Does anyone have SC??

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the De

Vadim26 [7]

The question is incomplete. The complete question is as follows,

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:

Accounts Payable 2500

Land 30000

Building 31250

Notes Payable ?

Retained earnings 125000

Accounts Receivable 18750

Cash ?

Equipment 40000

Capital Stock 12500

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

Answer:

Cash = $30000

Explanation:

The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,

Total Assets = Total Liabilities + Total Equity

So,

(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)

120000 + Cash = 12500 + 137500

Cash = 150000 - 120000

Cash = $30000

6 0

2 years ago

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of busin

lutik1710 [3]

Answer:

c.$209,160

Explanation:

Given that the cash received from each sale will be collected over 2 months. If 30% of mechanize is to be sold for cash, then 70% will be sold on account. Further more, 80% of the credit/sale on account will be collected in the month of sale and 20% in the following month.

Hence for October, cash collection will include 20% of credit sale from September and 80% of the credit sale in the month.

Given that sales in September is $250,000

Amount expected to sold on account

= $250,000 - (30% × $250,000)

= $175,000

Amount expected to be collected from this sale in October

= 20% × $175,000

= $35,000

Amount of credit sale in October

= $311,000 - (30% × $311,000)

= $217,700

Amount of this credit sale to be collected in October

= 80% × $217,700

= $174,160

Total collected from accounts receivable in October

= $174,160 + $35,000

= $209,160

6 0

2 years ago

Your grandfather has offered you a choice of one of the three following alternatives: $8,500 now; $3,000 a year for five years;

Mila [183]

Answer:

Check the explanation

Explanation:

a1.Present value of $8500=$8500

the Present value of $3000 a year for 5 years=$3000*Present value of annuity factor(9%,5)

the Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=$3000[1-(1.09)^-5]/0.09

=$3000*3.889651263

=$11668.95(Approx)

The Present value of $41000=$41000*Present value of discounting factor(rate%,time period)

=$41000/1.09^5

=$26647.19(Approx).

Therefore $41,000 received at end of five years is a better value.

3 0

3 years ago

The following standards for variable manufacturing overhead have been established for a company that makes only one product: Sta

Xelga [282]

Answer:

$13,640 Unfavorable

Explanation:

Data provided

Actual hours = 2,600

Standard hours = 6.0

Standard variable overhead rate = $12.40

The computation of variable overhead efficiency variance is shown below:-

Variable overhead efficiency variance = (Actual hours - Standard hours) × Standard rate

= (2,600 - (250 × 6.0)) × $12.40

= (2,600 - 1,500) × $12.40

= 1,100 × $12.40

= $13,640 Unfavorable

Therefore for computing variable overhead efficiency variance we simply applied the above formula.

7 0

3 years ago

Modigliani and Miller's world of no taxes. Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity rat

PSYCHO15rus [73]

Answer and Explanation:

The computation is shown below:

For Current

Total assets = Debt + Equity

= 2 + 7 9

Now

Debt ratio = Debt ÷ Total assets = 2 ÷ 9

Equity ratio = Equity ÷ Total assets = 7 ÷ 9

Return on assets = Cost of debt × Debt ratio + Cost of equity × Equity ratio

11% = 9% × 2 ÷ 9 + Cost of equity × 7 ÷ 9

Cost of equity × 7 ÷ 9 = 11% - (9% × 2 ÷ 9)

Cost of equity = ( 11% - (9% × 2 ÷ 9) ) × 9 ÷ 7

= 12%

For New

Total assets = Debt + Equity = 7 + 2 = 9

Debt ratio = Debt ÷ Total assets = 7 ÷ 9

Equity ratio = Equity ÷ Total assets = 2 ÷9

Return on assets = Cost of debt × Debt ratio + Cost of equity × Equity ratio

11% = 9% × 7 ÷ 9 + Cost of equity × 2 ÷ 9

Cost of equity × 2 ÷ 9 = 11% - (9% × 7 ÷ 9)

Cost of equity = ( 11% - (9% × 7 ÷ 9) ) × 9 ÷ 2

= 18%

7 0

2 years ago