On December 31, 2021, Caria vista inc. appropriately changed its inventory valuation method to FIFO cost from weighted average cost for financial statement and income tax purposes. The change will result in a $38,500 increase in the beginning inventory at January 1, 2021. Assume a 20% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is:_______
Answers
Answer: Increases by $30,800
Explanation:
If the inventory increased by $38,500 in January then that means that the Net Income for the previous period has increased because the Cost of Goods sold for the previous period will be less.
Since the Income for the year 2020 has increased by $38,500, the tax rate needs to be applied to it to see how much goes to retained earnings.
= 38,500 ( 1 - tax rate)
= 38,500 * ( 1 - 20%)
= $30,800
The beginning Retained Earnings balance Increases by $30,800
Answer: $30,800
Explanation:
From the question, we are informed that On December 31, 2021, Caria Vista Incorporation appropriately changed its inventory valuation method to FIFO cost from the weighted average cost for financial statement and income tax purposes
Due to this, there was an increase in the beginning inventory by $38,500.
With an income tax rate of 20%, remaining amount on the net income would be carried to the retained earnings. The income tax rate on the increase will be:
= 20% × $38,500
= 20/100 × $38,500
= 0.2 × $38,500
= $7,700
Therefore, the balance of the net income which will be carried to the retained earnings will be:
= $38,500 - $7,700
= $30,800
Therefore, there will be an increase of $30,800 in retained earnings balance.
Related Questions
Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $150,000 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $50,000 each week that completion is delayed. Nair commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
Completed by Probability
August 1, 2015 70%
August 8, 2015 20
August 15, 2015 5
After August 15, 2015 5
Required:
Determine the transaction price for this contract.
Answers
The determination of the transaction price for this contract for Nair Corp. is as follows:
Completed by Probability:
Date Probability Bonus/Penalty Outcome
August 1, 2015 70% $150,000 $105,000 ($150,000 x 70%)
August 8, 2015 20% $50,000 -10,000
August 15, 2015 5% $50,000 -2,500
After August 15, 2015 5% $50,000 -2,500
Total expected value of performance bonus = $135,000
Contract value = $1,000,000
Total transaction price = $1,135,000 ($1,000,000 + $135,000).
What is a transaction price?A transaction price is the amount of consideration expected to be paid or received for the exchange of goods or services.
A transaction price can vary based on timing or performance factors.
Data and Calculations:Contract value = $1,000,000
Performance bonus = $150,000
Penalty per week in performance bonus = $50,000
The total transaction price is $1,135,000.
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What do workers in the law, public safety, corrections, and security field do?
A. They ensure that people are happy with their life experiences.
B. They help people realize their full potential.
C. They look for transportation patterns for delivering goods.
D. They seek to protect people and their property.
Answers
Answer: D ←←←←←←←←←←←←←←←←←←←←←←←←←←←←←←←
Ralph Corp. and Swan Inc. have entered into an arrangement in which Ralph sells Swan's merchandise in its stores, and Swan promotes Ralph stores in its advertisements. In this context, which of the following best describes the relationship between Ralph Corp. and Swan Inc.?
a.
They are competitors.
b.
Ralph is Swan's supplier.
c.
Swan is Ralph's supplier.
d.
They are strategic partners.
Answers
Swan Inc. and Ralph Corp. have a partnership whereby Swan promotes Ralph stores in its ads and Ralph sells Swan products in its stores. They are strategic partners. The correct answer is option (d).
What is a strategic partner?An agreement to work cooperatively with another business organization with the goal of growth and mutual success is known as a strategic partnership. Different kinds of strategic alliances exist. Horizontal Partnership: Companies in the same industry form alliances to strengthen their position in the market.
An alliance between two businesses that is formalized through one or more business contracts is known as a strategic partnership. An agency, business affiliate arrangement, or formal partnership organization will typically outperform a strategic partnership.
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As a student of Business Ethics and a managing director of a multinational company, discuss five (5) factors you will consider in managing the multi-cultural and diversified workforce in Ghanaian business organizations.
Answers
Communication, ethics, conflict management, learning, and inclusion are some issues to consider when leading a multicultural and diversified workforce in Ghanaian business organizations.
How do you lead a multicultural team?In order to foster a culture that celebrates variety and individuality, it is crucial that there be a number of rules and procedures that concentrate on organizational ethics. The manager must be aware of the requirements of the teams, encourage learning, and include the staff in organizational procedures.
Therefore, the sharing of knowledge, learning, and creativity can benefit from a diverse culture.
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How can you relate the careers in Finance as Bachelor of Science in Information Systems (BSIS) students?
Answers
Answer: can prepare you for an exciting career in a rapidly -expanding field. As an information science major, you'll study the creation and management of information content, the characteristics and needs of people who create, consume, and utilize information, and the technologies that support the creation, management , preservation , and dissemination of information .
Explanation:(none)
After Polly Shrum sells a stock, she avoids following it in the media. She is afraid that it may subsequently increase in price. What behavioral characteristic does Shrum have as the basis for her decision making? Please explain your answer.
Answers
After Polly Shrum sells a stock, she avoids following it in the media. She is afraid that it may subsequently increase in price. Shrum has fear of regret. She is hesitant to examine stock prices out of concern that they may have increased and she may have lost out on possible gains.
To prevent the fear of regret, the investor may become less risk-averse in the future and may purchase any stock recommended by the media without completing any background investigation. During lengthy bull markets, regret theory leads some investors to continue to invest aggressively, dismissing warning signals of a coming disaster.
According to regret theory, people anticipate remorse if they make the wrong option and take it into account while making decisions. Fear of regret may either deter or motivate people to act. Regret theory has the potential to influence an investor's rational conduct, diminishing their capacity to make financial decisions that benefit them rather than damage them.
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the production cost report . answer unselected summarizes steps two and three of the five-step process unselected summarizes steps three and four of the five-step process unselected summarizes the entire five-step process on one schedule unselected summarizes steps one and two of the five-step process unselected
Answers
The production cost report summarizes the entire five-step process on one schedule. The correct answer is C.
This report is used to track the costs associated with the production of a product or service, and it includes information on the costs of materials, labor, and overhead.
The five steps of the process include:
1) determining the cost of materials used in production,
2) calculating the cost of labor,
3) determining the cost of overhead,
4) calculating the total production cost, and
5) determining the cost per unit of production.
The production cost report summarizes all of these steps in one schedule, providing a comprehensive overview of the production costs. Therefore the correct answer is C.
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Why is brand repetition important?
Answers
brand repetition is important because it's how we learn that a brand is in the marketplace, so to speak, and it forms a 'top of mind awareness' among consumers.
sales: $460,000 accounts receivable balance: $40,000 cost of goods sold: $300,000 inventory balance: $87,000 accounts payable balance: $25,000 calculate the following matrics: a/r days?inventory days?a/p days?cash-to-cash days?when making your calculations, please follow conventional rules for rounding up or down to arrive at your answer.
Answers
1. A/R days 37.14 days 2. Inventory days 105.85 days 3. A/P days 30.42 days 4. Cash-to-Cash days 107.17days.
A/R days = 365*40000/46000
Inventory days = 365*87,000/300,000
A/P days = 365*25,000/300,000
Cash-to-Cash days = C99+C100-C101
A/R days 37.14 days
Inventory days 105.85 days
A/P days 30.42 days
Cash-to-Cash days 107.17days
Stock refers to all the gadgets, goods, products, and materials held through an industrial agency for promotion inside the marketplace to earn earnings. The purpose of the stock is to provide a buffer between manufacturing and sales, smoothing out the flow of products and making sure that merchandise is available at the same time as customers order them.
No matter the scale of your corporation, having the proper inventory control device can be very important for any commercial organization. It permits you to hold in track all your assets and determine the appropriate expenses. it may additionally help you manage unexpected changes in a call without sacrificing consumer amusement or product high-quality. To gather this purpose, agencies must cautiously control their inventory stages, investing in a suitable system if vital.
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Complete Question:
sales: $460,000 accounts receivable balance: $40,000 cost of goods sold: $300,000 inventory balance: $87,000 accounts payable balance: $25,000 calculate the following metrics: a/r days? inventory days?a/p days? cash-to-cash days? and when making your calculations, please follow conventional rules for rounding up or down to arrive at your answer.
A/R days ____
Inventory days ____
A/P days ____
Cash-to-Cash days ____
Explain the relationship between the factors of production and how that creates a
successful business.
Answers
Answer:
Natural resources (land)
Labor (human capital)
Capital (machinery, factories, equipment)
Entrepreneurship
Explanation:
nature is the first key of success like having a land to start up
labor is the teamwork needed support between all ( all for one, one for all)
capital is needed just like food, no money no business
Entrepreneurship: it depends on what is the idea of business you want, and how it really help the community
Studying products for similarities or differences is known as ______ shopping.
-Marginal
-Comparison
-Emotional
-Research
Answers
It's a form of research to look at products from different websites, but comparison means when you are comparing two things.
My answer would be B. Comparison
Studying products for similarities or differences is known as Comparison shopping. Option B. This is further explained below.
What is Comparison shopping.?Generally, Comparison shopping is simply a typical technique in which buyers check the prices of various things from several stores before making a purchasing choice.
In conclusion, Comparison shopping is the process of examining things for similarities and differences.
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Question 4 (2 points) Which component of the policyholder's coverage is most expensive? Their uninsured motor vehicle coverage Their medical payments coverage Their liability coverage Their collision coverage
Answers
Their medical payments coverage
Which of the following is incorrect in terms of data warehousing and business intelligence? Group of answer choices Operational information is mainly current Does not include information from other operational applications Operational information frequently has quality issues Operational systems are integrated
Answers
Answer:
Operational systems are integrated.
Explanation:
A data warehouse can be defined as a large collection of data gathered or collected from various sources within an organization and managed to provide a guide for making decisions by the management.
This ultimately implies that, a data warehouse avails the management of an organization the ability to collect, analyze and manage data in order to gain meaningful insights and aid in the decision-making process.
In terms of data warehousing and business intelligence, the following statements are true and correct;
I. Does not include information from other operational applications.
II. Operational information is mainly current.
III. Operational information frequently has quality issues.
16) When supply is fixed or the product is unique, then price is A) supply determined. B) demand determined. C) government determined. D) indeterminate.
Answers
Answer: B) demand determined.
Explanation:
If the supply of a good is fixed or the product is of a unique kind, the price of the good will be determined by the amount of demand for it.
Normally supply can change based on the quantity demanded which will impact prices but if the supply is definite, this means that the supply curve is inelastic and the only curve that can affect price therefore is the demand curve.
If more people demand the good, it will increase in price and if less people demand it, it will fall in price.
Karane Enterprises, a calendar-year manufacturer
Answers
Karane generated taxable income in 2018 of $1,732,500 for purposes of computing the 179 expense.
What is income?The amount of money, property, and other transfers of value obtained over a predetermined period of time in return for services or goods are often referred to as "income."
Income is defined in accordance with the context in which the word is employed; there is no single, universal definition. Income from the selling of goods or services is one type of business income that is permissible.
For instance, a person's fees from the regular practice of a profession are considered business revenue. Rent payments made by a real estate investor are considered
business revenue.
Income is the cash that a person or organization receives in return for working, producing a good or service, or using capital.
People normally make money through wages or salaries, whereas corporations make money by selling goods or services for more than it costs to produce them.
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For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis accounting).
a. On December 7, Oklahoma City Thunder sold a $90 ticket to a basketball game to be played in March.
b. Tesla sold and delivered a $58,000 car on December 25. The customer will not pay until February.
c. Deloitte signs a contract on December 1 to provide 40 days of advisory services with receipt of $10,000 due at the end of the contract. On December 31, 75% of the services have been completed.
Answers
The accrual concept of recognizing revenue in the period that the transaction occurs and not when payment is received agrees with the matching principle. Revenue should be recognized to match with the recognition of costs incurred for earning the revenue.
Situations Amount of Revenue Recognized in December
a. Ticket Sales $0
Revenue
b. Sales $58,000
Revenue
c. Contract $7,500 ($10,000 x 75%)
Revenue
Thus, for situation (a), no revenue is recognized in December since the game will be played in March. For situation (b), the $58,000 is fully recognized in December, notwithstanding that the customer will pay in February. For situation (c), only 75% of the revenue is recognized in December to agree with the percentage of completion.
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the ____ is a federal government agency that offers both managerial and financial assistance to small businesses
Answers
Question 1
When Theo Chocolate’s managers meet to develop the company’s strategy, one of the first things they do is a SWOT analysis. Which of the following would be an opportunity for Theo? Check all that apply.
A.Joe Whinney pitches Theo Chocolate to an angel investor, who sees the company as a great opportunity and doubles its capitalization.
B.Theo is featured as one of Oprah Winfrey’s “Favorite Things List” in ”6 New Chocolate Bars We’re Crazy About” on Oprah.com.
C.Analysis of customer data allows Theo Chocolate to predict with great accuracy which flavors of chocolate bars will sell the most at which time of year and produce accordingly.
D. Theo partners with Ben Affleck’s Eastern Congo Initiative to launch a chocolate bar line, where a part of the proceeds are donated to help Congolese farmers and their families.
Question 2
Theo Chocolate is considering opening a cooking school which will teach students techniques for working with chocolate and recipes that feature Theo chocolate as an ingredient. This would be an example of:
A.Differentiation
B.Vertical integration
C.Unrelated diversification
D.Related diversification
Question 3
Theo Chocolate is just one of many high-end chocolate manufacturers today. They compete against brands such as Scharffen Berger, Valrhona, and Godiva. This means that it is easy for customers to choose a different chocolate, passing up the opportunity to buy a Theo Chocolate confection. This problem illustrates which of Porter’s five industry forces?
A.Bargaining power of buyers
B.Threat of new entrants
C.Threat of substitute products
D.Bargaining power of suppliers
Answers
Answer:B.Theo is featured as one of Oprah Winfrey’s “Favorite Things List” in ”6 New Chocolate Bars We’re Crazy About” on Oprah.com.
D. Theo partners with Ben Affleck’s Eastern Congo Initiative to launch a chocolate bar line, where a part of the proceeds are donated to help Congolese farmers and their families.
Explanation:
The Chocolate’s managers.
As er the question the manager of the cholate meet to develop the company and devise a strategy. The conduct a SWOT analysis which aims to fund the strength, weaknesses, and opportunities along with the threats of the company. It is quite helpful in the planning process of any company.
Thus answer is a Favorite Things List and they partner with Ben Affleck, Vertical integration and. The threat of new entrants
The SWOT is a method of telling the strengths and weaknesses of the manufacturers and helps in evaluating the good qualities and find the USP of the brands. The opportunities would be seen by the favorite list of things that they can get at Oprah.com. The Ben Affleck’s Eastern Congo to launch the bars is part of the help process.The process of Vertical integration includes the use of a supply chain to make different processes and services within different levels.The threats from the new entrants to the market can lead to weakness on the domestic companies and hence is a powerful force of the porters industrial forces.Learn more about the Chocolate’s managers.
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Fitz Company reports the following information.
Selected Annual Income Statement Data Selected Year-End Balance Sheet Data
Net income $412,000 Accounts receivable decrease $33,400
Depreciation expense 50,000 Inventory decrease 47,500
Amortization expense 7,300 Prepaid expenses increase 6,200
Gain on sale of plant assets 7,400 Accounts payable decrease 10,900
Salaries payable increase 1,300
Required:
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.
Answers
Answer:
Net cash from operating activities is $527,000.
Explanation:
This can be prepared as follows:
Fitz Company
Statement of cash flows
(Operating activities section only)
For the year ended December 31.
Details $
Net income 412,000
Adjustment to reconcile net income:
Depreciation expense 50,000
Amortization expense 7,300
Gain on sale of plant assets (7,400)
(Increase) decrease in current assets:
Accounts receivable decrease 33,400
Inventory decrease 47,500
Prepaid expenses increase (6,200)
Increase (decrease) in current liabilities:
Accounts payable decrease (10,900)
Salaries payable increase 1,300
Net cash from operating activities 527,000
Y’all I need a know if this is correct PLEASE
Answers
Answer:
Correct.
Explanation:
Paint is made using other chemicals and products.
Cloth has to be manufactured in order to be used.
Nails, are made up of raw materials and other things.
Wood is straight from a tree, with no extra processing. This makes it a raw material.
Answer: yes it is correct
Explanation:
how useful is knowing the business impact of your project compared to that of your team mates' other work?
Answers
Your company uses an organized method called business analysis to identify and assess the possible effects of disruption to crucial business processes caused by crises, accidents, or catastrophes. A business impact study is a crucial component of a company's business continuity strategy.
If I came upon any of my teammates' evaluation data in a shared folder, I would preserve it before returning it to the teammate.
A project Manager provides a project life, but business impact analysis gives that life a path to success. Projects are helpful and straightforward to utilize, letting the effort you put into the study pay off. A business impact analysis is a fantastic tool for evaluating risk and establishing a recovery plan should it arise. That sounds project-like.
Evaluations frequently center on a person's performance. It relates to their line of business.Every colleague goes through a similar evaluation process once a year. It informs them of their shortcomings and growth.Saving this information is essential since it can aid someone in developing their talents.Learn more about business here https://brainly.com/question/26106218
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How have the division and coordination of labor evolved at Merritt’s Bakery from its beginnings to today? 2. Describe how the span of control, centralization, and formalization have changed at Merritt’s Bakery over the years. Is the company’s organizational structure today more mechanistic or organic?
Answers
Answer:
When Larry and Bobbie first opened the bakery, labour allocation was not as complicated, but only 2 of them were involved. Larry used to make the cupcakes, and Bobbie used to decorate them to create them seem nice. Merritt's then went on to commit and administer the firm instead of executing tasks, which they used to perform on a daily basis since there were administrators, sales associates, and marketers.
When the firm began to grow, there was a command structure in place, with employees reporting directly to Larry as well as Bobbie. Merritts began recruiting additional executives as the business's effectiveness began to deteriorate as the firm grew, and management was constricted. When new employees joined the leadership team only a few people used to notify Larry and Bobbie.
Tania really enjoyed the salads sold at her local grocery store, so she purchased five of them to eat throughout the week. The first salad is delicious, and Tania eats it quickly, looking forward to the next one. The second day, the next salad is also good. By the third day, some of the ingredients in the next salad are starting to go bad, and by the fourth day, Tania cannot bring herself to eat any more and throws away the remaining salads. Which statement would be unlikely in economic terms?
a. Tania achieved utility maximization with her purchase of five salads.
b. Tania would achieve higher marginal utility by eating something other than the fourth salad.
c. Tania would achieve higher marginal utility if she purchased fewer salads.
d. Tania's marginal benefit was higher for the first two salads than the third and fourth.
Answers
Answer:
a. Tania achieved utility maximization with her purchase of five salads.
Explanation:
Maximising individual satisfaction is the main aim in an economy.
Utility is a measure of the degree of satisfaction that a person gets from consuming a good.
In the given scenario Tania bought 5 salads and enjoyed only 2. She had to throw away the remaining because of spoilage.
In economic terms she would have been better of purchasing fewer salads for example if she only did 2 salads her utility will be maximised.
She is also better off consuming something else than the fourth salad. She derived no satisfaction from the fourth salad as she had to throw it away.
As she enjoyed the first two salads her marginal utility is higher with them than for the ones she did not consume.
However to state that she achieved maximum utility with purchase of the 5 salads is wrong because she only consumed 2 and had to throw the rest away
Market culture is controlled and has an internal focus
Answers
A marketplace culture has a strong external focus and values balance and control whereas a hierarchical culture has an internal focus and values balance and manipulation over flexibility.
What do you mean by market culture?A marketplace culture is a sort of company tradition that emphasizes competitiveness now no longer only among the corporation and its marketplace competition but additionally among employees.
The marketplace version is the maximum competitive and capitalistic of the four common corporate culture models.
Hence, A marketplace culture has a strong external focus and values balance and control whereas a hierarchical culture has an internal focus and values balance and manipulation over flexibility.
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The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index number for the cost of a basket of goods and services in period 2, assuming Period 1 is the base year. (Round to 1 decimal place.)
Answers
Since Period 2 is the base year, so, index number for Period 2 will be 100 for the given information in Expenditure table.
for period 1 ,
Total Expenditure = $3,100
Index Number = 3100/3350×100
=92.537
for period 2,
Total Expenditure = $3,350
Index Number = 3350/3350×100
= 100
for period 3,
Total Expenditure = $3,400
Index Number = 3400/3350×100
= 101.492
for period 4,
Total Expenditure = $3,500
Index Number = 3500/3350×100
= 104.47
Index numbers are statistical measures that express changes in the value of a variable or a group of variables over time. They are used to compare the value of a particular variable at different points in time or across different regions or groups. Index numbers are useful in economics and other fields where there is a need to track changes in the value of a variable over time or across different units of observation. Common examples of index numbers include price indices, inflation indices, and stock market indices.
the complete question is:
The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index number for the cost of a basket of goods and services in period 2, assuming Period 1 is the base year. (Round to 1 decimal place.)
Total Expenditure Index Number
Period 1 $3,100
Period 2 $3,350
Period 3 $3,400
Period 4 $3,500
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What is the difference between the price of a product
and the opportunity cost of a product?
Answers
Answer:
see below
Explanation:
The price of a product refers to the amount that a customer pays to acquire the product. It is the monetary value attached to the product. Price is the minimum amount of money that a supplier or seller accepts in exchange for goods and services.
Opportunity cost is the forfeited benefits for not selecting a particular option. Opportunity costs arise as people make choices between various alternatives. Once the preferred option has been selected, the next best alternative is the opportunity cost. The value of opportunity cost is the missed benefits from the next best alternative.
Ticketsales, Inc., receives $5,520,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts.
Required:
Record the cash receipt in advance of concerts.
Answers
Answer:
On October 31, Debit Cash for $5,520,000; and Credit Unearned ticket revenue for $5,520,000.
On November 5, Debit Unearned ticket revenue for $1,380,000; and Credit Ticket revenue for $1,380,000.
Explanation:
The journal entries will look as follows:
Date Description Debit ($) Credit ($)
Oct 31 Cash 5,520,000
Unearned ticket revenue 5,520,000
(To record ticket revenue received in advance.)
Nov 5 Unearned ticket revenue 1,380,000
Ticket revenue (w.1) 1,380,000
(To record revenue ticket revenue earned.)
Workings:
w.1. Ticket revenue = Unearned ticket revenue * (1 / 4) = $5,520,000 * (1 / 4) = $1,380,000
Each of the following is a reason to export data except ___
To gave the same data in a database
To use data from your database
To create a pie graph
To send some data from a database to a client.
Answers
Explanation:
D
most data exports are for backing up purposes, creating presentation and ability to access old files
what is the ethical issue in this case story?
Answers
Answer:
Some examples of ethical dilemma include: Taking credit for others' work. Offering a client a worse product for your own profit. Utilizing inside knowledge for your own profit.
Brand equity is…………………?
Answers
Answer:
Brand equity, in marketing, is the worth of a brand in and of itself — i.e., the social value of a well-known brand name.