g Donald’s employer fires Donald after only four months on the job, a clear breach of Donald’s written twelve-month employment c

Answer:

• No, he will not accumulate sufficient funds to purchase his delivery truck after 6 years.

Explanation:

To determine how much money Earl Miller—the owner of the Papa Gino's franchise—will have available in 6 years, it's necessary to assess the worth of the $20,000 he plans to invest at a 5% interest rate compounded semiannually:

With semiannual interest: 5% / 2 = 0.05/2 = 0.025

Equation:

Here, r/n was calculated previously: r/n = 0.05/2 = 0.025; and t refers to the time in years: 6.

•        

Thus, the future value of the investment would fall short of the truck's price, meaning

he will not be able to afford the delivery truck after 6 years.

Question Completion:

Financial data:

Unearned revenue 3,600

Notes payable 2,800

Accounts payable 4,800

Advertising expense 2,800

Rent expense 4,000

Salaries expense 6,000

Utility expense 2,400

Consulting revenue 34,000

Rental revenue 7,000

Accounts receivable 10,000

Cash 12,000

Equipment 10,200

Notes receivable 5,000

Prepaid insurance 2,000

Supplies 3,000

Common Stock 9,200

Dividends 4,000

Prepare an Income Statement, Statement of Retained Earnings, and Balance Sheet as of December 31.

Answer:

Accel Consulting Firm (managed by Maria Gomez)

a. Income Statement for the month ending December 31:

Consulting revenue            $34,000

Rental revenue                        7,000

Total Revenue                     $41,000

Subtract expenses:

Advertising expense 2,800

Rent expense            4,000

Salaries expense      6,000

Utility expense          2,400   15,200

Net Income                        $25,800

b. Statement of Retained Earnings for December 31:

Net Income                             $25,800

Dividends                                    4,000

Retained earnings, Dec. 31    $21,800

c. Balance Sheet as of December 31:

Assets:

Cash                                  $12,000

Accounts receivable           10,000

Notes receivable                  5,000

Prepaid insurance                2,000

Supplies                                3,000

Equipment                           10,200

Total Assets                     $42,200

Liabilities:

Unearned revenue           $3,600

Notes payable                     2,800

Accounts payable               4,800

Total Liabilities                 $11,200

Common Stock                  9,200

Retained earnings            21,800

Total liabilities + Equity $42,200

Explanation:

The income statement of Accel provides a brief overview of temporary accounts that are not transferred to the next accounting period. These accounts are utilized to measure the financial performance of the consulting firm, including revenues and the associated expenses.

The retained earnings statement of Accel illustrates the difference between the accumulated net income over the years for a longstanding business and the distributed dividends from this income to shareholders. For Maria Gomez's consulting enterprise, this statement indicates the remaining funds after dividend payments for December.

Finally, Accel's balance sheet is necessary to present the firm's financial standing. It displays what the company possesses as assets, what it owes in liabilities for unpaid services, and the equity held by the owner, Maria.

Answer:

8.66%

Explanation:

The calculation for the real rate of return is displayed below:

Real rate of return = {(1 + nominal rate of return) ÷ (1 + inflation rate)} - 1

= {(1 + 11.65%) ÷ (1 + 2.75%)} - 1

= {(1.1165) ÷ (1.0275)} - 1

= 1.086 - 1

= 0.0866 or 8.66%

By applying the formula where the numerator is the nominal rate of return and the denominator is the inflation rate

The total value of the inventory lost in the tornado is $105,700. Explanation: The relationship is captured in this equation: Beginning inventory + inventory purchases + Gross profit = Sales + ending inventory. Plugging in the figures, $228,350 + $199,400 + $322,050 = $644,100 + ending inventory resolves to $749,800 = $644,100 + ending inventory. Thus, determining that the ending inventory amounts to $749,800 - $644,100 results in $105,700. The gross profit is calculated as Gross profit percentage multiplied by sales: 50% multiplied by $644,100 yields $322,050. Since the inventory was destroyed in the tornado, we assume the ending inventory lost corresponds to $105,700.

Answer:

See the instructions below.

Explanation:

Here is the provided information:

Q= 1,000 units sold

Sales amounting to $ 345,000

Starting merchandise inventory at $ 23,000

Total purchases of $ 230,000

Ending merchandise inventory valued at $ 11,500

Fixed selling expense is $?

Fixed administrative expense totals $ 13,800

Variable selling expense is $ 17,250

Variable administrative expense is $?

Contribution margin stands at $ 69,000

Net operating income equals $ 20,700

Cost of goods sold (COGS) is calculated as: beginning inventory + purchases - ending inventory = 23000 + 230000 - 11500 = $241,500

1) Total revenue is 345000

COGS amounts to 241500

Variable selling expense equals 17250

Variable administrative expense=? =17250 (345000 - 241500 - 17250 - 69000)

The contribution margin is 69000

Fixed selling expense=? = 34500 (69000 - 13800 - 20700)

Fixed administrative expense is 13,800

Net income is 20,700

2) Sales total 345,000

COGS reaches 241500

Gross profit comes to 103500

Administrative expense totals 31050

Selling expense is 51750

Net income arrives at 20700

3) Selling price per unit calculation: total sales/Q= 345000/1000= $345

4) Variable cost per unit calculation: total variable cost/Q= (241500+17250+17250)= $276000/1000= $276

5) Contribution margin per unit calculation: 69000/1000= 69

6) The contribution format income statement is advantageous as it clearly illustrates how each unit influences the contribution margin.