When a lender tells a prospective buyer that her back-end number cannot exceed 40%, it means that the total amount of debt payments she has, including her mortgage payment, cannot exceed 40% of her monthly income.
In this case, if the buyer's monthly income is $4,000, her maximum bills should not exceed $1,600.
To calculate the maximum bills allowed, we need to multiply the buyer's monthly income by 40% (or 0.4). Therefore, 4,000 x 0.4 = 1,600.
This means that the total amount of debt payments she has, including her mortgage payment, should not exceed $1,600.
It's important to note that this is just a general guideline and every lender has their own criteria for determining how much they are willing to lend.
Additionally, the buyer's credit score, employment history, and other financial factors may also be considered when determining how much they are able to borrow.
Therefore, it's important to speak with a lender directly to get a more accurate estimate of what your maximum bills should be.
To know more about back-end number refer here
https://brainly.com/question/16778835#
#SPJ11
The stock currently sells for $50 per share and the dividend per share will probably be about $5. Tom argues, ""It will cost us $5 per share to use the stockholders’ money this year, so the cost of equity is equal to 10 percent (= $5/$50)."" What’s wrong with this conclusion?
The calculation of the cost of equity, where the stock currently sells for $50 per share, and the dividend per share is about $5.
Tom argues that the cost of equity is 10 percent, calculated as $5 (dividend) divided by $50 (stock price). However, this conclusion is incorrect because it does not consider the expected growth rate in dividends, which is an essential component in calculating the cost of equity using the Dividend Discount Model (DDM).
Here's a step-by-step explanation of the correct method to calculate the cost of equity using the DDM:
1. Identify the dividend per share (D1): In this case, the dividend per share is $5.
2. Identify the current stock price (P0): In this case, the current stock price is $50.
3. Estimate the expected growth rate in dividends (g): This information is not provided in the question, so we cannot proceed with the calculation.
4. Calculate the cost of equity (Ke) using the DDM formula: Ke = (D1/P0) + g
As we do not have the expected growth rate in dividends (g), we cannot accurately calculate the cost of equity using the Dividend Discount Model. Tom's conclusion of a 10 percent cost of equity is incorrect because it omits the expected growth rate in dividends, which is a crucial factor in the calculation.
Learn more about shares
https://brainly.com/question/25562729
#SPJ11
The tendency of people to place too much emphasis on personal factors when accounting for other people's actions and too little emphasis on personal factors when accounting for our own actions is known as the ________.
The tendency of people to place too much emphasis on personal factors when accounting for other people's actions and too little emphasis on personal factors when accounting for our own actions is known as the fundamental attribution error.
The fundamental attribution error is a cognitive bias that leads people to overemphasize dispositional (personal) factors and underestimate situational factors when explaining the behavior of others, while doing the opposite when explaining their own behavior. For example, if someone sees another person yelling at a waiter in a restaurant, they may assume that the person is rude or aggressive, rather than considering that they may be having a bad day or have been provoked.
The fundamental attribution error can have negative consequences, such as leading to unfair judgments or stereotypes of others. It is important to be aware of this bias and to try to consider both personal and situational factors when evaluating the behavior of others, as well as when evaluating our own behavior.
To know more about personal factors click here
brainly.com/question/28743337
#SPJ11
On August 1, Savage Company purchased $1,800 of inventory on account with credit terms of 3/10, net 30. Savage Company uses the perpetual inventory system. On August 15, Savage Company paid the amount due. What journal entry did they prepare on August 15
The journal entry that Savage Company prepared on August 15 would be to record the payment of the amount due on the inventory purchased on account. The entry would include a credit to Accounts Payable for $1,800, which is the amount owed to the supplier.
On August 15, Savage Company prepared the following journal entry for the payment of the purchased inventory, taking into account the credit terms of 3/10, net 30:
1. Accounts Payable (Debit) - $1,746
2. Inventory (Credit) - $54
3. Cash (Credit) - $1,692
Here's a brief explanation of the journal entry:
Know more about the company's financial records
https://brainly.com/question/26240841
#SPJ11
A Qualified Health Plan meets the minimum value requirement if it is designed to pay at least ______% of the total costs for covered benefits.
Qualified Health Plan meets the minimum value requirement if it is designed to pay at least 60% of the total costs for covered benefits.
This means that the plan must cover at least 60% of the average expected costs of essential health benefits for a standard population. The remaining 40% can be paid by the enrollee through deductibles, coinsurance, or copayments. It's important to note that some states may have higher minimum value requirements, so it's important to check the specific requirements in your state.
A Qualified Health Plan (QHP) meets the minimum value requirement if it is designed to pay at least 60% of the total costs for covered benefits. This percentage is also known as the actuarial value, and it represents the share of healthcare expenses the plan covers for a standard population.
To know more about Qualified Health Plan visit:-
https://brainly.com/question/27559373
#SPJ11
If the number of students graduating universities with bachelor degrees increases, how will this affect the location of a country's production possibilities curve
This is because an increase in the number of skilled workers in the labor force will enable a country to produce more goods and services efficiently, which can shift the production possibilities curve outward.
Production refers to the process of creating goods and services by utilizing resources such as labor, capital, and materials. It involves transforming inputs into outputs through various stages of production, such as design, planning, sourcing, manufacturing, assembly, and distribution. Effective production management requires efficient use of resources to ensure that the output is of high quality and is delivered on time and at a reasonable cost.
Production can take place in various forms, including mass production, batch production, continuous production, and job production. The production process is crucial to the success of a business, as it determines the quantity and quality of goods or services that can be produced, and ultimately sold to customers. Effective production processes can lead to increased productivity, improved product quality, and reduced costs. Businesses that are able to produce goods or services efficiently and effectively can gain a competitive advantage in the marketplace.
To learn more about Production visit here:
brainly.com/question/1969315
#SPJ4
At the beginning of the current period, Marigold Corp. had balances in Accounts Receivable of $218,000 and in Allowance for Doubtful Accounts of $9,700 (credit). During the period, it had net credit sales of $895,000 and collections of $850,250. It wrote off as uncollectible accounts receivable of $6,900. However, a $3,300 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,800 at the end of the period. (Omit cost of goods sold entries.) (a - d) (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period.
(a) Sales: $895,000 Accounts Receivable: $895,000; Collections: $850,250 Accounts Receivable: $850,250 (b) Allowance for Doubtful Accounts: $6,900 Accounts Receivable: $6,900 (c) Accounts Receivable: $3,300 Allowance for Doubtful Accounts: $3,300; (d) Bad Debt Expense: $17,100 Allowance for Doubtful Accounts: $17,100.
(a) The entry to record sales during the period:
Accounts Receivable 895,000
Sales 895,000
The entry to record collections during the period:
Cash 850,250
Accounts Receivable 850,250
(b) The entry to record the write-off of uncollectible accounts during the period:
Allowance for Doubtful Accounts 6,900
Accounts Receivable 6,900
(c) The entry to record the recovery of the uncollectible account during the period:
Accounts Receivable 3,300
Allowance for Doubtful Accounts 3,300
(d) The entry to record bad debt expense for the period:
Bad Debt Expense X
Allowance for Doubtful Accounts X
To calculate the amount of bad debt expense, we need to consider the change in the allowance for doubtful accounts balance. The current balance in the allowance account is $25,800 (credit), and the previous balance was $9,700 (credit). So, the increase in the allowance balance is $16,100. Therefore, the bad debt expense for the period is $16,100. The entry to record the bad debt expense is:
Bad Debt Expense 16,100
Allowance for Doubtful Accounts 16,100
Learn more about Accounts here:
https://brainly.com/question/22917325
#SPJ11
How much money will Allen have at the end of 5 years if he saves by withdrawing $200 from his checking account every month and adding it to a piggy bank
Assuming Allen saves $200 every month for 5 years, he will have saved a total of $12,000. However, this does not take into account any interest that may accumulate over the 5-year period. If Allen chooses to keep his savings in a piggy bank, he will not earn any interest on his savings.
However, if he opens a savings account and deposits his monthly savings into it, he can earn interest on his savings.
The amount of interest earned will depend on the interest rate of the savings account. For example, if the savings account has an interest rate of 1%, Allen will earn approximately $609 in interest over the 5-year period, bringing his total savings to approximately $12,609. It's important to note that there may be fees associated with maintaining a savings account, so it's important to research and compare different account options before making a decision. If Allen saves by withdrawing $200 from his checking account every month and adds it to a piggy bank, he will have saved $12,000 after 5 years.
To know more about the interest
https://brainly.com/question/25720319
#SPJ11
You are auditing general cash for the Pittsburgh Supply Company for the fiscal year ended July 31, 2016. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of Pittsburgh Supply’s clerks. You obtain the following information:
General ledger Bank Statement
Beginning balance 7/1/16 $ 6,400 $ 8,378
Deposits 25,474
Cash receipts journal 26,874
Checks cleared (25,307)
Cash disbursements journal (23,171)
July bank service charge (107)
Note paid directly (6,400)
NSF check (516)
Ending balance 7/31/16 $ 10,103 $ 1,522
June 30 Bank reconciliation
Information in General ledger and Bank Statement
Balance per bank $8,378
Deposits in transit 600
Outstanding checks 2,578
Balance per books $6,400
Additional information obtained is as follows:
1. Checks clearing that were outstanding on June 30 totaled $2,411.
2. Checks clearing that were recorded in the July disbursements journal totaled $21,120.
3. A check for $1,130 cleared the bank but had not been recorded in the cash disbursements journal. It was for an acquisition of inventory. Pittsburgh Supply uses the periodic-inventory method.
4. A check for $646 was charged to Pittsburgh Supply but had been written on a different company’s bank account.
5. Deposits included $600 from June and $24,874 for July.
6. The bank charged Pittsburgh Supply’s account for a nonsufficient funds check totaling $516. The credit manager concluded that the customer intentionally closed its account and the owner left the city. The check was turned over to a collection agency.
7. A note for $6,000, plus interest, was paid directly to the bank under an agreement signed four months ago. The note payable was recorded at $6,000 on Pittsburgh Supply’s books.
a. Prepare a bank reconciliation that shows both the unadjusted and adjusted balance per books.
b. Prepare all adjusting entries.
c. What audit procedures would you use to verify each item in the bank reconciliation?
d. What is the cash balance that should appear on the July 31, 2016, financial statements?
The cash balance that should appear on the July 31, 2016, financial statements is $2,819.
a. Bank reconciliation: Unadjusted Balance per Bank: $1,522Add: Deposit in transit (June) - $600Add: Deposit in transit (July) - $24,874Less: Outstanding checks (June) - $2,411Less: Outstanding checks (July) - $21,120Less: Incorrectly charged check - $646Adjusted Balance per Bank: $2,819Unadjusted Balance per Books: $10,103
Less: Bank service charge - $107Less: Note paid directly (Principal + Interest) - $6,400Add: Unrecorded inventory acquisition check - $1,130Less: NSF check - $516Adjusted Balance per Books: $2,819
b. Adjusting entries:
1. Dr. Bank service charge expense $107, Cr. Cash $107
2. Dr. Notes payable $6,000, Dr. Interest expense $400, Cr. Cash $6,400
3. Dr. Inventory $1,130, Cr. Cash $1,130
4. Dr. Cash $646, Cr. Accounts payable (Other company) $646
5. Dr. Accounts receivable $516, Cr. Cash $516, Cr. Collection agency fees (if any)
c. Audit procedures for bank reconciliation:
1. Confirm outstanding checks with the bank.
2. Confirm deposits in transit with the bank and review supporting documentation.
3. Review the bank statement for any unusual or unexpected charges.
4. Verify bank service charges and note payments.
5. Review cash receipts and disbursements journals for accuracy.
6. Confirm the NSF check and related collection activities with the collection agency.
Learn more about Balance here
https://brainly.com/question/30489061
#SPJ11
______ is/are the total amount of money received (or promised) from the sale of goods or services, as well as from other business activities such as the rental of property and investments. Multiple choice question. Cost of goods sold Net income Revenue Earnings
Revenue is the total amount of money received (or promised) from the sale of goods or services, as well as from other business activities such as the rental of property and investments. It is an important metric for businesses as it reflects the amount of money they have earned over a given period of time.
Cost of goods sold refers to the direct costs associated with producing and selling a product, while net income is the amount of money a company has earned after subtracting all expenses from its revenue. Earnings can refer to either net income or profits, depending on the context.
In conclusion, revenue is a crucial metric for businesses as it reflects the total amount of money earned from sales and other business activities, and is an important factor in determining a company's financial performance.
To know more about Revenue visit:
https://brainly.com/question/19682087
#SPJ11
A company's old machine that cost $55,000 and had accumulated depreciation of $43,500 was traded in on a new machine having an estimated 20-year life with an invoice price of $66,500. The company also paid $56,500 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at:
The new machine should be recorded at $79,000, which is the cost of the new machine plus the gain on the trade-in: The cost of the new machine should be recorded at $79,000.
To calculate this, we need to determine the book value of the old machine, which is the original cost minus the accumulated depreciation:
Book value of old machine = Cost - Accumulated depreciation
Book value of old machine = $55,000 - $43,500
Book value of old machine = $11,500
The cash paid and the book value of the old machine traded-in amounts to:
Cash paid + Book value of old machine = $56,500 + $11,500 = $68,000
Since the transaction has commercial substance, the company should recognize a gain or loss on the trade-in. To calculate the gain or loss, we need to compare the book value of the old machine with the fair value of the new machine. If the fair value is greater than the book value, there is a gain. If the fair value is less than the book value, there is a loss.
Fair value of new machine = Cash paid + Book value of old machine
Fair value of new machine = $56,500 + $11,500
Fair value of new machine = $68,000
Since the invoice price of the new machine is $66,500, which is less than the fair value of the new machine, there is a gain on the trade-in. The gain is calculated as:
Gain on trade-in = Fair value of new machine - Book value of old machine
Gain on trade-in = $68,000 - $11,500
Gain on trade-in = $56,500
The cost of the new machine is the fair value minus the gain:
Cost of new machine = Fair value of new machine - Gain on trade-in
Cost of new machine = $68,000 - $56,500
Cost of new machine = $11,500
New machine cost = Cost of new machine + Gain on trade-in
New machine cost = $66,500 + $12,500
New machine cost = $79,000
Learn more about value here:
https://brainly.com/question/1578158
#SPJ11
using the FIFO method of process costing. (Problem 18-35 explores additional facets of this problem.)
Using the FIFO method of process costing means that the costs associated with the first units to be completed in the production process are allocated to the first units sold. This method assumes that the earliest units in production are the first to be sold, which may not always be the case in practice.
FIFO method of process costing is used to calculate the cost of goods sold (COGS) for a specific period. The method requires that the total costs of the beginning inventory (units started but not finished from the previous period) be added to the total costs incurred during the current period. This total cost is then divided by the total number of units produced during the period to determine the cost per unit. The cost per unit is then multiplied by the number of units sold during the period to determine the COGS.
Overall, using the FIFO method of process costing provides a relatively straightforward way to determine the cost of goods sold for a specific period, although it may not always reflect the actual production and sales processes in practice.
To know more about FIFO method click here:
https://brainly.com/question/17924678
#SPJ11
HELP 50 POINTS AND BRAINLIEST
The table presents the percentage contribution of sectors to the total gross domestic product of six countries for 2015. Which two of these countries are the least developed?
a. Brazil
b. Canada
c. Chad
d. Germany
e. Japan
f. Somalia
Somalia and Chad are two of these nations with the lowest levels of development. As a result, choices (C) and (F) are appropriate.
A significant trading hub in antiquity was Somalia. It is one of the locations of the former Land of Punt that is most likely to exist. The Ajuran Sultanate, the Adal Sultanate, and the Sultanate of the Geledi were among the strong Somali dynasties that ruled the region's trade during the Middle Ages.
Late in the 19th century, both the Italian and British Empires colonized Somali Sultanates including the Isaaq Sultanate and the Majeerteen Sultanate. Italian nations Somaliland and the British Somaliland Protectorate were the two colonies created by European colonists from the merging of the tribal lands.
Learn more about Somalia, from :
brainly.com/question/15098624
#SPJ1
Home Depot segments its campaigns to the Hispanic market; it creates different ads for second- or third-generation Hispanic-Americans, also known as _______________ Hispanics.
Home Depot segments its campaigns to the Hispanic market; it creates different ads for second- or third-generation Hispanic-Americans, also known as acculturated Hispanics.
Acculturation is the process of integrating two cultures while adapting to the dominant culture of the society. It involves social, psychological, and cultural transformation. Acculturation is the process by which a person adopts, acquires, and adapts to a new cultural environment as a result of being raised in a new culture or when a person is exposed to a different culture.
People from other cultures attempt to assimilate into the new, more dominant culture by engaging in components of it, such as their customs, while clinging to their original cultural values and traditions.Both individuals who are integrating into the culture and those who are devoted to it might experience the consequences of acculturation on a variety of levels.
Learn more about Acculturation:
https://brainly.com/question/31023074
#SPJ4
After making a downpayment of $3,500 for a new car, Murphy paid $550 per month for 3 years with interest charged at 7.25% per year compounded monthly on the unpaid balance. What was the original cost of the car
After making a downpayment of $3,500 for a new car, Murphy paid $550 per month for 3 years with interest charged at 7.25% per year compounded monthly on the unpaid balance. The original cost of the car was $21,045.16
To find the original cost of the car, we'll use the loan payment formula:
P = (r * PV) / (1 - (1 + r)^(-n)). Where: P = monthly payment ($550), r = monthly interest rate (7.25% / 12 months = 0.0725 / 12 = 0.00604167), PV = present value of the loan (original cost of the car - downpayment), n = number of payments (3 years * 12 months = 36).
Rearrange the formula to find PV:
PV = (P * (1 - (1 + r)^(-n))) / r
Now, plug in the given values:
PV = (550 * (1 - (1 + 0.00604167)^(-36))) / 0.00604167
PV ≈ 17,545.16
Finally, add the downpayment to the present value of the loan to find the original cost of the car:
Original cost = PV + downpayment = 17,545.16 + 3,500 = $21,045.16
To know more about original cost refer here:
https://brainly.com/question/7568734#
#SPJ11
Even if the Gross National Product (GNP) index is used to measure the well-being of a country, it will fail to show ________
Even if the Gross National Product (GNP) index is used to measure the well-being of a country, it will fail to show the distribution of wealth, income inequality, and non-monetary factors such as happiness, social cohesion, and environmental sustainability.
GNP only measures the total value of goods and services produced by a country, without taking into account the quality of life of its citizens. Therefore, it is important to use other indicators such as the Human Development Index (HDI) or the Genuine Progress Indicator (GPI) to get a more comprehensive picture of a country's well-being.
Even if the Gross National Product (GNP) index is used to measure the well-being of a country, it will fail to show the distribution of wealth, income inequality, and non-market activities such as unpaid work and volunteer efforts. These factors can greatly impact the overall well-being of a country's citizens, but are not directly reflected in the GNP index.
To know more about Gross National Product visit :
https://brainly.com/question/29750550
#SPJ11
The disposition of a plant asset is reported on the statement of cash flows as a financing activity.
a) true
b) false
The disposition of a plant asset is reported on the statement of cash flows as a financing activity is (b) false.
When a business sells a plant asset, it often receives cash, which is recorded as an investing activity rather than a financing transaction in the statement of cash flows. Transactions pertaining to the purchase and sale of long-term assets, such as property, plant, and equipment, are included in the investing portion of the statement of cash flows.
The company's financing activities, on the other hand, usually comprise acts involving its long-term liabilities and equity. Examples of these actions include the issuance or repayment of bonds or stock, the payment of dividends, and the repayment of long-term debt.
Learn more about long-term liabilities here:
https://brainly.com/question/17212352
#SPJ11
Under ______ performance, if the buyer in an alleged contract for the sale of land has paid any portion of the sales price and has begun to improve the land permanently, the course will consider such actions proof of the contract.
Under part performance, if the buyer in an alleged contract for the sale of land has paid any portion of the sales price and has begun to improve the land permanently, the court will consider such actions proof of the contract.
Part performance is a legal principle that allows a court to find a contract for the sale of land even if it is not in writing. If the buyer has paid part of the sales price and has begun to make permanent improvements to the land, such actions can serve as evidence of the existence of a contract. This is because it would be unfair to allow the seller to take advantage of the buyer's payment and improvements without recognizing the existence of a valid contract.
Learn more about buyer here
https://brainly.com/question/906651
#SPJ11
A principal of $3900 is invested at 3% interest, compounded annually. How much will the investment be worth after 6 years
The investment will be worth approximately $4,677.56 after 6 years.
To solve this problem, we can use the formula for compound interest:
A =[tex]P(1 + r/n)^(nt)[/tex]
Where:
A = the amount of money in the account after a certain number of years
P = the principal (initial amount of money)
r = the annual interest rate (as a decimal)
n = the number of times per year the interest is compounded
t = the number of years
Plugging in the given values, we get:
A =[tex]3900(1 + 0.03/1)^(1*6)[/tex]
A = [tex]3900(1.03)^6[/tex]
A = 4677.56.
The allowance for uncollectible accounts is a contra account that is used to offset accounts receivable on the balance sheet, and it represents the estimated amount of accounts receivable that are unlikely to be collected. When an account is deemed uncollectible, it is written off by reducing accounts receivable and the allowance for uncollectible accounts.
Learn more about investment here:
https://brainly.com/question/15353704
#SPJ11
On April 1, Robinson Company paid $3,600 for one year of advertising, in advance. Robinson Company recorded the transaction by debiting Prepaid Advertising and crediting Cash. Required: Journalize the adjusting entry on December 31. Note: Assume that the advertising is used evenly throughout the year.
Debit Advertising Expense: $1,800 Credit Prepaid Advertising: $1,800
Since Robinson Company paid for one year of advertising in advance, the initial journal entry on April 1 was:
Debit Prepaid Advertising: $3,600
Credit Cash: $3,600
As of December 31, nine months have passed, which means that 9/12 or 3/4 of the prepaid advertising has been used. The amount of prepaid advertising that has been used is $3,600 x 3/4 = $2,700.
To adjust the accounts, we need to debit Advertising Expense for $1,800 (which is the amount of prepaid advertising that has been used during the current year), and credit Prepaid Advertising for $1,800 (which is the amount of prepaid advertising that has not yet been used).
After this adjusting entry, the Prepaid Advertising account will have a balance of $900 ($2,700 - $1,800), which represents the amount of prepaid advertising that has not yet been used and will be carried forward to the next accounting period. The Advertising Expense account will have a balance of $1,800, which represents the amount of advertising expense that has been recognized during the current year.
Learn more about amount here:
https://brainly.com/question/13024617
#SPJ11
The following information relates to the Joshua, Inc: Depreciation expense $ 500 Increase in salaries payable 50 Purchased operating equipment 700 Net income 3,000 Paid long term note payable 600 Paid dividends 900 Increase in accounts receivable 400 What is the net cash provided by operating activities
The net cash provided by operating activities for Joshua, Inc can be calculated by using the indirect method of the cash flow statement. The net cash provided by operating activities for Joshua, Inc is $2,450.
First, we need to add back the depreciation expense of $500 to the net income of $3,000. This gives us a total of $3,500. Next, we need to adjust for the changes in working capital accounts. The increase in salaries payable of $50 is added, as it represents an expense that has not yet been paid. The increase in accounts receivable of $400 is subtracted, as it represents a decrease in cash flow. Finally, the increase in operating equipment of $700 is also subtracted, as it represents a cash outflow. The payment of the long term note payable of $600 and payment of dividends of $900 are not included in the calculation of net cash provided by operating activities, as they are considered financing and investing activities, respectively.
Therefore, the net cash provided by operating activities for Joshua, Inc is:
Net income + Depreciation expense = $3,000 + $500 = $3,500
Adjustments for changes in working capital:
+ Increase in salaries payable = $50
- Increase in accounts receivable = $400
- Increase in operating equipment = $700
Net cash provided by operating activities = $3,500 + $50 - $400 - $700 = $2,450
Thus, the net cash provided by operating activities for Joshua, Inc is $2,450.
Learn more about net cash here
https://brainly.com/question/2804189
#SPJ11
SunEnergy produces solar panels. A key step in the conversion of raw silicon to a completed solar panel occurs in the assembly department, where lightweight photovoltaic cells are assembled into modules and connected on a frame. In this department, materials are added at the beginning of the process and conversion takes place uniformly. At the start of November 2020, SunEnergy's assembly department had 3,400 panels in beginning work in process, which were 100% complete for materials and 70% complete for conversion costs. An additional 12,000 units were started in the department in November, and 3,600 units remain in work in process at the end of the month.
Sun Energy's assembly department produced a total of 11,800 solar panels in November 2020.
Sun Energy's assembly department plays a crucial role in the production of solar panels by assembling lightweight photovoltaic cells into modules and connecting them on a frame. One of the key steps in this process is the conversion of raw silicon into completed solar panels, which takes place uniformly in the department. At the start of November 2020, the department had 3,400 panels in beginning work in process, which were 100% complete for materials and 70% complete for conversion costs. This means that the department had already added all the necessary materials to the panels but had not completed all the conversion costs. The conversion costs include labor, energy, and other expenses incurred during the production process.During November, the department started an additional 12,000 units, which means that they added materials and started the conversion process on these panels. At the end of the month, there were 3,600 units remaining in work in process. It is unclear what the completion status of these panels is, but it can be assumed that they are partially complete in terms of materials and conversion costs.
Overall, it is clear that SunEnergy's assembly department is actively working on the production of solar panels and has a significant amount of work in process. By keeping track of the completion status of materials and conversion costs, the department can ensure that they are making progress towards completing these panels and delivering them to customers.
Learn more about solar panels here
https://brainly.com/question/27206464
#SPJ11
Lowell Riverhawk Corporation has a total debt to assets ratio of 62.5 percent. Its net income last year was $25,000. If the total debt was $200,000, what was the return on equity (ROE)
The return on equity (ROE) for Lowell Riverhawk Corporation was 20.83% when a total debt to assets ratio of 62.5 percent. Its net income last year was $25,000. If the total debt was $200,000.
To calculate the return on equity (ROE), we need to first find the total equity of the Lowell Riverhawk Corporation. We can do this by subtracting the total debt from the total assets:
Total Assets = Total Debt / (Total Debt / Total Assets Ratio)
Total Assets = $200,000 / (62.5%)
Total Assets = $320,000
Total Equity = Total Assets - Total Debt
Total Equity = $320,000 - $200,000
Total Equity = $120,000
Now that we have the total equity, we can calculate the ROE by dividing the net income by the total equity:
ROE = Net Income / Total Equity
ROE = $25,000 / $120,000
ROE = 0.2083 or 20.83%
Therefore, the return on equity (ROE) for Lowell Riverhawk Corporation was 20.83%.
To know more about return on equity vsit
https://brainly.com/question/31420163
#SPJ11
In today's Lean terminology, what are processes associated with non-manufacturing areas of business or administration are referred to as
The answer to the question is that processes associated with non-manufacturing areas of business or administration are referred to as "office processes" or "administrative processes" in Lean terminology.
Lean principles can be applied beyond the manufacturing industry to other areas of a business, including administrative and service processes. These processes can be optimized to eliminate waste, reduce lead times, and improve overall efficiency. Examples of office processes include customer service, accounting, human resources, and procurement. By applying Lean principles to these processes, businesses can improve the quality of their services, reduce costs, and increase customer satisfaction.
Learn more about customer satisfaction: https://brainly.com/question/30784324
#SPJ11
A parent company transfers inventory to its 80% owned subsidiary. How much of the intra-entity gross profit in the transferred ending inventory serves to reduce the consolidated net income attributable to the noncontrolling interest
The amount of the intra-entity gross profit in the transferred ending inventory that serves to reduce the consolidated net income attributable to the noncontrolling interest depends on the transfer price, ownership percentage, and accounting method used for consolidation.
First, we need to consider how the transfer was made. If the transfer was made at cost, then there would be no intra-entity gross profit generated. If the transfer was made at a price above cost, then the gross profit would be calculated as the selling price minus the cost of goods sold. Next, we need to consider the ownership percentage of the subsidiary
In this case, the parent company owns 80% of the subsidiary, which means that the noncontrolling interest owns the remaining 20%. Therefore, the portion of the gross profit that belongs to the noncontrolling interest would be 20%. Finally, we need to consider the accounting method used for consolidation. If the equity method is used, then the noncontrolling interest's share of the intra-entity gross profit would be recognized in the consolidated net income. If the cost method is used, then the intra-entity gross profit would not be recognized in the consolidated net income.
For more such questions on gross profit
https://brainly.com/question/21637154
#SPJ11
The tax rules that provide for the deferral of realized gains or losses when contributing property to partnerships allow entrepreneurs to organize their businesses without having to pay taxes. True false question. True False
The statement that tax rules that provide for the deferral of realized gains or losses when contributing property to partnerships allow entrepreneurs to organize their businesses without having to pay taxes is true.
The tax rules allow entrepreneurs to contribute property to partnerships without having to immediately pay taxes on the realized gains or losses. This is known as a deferral of tax liability. This provision is intended to encourage business formation and growth by allowing entrepreneurs to reinvest their gains into the business rather than using them to pay taxes.
Under this provision, when an entrepreneur contributes property to a partnership, they do not recognize any gain or loss on the contribution. Instead, their basis in the partnership interest is equal to the basis in the contributed property. When the partnership sells the property, any gains or losses are allocated to the partners based on their respective ownership interests in the partnership. At that point, the partners would recognize the gain or loss on their individual tax returns.
Overall, this provision provides entrepreneurs with a valuable tool for organizing and growing their businesses. It allows them to defer taxes until they are able to realize the gains, rather than having to pay taxes immediately upon contribution.
For more questions on: entrepreneurs
https://brainly.com/question/353543
#SPJ11
In circumstances under which a person is held liable as a principal even though no actual agency has been created, there is a(n):
In circumstances under which a person is held liable as a principal even though no actual agency has been created, there is a presumed agency.
This means that even though there is no actual agreement between the principal and agent, the principal is still responsible for the actions of the agent because the agent is acting on behalf of the principal. The presumed agency can arise from the actions or words of the principal that create the appearance of an agency relationship to a third party.
The principal is held liable for the agent's actions because the third party reasonably believed that the agent had the authority to act on behalf of the principal. Therefore, the principal is considered to have created a legal relationship with the third party, making them liable as a principal.
To know more about presumed agency refer here
https://brainly.com/question/29855876#
#SPJ11
Novak Company earns 12% on an investment that will return $460,000 eleven years from now. What is the amount Novak Company should invest now to earn this rate of return
Novak Company should invest $151,472.66 now to earn a 12% rate of return and receive $460,000 in eleven years.
We need to use the present value formula, which calculates the current value of a future sum of money based on a given interest rate and time period.
The formula is: Present value = Future value / (1 + interest rate) ^ time
In this case, the future value is $460,000, the interest rate is 12%, and the time period is 11 years.
So, plugging in these values, we get:
Present value = 460,000 / (1 + 0.12) ^ 11
Using a calculator, we can simplify this to:
Present value = 460,000 / 3.0375
Present value = $151,472.66
Therefore, Novak Company should invest $151,472.66 now to earn a 12% rate of return and receive $460,000 in eleven years.
For more such questions on rate of return
https://brainly.com/question/1789817
#SPJ11
MM Model with Zero Taxes An unlevered firm has a value of $575 million. An otherwise identical but levered firm has $125 million in debt. Under the MM zero-tax model, what is the value of the levered firm
Under the MM zero-tax model, the value of the levered firm would still be $575 million. This is because the zero-tax model assumes that there are no taxes, and therefore the tax shield from the interest paid on the debt is not a factor in determining the value of the firm.
The MM model with zero taxes states that the value of a firm is independent of its capital structure, and therefore the addition of debt does not increase the value of the firm. In this scenario, the unleveled firm and the levered firm are assumed to be identical in every way except for the fact that the levered firm has $125 million in debt.
Since the value of the unleveled firm is $575 million, the value of the levered firm would also be $575 million. The presence of debt does not impact the value of the firm in the MM zero-tax model, and therefore the value of the levered firm is equal to the value of the unlevered firm.
To know more about the MM model
https://brainly.com/question/30436121
#SPJ11
Disability insurance provides an income stream for an individual who is unable to continue working due to accident or illness. However, if a person is under ______ disabled, he/she does not qualify for benefits.
Disability insurance provides an income stream for an individual who is unable to continue working due to accident or illness. However, if a person is under partial disabled, he/she does not qualify for benefits.
Partial disability refers to a situation where an individual is still able to work but may be limited in their ability to perform certain tasks or may need to work reduced hours.
Disability insurance policies typically have strict definitions and criteria for determining when a person is considered totally disabled and eligible for benefits.
The definition of total disability may vary depending on the policy and the insurance provider, but it generally means that the person is unable to perform the substantial and material duties of their regular occupation due to an accident or illness.
It's important to note that the specific criteria for qualifying for disability insurance benefits can vary significantly depending on the policy and insurance provider.
The exact criteria for determining disability and eligibility for benefits can vary depending on the policy and insurance provider, so it's important to carefully review the terms and conditions of any disability insurance policy.
In summary, if a person is under partial disability, he or she may not qualify for disability insurance benefits.
For more questions on insurance visit:
https://brainly.com/question/25855858
#SPJ11
One advantage of using the Blank______ channel over the Blank______ channel is the much higher probability of having a deeper assortment of merchandise available.