Chadwick Associates retained $850,000 of net income in the business in Year 1. If $75,000 was appropriated to satisfy the restrictive covenant of a loan agreement, what are the effects of the appropriation on the elements of the financial statements? Assets=Liab.+Stk.EquityRev.?Exp.=Net IncStmt. ofCash FlowsA.NA NA NANA NA NANAB.(75,000) NA (75,000)NA NA NA(75,000)FAC.(75,000) NA (75,000)NA 75,000 (75,000)(75,000)FAD.(75,000) NA (75,000)NA NA NANA
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
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October November December Budgeted S&A Expenses Salary expenses10,000 10,500 11,000 Sales commissions, 5% of sales5,000 5,500 5,300 Insurance expenses2,000 2,000 2,000 Rent2,400 2,400 2,400 Depreciation on equipment1,500 1,500 1,500 Utilities1,100 1,300 1,500 Total operating expenses22,000 23,200 23,700 Schedule of Cash Payments for S&A Expenses Salary Expenses? 10,500 ? 100% of prior month sales commissions5,100 ? ? Insurance Expense2,000 2,000 2,000 Rent? ? 2,400 100% of Prior months utilities expenses1,200 ? ? Total payments foe S&A expenses? ? ? What is the amount of sales commissions payable that the company will report on its pro forma balance sheet at the end of the fourth quarter?
A. $5,500 B. $11,000 C. $5,300 D. $5,000
FINOVA was a second-tier lender
Indicate whether the statement is true or false
Gaba Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 17,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 70,000 units were completed in the Grinding Department and transferred to the next processing department. There were 7,000 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Grinding Department for the month?
A. 70,000 B. 60,500 C. 50,000 D. 70,700
Which type of software controls basic operations such as file management, disk storage, and hardware interfaces?
A) application software B) system software C) firmware D) programming software