nds that it can draw on. o reduce collection time t wear to operate.
Q: On January 1, 2019, the JSW Corporation issued 10% bonds with a face value of $100,000. The bonds…
A: Answer - Working Note : The computation of the interest expense is shown below: The bond interest…
Q: Solutions Ltd. has prepared three forecasted demand quantities for the next period for a timber…
A: sales xxxx - variable cost xxxx contribution xxxx - fixed cost xxxx profit xxxx BEP sales…
Q: Totem group is planning to purchase a new printing machine to replace a current machine. The cost of…
A: Net Present Value of New Machinery Particulars Year 0…
Q: Nicole's bookkeeper records three items: $1,000 of prepaid expense being used . $5,000 cash…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Decision-Making Across the Organization CT14.3 Norman Roads and Sara Mesa are examining the…
A: (a) DEL CARPIO SLU Statement of Cash Flows For the Year Ended January 31, 2020 Cash…
Q: Assume that a division of MN Company has a 10% return on sales, income of $10,000, and an investment…
A: Formulas: Return on sales = Net income / Sales Investment turnover = Sales / Investment
Q: The Central Division of Burlington Company reported the following operating data for the past year…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…
Q: Jhonson Co. provided the following information regarding an automobile; Acquisition date April 1,…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub-parts for…
Q: Which of the following statements is not true? O a. Expenses increase stockholders' equity. O b. The…
A: The accounting equation states that assets equal to sum of liabilities and equity.
Q: An entity reported the following information during the first year of operations: Pretax financial…
A: The income tax is calculated on the taxable income of the company. It is calculated by multiplying…
Q: JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information…
A: Introduction: Direct materials are the resources utilized to manufacture a product in accounting.…
Q: On November 1, 2021, a firm issues a $10,000 6% 6-month note payable. Interest is paid with the…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: In 2014, Angela Corporation has a net capital loss of $80,000. Angela Corp. also had net capital…
A: Capital loss: It implies to the sale of capital asset at a value that falls less than it's purchase…
Q: Exercise 3-44 (Algorithmic) Revenue Expense and Recognition Carrico Advertising Inc. performs…
A: Account Receivable: - It is the amount which is received by the company in the future for the goods…
Q: - Jan 1, 2019 cost cost eturn cted loss utions 6 entry for 2019 lated OCI Dec 31, 2018 Dec 31, 2019…
A: Pension refers to the form of fund curated by an entity during their employment days in order to…
Q: balance in account receivable of P80,000, total assets of P520,000, credit sales of P360,000, and…
A: the formula for calculation the account receivable turn ratio is total credit cell of the company is…
Q: uestion: What is the 2019 net investment income?
A: Calculation of Fair Value of investment as on 31 Dec 2019 Particulars Amount Carrying…
Q: What are the accounts that should be carefully audited in a cooperative industry? Give at least…
A: Answer:- Auditing meaning:- The inspection of financial accounts, records and associated activities…
Q: 3. Julia buys a notebook with a cost of PhP45. The rate of mark-up based on cost is 25%. Find the…
A: >Markup is the amount added to the cost to get the selling price. >It can be based on selling…
Q: A first-year ZU business students states: "There is no use in calculating financial ratios, because…
A: Before proving the validation of the given statement, it is essential to understand that what is the…
Q: received 1,000,000 Long-term loss accrual in excess…
A: Deferred tax assets or liabilities arises due to the difference between Financial income and Taxable…
Q: Diaz Company owns a machine that cost $125,100 and has accumulated depreciation of $90,600. Prepare…
A: Formulas: Gain (Loss) on the sale of the assets = Sale value of the assets - Net book value of the…
Q: Activities Date January 1 Beginning inventory January 8 Units Acquired at Cost 360 units @ $18=…
A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…
Q: Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are…
A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods:…
Q: Company has outstanding accounts receivables of $1,650,000 at year-end. During the year, $35,000 of…
A: Under percentage of Accounts receivable method, the ending balance of allowance for uncollectible…
Q: Co. acquired equity securities on May 25, 2020. The acquisition did not result nificant influence…
A: Solution: When acquistion did not result into significant influence over investee company,…
Q: ing:
A:
Q: Noora Company manufactures quality hair care product . The ingredients are combine in the mixing…
A: Equivalent units means number of units that is taken as completed for the calculation of cost per…
Q: the product which represent £143,400. Total fixed costs equal £66,920 and total contribution equals…
A: The question is related to Marginal Costing and Cost Volume Profit Analysis. The income statement as…
Q: tour company uses two measures of a ormula for tour operating costs is $56,880 pe outes and serve…
A: Spending variance is calculated by deducting the actual expenses from the flexible budget of the…
Q: You are faced with making a decision on a large capital investment proposal. The capital investment…
A: As per our protocol we provide solution to one question only and you have asked multiple questions…
Q: *see attached What is the compensation expense for 2021? a. 120,000 b. 240,000 c. 200,000 d.…
A: Share option means where the employees is given share free of cost or at very nominal value if the…
Q: Accounts Payable $580 Fees Earned $2,690 Accounts Receivable 621 Insurance Expense 600 Prepaid…
A: Introduction: Trial balance: All the final ledger accounts balances are posted in trial balance to…
Q: What was the company's residual income last year?
A: Residual Income = Net Operating Income - Average Operating Assets x Required Rate of return
Q: Zeroooo Company had the following portfolio of equity investment at fair value thro comprehensive…
A: Investments are recorded at the cost but are adjusted at fair value at the end of each subsequent…
Q: Silver Star Realty Co. pays weekly salaries of $16,200 on Friday for a five-day workweek ending on…
A: The adjusting entries are very important so that Financial statements provides the true and fair…
Q: A printing machine initially costs ₱179,000. It can be sold for ₱15,000 at the end of its 10-year…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Required information [The following information applies to the questions displayed below.] NewTech…
A: Introduction:- Depreciation is a non cash expenditure. It is charged on fixed assets. The following…
Q: Richards Corporation had net income of $231,470 and paid dividends to common stockholders of…
A: Price-earnings ratio = Market price per share / Earnings per share Market price per share = $52 per…
Q: Rexi Manufacturers makes a single product, X, using a single raw material A. Standard costs relating…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: need in 10 minutes 3. On January 1, 20x1, ABC purchased bonds with face amount of P5,000,000. The…
A:
Q: Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following…
A: A balance sheet displays the final balances in an industry's asset, liability, and stockholders ’…
Q: Hassel has estimated the first batch of product will take 80 hours to complete. A 90% learning curve…
A: Solution Concept Learning curve effect is the effect of learning upon the subsequent production It…
Q: Proton Company purchased a new equipment on a deferred payment basis. A down payment of P50,000 was…
A: Capitalization cost is the total amount spent on the asset to make the asset put to use. It includes…
Q: 4. A private university professor who receives a basic monthly salary of P80,000.00, a living…
A:
Q: Intangible Asset & Impairment PT Cabo is operating in the cosmetics industry. A company-owned…
A: Given :- Cost of machine is $50,000,000 Useful life is 10 years Calculation of depreciation using…
Q: Vice Corporation is considering replacing a machine that it uses in its operations. Companies that…
A: Answer (c) P 1,025,000 A machine is purchased by Vice Co from Willie Co. by the following terms:-…
Q: The following selected accounts and their current balances appear in the ledger of Kanpur Co. for…
A: Balance Sheet - Balance Sheet is the statement that is prepared at the end of the accounting period.…
Q: Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31…
A: Req-(a) Accounts Receivable Percent Uncollectible (%) Estimated Uncollectible (A)…
Q: tour company uses two measures of activity, routes and passengers in its cost formulas used for…
A: The spending variance is calculated as difference between actual costs and revenue and flexible…
How much is the gross benefit (annual return on the investment of increase in the average cash balance) of the lockbox system?
Should the company make the investment and adopt the lockbox system? Yes or no
Step by step
Solved in 3 steps
- City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers, so the firm's checks will take longer to clear the bank. Collection time has been reduced by two and one-half days and disbursement time increased by one and one-half days because of these policies. Excess funds are being invested in short-term instruments yielding 5 percent per annum. If City Farm has $4.90 million per day in collections and $3.90 million per day in disbursements, how many dollars has the cash management system freed up? Note: Enter your answer in dollars not in millions (e.g., $1,234,567). How much can City Farm earn in dollars per year on short-term investments made possible by the freed-up cash? Note: Enter your answer in dollars not in millions (e.g., $1,234,567).City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers, so the firm's checks will take longer to clear the bank. Collection time has been reduced by three days and disbursement time increased by two days because of these policies. Excess funds are being invested in short-term instruments yielding 4 percent per annum.a. If City Farm has $4.60 million per day in collections and $3.60 million per day in disbursements, how many dollars has the cash management system freed up? (Enter your answer in dollars not in millions (e.g., $1,234,567).) Freed up funds?___________ b. How much can City Farm earn in dollars per year on short-term investments made possible by the freed-up cash? Interest on freed-up cash__________It takes Cookie Cutter Modular Homes, Incorporated, about six days to receive and deposit checks from customers. The company’s management is considering a lockbox system to reduce the firm’s collection times. It is expected that the lockbox system will reduce receipt and deposit times to three days total. Average daily collections are $136,000 and the required rate of return is an EAR of 6 percent. Assume 365 days per year. a. What is the reduction in the outstanding cash balance as a result of implementing the lockbox system? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the daily dollar return that could be earned on these savings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-1. What is the maximum monthly charge the company should pay for this lockbox system if the payment is due at the end of the month? (Do not round intermediate calculations and…
- It typically takes Law Corporation 8 days to receive and deposit customer remissions. Law is considering a lockbox system and anticipates that the system will reduce the float time to 5 days. Average daily cash receipts are P220,000. The rate of return is 10 percent. Requirement: What is the reduction in cash balances associated with implementing the system? What is the rate of return associated with the earlier receipt of the funds? What should be the maximum monthly charge associated with the lockbox proposal?Inc. deals with various clients throughout the city and is attempting to collect its accounts receivable more efficiently. A major bank has offered a lock-box system for Bulldogs at a cost of P180,000 per year. Inc. averages 300 receipts daily at an average of P5,000 each. Short-term interest is at 8% annually. What reduction in average collection time would be needed to justify the lock-box system? (Use a 360-day year)The XYZ customer service branch maintains a disbursement account which is funded by the main office. The branch needs funds for daily disbursements of P40,000 and a minimum balance of P20,000. The cost to transfer funds from the main office to the branch averages P300. The return on money marketable securities is 5%. XYZ Corporation agreed with its major supplier a credit term of 3/30, n/75. Using 360 days in a year, what would the compound annualize cost of this payable?
- The XYZ customer service branch maintains a disbursement account which is funded by the main office. The branch needs funds for daily disbursements of P40,000 and a minimum balance of P20,000. The cost to transfer funds from the main office to the branch averages P300. The return on money marketable securities is 5%. If the entity uses a 250-day year for financial analysis, how much is the optimal cash amount to be requested by the branch each time?Knob, Inc., is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of $198.00 million annually. First National, Knob’s principal bank, offers to establish a new concentration banking system for a flat fee of $150,000 per year. The bank estimates that mailing and collection time can be reduced by four days. Assume a 360-day year. By how much will Knob’s cash balances be increased under the new system? (Enter your answer in dollars not in millions.) Assume that the borrowing rate is 12%. How much extra interest income will the new system generate if the extra funds are used to reduce borrowing under Knob’s line of credit with First National? (Enter your answer in dollars not in millions.) Calculate the total annual cost of the old system if collection costs under the old system are $45,000 per year? (Enter your answer in dollars not in millions.)City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers. Collection time has been reduced by two days and disbursement time increased by one day because of these policies. Excess funds are being invested in short-term instruments yielding 12 percent per annum. If City Farm has $5 million per day in collections and $3 million per day in disbursements, how many dollars has the cash management system freed up? How much can City Farm earn in dollars per year on short-term investments made possible by the freed-up cash?