Answer:
False
Explanation:
In the given question it is mentioned that the employees earned vacation pay of $35,000 during the first year of the operation.
Hence,
the expenses should be recorded as the vacation pay expenses in the same year not in the following year i.e the second year whether the employees take the vacation in the same year or the next year.
Answer:
11.61%
Explanation:
First, find the annual percentage return (APR) of this annuity. Using a financial calculator, input the following;
Recurring payment; PMT = -450
Future value ; FV = 27,000
Duration of investment ; N = 4*12 = 48 months
One -time present value; PV = 0
then compute interest rate; CPT I /Y= 0.92% (this is monthly rate)
APR = 0.92*12 = 11.035%
Effective Annual Rate (EAR) formula is as follows;
EAR = (1+
) ^m -1
EAR = 1+
)^12 -1
EAR = 1.1161 -1
EAR = 0.1161 or 11.61%
Answer:
the cash outflow for expenses is $106,000
Explanation:
The computation of the cash outflow for expenses is shown below:
Beginning balance $46,000
add; expenses $125,000
less; ending balance -$65,000
Cash outflow for expenses $106,000
Hence, the cash outflow for expenses is $106,000
Answer:
the issue price is $88 per share
Explanation:
The computation of the issue price is shown below:
= (Common stock + paid in capital) ÷ (Number of common shares issued)
= ($3,600,000 + $36,000,000) ÷ 450,000 shares
= $39,600,000 ÷ 450,000 shares
= $88 per share
Hence, the issue price is $88 per share
Answer:
D. $3240000.
Explanation:
Particulars Amount ($) Amount ($)
Direct materials used 1,880,000
Direct Labor 760,000
<u>Manufacturing Overheads </u>
Factory Utilities 150,000
Indirect Labor 50,000
Factory Depreciation <u>400,000</u> <u>600,000</u>
Total Manufacturing cost <u>$3,240,000</u>
