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what are disadvantages of consumer credit
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Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)(a) Purchased $173 of supplies for cash.(b) Recorded an adjusting entry to record use of $49 of the above supplies.(c) Made sales of $1,271, all on account.(e) Received $738 from customers in payment of their accounts. Purchased equipment for cash, $2,518.(f) Recorded depreciation of building for period used, $743.
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The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. A city prosecutor, Charles Kovac, mounted an amplifier on a truck through which he played music and spoke on the microphone while driving on city streets. Kovac was tried and convicted in the Trenton Police Court and fined fifty dollars. Kovac appealed, arguing that the ordinance violated his rights of free speech and free assembly, The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly and did not prohibit free speech or assembly. How would a court likely rule in regards to the ordinance? a. The court probably found that the ordinance was unconstitutional as an unreasonable restriction on fundamental rights. b. The court probably found that the ordinance was unconstitutional under the equal protection clause. c The court probably found that the ordinance was constitutional under the establishment cause. d. The court probably found that the ordinance was constitutional as a reasonable restriction on fundamental rights.
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The trial balance of Wikki Cleaners at December 31, 2012, the end of the current fiscal year, is as follows: Wikki Cleaners Trial Balance December 31, 2012 Cash $13,200 Cleaning Supplies 22,000 Prepaid Insurance 5,400 Equipment 206,000 Accumulated Depreciation $74,100Accounts Payable 8,500Common Stock 60,000Retained Earnings 31,200Dividends 27,000Revenue 171,560Rent Expense 28,500Wages Expense 39,720Utilities Expense 2,130Miscellaneous Expense 1,410$ 345,360 $345,360Information for the adjusting entries is as follows: a. Cleaning supplies on hand on December 31, 2012, $18,750. b. Insurance premiums expired during the year, $1,800. c. Depreciation on equipment during the year, $21,600. d. Wages accrued but not paid at December 31, 2012, $1,830.Required:Journalize the the entries.
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Petro Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 11 % Tax rate 30 % Expected life of the project 4 Investment required in equipment $80,000 Salvage value of equipment $0 Working capital requirement $20,000 Annual sales $180,000 Annual cash operating expenses $40,000 The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.Required: Determine the net present value of the project.
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Tung is nearly fifty years of age and has not had a job for the past twenty-five years. He holds a bachelor's degree in engineering and is in good health. When he casually discusses his lack of employment with friends, he tells them "there are no jobs out there," "no one wants to pay me what I'm worth," or "I was offered a job but it's too far to travel." 1. Based on this scenario, which statement best explains Tung's lack of a job?
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The information listed below refers to the employees of Brennan Company for the year ended December 31, 2016. The wages are separated into the quarters in which they were paid to the individual employees. :. For 2016, State D's contribution rate for Brennan Company, based on the experience-rating system of the state, was 3.6% of the first $7,000 of each employee's earnings. The state tax returns are due one month after the end of each calendar quarter. During 2016, the company paid $3,024.00 of contributions to State D's unemployment fund. Employer's phone number: (613) 555-0029. Employer's State D reporting number: 00596. Using the forms supplied on pages 5-42 to 5-44, complete the following for 2016: a. The last payment of the year is used to pay the FUTA tax for the fourth quarter (the first three-quarter's liability was more than the $500 threshold). State D is not a credit reduction state. Tax Payment: Date _____________ Amount $____________ b. Employer's Report for Unemployment Compensation, State D-4th quarter only. Item 1 is the number of employees employed in the pay period that includes the 12th of each month in the quarter. For Brennan Company, the number of employees is ten in October, nine in November, and eight in December. All employees earned 13 credit weeks during the last quarter except for Sun (8) and Harrow (9). c. Employer's Annual Federal Unemployment (FUTA) Tax Return-Form 940 Indicate on each form the date that the form should be submitted and the amount of money that must be paid. The president of the company prepares and signs all tax forms.
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Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost to build the motel is estimated at $6,800,000; Value Lodges estimates furnishings for the motel will cost an additional $200,000 and will require replacement every 5 years. Annual operating and maintenance costs for the motel are estimated to be $540,000. The average rental rate for a unit is anticipated to be $25/day. Value Lodges expects the motel to have a life of 15 years and a salvage value of $900,000 at the end of 15 years. This estimated salvage value assumes that the furnishings are not new. Furnishings have no salvage value at the end of each 5-year replacement interval. Required:1. Assuming average daily occupancy percentages of 50 percent, 60 percent, 70 percent, and 80 percent for years 1 through 4, respectively, and 90 percent for the fifth through fifteenth years, a MARR of 12 percent/year, 365 operating days/year, and ignoring the cost of land, should the motel be built? Base your decision on an internal rate of return analysis.
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Kiano, a telecommunications equipment manufacturer, manufactures PDAs (P), wireless handsets (H), and blackberrys (B). They have a limited supply of common parts---ethernet card (450 in inventory), antenna (250 in inventory), chipset (800 in inventory), battery/power supply (450 in inventory), LCD screen (600 in inventory)---that these products use. A PDA requites an ethernet card, 2 chipsets, a power supply, and 2 LCD screens. A wireless handset requires an ethernet card, an antenna, 2 chipsets, a power supply, and a LCD screen. A blackberry requires a chipset and a LCD screen. The profit on PDAs is $80, the profit on wireless handsets is $60, and the profit on blackberrys is $35. The following is a linear programming formulation of the problem.LetP = Number of PDAs producedH = Number of wireless handsets producedB = Number of blackberrys producedWe may write model for this problem as follows.Maximize 80P + 60H + 35Bsubject to:(ethernet card constraint) P + H ? 450(antenna constraint constraint) H ? 250(chipset constraint) 2P + 2H + B ? 800(power supply constraint) P + H ? 450(LCD screen constraint) 2P + H + B ? 600(non-negativity) P, H, B ? 0.Implement the above model in Solver and make sure to choose Simplex as the solving method and to choose the option "Make Unconstrained Variables non-negative"---do not explicitly put in the non-negativity constraints in the model and using the sensitivity report onlyanswer the questions below:a. Does the solution change if only 425 ethernet cards are available?b. Is it profitable to produce Blackberrys? If not, by how much should the profit margin on Blackberrys be increased to make it profitable to produce Blackberrys?c. Because of a change in production technology the profit margin on handsets has increased to $70. Should the production plan of Kiano change? What is their new profit?d. 50 chipsets were found to be defective, making the number of available chipsets 750. What will the profit be in this situation?e. Another supplier is willing to sell LCD screens to Kiano. However their prices for a LCD screen are $20 higher than what Kiano pays it's regular supplier. Should Kiano go ahead and purchase these electronic units? If yes, at most how many units should they purchase.f. Kiano is considering introducing a new product (called the Revolutionary Communicator) that combines the wireless handset and PDA. This product uses an ethernet card, an antenna, 2 chipsets, 1 power supply, and 2 LCD screens, and is expected to make a profit of $100. Should Kiano produce the Revolutionary Communicator? Why or Why not?
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Van pays the following medical expenses this year: a. $1500 for doctor bills for van's son who is claimed as a dependant by Van's former spouse. b. $300 for Van's eyeglasses c. $900 for Van's dental work d. $3800 for Van's face lift. Van, a newscaster, is worried about the wrinkles around his eyes. Required:1. How much can Van include on his return as qualified medical expenses before limitation?
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Edith Engineer travels from city to city to conduct her business. Every other year she buys a used car for about $12,000. The dealer allows about $8000 as a trade-in allowance, with the result that the saleswoman spends $4000 every other year for a car. Edith keeps accurate records, which show that all other expenses for her car amount to $0.223 per mile for each mile she drives. Edith's employer has two plans by which salespeople are reimbursed for their car. Method A. She will receive all of her operating expenses, and in addition will receive $2000 each year for the decline in value of the automobile. Method B. She will receive $0.32 per mile but no operating expenses and no depreciation allowance. If Edith travels 18,000 miles per year, which method of computation gives her the larger reimbursement
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Hair Zone manufactures a brand of hair styling gel. It is considering adding a modified version of the product-a foam that provides stronger hold. Hair Zone's variable costs and prices to wholesalers are: Current hair gel New foam product Unit selling price 2.00 2.25 Unit variable costs 85 1.25 Hair Zone expects to sell 1 million units of the new styling foam in the first year after introduction, but it expects that 60% of those sales will come from buyers who normally purchase Hair Zone's styling gel. Hair Zone estimates that it would sell 1.5 million units of the gel if it did not introduce the foam. If the fixed cost of launching the new foam will be $100,000 d the first year, should Hair Zone add the new product to its line? Why or why not?
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Hair Zone manufactures a brand of hair styling gel. It is considering adding a modified version of the product-a foam that provides stronger hold. Hair Zone's variable costs and prices to wholesalers are: Current hair gel New foam product Unit selling price 2.00 2.25 Unit variable costs 85 1.25 Hair Zone expects to sell 1 million units of the new styling foam in the first year after introduction, but it expects that 60% of those sales will come from buyers who normally purchase Hair Zone's styling gel. Hair Zone estimates that it would sell 1.5 million units of the gel if it did not introduce the foam. If the fixed cost of launching the new foam will be $100,000 d the first year, should Hair Zone add the new product to its line? Why or why not?
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Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for this year follow. (Round "OH rate and cost per unit" answers to 2 decimal places.) Direct Labor hours Machine hours Overhead costs Molding Trimming 52,000 DLH 48,000 DLH 30.500 MH3 , 600 MH 6752,000 $612,000 Data for two special-order parts to be manufactured by the company in this year follow: N Part 270 9.300 units Part XB2B 54,500 units ot units Machine Tours Maldin Terming Direct labor hours Molding Trening 5,100 MH 2.600 MIL 1.020 MH 650 MH 5,500 DL 700D 2,150 DLH , 500D Required: 1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours. Molding 01 Trimming 2. Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1, 3. Determine the overhead cost per unit.
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Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the companys most recent year is given below: Required: 1-a. Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.) 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) 1-c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points? Greater than Less thanEqual to 2. By how much would the companys net operating income increase if Minneapolis increased its sales by $48,750 per year? Assume no change in cost behavior patterns. 3. Refer to the original data. Assume that sales in Chicago increase by $32,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (i.e.1234 should be entered as 12.3)
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Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements. Under lease 1, the building rents for $680 per month, payable on the first of the next month, and the tenant must make a $680 security deposit that is refunded at the end of the lease. Under lease 2, the building rents for $7,480 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3, the building rents for $680 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,360 that is to be applied toward the rent for the last two months of the lease. (Leave no answers blank. Enter zero if applicable.) a. What amounts are included in Ralphs gross income this year if a tenant signs lease 1 on December 1 and makes timely payments under that lease?Amount included in Gross Income: b. What amounts are included in Ralphs gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease? Amount included in Gross Income: c. What amounts are included in Ralphs gross income this year if the tenant signs lease 3 on November 30 and makes timely payments under that lease?
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What are fixed assets?
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1. What is the difference between the consumer market and the business market?
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Which financial statement summarizes a businesss incomes and expenses?The main purpose of the BLANK statement is to present your businesss earnings for a given period as it summarizes your incomes and expenses.
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if a company defaults on a loan, the organization that granted the loan may be able to seize the assets of the company.true or false
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How do state and federal courts differ in the United States?
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1. How does weather impact economics?2. What are the five MOST damaging types of weather in regards to the economy? How/Why arethere large impacts on the economy when these happen? Explain and/or give examples for each.a.b.c.d.e.
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Which situation is most likely to result in a government having a budgetsurplus for a year?Please help !!!!
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Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company by selling the company to the government. True False
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