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Dominik [7]
3 years ago
11

Julie Lambert has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The bal

ance is paid at the conclusion of the consultation. How does Lambert account for the cash received at the end of the engagement
Business
1 answer:
chubhunter [2.5K]3 years ago
7 0

Answer: cash, earned consulting revenue

Explanation:

Lambert account for the cash gotten from clients through cash, earned consulting revenue. After several business has been done there would be an account of how payments where made, from this, records can be taken how cash where being payed through the records of transfers and payment.

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Vaughn Manufacturing incurred the following costs for 72000 units: Variable costs $432000 Fixed costs 392000 Vaughn has received
Zinaida [17]
$7.8
Explanation:
Variable costs = $504,000
Fixed costs = $392,000
Number of units produced = 84,000
Shipping charges = $4,500
Therefore, the variable cost per unit is calculated as follows:
= Variable costs ÷ Number of units produced
= $504,000 ÷ 84,000
= $6 per unit
Incremental fixed cost per unit (For 2,500):
= Shipping cost ÷ 2,500
= $4,500 ÷ 2,500
= $1.8 per unit
Therefore, the unit sales price will be the sum total of variable cost per unit and incremental fixed cost per unit for the shipping charges.
BEP (in sales price per unit):
= Variable cost per unit + incremental fixed cost per unit
= $6 + $1.8
= $7.8
4 0
3 years ago
You are considering buying a company using leveraged buyout. The company is projected to have sales of 500 million each year in
worty [1.4K]

Answer:

Net income=  $33 million

Explanation:

A leveraged buyout is a buyout of an entity by it's own managers/board members mostly through debt financing. Now the expected sales after the buyout is 500 million, we are asked to calculate net income only in the first year. First of all lets see what net income is. Net income is the remaining amount of income after having paid all the expenses which is mostly the residual income available for either distribution to shareholders or transfer to retained earnings.

The formula for net income is as follows:

Net income/profit= Sales revenue - COGS - Administrative expenses- depreciation and amortization - Interest expense - Tax

Let first calculate COGS & other administrative expense, depreciation and interest expenses first.

COGS & ADMIN: 500*0.6=300 m

Depreciation: 500*0.05 =25m

Interest expense for the year: 1500 * 0.08= 120m

Now lets substitute values in the formula mentioned above:

Income before taxes: 500m - 300m - 25m - 120m

Income before taxes: 55m

Income after taxes; 55m - 22m (taxes= 55*40%)

Net income=  $33 million

4 0
4 years ago
Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw mate
Ket [755]

Answer:

Dr Raw materials inventory 84,000  

    Cr Accounts payable 84,000

Dr Work in process inventory 38,000  

    Cr Raw materials inventory 38,000

Dr Factory overhead 13,500  

    Cr Raw materials inventory 13,500

Dr Work in process inventory 31,000  

Dr Factory overhead 14,000  

    Cr Cash 45,000

Dr Factory overhead 7,250  

    Cr Cash 7,250

Dr Work in process inventory 37.200  

    Cr Factory overhead 37,200

 

Dr Finished goods inventory 58,500  

    Cr Work in process inventory 58,500

Dr Cost of goods sold 58,500  

    Cr Finished goods inventory 58,500

Dr Accounts receivable 84,000  

    Cr Sales revenue 84,000

4 0
3 years ago
Which of these is not one of the 4Ps of marketing?
netineya [11]
<span>The 4Ps of marketing are Price, Product, Promotion, and Place. The 4Ps of marketing is also called the marketing mix in marketing procedure. It is the group of control, tactics and marketing tools that a company used to achieve their their product goal. It is a combination of everything that a company can do to influence demand for its product.Hope it helps.</span>
4 0
3 years ago
Read 2 more answers
Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the exp
Snezhnost [94]

Answer:

The response options are:

A) The bond will not be called.

B) The bond has an early redemption feature.

The correct answer is: A) The bond will not be called.

Explanation:

Depending on the internal rate of return (IRR), it is annual (IRR) or semiannual (IRR / m). The calculation of the IRR requires a trial and error process.

The important thing is that this performance measure takes into account not only the interest gain but also the capital gain or loss that the investor can have if he keeps the bond until maturity. In turn, consider the timing of cash flows.

It is noteworthy that the calculation of the IRR falls on 3 fundamental assumptions:

1) That the bond remains until maturity

2) 2) That all bonus coupons are charged

3) That all coupons are reinvested at the same rate.

Therefore, it can be seen that the IRR is an expected return, only if the 3 assumptions mentioned above are met.

While it is difficult for someone to win the IRR, by complying with the above assumptions, something very similar will be gained and is one of the best tools available for calculating performance and making comparisons.

7 0
4 years ago
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