The accounting staff at Moonbeam Enterprises prepares monthly financial statements. At the end of April 2004 the company had the following account balances:
Capital Stock $38,770
Retained earnings, April 30$46,070
Supplies expense$ 1,300
Income tax expense$ 1,060
Fuel expense$ 1,500
Insurance expense$ 550
Interest expense$ 900
Prepare an income statement and balance sheet in good form. For each statement, use a three-line heading on the statement that includes (a) the name of the company, (b) the name of the statement, and (c) the appropriate time period or date. Moonbeam Enterprises|
Month Ending 4/30/2004|
Assets| | Liabilities| |
Cash| 10,350| Notes Payable| 33,000|
Supplies| 1,300| | |
Land| 45,000| Owners Equity| |
Buildings| 50,000| Capital Stock| 38,770|
| | | |
Total Assets| 106,650| Total Liabilities and owners equity| 5,770| | | | |
Month Ending 4/30/2004|
Sales Revenue| | 110840| | 100%|
Revenue:| | | | |
| Inventory| 12,480| | |
| | | 98360| 88.70%|
Expenses:| | | | |
| Salary| 15,050| | 13.50%|
| Supplies| 1,300| | 1.10%|
| Income tax| 1,060| | 0.95%|
| Fuel| 1,500| | 1.30%|
| Insurance| 550| | 0.50%|
| Interest| 900| | 0.81%|
| Total Operating Expenses| | 20,310| 18.30%|
Operating Income| | | 78050| 70.40%|
Al Rosen invests $25,000 in a mint condition 1952 Mickey Mantle Topps baseball card. He expects the card to increase in value 12 percent per year for the next 10 years. How much will his card be worth after 10 years.
Mrs. Crawford will receive $50,000 in 14 years from her trust. If an 8 percent interest rate is applied, what is the present value of the future payment?
$17,023.05 = 50,000/((1+.08)14)
4. (10 POINTS)
What does creating shareholder value mean to you?
When it comes down to it, the most basic meaning of “creating shareholder value” means making your boss(es) more money. The wealth of the owners of any cooperation is measured by the share price of the stock. If you do well at your job, you make the company money, which in turn makes the shares that the owners hold increase, which makes them more money. 5.
The Miller Distributing Company is investigating two different scheduling methods for its truck drivers. The following data reflect the number of delivery miles each driver drove per day for each of the scheduling methods.
Method 226 5 9614
a. Compute the mean and the standard deviation for each of these methods. Assume the data are sample data. a. Method 1 mean= 12, σ= 4.3
b. Method 2 mean= 12, σ= 7.67
b. Compute the coefficient of variation for each method and discuss which scheduling method seems to provide the least relative variability in the distances traveled. c. Method 1 σ2= 18.8
d. Method 2 σ2= 58.8
e. Method 1 seems to provide the lease relative variability in distances traveled. When the distances of both methods are compared, Method 1’s miles of delivery varied less from the mean amount of miles, which was 12mi.
6. (10 POINTS)
Your coffee shop produces espressos using an espresso machine and workers.
a. If you double the number of workers but don’t add a second espresso machine, would you expect your output (espressos per hour =EPH) to double? Explain. i. No, I would not expect my number of EPH to double,...