Answer:
Income statement
revenue 78000
expenses (25000 )
insurance (7000 )
depreciation (9000 )
EBIT 37000
TAX (11000)
net income 26000
EPS 3.25
STATEMENT OF STOCKHOLDER'S EQUITY
Common stock retained earnings additional paid in capital
opening 8000 9000 57000
net income 26000
closing 8000 35000 57000
BALANCE SHEET
assets
non current assets 154000
machinery 77000
accum depreciation (20000)
carrying value 57000
current assets 36000
prepaid insurance 3000
cash 18000
accounts receivables 15000
total assets 190000
Equity and liabilities
stockholdr's equity 100000
common stock 8000
Retaine earnings 35000
paid in capital 57000
Liabilities 90000
current liabilities 90000
Accounts payable 11000
wagages payable 4000
income tax payable 75000 balancing figure
Explanation:
missing information;
Other data not yet recorded at December 31 include:
Insurance expired during the current year, $7.
Wages payable, $4.
Depreciation expense for the current year, $9.
Income tax expense, $11.
Required:
1. Using the adjusted balances, prepare an income statement for the current year. (Round "Earnings per share" to 2 decimal places. Enter your answers in thousands.)
2. Using the adjusted balances, prepare statement of stockholders’ equity for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
3. Using the adjusted balances, prepare balance sheet for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
CALCULATE THE AMOUNT OF MONEY YOULL HAVE AT THE END OF THE INDICATED TIME PERIOD YOU INVEST 3000 IN AN ACCOUNT THAT PAYS SIMPLE INTEREST OF 6% FOR 10 YEARS THE AMOUNT OF MONEY YOULL HAVE AT THE END OF 10 YEARS IS
Answer:
The amount of money we will have after the investment will be $ 4,800.
Explanation:
Simple interest is the system of calculation in which the interests generated by a capital are not capitalized, that is, when the interests are withdrawn separately and they do not accumulate in the capital that produced them. In other words, in the simple interest calculation the interest is not productive and it must always resort to the initial capital contributed.
Therefore, if the initial capital is $ 3,000 and the interest rate is 6% with a duration of 10 years, we must calculate this percentage and multiply it by 10 to obtain the sum of money that we will have at the end of the investment:
3,000 x 6/100 = 180
180 x 10 = 1,800
3,000 + 1,800 = 4,800
As we can see, the amount of money we will have after the investment will be $ 4,800.
Mike has an insurance policy that pays 90% of the replacement cost of personal property damaged in a fire. A fire destroyed a stove that Mike paid $350 for but it was now worth only $90. A new one would cost $400. How much will Mike’s insurance company pay?
Answer:
Explanation:
Mike insurance company will pay = 0.9 of 400 = $ 360
Answer: Mike's insurance company will pay $360. That is, 90 percent of $400.
Explanation: The insurance company pays 90 percentage of the replacement cost of personal property damaged by fire. Although the actual amount Mike paid for the stove was $350 but now was worth $90 due to the fire incident. The insurable amount that was expected to have been communicated to the insurance company was the current market value and not the actual amount parted with, at first. This is because the insured would be at a loss in case of any eventuality.
So it was expected that Mike would have communicated $400 as the current market value to the insurance company to be the insurable amount.
The insurance company would take possession of the damaged stove which is now worth $90 and sell it to salvage buyer most likely at that price to cushion the loss that was incurred. Also, the company would pay $360 to Mike while he bears the remaining balance, which is $40.
A government agency which administers rules concerning clean housing projects wants to specify and explain the language it uses to communicate with the public and enforce its statutes. Which of the following is true?a. The agency does not need to invite public opinion on the information it will post.
b. The agency must hold a public comment period for the public to weigh in on the impact and details of the statute.
c. The agency must have a public hearing where it explains the statutory language it uses.
Answer:
The agency does not need to invite public opinion on the information it will post.
Explanation:
When a government wants to administers rules concerning clean housing projects wants to specify and explain the language it uses to communicate with the public and enforce its statutes, it does not need to invite public opinion on the information it will post.
The government will rather consult within itself to determine the best information that will effectively deliver the message of rules concerning clean housing projects.
Final answer:
The correct answer is 'b': The agency must hold a public comment period for the public to give feedback on the impact and details of the statute, according to the Administrative Procedure Act.
Explanation:
According to the Administrative Procedure Act, when a government agency is in the process of creating or amending regulations, it must follow a series of steps that involves input from the public and other stakeholders. After extensive research and data gathering, the agency is required to publish planning documents and advance notice of proposed rulemaking to engage stakeholders and alert the public. Subsequently, the agency must accept public comment on the proposal for a specified period, often 30 or 60 days. This comment period allows anyone to provide feedback on the proposed rules. After the comment period, the agency may revise the proposal based on the comments or post a new version for additional comments.
Therefore, the correct option in response to the given question is 'b': The agency must hold a public comment period for the public to weigh in on the impact and details of the statute. Following this period and analysis of public input, recommendations and public testimony will play a crucial role in how the agency moves forward, potentially leading to legislative changes or adaptations based on commission recommendations. Rulemaking processes, such as those by the Federal Communications Commission (FCC), exemplify how public comments are essential to developing final regulations.
Using the substitution theorem and the important equivalences (handout) show the following equivalence. Use only one substitution/equivalence rule (such as absorption) per step and justify each step by name'
Answer:
Explanation:
Commutative laws: p ∧ q ≡ q ∧ p
p ∨ q ≡ q ∨ p
Associative laws: (p ∧ q) ∧ r ≡ p ∧ (q ∧ r)
(p ∨ q) ∨ r ≡ p ∨ (q ∨ r)
Distributive laws: p ∧ (q ∨ r) ≡ (p ∧ q) ∨ (p ∧ r)
p ∨ (q ∧ r) ≡ (p ∨ q) ∧ (p ∨ r)
Identity laws: p ∧ t ≡ p
p ∨ c ≡ p
Negation laws: p ∨ ∼p ≡ t
p ∧ ∼p ≡ c
Double negative law: ∼(∼p) ≡ p
Idempotent laws: p ∧ p ≡ p
p ∨ p ≡ p
Universal bound laws: p ∨ t ≡ t
p ∧ c ≡ c
De Morgan’s laws: ∼(p ∧ q) ≡ ∼p ∨ ∼q
∼(p ∨ q) ≡ ∼p ∧ ∼q
Absorption laws: p ∨ (p ∧ q) ≡ p
p ∧ (p ∨ q) ≡ p
Negations of t and c: ∼t ≡ c
∼c ≡ t
Enchante Inc. is a high-end perfume manufacturer. It slashed the price of its brand of perfume "Entice" by 5 percent, which resulted in a 20 percent increase in sales. Estimate the price elasticity for Entice.
Answer:
Around -4 percentage points
Explanation:
The price elasticity is the measurement of change in quantity supplied or demanded with respect to the change in price.
The formula we can think for this problem would be:
Price Elasticity = Percentage Change in Quantity Demanded / Percentage Change in price
We let the initial price be 100 and initial quantity demanded of sales be 100
Given,
Percentage Change in Quantity is 20% increase
also
Percentage Change in Price is 5% decrease
We can say:
Price Elasticity = 20% / -5% = -4
_____ involves contracting with an outside domestic vendor to provide a product or service to a firm, as opposed to producing the product using employees within the firm.
Answer:
The correct word for the blank space is: Outsourcing.
Explanation:
Outsourcing is a strategy businesses follow by which they take their operations to different countries to contract a company there that acts on the company's behalf just like in its origin country but at lower costs. Avoiding strict regulations is another motive for companies to outsource their operations.
Outsourcing usually carries the disadvantage of poor quality controls which can be detrimental to a firm.
g "With respect to the types of information systems used in organizations, financial, operations, and human resource management is an example of a(n) ________ system." social software data mining and visualization electronic commerce enterprise resource planning
Answer:
enterprise resource planning.
Explanation:
Enterprise resource planning involves management of main business processes and usually involves use of software. ERP supports similar processes based on the department it is deployed to.
For example ERP can be set up in a company to define various functions of human resources, accounting, amd operations.
The software used for each division will be tailored to their needs. Operations will be more towards everyday processes of production and customer service, while for human resources it will support more of data analysis for effective people management and performance related activities.
Kawasaki Company incurred the following unit costs in manufacturing digital cameras: Direct Materials $14 Indirect Materials (variable) $4 Direct Labor $8 Indirect Labor (variable) $6 Other Variable Factory Overhead $10 Fixed Factory Overhead $28 Variable Selling Expenses $20 Fixed Selling Expenses $14 During the period, the company produced and sold 1,000 units. What is the inventory cost per unit using variable costing
Answer:
Unitary variable cost= $42
Explanation:
Giving the following information:
Direct Materials $14
Indirect Materials (variable) $4
Direct Labor $8
Indirect Labor (variable) $6
Other Variable Factory Overhead $10
During the period, the company produced and sold 1,000 units.
Under the variable cost method, the product cost is calculated using direct material, direct labor, and variable overhead:
Unitary variable cost= 14 + 8 + (4 + 6 + 10)= $42
The inventory cost per unit using variable costing is calculated by adding only the variable costs, which in the case of Kawasaki Company, totals $42 per unit.
Explanation:To determine the inventory cost per unit using variable costing, we need to focus on variable costs which include direct materials, direct labor, variable manufacturing overhead (both indirect materials and indirect labor), and other variable factory overhead.
The given costs are:
Direct Materials: $14Direct Labor: $8Indirect Materials (variable): $4Indirect Labor (variable): $6Other Variable Factory Overhead: $10Adding up these costs gives us a total variable cost per unit:
$14 (Direct Materials) + $8 (Direct Labor) + $4 (Indirect Materials) + $6 (Indirect Labor) + $10 (Other Variable Factory Overhead) = $42 per unit
Fixed costs such as Fixed Factory Overhead and Fixed Selling Expenses are not included in the calculation for variable costing. Thus, the inventory cost per unit under variable costing for Kawasaki Company is $42.
McGill and Smyth have capital balances on January 1 of $56,000 and $36,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $24,000 for McGill and $12,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $90,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) (2) Prepare a schedule showing the distribution of net income, assuming net income is $30,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Journalize the allocation of net income in each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order presented in the previous part.)
Answer: capital accounts distribution
DETAILS McGill Smyth total remaining
opening balance $56000 $36000
net income $90000 $90000
salaries $24000 $12000 -$36000 $54000
interest @ 10% $5600 $3600 -$9200 $44800
Profit share 70 : 30% $31360 $13440 -$44800 $0
closing balance $116960 $65040
DETAILS McGill Smyth total remaining
opening balance $56000 $36000
net income $30000 $30000
salaries $24000 $12000 -$36000 - $6000
interest @ 10% $5600 $3600 -$9200 -$15200
loss share 70 : 30% -$10640 -$4560 +$15200 $0
closing balance $74960 $47040
JOURNAL ENTRIES
1 . Debit partnership summary income account $90000, credit capital accounts McGILL ; salary 24000, interest on capital 5600, profit share 31360. Symth ; salary 12000, interest on capital 3600, profit share 13440
2 . Debit Partnership summary income account 30000 , credit Capital accounts McGill : salary 24000 , Smyth : 12000 , Interest on capital account McGill : 5600, Smyth 3600.
for loss sharing journal
Debit Capital accounts McGILL 10640, Smyth 4560 , Credit partnership summary account 15200
Explanation:
Answer:
Explanation:
Net income $90 000 000
salary allowance is the total of the two
$36000
Refer to McGrill as M and to Smyth as S
M=$24000
S=$12000
Interest $9200
M=($56000*0.1)=$5600
S=($36000*0.1)=$3600
Total income
M=$24000+$5600=$29600
S=$12000+$3600=$15600
So the distribution
$90000-$36000-$9200
=$44800
Then for M=$44800*0.7=31360
S=$44800*0.3=$13440
total distribution
M=$31360+$29600=$60960
S=$13440+$15600=$29040
I income is $30 000000
($30000-$36000-$9200)
-$15200
M=-15200*0.7=-$10640
S=-$15200*0.3=-$4560
Total distributions
M=(-$10640+29600)=$18960
s=(-$4560+$15600)=$11040
"The one-year forward rate of the British pound is $1.55, while the current spot rate is $1.60. Based on the forward rate, what is the expected percentage change in the British pound over the next year
Answer:
-3.125%
Explanation:
The percentage change in the British pound is determined as the difference between the one-year forward rate ($1.55) and the current spot rate ($1.60), divided by the current spot rate, and then multiplied by 100%:
[tex]P = \frac{\$1.55-\$1.60}{\$1.60}*100\%\\ P=-3.125\%[/tex]
Over the next year, the British pound will change by -3.125%.
In general, a larger R-squared tends to suggest that
a.the estimated sample regression function explains a greater percentage of the total variation in y.
b. the estimated sample regression function is more accurate.
c. the estimated sample regression function explains a greater percentage of the explained variation in y.
d. the estimated slope coefficient is more likely to equal the population slope coefficient.
Answer:
the answer for what A larger R-squared suggests is option A) the estimated sample regression function explains a greater percentage of the explained variation in y.
Explanation:
R-squared is the coefficient of determination. It is the statistical standard that shows how close the data are to the regression line.
It analyses the relationship between two variables and the scores could suggest a low R-squared value or a larger R-squared value.
70 percent is the bar line. below 70% is slow and above 70% is high.
Therefore a larger R-squared suggests that the estimated sample regression function explains a greater percentage of the total variation in Y.
Generally, a larger R-squared suggests that the estimated sample regression function explains a greater percentage of the total variation in Y.
R-squared refers to the the coefficient of determination that shows how close a data are to the regression line.
The R-squared analyses the relationship between two variables and the scores could suggest a low R-squared value or a larger R-squared value.
Hence, the larger R-squared suggests that the estimated sample regression function explains a greater percentage of the total variation in Y.
Therefore, the Option A is correct.
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Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $50,000 per year and variable costs of $700 per unit. The second process has fixed costs of $400,000 but has variable costs of only $200 per unit. a. What is the break-even quantity beyond which the second process becomes more attractive than the first
Answer:
700 units
Explanation:
FC1 : Fixed Costs from process 1
VC1 : Variable cost per unit from process 1
FC2 : Fixed Costs from process 2
VC2 : Variable cost per unit from process 2
FC1 = $50,000
VC1 = $700 per unit
FC2 = $400,000
VC2 = $200 per unit
To calculate the break-even (quantity) point we must equate the TC1 (Total cost of process 1) to TC2 (Total cost of process 2)
TC1 = TC2
FC1 + VC1(y) = FC2 + VC2(y) where y is the break-even units
50,000 + 700y = 400,000 + 200y
500y = 350,000
y = 350,000 / 500
y = 700 Units
Answer:
700 units
Explanation:
fixed cost for first process ( F₁ ) = $50000
variable costs of first process ( V₁ ) = $700
fixed cost of second process ( F₂ ) = $400000
variable cost of second process ( V₁ ) = $200
break-even quantity ( y ) = ?
note : variable costs are costs that vary/change as the quantity of goods and services produced changes
A) the break-even quantity beyond which the second process can be calculated by equating the total costs of both processes
F₁ + V₁ ( y ) = F₂ + V₂( y )
50000 + 700 y = 400000 + 200 y
500 y = 400000 - 50000
therefore y = 700 ( break even quantity beyond which the second process is attractive )
Facts: Ray steals a purse from an unattended car at a gas station. Because the purse contains money and a handgun, Ray is convicted of grand theft of property (cash) and grand theft of a firearm. On appeal, Ray claims that he is not guilty of grand theft of a firearm because he did not know that the purse contained a gun. Can Ray be convicted of grand theft of a firearm even though he did not know that the gun was in the purse
Explanation:
Issue–Ray was intending to rob the money, but the bag also held a handgun. So, should Ray be found guilty of a major weapons robbery, even though the gun did not know?
Law— The act of larceny includes wrongful taking and carrying away of personal property from someone else with the intention to rob the owner forever. The criminal offence is offences where the defendant has the motive to achieve a sort of economic benefit or harm. Property offenses Although robbery includes orphaning, no larceny.
Discussion – First, Ray's conduct is certainly a theft of property as it was his intention to snatch the bag from an unsupervised vehicle. The money was in the bag, so that Ray took away the precious property of another in an attempt to take out the owner.
Final answer:
Ray could potentially be convicted of grand theft of a firearm even without knowing the gun was in the purse, due to the principles of theft centered around the act of taking, not necessarily the knowledge of the contents, and strict liability offenses in some jurisdictions.
Explanation:
In criminal law, the concept of mens rea or 'guilty mind' plays a significant role in determining the culpability of an individual. For certain crimes, intent or knowledge is a necessary component to establish guilt. However, for the conviction of theft, the focus is primarily on the unauthorized taking of someone else's property with the intent to permanently deprive them of it, irrespective of the knowledge of the specific contents. Therefore, even without the knowledge of the gun's presence in the purse, Ray could still be held liable for its theft if the prosecution successfully proves he intended to steal the purse.
Moreover, the charge of grand theft of a firearm also implicates strict liability offenses in some jurisdictions, where knowledge or intent regarding the specific nature of the stolen item (in this case, the firearm) may not necessarily absolve the thief of criminal responsibility. The rationale behind this is to increase deterrence and hold individuals accountable for the unlawful possession of dangerous items, regardless of their intent or knowledge concerning those items at the time of the theft.
It's also worth noting that legal outcomes can vary significantly based on jurisdiction and the specific circumstances surrounding a case. Consulting legal statutes and precedents in the relevant jurisdiction would provide further clarity.
Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $ 50 per passenger. Super Cruiseline's variable cost of providing the dinner is $ 20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $ 210 comma 000 per month. The company's relevant range extends to 18 comma 000 monthly passengers. Use this information to compute the following:a. What is the contribution margin per passenger? b. What is the contribution margin ratio?c. Use the unit contribution margin to project operating income if monthly sales total 13, 000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $520, 000. a. What is the contribution margin per passenger? First identify the formula, then compute the contribution margin per passenger.________ _ __________ =contribution margin per passenger________ _ __________ = _________________________
Answer:
a. Contribution margin per passenger ($50-$20) = $30
b. Contribution margin ratio (30/50) = 60%
c. Operating Income (390000-270000) = $120,000
d. Operating Profit = $42,000
Explanation:
a. Contribution formula = Sale - Variable Cost
Sale price per passenger = $50
Variable Cost per passenger = $20
Contribution margin per passenger ($50-$20) = $30
b. Contribution Margin ratio formula = Contribution/Sale
Sales per passenger = 50
Contribution per passenger = 30
Contribution margin ratio (30/50) = 60%
c. Operating profit = Contribution margin- Fixed Cost
Monthly sale total for 13000 passenger
Sale per passenger = $50
Total sale for 13000 passenger 13000*50 = $650,000
Contribution Margin per passenger =$30
Total Contribution margin for 13000 passenger = 13000*30 = $390,000
Less: Fixed Cost = 270,000
Operating Income (390000-270000) = $120,000
d. Contribution margin formula= (Sale x Contribution margin ratio)
Contribution margin = (520000*60%) = $312,000
Less: Fixed Cost = 270,000
Operating Profit = $42,000
Answer:
A) $30
B) 0.6
C) $180,000
D) $102,000
Explanation:
Contribution per unit (in this case, passangers)
Sales revenue - Variable Cost
50 - 20 = 30
Contribution Ratio:
[tex]\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio[/tex]
[tex]\frac{30}{50} = Contribution \: Margin \: Ratio[/tex]
CMR = 0.60 for each dollar 60 cents are left to afford fixed cost and make a gain.
Operating profit with 13,000 passangers we multiply by the contribution per passanger and subtract the fixed cost
13,000 passangers x 30 contribution each - 210,000 fixed cost:
390,000 - 210,000 = 180,000
If sales are 520,000: we multiply this by the contribution margin ratio and subtract the fixed cost
520,000 x 0.60 CMR - 210,000 fixed cost
312,000 - 210,000 = 102,000
Jeff wishes to accumulate $5,000 in 5 years. Use the appropriate formula to find the sinking fund payment she would need to make at the end of each year, at 5% interest, compounded annually
Answer:
$1, 154.873
Explanation:
The appropriate formula is
P = PV × r
1 − (1+r)−n
P is the amount that needs to be set aside every year
Where PV is $5000
r is 5% or 0.05
n is five years
P = 5000 x 0.05
1-(1+0.05)-5
P= 5000 x 0.05
1-0.783526166
P= 5000 x (0.05/0.216473834)
P = 5000 x 0.2309747976
P= 1, 154.873
Jeff needs to make annual sinking fund payments of about $904.84 to accumulate $5000 in 5 years at a 5% interest rate, when it is compounded annually using the ordinary annuity formula.
Explanation:To find the sinking fund payment that Jeff would need to make at the end of each year to accumulate $5000 in 5 years at 5% interest compounded annually, we need to use the future value of an annuity formula. Since the payments are made at the end of each period (annually in this case) and not at the beginning, we will use the ordinary annuity formula.
The future value of an ordinary annuity formula is given by:
FV = Pmt * [(1 + r)^n - 1] / r
Where:
FV is the future value of the annuity, which is $5000.Pmt is the annual payment.r is the annual interest rate (5% or 0.05).n is the number of periods (5 years).Plugging in the values, the formula becomes:
5000 = Pmt * [(1 + 0.05)^5 - 1] / 0.05
Now we just need to solve for Pmt:
5000 = Pmt * [1.276281563 - 1] / 0.05
5000 = Pmt * [0.276281563 / 0.05]
5000 = Pmt * 5.52563126
Pmt = 5000 / 5.52563126
Pmt ≈ $904.84
Therefore, Jeff should make annual payments of approximately $904.84 to reach his goal of $5000 in 5 years at a 5% interest rate, compounded annually.
The three main project management goals are on time, within budget and achieving performance specifications. Should a project manager give up some functionality (e.g. technical requirements) in order to meet schedule milestones and when is this appropriate or inappropriate?
Answer:NO,The project manager should not give up any functionalities like technical requirements as it may lead to serious compromise that can cause serious hazard to the project or end users.
PART B
It is inappropriate at anytime to give up any Functionality(technical requirements) in order to meet schedule milestone.
Explanation:Technical requirements are standard procedures which has been established or put in place by experts or regulators as the best practices to ensure certain projects or Activities are effectively and efficiently done.
TECHNICAL REQUIREMENTS ARE NOT TO BE COMPROMISED IN ANY CIRCUMSTANCES AS IT IS A MAJOR CAUSE OF PROJECT FAILURES AND HAZARDS TO BOTH THE END USERS AND THE PROJECT TEAM MEMBERS.
On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $53,600 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $26,800 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $26,800 to Green. Revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received.Prepare the following journal entries for Revis:
1. The journal entry on January 31 to record the first month of revenue under the contract.
2. Assuming total cost savings exceed target, the journal entry on June 30 to record receipt of the bonus.
3. Assuming total cost savings fall short of target, the journal entry on June 30 to record payment of the penalty.
Answer:
1. Jan 31 Debit Cash $53,600
Credit Accounts receivable $53,600
2. June 30 Debit Cash $80,400
Credit Deferred Revenue $21,440
Credit Bonus Received $5,360
Credit Accounts Receivable $53,600
3. June 30 Debit Penalty Payable $26,800
Debit Cash $53,600
Credit Accounts Receivable $53,600
Credit Deferred Revenue $21,440
Credit Bonus adjustment $5,360
Explanation:
The question required that the month end revenue actually realized under the contract be journalized.
1.$53,600/- is a monthly payment which Revis will be receiving from Green Financial for every month for 6 months. Hence the receipt increases cash/bank balance and these are receivable under the contract. Hence accounts receivable is credited against the actual money received in the first month.
2.If cost saving targets are achieved by Revis, then apart from the monthly payment of $53,600/-, Green Financials has agreed to pay $26,800/- as bonus. Since the question states that Revis estimates that 80% it will reach the target, it would have accounted for the 80% as deferred revenue to be received. Hence 80% of $26,800/- is recorded under deferred revenue. Since now entire $26,800/- is received, the remaining 20% is shown as bonus received.
3.When the targets are not met, the deferred revenue recognized is reversed and penalty is paid. The difference of 20% is shown as bonus adjustment amount. The regular monthly income of $53,600/- is recognized as is.
Mcmurtry Corporation sells a product for $280 per unit. The product's current sales are 13,900 units and its break-even sales are 10,425 units. The margin of safety as a percentage of sales is closest to___________.a. 75%b. 33%c. 25%d. 67%
Answer:
Margin of safety as a percentage of sales=0.25=25%
Option C is correct (25%)
Explanation:
Given Data:
Sale price per unit=$280
Current Sales=13,900 units
Break Even sales=10,425 units
Required:
Margin of safety as a percentage of sales=?
Solution:
Margin of safety in Dollars= Total Current Sales- Break even sales
Total Current sales=Sale price per unit*Current Sales
Total Current sales=$280*13,900
Total Current sales=$3,892,000
Break Even Sales=$280*10,425
Break Even Sales=$2,919,000
Margin of safety in Dollars= $3,892,000-$2,919,000
Margin of safety in Dollars= $973,000
Margin of safety as a percentage of sales=[tex]\frac{Margin\ of\ safety\ in\ Dollars}{Total\ current\ Sales}[/tex]
Margin of safety as a percentage of sales=[tex]\frac{\$973,000}{\$3,892,000}[/tex]
Margin of safety as a percentage of sales=0.25=25%
Option C is correct (25%)
Describe how this parking lot can be interpreted as being a queueing system. In particular, identify the customers and the servers. What is the service being provided
Answer: a. Car Drivers
b. parking spaces
c. Parking
Explanation: A queuing system is a mathematical model used in congestion control. Similar to the physical queues we use daily, it assigns resources (or coffee) to the users of a service based on the arrival time.
A parking lot provides customers (car owners/drivers) with the service of packing their car in an area designated for that sole purpose, so that they don’t get a parking ticket for example.
Here the car drivers are the customers, and the parking spaces available can be viewed as the server. One of the limiting factors in a queuing system is the server. When the servers are idle, service is provided without the need to queue. This changes when they are occupied. When we compare a parking lot to a queuing system, the available spaces are the limiting factor.
Laflin Company reported the following year-end information: Beginning work in process inventory$1,080,000 Beginning raw materials inventory300,000 Ending work in process inventory900,000 Ending raw materials inventory480,000 Raw materials purchased960,000 Direct labor900,000 Manufacturing overhead720,000 Laflin Company's cost of goods manufactured for the year is Select one: a. $2,400,000 b. $2,580,000 c. $2,220,000 d. $2,760,000
Answer:
b. $2,580,000
Explanation:
The formula and the computation of the cost of goods manufactured is shown below:
= Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory
= $780,000 + $900,000 + $720,000 + $1,080,000 - $900,000
= $2,580,000
The direct material used is
= Beginning raw material inventory + purchase made - ending raw material inventory
= $300,000 + $960,000 - $480,000
= $780,000
Final answer:
The cost of goods manufactured for Laflin Company is calculated by summing the beginning work in process inventory and total manufacturing costs, then subtracting the ending work in process inventory, resulting in a value of $2,580,000.
Explanation:
To calculate Laflin Company's cost of goods manufactured for the year, we must add total manufacturing costs to the beginning work in process inventory and then subtract the ending work in process inventory from the sum. Total manufacturing costs include raw materials used, direct labor, and manufacturing overhead.
First, we find the raw materials used:
Beginning raw materials inventory: $300,000
Plus raw materials purchased: $960,000
Less ending raw materials inventory: $480,000
Equals raw materials used: $780,000
Next, we add all the components of manufacturing costs:
Raw materials used: $780,000
Direct labor: $900,000
Manufacturing overhead: $720,000
Total manufacturing costs: $2,400,000
Finally, we calculate the cost of goods manufactured:
Beginning work in process inventory: $1,080,000
Plus total manufacturing costs: $2,400,000
Less ending work in process inventory: $900,000
Equals cost of goods manufactured: $2,580,000
Therefore, the answer is (b) $2,580,000.
Hooray! You hit your sales number for the quarter and are awarded a $3,000 bonus. You spend $2,100 on a new living room TV and entertainment system and save the rest. What is your MPC and MPS
Answer:
0.7 and 0.3
Explanation:
Data provided in the question
Awarded bonus value = $3,0000
Spending amount on a new living room = $2,100
So by considering the above information , the MPC and MPS is
As we know that
MPC = change in Consumption spending ÷ change in income
= $2,100 ÷ $3,000
= 0.7
And, the
MPC + MPS = 1
0.7 + MPS = 1
So, the MPS is 0.3
When Job 117 was completed, direct materials to ob 117 was completed, direct materials totaled $4.400: direct labor, $5,600, and factory overhead, $2,400. A total of 1.000 units were produced at a per-unit cost of
a. $12,400
b. $1,240
c. S124
d. $12.40
Answer:
The correct answer is D.
Explanation:
Giving the following information:
direct materials totaled $4,400
direct labor, $5,600
factory overhead, $2,400.
A total of 1,000 units were produced
First, we need to calculate the total cost:
Total cost= direct material + direct labor + allocated overhead
TC= 4,400 + 5,600 + 2,400= $12,400
Now, we can calculate the unitary cost:
Unitary cost= 12,400/1,000= $12.4
Answer:
d. $ 12.40
Explanation:
Computation of Per Unit Cost
Direct materials $ 4,400
Direct labor $ 5,600
Factory Overhead $ 2,400
Total manufacturing costs $ 12,400
Units produced 1000 units
Cost per unit = Total manufacturing costs/ No of Units produced
Cost per unit = $ 12,400 / 1000 = $ 12.40 per unit
Under SEC rule 606 of regulation NMS, broker-dealers are required to compile statistical information on routing of customer non-directed orders to market venues, and make this information avaialable to customers:__________
Options:
A. monthly
B. quarterly
C. semi-annually
D. annually
Answer:B. Quarterly
Explanation:SEC(security and exchange commission) is an agency established by Government to regulate the activities of companies that sale Securities,Stock markets and self-regulatory Organisations.
Security and exchange commission ensures that it puts guidelines and rules to ensure that market players do business according to the best practices devoid of criminal activities.
Security and exchange commission rule 606 of regulation NMS, broker-dealers are required to give QUARTERLY REPORT AVAILABLE TO CUSTOMERS BY COMPILING STATISTICAL INFORMATION ON ROUTING OF CUSTOMER NON-DIRECTED ORDERS TO MARKET VENUES, AND MAKE THIS INFORMATION AVAILABLE TO CUSTOMERS.
The analysis tool that lists products in descending order of their individual dollar contribution to the firm is:A) decision tree analysis.B) Pareto analysis.C) breakeven analysis.D) product-by-value analysis.E) product life cycle analysis.
Answer:
The correct answer is letter "D": product-by-value analysis.
Explanation:
The product-by-value analysis is a study that aims to increase the value of a product by understanding the costs of its components. The analysis implies listing the products a firm manufactures in descending order portraying those with more value first. In the study, costs are analyzed to find out if they can be reduced.
The risk-free rate is 5.4 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $ 218 ,000 invested in a stock that has a beta of 0.5 and the remainder invested in a stock that has a beta of 1.4 . What is the required return on this portfolio?
Answer:
11.419%
Explanation:
Given that,
Risk-free rate = 5.4
Market risk premium = 5
Portfolio = $1 million = $1,000,000
Amount invested in stock A = $218,000
Beta A = 0.5
Amount invested in stock B = $1,000,000 - $218,000
= $782,000
Remainder invested in stock B that has a beta = 1.4
Portfolio beta:
= [(Amount in A × Beta of A) + (Amount in B × Beta of B)] ÷ Total Amount
= [($218,000 × 0.5) + ($782,000 × 1.4)] ÷ $1,000,000
= ($109,000 + $1,094,800) ÷ $1,000,000
= 1.2038
Required return:
= Risk free rate + (Beta × Market risk premium)
= 5.4% + (1.2038 × 5%)
= 5.4% + 6.019%
= 11.419%
Therefore, the required return on this portfolio is 11.419%
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 3 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 5.5% per year compounded semiannually, what will be your minimum selling price for the bond?
Answer:
The investor will sale the bond as low as : 9,064.39 to achieve their 5.5% return on investment
Explanation:
To yield 5.5% then the purchase price of 9,500 should mathc the discounted value of the coupon payment and the selling price of the bonds:
[tex]9,500 = $PV of coupon payment + PV selling price[/tex]
PV o the coupon payment:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 660.00
time 3
rate 0.055
[tex]660 \times \frac{1-(1+0.055)^{-3} }{0.055} = PV\\[/tex]
PV $1,780.6360
[tex]9,500 - 1,780.64 = \frac{Sales \: Price}{(1 + rate)^{time} }\\7,719.36(1 + 0.055)^{3} = $Selling Price[/tex]
Sales price: 9,064.39
Ian Burns is the new payroll accountant for ECG Marketing. Certain employees have been requesting changes in classification from nonexempt to exempt.
How do the U.S. Department of Labor guidelines help him answer the employees' questions? Select all that apply.
a. Educational level
b. Responsibilities
c. Duties
d. Reimbursement of board, lodging or other facilities availed
e. Job elements
f. Compensation such as discretionary bonus
Solution and explanation:
The Fair Labor Standards Act defines three tests that an employee must be eligible to be considered under the 'Exempt' category.
These include the following :
1.Salary Level Test : Employee must be paid minimum of $23,600 per year ($455 per week) to be considered Exempt.
2.Salary Basis Test : The representative must be paid on a Salary Basis, a fixed ensured least installment must be made for any workweek for the playing out any work. This would be dependent upon admissible and impermissible derivations that decide the premise of installment. Special cases to this standard are School educators, Lawyers, Doctors, and some others.
3.Duties Test : The actual jobs performed by the employee must be within the qualified exempt category of high level work. These are broadly classified as Executive, Professional; and Administrative job duties.
Thus, following out of the above will be considered for the purpose of classification to Exempt employees category:
- Reimbursement of board, lodging, facilities availed
Whether these form part of the compensation structure and the gross payments fall within the ambit of Levels test.
- Compensation such as discretionary bonus
These to be considered as part of Salary and to check whether the payments fall within the above stated levels and also the Basis of these payments whether on continuing salary or otherwise.
-Duties
The actual duties performed to be checked whether these fall within the exempt category.
Thus, the above stated three tests must be cumulatively passed in order to be eligible to classified as 'Exempt' Employee.
The U.S. Department of Labor guidelines help Ian Burns answer the employees' questions about changes in classification from nonexempt to exempt based on responsibilities, duties, and compensation.
Explanation:The U.S. Department of Labor guidelines help Ian Burns answer the employees' questions about changes in classification from nonexempt to exempt based on several factors:
Responsibilities: The guidelines consider the employee's job responsibilities to determine if they meet the criteria for exempt classification.Duties: The specific duties performed by the employee are taken into account to determine their classification.Compensation: The guidelines also consider certain compensation factors, such as the reimbursement of board, lodging, or other facilities availed by the employee, as well as the presence of discretionary bonuses.Learn more about U.S. Department of Labor guidelines here:https://brainly.com/question/32182685
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If the number of employed people is 150 million, the number of unemployed people is 50 million, and the working-age population equals 285 million people, what is the labor force participation rate? DO NOT PUT THE "%" IN YOUR ANSWER. An answer of 5%, for example, would simply be 5.
Answer:
70.18
Explanation:
Labour force participation rate = [(employed + unemployed ) / working-age population ]
(150 + 50) / 285 = 0.7018 × 100 = 70.18%
I hope my answer helps you
Kingbird Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $146 $134 $116 $110 $134 $110 Cost 92 98 98 98 61 44 Cost to complete 37 37 31 43 37 37 Selling costs 12 22 12 24 12 24.Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2014, for each of the inventory items above.
Explanation:
As we know that the inventory should be recorded at the lower cost or net realizable value whichever is lower
And, the same is shown on the attachment which is attached below:
The net realizable value for each products is computed by
= D - C - E
The DCE are the rows of the attached spreadsheet
And, the proper unit value for each products is as follows
Product Lower of cost or NRV
D 92
E 75
F 73
G 43
H 61
I 44
Assume the following costs in each of the categories identified in question one are: Packaged (Cans & Bottles) $127,361 Kegs $69,856 Shrinkage/WIP Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 What is Shannon's cost of goods sold?
Answer:
Explanation:
Computation of Cost of Goods Sold:
Particular Amount
Packaged (Cans & Bottles) $127,361
Kegs $69,856
Work In Progress Loss $42,000
Contract Labor $9,000
Direct Labor $240,000
Freight $18,000
Cost of Goods Sold $506,217
Note: All of these are not included in Cost of good sold
Consumer Advertising $30,000
Trade Promotion $30,000
Sales Promotion $18,000
Salaries & Benefits $180,000