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2 years ago

4

An example of the problem of ________ is when a corporation uses the funds raised from selling bonds to fund corporate expansion

to pay for caribbean cruises for all of its employees and their families.

1 answer:

AlekseyPX2 years ago

7 0

The answer is moral hazard.

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Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three

Verizon [17]

Answer:

Total sales is $1,777,000

Explanation:

April May June Total

cash sales $115,000 $77,000 $140,000 $332,000

sales on account $455,000 $500,000 $490,000 $1,445,000

Total sales $570,000 $577,000 $630.000 $1,777 ,000

Above is the sales analysis for the three months April to June,the total sales in the quarter is $1,777,000 which comprises of both cash sales and credit sales in all of the three months.

Sales does not be cash,as sales is to recognized when the entity making the sale has performed its obligation of delivering the goods to the customers or delivered on an agreed service.

4 0

2 years ago

Bell’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 6000 Var

Korolek [52]

Answer:

8,000= fixed overhead

Explanation:

Giving the following information:

Bell’s Shop can make 1000 units of a necessary component with the following costs:

Direct Materials $24000

Direct Labor 6000

Variable Overhead 3000

Fixed Overhead ?

The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.

Buy= 41,000/1,000= $41

Total Unitary cost= 24,000 + 6,000 + 3,000 + fixed overhead

41,000= 33,000 + fixed overhead

8,000= fixed overhead

3 0

2 years ago

On January 1, 2021 Exibit Company purchased land costing $800.000. Instead of paying cash at the time of purchase. Jalen plans t

Murrr4er [49]

Answer: Exhibit journal $

Date

January 1 2021

Land Dr. 800,000

Creditors. Cr. 800,000

Recognition of land purchased on four installment payment with 6% interest.

June 30,2021

Installment principal Dr 191,221.64

Installment Interest Dr 24,000

Bank Cr. 215,221.64

Narration. Payment of installment principal and interest as at date.

December 31,2021

Installment principal Dr 191,221.64

Installment Interest Dr. 24,000

Bank Cr. 215,221.64

Narration.Payment of installment principal and interest due for date.

B. The balance on notes payable and Interest as at December 31 2021 is zero.

Explanation:

The notes is recognised by increasing the creditors accounts with a credit posting while the land is recognised by debiting the asset accounts.

The interest elements which is calculated on the total sum of 800,000 per annum is divided into two and the results separated from the biannual installment payment, the interest elements will be equally debited to the income statement.

There is no outstanding installment or Interest to be paid as at December 31 2021 , though there is two equal installment and interest still outstanding on the loan but they will not be due until 2022 based on facility agreement.

3 0

2 years ago

Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrowe

tekilochka [14]

Answer:

combined degree: 3,5385

Explanation:

degree of operating leverage:

$\frac{contribution}{EBT}$

contribution: Q (sales - variable cost)

150,000 x (30 - 7) = 150,000 x 23 = <u>3,450,000</u>

EBT = contribution - fixed cost - interest expense

3,450,000 - 2,050,000 - 425,000 = <u>975,000</u>

$\frac{contribution}{EBT}$

$\frac{3,450,000}{975,000}$

combined degree: 3,5385

3 0

2 years ago

SBD Phone Company sells its waterproof phone case for $114 per unit. Fixed costs total $222,000, and variable costs are $34 per

g100num [7]

Answer:

5,275

Explanation:

The targeted pretax income is the difference between the targeted total sales and the estimated total cost.

The total cost is the sum of the fixed and variable cost. The sales and variable cost are dependent on the level of activities or number of units produced and sold.

Contribution margin is the difference between the sales and variable cost.

Let the number of units to be sold be F

114F - 34F - 222,000 = 200,000

80F = 422,000

F = 422,000/80

= 5,275

8 0

2 years ago