way demand will decrease and will reach a point where demand will meet the supply of the product.

5 0
3 years ago
On a bank's T-account, which are part of the bank’s assets? a. both deposits made by its customers and reserves b. deposits made
avanturin [10]

Answer:

The correct answer is C

Explanation:

Bank asset is the assets which represent the ownership of the value capable of being converted into cash. So, the reserve which the banks hold or refrain from using will be classified as the asset for the bank. And the deposit made by the customer will be classified as the current liability as the bank allows the customers to use their deposits whenever they want to use.

Therefore, the reserve is a part of bank asset whereas the deposits will not be a part of bank asset.

8 0
3 years ago
A reasonable business owner should purchase insurance to cover a possible
Vsevolod [243]

Answer:

c

Explanation:

8 0
3 years ago
Prepare a pro forma balance sheet, assuming a sales increase of 15 percent, no new external debt or equity financing, and a cons
xeze [42]

Answer:

pro forma Balance sheet

                             old increased

   

assets    

non current assets   37800 43470

net PPE                   37800 43470

Current assets   15400 17710

Inventory          9000 10350

Accounts receivable  3900 4485

cash                      2500  2875

   

total assets           53200 61180

   

Equity & Liabilities    

common stock    15000 15000

retained earnings   6800 13930

total                           21800 28930

Liabilities    

long term debt   24000 24000

   

Current liabilities   7400 7760

Accounts payable   2400 2760

notes payable   5000 5000

   

total                             53200 60690

EFN = 61180 - 60690 = 490

PAYOUT RATIO = dividends / net income

additions to retained earnings = net income less dividends

Explanation

Retained earnings = old retained earnings plus additions to retained earnings = 6800 + 7130 =13930

Missing parts of the Question

Consider the following income statement for the Heir Jordan Corporation:

 

HEIR JORDAN CORPORATION

Income Statement

 Sales     $ 48,500  

 Costs      34,500  

 Taxable income     $ 14,000  

 Taxes (35%)      4,900  

 Net income     $ 9,100  

     Dividends $ 2,900      

     Addition to retained earnings  6,200      

 

The balance sheet for the Heir Jordan Corporation follows.

 

HEIR JORDAN CORPORATION

Balance Sheet

Assets  Liabilities and Owners’ Equity  

 Current assets      Current liabilities    

   Cash $ 2,500      Accounts payable $ 2,400  

   Accounts receivable  3,900      Notes payable  5,000  

   Inventory  9,000        Total $ 7,400  

     Total $ 15,400    Long-term debt $ 24,000  

 Owners’ equity    

 Fixed assets        Common stock and paid-in surplus $ 15,000  

   Net plant and equipment $ 37,800      Retained earnings  6,800  

     Total $ 21,800  

 Total assets $ 53,200    Total liabilities and owners’ equity $ 53,200  

   

1.Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

2.Calculate the EFN. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

8 0
3 years ago
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