Wayman Corporation reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 355,000 Income tax

Answer:

Almost as many individuals utilize mobile banking as those who rely on online methods for bill payment, largely due to the convenience that both approaches offer.

Explanation:

To hypothesize involves suggesting a plausible rationale for a situation. Thus, a potential reason for the preference among many customers for online and mobile payment methods is the simplicity they present.

Some of these benefits are:

1. No more long waits in lines to settle payments with checks.

2. Transactions can be initiated from virtually anywhere and at any hour.

3. Fewer prerequisites are necessary to carry out transactions.

Answer:

The right choice is option (D).

Explanation:

The scenario provides the following information:

Operating Income (EBIT) = $2,500,000

Depreciation Expense = $500,000

Tax rate = 40%

Net investment = $1,000,000

Thus, we can determine BBC's free cash flow using this formula:

= EBIT × (1 - Tax Rate) + Depreciation & Amortization - Net investment

Insert the values into the formula above:

So, the calculation becomes:

= $2,500,000 × (1 - 40%) + $500,000 - $1,000,000

= $1,500,000 + $500,000 - $1,000,000

= $1,000,000

Answer:

An essential business continuity document

Explanation:

The business continuity plan is vital for safeguarding against potential threats that could disrupt operations.

This written document is crucial for small enterprises.

Carla's business continuity plan should encompass:

1. identification of critical business processes required for rapid operational restoration post-incident, including necessary resources.

2. assessment of possible crises that could impact the business, along with strategies to mitigate the risk of said disasters.

As staff have previously received training on their roles during emergencies, they should implement their learning effectively.

For instance, if there's a risk of an attack that could disrupt power supply, Carla should install a backup generator to handle potential outages.

Response:

Clarification:

Last year's customer orders totaled 15000

Predicted orders for next year with a 15% rise = 15000 x 1.15 = 17250

Each customer order takes 1.5 hours to fulfill

Total time needed to satisfy customer orders = 17250 x 1.5 = 25875

Knowing that the standard work year comprises 2000 hours

Hence, the effective work year with a 2% capacity cushion

= Standard work year x ( 1 – Capacity cushion %/100)

= 2000 x 0.98  = 1960 hours

Workers required by manager

= Total time needed for orders / effective work year

= 25875 / 1960  = 13.20, rounded to 13

Thus, the manager will require 13 workers next year

Answer:

1. Adjusted cash balance equals the adjusted balance from the bank statement, totaling $133,620.

2. Refer to the journal entries and details provided in section 2 below.

Explanation:

The data presented in the question has been compiled and organized in the attached Excel document prior to answering the questions as follows:

1. Complete the bank reconciliation for December 31, 2019.

The bank reconciliation is shown in two formats:

a) Based on cash book balance

Gibson Energy Ltd.

Bank Reconciliation  

as of December 31, 2019  

Details                                                                   Amount ($)    

Cash book balance at December 31 awaiting reconciliation         62,000

Add:

Note receivable collected from XYZ Corp                            80,000

Less:

Dishonored NSF check                                               (7,000)

Overdraft interest expense                                            (1,320)

Bank service charge                                                   (60)  

Adjusted cash balance as of December 31                             133,620  

b) Based on bank statement balance

Gibson Energy Ltd.

Bank Reconciliation  

as of December 31, 2019  

Details                                                                       Amount ($)    

Bank statement balance at December 31 awaiting reconciliation          131,620

Add:  

Cash deposited on December 9 yet to be recognized          85,000

Cash deposited on December 31 yet to be recognized            15,000

Check #52094 issued in error                                      62,000

Less:

Outstanding checks 233                                                    (83,000)

Outstanding checks 239                                                    (77,000)  

Adjusted bank statement balance as of December 31                 133,620  

2. Document the journal entries needed to align the Cash in Bank account with the adjusted cash balance on the December 31 bank reconciliation, including explanations.

Date      Account Title & Description              DR ($)           CR ($)  

31 Dec 19    Cash                                                80,000  

                   Note Receivable                                                     78,049

                   Interest on Note Receivable                                       1,951

                  (To record note receivable & interest collected from XYZ)    

31 Dec 19   Overdraft interest expense                1,320

                  Service charge                                        60

                  Cash                                                                           1,380

                   (To record interest expense and bank charges)                  

31 Dec 19   Accounts Receivable                           7,000

                    Cash                                                                           7,000

                  (To record NSF check that was dishonored)