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2 years ago

Presented below is information related to Lexington Real Estate Agency.

Business

1 answer:

Ber [7]2 years ago

3 0

Answer:

Oct 1

DR Cash............................................................................$20,000

CR Common Stock.........................................................................$20,000

Oct 2. No entry required

Oct 3

DR Office Furniture .....................................................$2,300

CR Accounts Payable................................................................$2,300

Oct 6

DR Accounts Receivable.............................................$3,600

CR Service Revenue - Realty services...................................$3,600

Oct 27

DR Accounts Payable ..................................................$850

CR Cash .......................................................................................$850

Oct 30

DR Salaries Expense ....................................................$2,500

CR Cash ..........................................................................................$2,500

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A company must decide on the type on equipment to buy in order to manufacture a new product line. The company can purchase an al

Oliga [24]

Answer:

The indifference point is 3,000 units

Explanation:

Giving the following information:

All-purpose machine:

Fixed costs= $20,000 per year

Unitary variable cost= $40

Special-purpose machine:

Fixed costs= $50,000 per year

UNitary variable cost= $30

We need to determine the unit's production point where the two machines are indifferent. First, we need to structure the total cost formulas:

All-purpose= 20,000 + 40x

Special-purpose= 50,000 + 30x

x= number of units

Now, we equal them:

20,000 + 40x = 50,000 + 30x

10x = 30,000

x= 3,000

The indifference point is 3,000 units

Prove:

All-purpose= 20,000 + 40*3,000= $140,000

Special-purpose= 50,000 + 30*3,000= $140,000

3 0

2 years ago

Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of 6,450,000. Ranns

Over [174]

Answer:

Part A

Cost of Goods Sold reported in the company's year-end income statement is $11000000

Part B

Merchandise Inventory reported in the company's year-end balance sheet is $84000000

Part C

The balance of the Cost of Goods Sold account Immediately prior to recording inventory shrinkage is $ 10000000

The balance of the Merchandise Inventory account Immediately prior to recording inventory shrinkage is $85000000

Explanation:

Cost of Goods Sold

Ranns Supply use the perpetual inventory system. This means that cost of goods sold is calculated after every sale agreement.

In this case Cost of Sales figure reported at company`s year end can be calculated using missing figure approach in the Income Statement

Calculation of the Cost of Sales figure is as follows:

Net Sales $2600000 - Gross Profit $15000000 = $1100000

Merchandise

The merchandise account records assets of inventory in hand during the year.

The Merchandise used during the year should match with the cost of sales figure.But if the figure is lower than the cost of sales figure, then inventory was written down to its replacement value in terms of IAS 2.

Calculation of Merchandise in Hand is as follows:

Purchase of Merchandise $9500000 - Shrinkage During the year $10000000 - Write down of Inventory $1000000 = $ 84000000

6 0

2 years ago

In cell b17, enter a formula to calculate the amount budgeted for hotel accommodations. this amount is based on the # of nights,

Nimfa-mama [501]

I recently had this assignment and here are a couple of was to do this:

1st way (which is correct according to my grading):
= # of Nights*Hotel rate*(1+hotel tax rate)

2nd way (I got counted wrong for this one on my assignment):
=(hotel rate+(hotel rate*hotel tax rate))*Number of nights

3 0

2 years ago

A project will not produce any cash flows for two years. Starting in the third year, it will produce annual cash flows of $11,90

dusya [7]

Answer:

The NPV of the project at 8.7 percent will be 4,802.58‬

Explanation:

We will calcualte the present value of the cash inflow:

$\frac{Inflow}{(1 + rate)^{time} } = PV$

year 3:

Inflow 11,900.00

time 3.00

rate 0.087

$\frac{11900}{(1 + 0.087)^{3} } = PV$

PV 9,265.28

Year 4:

Inflow 11,900.00

time 4.00

rate 0.087

$\frac{11900}{(1 + 0.087)^{4} } = PV$

PV 8,523.71

Year 6:

Inflow 50,500.00

time 6.00

rate 0.087

$\frac{50500}{(1 + 0.087)^{6} } = PV$

PV 30,613.58

Then, we will add them together and subtract the investment amount

NPV: 30,613.59 + 8,523.71 + 9,265.28 - 43,600 = 4,802.58‬

3 0

2 years ago

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the st

stealth61 [152]

Answer:

hello your question is incomplete below is the complete question and the missing table

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Here is the recent price history of the two stocks: on the evidence of these six months how large would your short position in Frankfurter sausage needed to be to hedge you as far as possible against movements in the price of swiss Roll

answer : $42003667

Explanation:

$100 million in stocks

According to the data provided in the table attached below, to short the Frankfurt in order to hedge investment in Rolls is calculated below

we have to calculate the total return on both Roll corporation and Frankfurter sausage

for f-sausage

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.1 .... + 1 + 0.1 ) = -0.0297 = -2.97%

for Roll corporation

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.05 .... + 1 + 0.1 ) = -0.012475 = - 1.24%

next we will calculate the total loss inquired when investing in Roll corporation

Total loss = percentage loss * total investment

= 0.012475 * $100 million = - $ 1247500

we will have to offset the loss by shorting investments in F sausage

hence : $1247500 = investment in sausage * total return

1247500 = investment in sausage * 0.0297 ( The total return of F sausage is positive because it was a short position )

hence short investment in F sausage to offset loss incurred in ROLLS INVESTMENT

= 1247500 / 0.0297 = $42003667

8 0

2 years ago