Explore BrainMass


unearned revenue for Martinville Moonfish

1.) Last year the Martinville Moonfish, a not-so professional minor league football team sold $61,200 worth of season tickets for all seventeen games to willing fans. The $61,200 received for tickets to games that haven't been provided yet would be considered: Answer 1. Pre-season Revenues (included with normal sales reve

This post addresses the best cost allocation method.

In 2009 Shanks/Tumbler Industrial Expansion Enterprises (STIEE) was acquired as a transport company for nikel mines in Arizona, for $1.4 million cash by John Shanks and Glen Tumbler. This funding acquired trucks/forklifts that were almost new but leftover from the previous transport company that declared bankruptcy, land that is

Dr. Matt Donnelly operates a dental office outside of Mobile, Alabama

Dr. Matt Donnelly operates a dental office outside of Mobile, Alabama. Recently he ordered a new dental chair for his patients since the older one was in poor condition. The Model 1880 by Dental Designs, Inc. sells for $12,680 (including tax) and shipping is $580 (including tax) FOB Destination. Which of the following journal

Income Statement

Gill Bates, Jr. spent $1,000,000 developing a software utility that is intended to be sold to small businesses. In his first full year of business following the development, he sold 50,000 copies at $109 each. The direct cost of packaging, and fulfilling orders for the software was $34 per unit. Overhead costs are 10% of this di

Income statement and compute the profit margin

Kit Karson, the owner of Karson Kutlery and Knives, LLC is preparing a loan application. Using the data below (only), prepare an income statement and compute the profit margin on sales. Include totals for gross margin, sales general, and administrative earnings before interest and taxes (sometimes called "income from operations"

Standard Deviation and Dividend Calculation

Mr. Boyles has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following information to calculate the standard deviation of the return distribution for Mr. Boyles' investment. (Round to the Nearest Hundredth) State Return Pro

Expected Return and Stock Portfolio Value

(1) The risk-free rate of return is currently 5 percent, whereas the market risk premium is 11 percent. If the beta of Briar Tek's stock is 2, then what is the expected return on Briar Tek? (2) A stock portfolio is equally allocated among Stock A, B, and C. Stocks A, B, and C have betas of 1.9, 1, and 0.57, respectively. Th

Cash Flow Cost

Maxwell Food is considering a project that has the following cash flow data. What is the project's IRR? Year 0 1 2 3 4 5 Cash flows -$9,500 $2,000 $2,025 $2,050 $2,075 $2,100 Oranges Inc. is considering a project that has the following cash flow and Cost o

Sarah Conner is an employee working for Cyberdyne Industries

Sarah Conner is an employee working for Cyberdyne Industries as a custodial worker. On her pay stub (given to her to confirm her direct deposits) she found that Cyberdyne withheld $85 worth of Social Security and Medicare taxes based off the combined percentages of 6.20 and 1.45%. In regard to Sarah's paycheck only, how much is

R. Cunningham had been speaking with A. Fonzarelli about selling his portion of a partnership in "Arnold's Good Time Hamburger Haven and Karaoke Extravaganza!" Currently Fonzarelli's Owner's Equity account in "Arnold's" is $397,412. Cunningham has offered him $200,000 for half of his equity, so that Fonzarelli won't be completely out of the hamburger business which he loves so much. C. Arnold, who is Fonzarelli's partner has no problems with Fonzarelli selling half his equity in the company and generally likes Cunningham as long as he doesn't have to deal with him too terribly often. If Fonzarelli agrees to the deal what kind of journal entry would be recorded on the books of "Arnold's Good Time Hamburger Haven and Karaoke Extravaganza?" Answer A. A Debit to C. Arnold-Capital for $397,412; A Credit to A. Fonzarelli for $198,706, and a Credit to R. Cunningham for $198,706 B. None of the other answers C. A Debit to A. Fonzarelli-Capital for $198,706; A Credit to R. Cunningham-Capital for $198,706 D. A Debit to R. Cunningham-Capital for $200,000; and a Credit to A. Fonzarelli-Capital for $200,000 E. A Debit to A. Fonzarelli-Capital for $198,706; A Credit to R. Cunningham-Capital for $200,000 and a Credit for $197,412 for Paid in Capital in Excess of Par

R. Cunningham had been speaking with A. Fonzarelli about selling his portion of a partnership in "Arnold's Good Time Hamburger Haven and Karaoke Extravaganza!" Currently Fonzarelli's Owner's Equity account in "Arnold's" is $397,412. Cunningham has offered him $200,000 for half of his equity, so that Fonzarelli won't be completel

Duke and L. Duke General Partnership: Loss of Profit

Duke and L. Duke operated a general partnership performing minor automobile repairs in their small rural town for nearly six years. During the past four moths the cousins have noticed a steady decline in customers thanks to the new Wal-Mart that was built about ten miles away that offers one stop shopping for high quality low pr

Financial Journal Entries for Inventories

Fargo company established a $250 petty cash fund on March 1 of this year. On March 22, the fund showed $155 in cash, and receipts for the following expenditures: $32 postage, $48 gasoline expenses, and $13 transportation-in. Fargo uses the perpetual system of accounting for merchandise inventories. What would be the journal en

Freeman's Invoice Payment

M. Freeman received an invoice from D. Wayans Reproduction Automotive Parts. The invoice stated the total of $52,000 for twelve pairs of Corvette fenders with the terms 2/10, n/30 printed at the bottom. Please use the information in the preceding question regarding M. Freeman's purchase of auto parts from D. Wayans. If Free

Effective Annual Rates (APR resulting EAR)

2 parts- question Part-1 Create a table using Excel that shows for Annual Percentage Rates (APRs) for 15% to 1%, the corresponding rates per period (period rate = APR/ number of periods per year), and the resulting Effective Annual Rates. The Periods per year, Period Rates and EARs should automatically change when the length

Calculate the expected returns

Suppose that the Treasury bill rate were 6% rather than 4%. Assume that the expected return on the market stays at 10%. Use the betas in Table 8.2 (p. 193) - provided below. Stock Beta (B) Expected return Stock Beta (B) Expected return Amazon 2.16 15.40%

ratios and entries

Please explain why financial ratios are more meaningful for financial analysis than individual entries.

Please provide step by step in the calculations.

1. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The annual payments would be larger if the interest rate were lower. b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the


3. Hanster Inc. is a levered firm with publicly traded shares. The company has 250 million shares outstanding with a share price of $16 and an estimated equity beta of 1.50. The company has market value based outstanding debt of about $400 million in its capital structure. It plans to continuously refinance the debt and keep it

Determine break even points associated with common equity.

B. Break point associated with common equity. Oâ??Grady plans to use 25% long term debt in its capital structure. Every $1 in debt the firm uses, it will use $3 from other financing sources. Total financing is then $4, because $1 comes from long term debt, its share in the total is the desired 25%. After firm raises $700,000

Choose the economical generator in the given situations.

A portable generator is needed at a remote construction site. Two alternatives are being considered. Their annual fixed costs and operating and maintenance costs per hour are shown in the table below. The contractor runs three 8-hour shifts per day for 250 working days per year Generator 1 Fixed cost per year $4000 O&M

Comparative Present Worth of Each of the Three Alternatives

Castille Pharmaceuticals (CP) currently leases testing equipment for use during the production of a product at a cost of $61,000 annually that includes all maintenance expenses. The product line produced on the machine has revenues of $100,000 annually. Three options need to be evaluated. 1. Continuing to lease the present mac

Retirement Fund

Thomas is considering retiring and migrating to a rental property in the Virgin Islands. Thomas presently owns a home appraised at $595,000 with $300,000 remaining on the home loan. He has about $350,000 in savings right now. The Virgin Island rent will be $1,000 a month and he estimates that he and his wife can live on $3,000

Virtual stock market investment system

Students have to initiate a 3 weeks investment simulation on the New York Stock Exchange. With a starting virtual budget of $10,000, they must build their own information system that will be used as a support to take operational decisions: buying or selling shares from 5 American companies. Each decision involves a cost for b

Evaluate Continuous Variables

See the attached files. Consider the model Y = B_0 + B_1X_1+B_2X_2+e, e ~ N(0, σ^2) where the 'xs are all continuous variables. You also have data on a qualitative variable denoted d1 for each observation, where d1 = 1 if the observation belongs to group 1, and zero otherwise. 1) Assume you want to set an empirical model

a cash conversion cycle

The Phoenix Corporation is interested in examining its cash conversion cycle. Suppose a Phoenix manager has assembled the following data for your use: $2.75 million Average Inventory $1.05 million Average Accounts receivable $0.60 million Average Accounts payable $0.45 million Wages, benefits, and payroll taxes payable $7

Corporate Finance Discussion

Integrative Multiple leverage measures and prediction Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $ 6.00. Each latch has variable operating costs of $ 3.50. Fixed operating costs are $ 50,000 per year. The firm pays $ 13,000 interest and preferred dividends of $ 7,000 per year. At this poi

universal concerns of financial management

The universal concerns of financial management are controlling costs, ability to have available cash to pay obligations, ability to access capital for expansion and the ability to conserve the asset base of the organization. Give an example of a company that has failed in at least one of these universal concerns. Further disc

macro short answers

1. Some economists believe that the financial crisis we have been experiencing during the last years is the result of a fundamental change in attitude of the American population over time. In other words, during the 50s and 60s Americans were hard working, conservative, lenders and exporters. Today, we would like to work less fo