Answer:
Big Data
Explanation:
Big data is referred toas a set of large data that is complex and so large in volume that traditional way cannot be used to analyze and store.
Answer:
Big data.
Explanation:
Big data refers to massive amount of data that can be structured or unstructured and it is difficult to process using traditional methods and software. It exceeds traditional data processing speeds.
Big data is collected from a number of sources such as emails, applications, databases, mobile phones, and servers.
This data when analysed can give a business insights that will make companies improve their operations, increase revenue, get and retain customers, and make faster decisions.
For example big data may contain information of millions of people from various sources such as the internet, sales or contact centres. With sizes made up of petabytes ( 1,024 terabytes). The data is usually loosely structured and may be incomplete.
On January 1, 2017, Taggart Sales issued $18.000 in bonds for $18,800. These are eight - year bonds with a stated iterest rate of 9% that pay semiannual interest. Taggart Sales uses the staight - line method to amortize the bond premium. After the first Interest payment on June 30, 2017, what is the bond carrying amount? (Round your intermediate answers to the nearest dollar.)
A) $18,750
B) $18,800
C) $18,000
D) $18,050
Answer:
Explanation:
Face Value of Bonds = $18,000
Issue Value of Bonds = $18,800
Premium on Bonds = Issue Value of Bonds - Face Value of Bonds
Premium on Bonds = $18,800- $18,000
Premium on Bonds = $800
Time to Maturity = 8 years
Semiannual Period = 16
Semiannual Amortization of Premium = Premium on Bonds / Semiannual Period
Semiannual Amortization of Premium = $800/ 16
Semiannual Amortization of Premium = $50
Carrying Value = Issue Value of Bonds - Semiannual Amortization of Premium
Carrying Value = $18,800- $50
Carrying Value = $18,750
So the correct answer is A) 18,750
Brian lives in Philadelphia and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Brian does not operate this boat business, he can work as a paralegal and receive an annual salary of $21,000 with no additional monetary costs. No other costs are incurred in running this boat business.
Identify each of Brian's costs in the following table as either an implicit cost or an explicit cost of selling boats.
(a) The rental income Brian could receive if he chose to rent out his showroom
(b) The wages and utility bills that Brian pays
(c) The salary Brian could earn if he worked as a paralegal
(d) The wholesale cost for the boats that Brian pays the manufacturer
In Brian's business scenario, the rental income foregone and the potential salary from working as a paralegal represent implicit costs. In contrast, wages, utility bills, and wholesale costs for boats are explicit costs. These distinctions are crucial in accurately assessing the company's profitability.
Explanation:When evaluating the costs of running a business, it's essential to differentiate between implicit and explicit costs. In the scenario provided:
(a) The rental income Brian could forego if he chose to rent out his showroom is an implicit cost, because it's a potential income foregone for using the property in his business instead of renting it out.(b) The wages and utility bills that Brian pays are explicit costs, which are direct, out-of-pocket payments for running the business.(c) The salary Brian could earn if he worked as a paralegal is another example of an implicit cost, representing the income he forgoes by choosing to run his own business rather than working for someone else.(d) The wholesale cost for the boats that Brian pays the manufacturer is an explicit cost, being a direct expense associated with purchasing inventory for his business.Roger purchased a stock for $16 a share. The stock paid a $1 annual dividend and increased in price by $2 a year for the following three years. What is the arithmetic average annual capital gain? The arithmetic average annual total return?
Answer:
11.20%, 16.80%
Explanation:
Purchase Price [tex]P_{0}[/tex] = $16
Year 1 end closing price [tex]P_{1}[/tex]= $18
Capital Gain Yield for the first year = [tex]\frac{P_{1}\ -\ P_{0} }{P_{0} }[/tex] = [tex]\frac{18\ -\ 16}{16}[/tex] = 12.5%
Capital Gain Yield for the second year = [tex]\frac{20\ -\ 18}{18}[/tex] = 11.11%
Capital gain yield for the third year = [tex]\frac{22\ -\ 20}{20}[/tex] = 10%
Average annual capital gain yield = [tex]\frac{12.5\ +\ 11.11+\ 10}{3}[/tex] = 11.20% approx
Dividend yield for first year = [tex]\frac{D_{1} }{P_{0} }[/tex] = [tex]\frac{1}{16}[/tex] = 6.25%
Dividend yield for the second year = [tex]\frac{D_{2} }{P_{1} }[/tex] = [tex]\frac{1}{18}[/tex] = 5.55%
Dividend yield for the third year = [tex]\frac{D_{3} }{P_{2} }[/tex] = [tex]\frac{1}{20}[/tex] = 5%
Average Annual Yield = [tex]\frac{12.5\ +\ 6.25\ +\ 11.11\ +\ 5.55\ +\ 10\ +\ 5 }{3}[/tex] = [tex]\frac{50.41}{3}[/tex] = 16.80%
Final answer:
Roger's arithmetic average annual capital gain on the stock is $2, while the arithmetic average annual total return, including dividends and capital gains, is $3.
Explanation:
When Roger purchased a stock for $16 a share, paid a $1 annual dividend and the price increased by $2 a year over three years, we can calculate the arithmetic average annual capital gain and the arithmetic average annual total return.
The arithmetic average annual capital gain is calculated by taking the total capital gain over the period and dividing it by the number of years. In this case, the total capital gain is $2 × 3 years = $6.
Dividing by 3 years, we get an arithmetic average annual capital gain of $2.
The arithmetic average annual total return includes both the dividend and the capital gain.
This would be the dividend of $1 plus the capital gain of $2 per year, resulting in a total of $3 per year.
Thus, the arithmetic average annual total return is $3.
Suppose you reside in the Caribbean and purchase exclusive territory rights for a McDonald's franchise. You can construct as many locations as you choose on all the islands, but while other business owners can open other franchises such as Burger King and Wendy's, no one else can open a McDonald's. Does your exclusive license represent a monopoly? Explain.
Answer: The exclusive license to build Mc Donalds does not represent a monopoly because an artificial monopoly is a type of monopoly in which the monopolist uses some means to prevent more products from going to market than his own, and in this case Although you can exclusively open Mc Donalds, there is no prohibition or limit for others to open a Burger King or Wendy.
Answer:
Yes, the exclusive license for a McDonald's franchise represents a monopoly.
Explanation:
This is an example of franchised monopoly which is a status the government usually give to an individual or a firm.
A monopoly is a situation whereby only one individual, company or corporation dominates a particular type of business, sector or industry and nearly all the market for that commodity belong to that individual, company or corporation.
In the case of franchised monopoly, the individual, company or corporation is given a shield from competition from other firms because of the exclusive license or patent the government grant him.
Therefore, the exclusive license for a McDonald's franchise represents a monopoly.
Murphy Company produces two products, Regular and Enhanced. Murphy produces 8,000 units of Regular and 2,000 units of Enhanced. The company uses two activity cost pools, with estimated cost and activity as follows: Pool Estimated Cost Regular Enhanced #1 $12,000 500 hours 250 hours #2 $24,000 400 hours 1,200 hours What is the overhead cost per unit of Enhanced under activity-based costing?
Answer:
$11.00 per unit.
Explanation:
We know,
Total overhead cost = Estimated cost for pools × (Expected activity of specific activity ÷ Total expected activity)
Given,
Estimated cost for pool 1 = $12,000
Estimated cost for pool 2 = $24,000
Total expected activity for pool 1 = Regula + Enhanced = 500 + 250 hours = 750 hours
Total expected activity for pool 2 = Regula + Enhanced = 400 + 1,200 hours = 1,600 hours
As we have to find the overhead cost per unit of Enhanced,
Therefore, Total overhead cost = [$12,000 × (250 ÷ 750)] + [$24,000 × (1,200 ÷ 1,600)] = $4,000 + 18,000 = $22,000
Again, we know,
the overhead cost per unit under ABC costing = Total overhead cost ÷ Number of units produced for a specific unit
Cost per unit of Enhanced products = $22,000 ÷ 2,000 units = $11 per unit.
Use the following words to fill in the blanks in the statements below about the market for loanable funds. Choose from: demanded, supplied; left, right; higher, lower
a. A change that makes people want to save less will shift the loanable funds _______ line to the ______. The resulting new equilibrium in the market for loanable funds would be a ______ interest rate and a ______ quantity of funds saved and invested.
Answer:
supplied , left
higher, lower
Explanation:
When people start consuming more and saving less, this would result into lower quantum of funds parked with banks and financial institutions. Due to shortage of funds, the supply of loanable funds in the market would get reduced i.e the supplied line would shift to the left.
This would raise the equilibrium level for loanable funds which would lead to a higher rate of interest i.e funds will be loaned only at a higher rate of interest. Due to this, the quantity of funds saved and invested would be lower.
Blue Corporation issued 660 shares of no-par common stock for $8,600.Prepare Blue’s journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $4 per share
Answer:
(a) Dr Cash $8, 600
Cr common stock – no par value $8, 600
Shares issued at no par value
(b)Dr Cash $8, 600
Cr Common stock $2, 640
Cr Additional paid-in capital $5, 960
Shares issued at no par value
Explanation:
No-Par Value Stock:
No-par value stock is shares that have been issued without a par value.
Par value is the face value of a bond or share. It is the per share amount that will appear on some stock certificate. In the case of common stock (shares), the par value is usually a very small amount such as $0.10. this par value has no connection with the market value of the share.
The reason why shares have par values is because these par values are stated in an organization’s corporate charter; and shares cannot be issued at a value that is less than the par value. The par value or any share or bond is not the face value of the share or bond.
(a) If the share is carried in the organization’s accounts at its issue price i.e. the shares have no stated value, then this is how the journal entry is recorded:
Dr Cash $8, 600
Cr common stock – no par value $8, 600
Shares issued at no par value
(b) If the share is carried in the organization’s accounts at stated value, this is how the journal entry is recorded:
Dr Cash $8, 600
Cr Common stock $2, 640
Cr Additional paid-in capital $5, 960
Shares issued at no par value
This is how we arrived at the answer for (b):
660 shares were issued at $4 per share, therefore 660 x $4 = $2, 640
The balance of $5, 960* is recorded as additional paid-in capital.
*$8, 600 - $2, 640 = $5, 960
Answer and Explanation:
Journal entries Debit Credit
(a) Cash $8,600
Common Stock $8,600
Issuance of 660 shares of no-par common stock
(b) Cash $8,600
Common Stock (W1) $2,640
Paid in Capital in excess of par (W2) $5,960
Issuance of 660 shares at a stated value of $4 per share
Working:
(W1) Common stock = Number of shares issued x Stated value per share
= 660 x $4
= $2,640
(W2) Paid in Capital in excess of par = Cash - Common Stock
= $8,600 - $2,640
= $5,960
Answer the following question using the information below:
Diana Industries, Inc. (DII), developed standard costs for direct material and direct labor. In 2010, DII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.10 pounds $30 per pound
Direct labor 0.05 hours $15 per hour
During June, DII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct manufacturing labor-hours at an average wage of $15.25 per hour.
Required;
1. June's direct manufacturing labor efficiency variance is:
Group of answer choices:
O $125 favorable
O $7,623.50 unfavorable
O $125 unfavorable
O None of these answers are correct.
Answer:
O None of these answers are correct.
Explanation:
The computation of the direct manufacturing labor efficiency variance is shown below;
= Standard labor rate × (Standard hours for actual output - Actual hours)
where,
Standard labor rate is $15
Standard hours for actual output would be
= 10,000 containers × 0.05 hours
= 500 hours
And, actual hour is 500 hours
Now put these values to the above formula
So, the value would equal to
= $15 × (500 hours - 500 hours)
= $0
Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $32,110. Cash balance according to the bank statement at July 31, $31,350. Checks outstanding, $2,870. Deposit in transit, not recorded by bank, $4,150. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $20. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge
Explanation:
The journal entries are as follows
a. Cash $540
To Account payable $540
(Being the error is recorded)
It is computed below:
= Corrected amount - incorrect amount
= $710 - $170
= $540
b. Bank service charges $20
To Cash $20
(Being the bank services charges are paid in cash is recorded)
All other information is ignored
Final answer:
In reconciling Mathers Co.'s bank account for July, we correct an error in the recorded amount of a check payment and account for bank service charges, making necessary journal entries to adjust the cash balance.
Explanation:
To reconcile Mathers Co.'s bank account for July, we must make entries for an error in recording a check and for bank service charges.
Part (A) Recording Error:
The incorrectly recorded check should be corrected:
Debit Accounts Payable: $540 (to correct the overstatement of $540: $710 - $170)Credit Cash: $540 (to reduce the cash balance)Part (B) Service Charge:
The bank service charges should be recorded:
Debit Bank Charges Expense: $20Credit Cash: $20 (to reduce the cash balance)The reconciliation process is crucial for ensuring that the company's cash records are accurate.
If Arturo and Dina both spend all of their time producing tacos, then total production is a. 800 tacos and 500 burritos. b. 400 tacos and 250 burritos. c. 800 tacos and 0 burritos. d. 400 tacos and 0 burritos.
Answer: C
800 tacos and 0 burritos
Explanation:
If Arturo and Dina both spend all of their time producing tacos, then total production is 800 tacos and 0 burritos.
When purchasing bulk orders of batteries, a toy manufacturer uses this acceptance sampling plan: Randomly select and test 51 batteries and determine whether each is within specifications. The entire shipment is accepted if at most 2 batteries do not meet specifications. A shipment contains 5000 batteries, and 2% of them do not meet specifications. What is the probability that this whole shipment will be accepted? Will almost all such shipments be accepted, or will many be rejected? The probability that this whole shipment will be accepted is nothing. (Round to four decimal places as needed.) The company will accept nothing% of the shipments and will reject nothing% of the shipments, so many of the shipments will be rejected. almost all of the shipments will be accepted. many of the shipments will be rejected. (Round to two decimal places as needed.)
Answer:
Here, n = 51
Probability of success, p = 0.02
Probability of failure, q = 0.98 (= 1−0.2)
The entire shipment is accepted if at most 2 batteries do not meet specification. That is we have to find P(x ≤ 2).
probability = P(x=0)+p(x+1)+p(x=2)
=(0.02)^0(0.98)^51-0+(0.02)^1(0.98)^51-1+(0.02)^2(0.98)^51-2.
= 0.0071 +0.0073+0.00015
= 0.0145
= 1.45%
Pot Co. holds 90% of the common stock of Skillet Co. During 2013, Pot reported sales of $1,120,000 and cost of goods sold of $840,000. For this same period, Skillet had sales of $420,000 and cost of goods sold of $252,000. Included in the amounts for Skillet's sales were Skillet's sales of merchandise to Pot for $140,000. There were no sales from Pot to Skillet. Intra-entity sales had the same markup as sales to outsiders. Pot still had 40% of the intra-entity sales as inventory at the end of 2013. What are consolidated sales and cost of goods sold for 2013
Answer:
The Consolidated Sales are $1,400,000. Whereas, the Consolidated Cost of Sales is $974,400.
Explanation:
The effect of Intra-Group Trading must be removed from the Consolidated Financial Statements. Two adjustments are required:
1st one - The Subsidiary has made Sales of $140,000 to Parent Company. It must be removed from the Accounts because it is like you are telling your Right Side Pocket that you will soon be having money because you have made Sales to Left Side Pocket. So, Debit the Sales and Credit the COS.
2nd one - The unrealized Profit should be added back to the Cost of Goods Sold to remove the effect of Profit gained by the Seller. We are not concerned with the Profit effect in the Goods Sold by Pot Co. to outsiders because it is a realized profit. The matter of concern here is the Profit effect in the unsold Inventory. Pot Co. has 56,000 (140,000 * 40%) stock in-hand. It has Profit Figure of 40%. So, $22,400 (56,000 * 40%) has been added back to Cost of Sales.
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Consider companies A and B. If A sells a commodity product to B, and the cost of this product makes up a significant portion of B's cost of goods sold (COGS). B is therefore strongly incentivized to be highly informed about A's costs and any alternatives to buying from A. This information can contribute to B having buyer power avoiding the need to "send itself flowers.Do you agree / disagree with the statement above. Why?
Answer:
Agree
Explanation:
The price of the commodity determined by B depends on the buying power and price from A. That is, the cost of goods for B will be determined by the purchasing conditions for A. In order for the situation to be a win-win situation between A and B, B is right to be in a position to know the cost of the price from A and any alternatives of buying from A.
Answer: I strongly agree with the statement.
Explanation: Buyer power also called Buyer Bargaining Power refers to the pressure consumers can exert on businesses to get satisfaction by receiving higher quality products, better customer services and lower prices.
I AGREE that by B being informed of other alternatives, it reduces the hold of A on B. B can easily threaten A to give him satisfaction or he will move to its competitors.
A coin sold at auction in 2017 for $3,158,000. The coin had a face value of $2 when it was issued in 1786 and had previously been sold for $420,000 in 1971. a. At what annual rate did the coin appreciate from its first minting to the 1971 sale? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What annual rate did the 1971 buyer earn on his purchase? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. At what annual rate did the coin appreciate from its first minting to the 2017 sale? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
A) future value = present value (1 + rate)ⁿ
FV = $420,000PV = $2n = 1971 - 1786 = 185 years420,000 = 2 (1 + r)¹⁸⁵
420,000 / 2 = (1 + r)¹⁸⁵
210,000 = (1 + r)¹⁸⁵
¹⁸⁵√210,000 = 1 + r
1.06848 = 1 + r
1.06848 - 1 = r
r = 0.06848 or 6.85%
B) future value = present value (1 + rate)ⁿ
FV = $3,158,000PV = $420,000n = 2017 - 1971 = 46 years3,158,000 = 420,000 (1 + r)⁴⁶
3,158,000 / 420,000 = (1 + r)⁴⁶
7.519 = (1 + r)⁴⁶
⁴⁶√7.519 = 1 + r
1.04483 = 1 + r
1.04483 - 1 = r
r = 0.04483 or 4.48%
C) future value = present value (1 + rate)ⁿ
FV = $3,158,000PV = $2n = 2017 - 1786 = 231 years3,158,000 = 2 (1 + r)²³¹
3,158,000 / 2 = (1 + r)²³¹
1,579,000 = (1 + r)²³¹
²³¹√1,579,000 = 1 + r
1.0637 = 1 + r
1.0637 - 1 = r
r = 0.0637 or 6.37%
Final answer:
The annual appreciation rate from the first minting of the coin in 1786 to the 1971 sale was approximately 8.55%, from the 1971 sale to the 2017 sale was approximately 11.61%, and from the first minting to the 2017 sale was approximately 8.74%.
Explanation:
To calculate the appreciation rate from its first minting to the 1971 sale, we use the formula for compound annual growth rate (CAGR):
[tex]CAGR = (EV / BV) ^ (1 / n) - 1[/tex]
Where EV is the ending value of the coin ($420,000), BV is the beginning value ($2), and n is the number of years (1971 - 1786 = 185 years).
Plugging the values in, the formula becomes:
[tex]CAGR = (420,000 / 2) ^ (1 / 185) - 1[/tex]
This results in an annual appreciation rate of approximately 8.55% from 1786 to 1971.
For the annual rate the 1971 buyer earned until the 2017 sale, we use the same CAGR formula, now with EV as $3,158,000, BV as $420,000, and n as 46 years (2017 - 1971).
The annual rate the buyer earned is approximately:
[tex]CAGR = (3,158,000 / 420,000) ^ (1 / 46) - 1[/tex]
This results in an annual appreciation rate of approximately 11.61%
The overall annual appreciation rate from first minting to the 2017 sale is calculated with an EV of $3,158,000, a BV of $2, and n as 231 years (2017 - 1786).
The overall annual appreciation rate is:
[tex]CAGR = (3,158,000 / 2) ^ (1 / 231) - 1[/tex]
This results in an annual appreciation rate of approximately 8.74%.
Sometimes, companies hire intact groups away from other companies instead of developing their own new group, in order to jump start some new initiative. This practice is known as ________.
Question Options:
A) line-out
B) line-up
C) lift-out
D) lift-off
Answer: This practice is known as LIFT-OUT.
Explanation: Lift-out in business can be defined as the practice of luring a whole team of employees away from a competitor and hiring them oneself.
Lift has a variety of advantages one of which is that, the employees are experienced and very skilled in their field. Such way, they will acclimatise to any situation easily. And the fact that they have been together for a while makes the new initiative they work on easier and faster.
Net credit sales total $ 1 comma 431 comma 000. Beginning and ending accounts receivable are $ 69 comma 000 and $ 37 comma 000, respectively. Calculate the days' sales outstanding. (Round interim calculations to two decimal places, XX.XX and the days' sales outstanding (DSO) up to the next whole day.) A. 11 days B. 20 days C. 14 days D. 9 days
Answer:
The days' sales outstanding: C. 14 days
Explanation:
Average Accounts Receivable = (The beginning accounts receivable balance + The ending accounts receivable balance)/2 = ($69,000 + $37,000)/2 = $53,000.
Accounts Receivable Turnover = Net Credit Sales /Average Accounts Receivable = $1,431,000/$53,000 = 27 times
The days' sales outstanding = 365/Accounts receivable turnover ratio = 365/27 = 14 days
A company distributes college logo sweatshirts and sells them for $55 each. The total cost function is linear, and the total cost for 50 sweatshirts is $4346, whereas the total cost for 240 sweatshirts is $7576. (a) Write the equation for the revenue function R(x).
Answer:
the revenue function is R(Q)=$55/swshrt * Q and the profit function is P(Q)=$3496 - $38/swshrt * Q
Explanation:
since the cost function is linear , then denoting C as cost , Q as quantities of sweatshirts and 1 and 2 as reference points , we get
C= C₁ + (C₂-C₁)/(Q₂-Q₁)*(Q-Q₁)
replacing values
C= $4346 + ($7576- $4346)/(240 -50 )*(Q-50 )= $4346 + $17/swshrt*(Q- 50)
and the revenue function (total sales is )
R= P*Q = $55/swshrt * Q
the profit function is therefore
P = R - C = $55/swshrt * Q - [$4346 + $17/swshrt*(Q- 50)] = $3496 - $38/swshrt * Q
Notes
- Revenue refers to the total income generated , while profit refers to the income after costs and expenses
- We can verify the cost equation for C . For Q=Q₁
C= C₁ + (C₂-C₁)/(Q₂-Q₁)*(Q₁-Q₁) = C₁ + 0 = C₁
and for Q=Q₂
C= C₁ + (C₂-C₁)/(Q₂-Q₁)*(Q₂-Q₁) = C₁ + C₂-C₁ = C₂
thus our equation is correct
Answer:
The revenue equation is TR=55*P
Total cost equation is TC=3496+17Q
Explanation:
The formula for revenue is given quantity multiplied by price
TR=PQ
P is the price per unit ]
Q is the total quantity
since P is $55
TR=55P
The total cost function can also be determined thus:
TC =a+bQ
where a is the fixed cost
b is variable cost per unit
Q is the number of output
when TC is $4346,Q was 50
when TC was $7576 Q was 240
7576=a+240b
4346=a+50b
subtracting the two equations
3230 =190b
b=3230/190
b=$17
by substituting b in any of the equations,fixed cost can be determined
4346=a+(17*50)
4346=a+850
a=4346-850
a=3496
Total cost function
TC=3496+17Q
Mellon Corporation The data presented below is Mellon Corporation for the year ended December 31, 2015: Sales (100% on credit) $1,500,000 Sales returns 60,000 Accounts Receivable (December 31,2015) 250,000 Allowance for Doubtful Accounts [Credit Balance] (Before adjustment at December 31, 2015) 3,000 Estimated amount of uncollectible accounts based on an aging analysis 31,000 Refer to the data for Mellon Corporation. If Mellon uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2015
Answer:
The bad debts expense for 2015 would be $ 28,000
Explanation:
The balance of the allowance for doubtful account should be equal to the amount estimated to be uncollectible based on the ageing analysis
Estimated uncollectible account $ 31,000
Allowance for doubtful accounts prior to adjustment $ 3,000
Bad debts expense for the year to be recorded $ 28,000
The accounting entry to record this is as follows:
Bad debts expense Debit $ 28,000
Allowance for uncollectible accounts Credit $ 28,000
Final answer:
To find the bad debt expense for Mellon Corporation for 2015, subtract the existing allowance for doubtful accounts from the estimated uncollectible accounts. The calculation is $31,000 estimated uncollectibles - $3,000 existing allowance = $28,000 bad debt expense.
Explanation:
The student is asking how to calculate the bad debt expense for Mellon Corporation for the year 2015 using the aging of accounts receivable method. The data shows that the Allowance for Doubtful Accounts has a credit balance of $3,000 before adjustment, and based on an aging analysis, the estimated amount of uncollectible accounts is $31,000. To determine the bad debt expense for 2015, we simply need to adjust the existing allowance to match the estimated uncollectible amount.
The bad debt expense is the difference between the estimated uncollectibles and the existing allowance. We calculate this as follows:
Estimated uncollectible accounts based on aging analysis: $31,000Existing Allowance for Doubtful Accounts credit balance: $3,000Bad debt expense for 2015: $31,000 - $3,000 = $28,000Therefore, Mellon Corporation will report a bad debt expense of $28,000 for the year ended December 31, 2015.
Kimmel, Accounting, 6e Help I Syst Problem 2-2A These items are taken from the financial statements of Whispering Winds Corp. for 2017. Retained earnings (beginning of year) Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Service revenue Prepaid insurance Maintenance and t Depreciation expense $35,530 2,150 70,530 20,750 11,750 6,280 12,000 12,000 71,540 6,780 1,650 3,320 14,150 2,480 40,540 19,250 dy Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment Prepare an income statement for the year ended December 31, 2017 Whispering Winds Corp. Income Statement ber 2017 Retained Earnings Expenses search
Answer:
Net Income = $23,550
Explanation:
Whispering Winds Corp.
Income Statement
For the year ended, December 31, 2017
Revenues:
Service Revenue $71,540
Expenses:
Maintenance and Repair expense $1,650
Depreciation Expense $3,320
Insurance expense $2,480
Salaries and wages expense $40,540
Total expenses $47,990
Net Income (Loss) $23,550
Therefore, net income is $23,550
Based on your understanding of bond ratings and bond-rating criteria, which of the following statements is true?a. During an economic recession and in a pessimistic environment, the yield spread between US government bonds and corporate bonds could be higher than during good economic times.b. During a period of economic growth and in an optimistic environment, the yield spread between US government bonds and corporate bonds could be higher than during an economic recession and a pessimistic environment.
Answer:
Statements "A" is true.
Explanation:
During a financial recession and a cynical domain, the yield spread between government securities and corporate securities could be higher than during great monetary occasions. This is because the grounds that during a recession, corporate securities would convey more hazard, (for example, higher default chance) than during great monetary occasions. To make up for this extra hazard, financial specialists would request more returns.
Michael is considering getting a closed-end lease on a car for 48 months. The car dealer quotes him a monthly payment of $349. If Michael were to buy the car with the same down payment, his monthly payment would be $465 a month. Michael's lease payment is lower because:________.
a) he is not paying for the residual value of the car at the end of four years.b) he is paying finance charges only on the amount of the car that will be depreciated over four years.c) car dealers make a lower profit on leased cars.d) leased cars do not come with a manufacturer's warranty.
Final answer:
The correct answer is A) he is not paying for the residual value of the car at the end of four years. When leasing a car, the monthly payment is lower because you are not responsible for the residual value of the car at the end of the lease term.
Explanation:
The correct answer is A) he is not paying for the residual value of the car at the end of four years.
When leasing a car, the monthly payment is lower because you are not responsible for the residual value of the car at the end of the lease term. The residual value is the estimated value of the car after the lease term is over. With a closed-end lease, you can simply return the car to the dealer at the end of the lease without any further financial obligation.
On the other hand, if Michael were to buy the car with the same down payment, he would have to make larger monthly payments because he would be paying for the full value of the car, including the residual value, which is built into the finance charges.
The Blending Department of Luongo Company has the following cost and production data for the month of April.
Costs:
Work in process, April 1
Direct materials: 100% complete $118,000
Conversion costs: 20% complete 82,600
Cost of work in process, April 1 $200,600
Costs incurred during production in April
Direct materials $944,000
Conversion costs 430,700
Costs incurred in April $1,374,700
Units transferred out totaled 20,060.
Ending work in process was 1,180 units that are 100% complete as to materials and 40% complete as to conversion costs.
Required:
Compute the equivalent units of production for the month of April.for :
(a) materials
(b) conversion costs
Answer:
a) Materials = 21240
b) Conversion Costs = 20532
Explanation:
(a) Material.
For finding equivalent units = Units transferred out totaled + equivalent units = 20060 + 1180 = 21240
Since, ending work in process was 100% complete
(b) Conversion Costs
For finding equivalent units = 20060 + (1180*0.4) = 20532
Now, the ending work in process is 40% complete
Here, materials and conversion are calculated separately to get the measure of productions from both perspectives. i.e. materials and conversion.
Equivalent units are calculated to have estimate of how many product are being prepared in the process and their expected quantity.
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. MonthLabor-HoursMachine-HoursOverhead Costs 1 3,625 6,775 $513,435 2 3,575 7,035 518,960 3 3,400 7,600 549,575 4 3,700 7,265 541,400 5 3,900 7,955 581,145 6 3,775 7,895 572,320 7 3,700 6,950 535,110 8 3,625 6,530 510,470 9 3,550 7,270 532,195 10 3,975 7,725 565,335 11 3,375 6,490 503,775 12 3,550 8,020 564,210 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation
By applying the high-low method, we estimated the variable overhead cost per machine hour as $52.83 and fixed overhead costs as $161,830.33. The estimated monthly overhead for an average of 7,500 machine-hours in a month is approximately $557,057.5.
Explanation:To answer this question, we first need to apply the high-low method to estimate variable and fixed overhead costs. In the high-low method, the variable cost per machine-hour is computed as the difference of overhead costs associated with the highest and lowest activities divided by the difference in machine-hours in these activities. Then we estimate fixed costs by subtracting variable costs from the total overhead costs.
We start with identifying the months with the highest and lowest machine-hours. Month 5 had the highest machine-hours (7,955) with associated overhead costs of $581,145. Month 11 had the lowest machine-hours (6,490) with associated costs of $503,775. Then, we calculate the variable cost by taking the difference in overhead costs ($77,370) and dividing by the difference in machine hours (1,465) which gives us approximately $52.83 per machine-hour.
Next, we estimate fixed costs by subtracting the variable costs from total overhead in either the highest or the lowest activity month. Using the highest activity month (Month 5), the fixed overhead cost estimate is $581,145 - (7,955 * $52.83) = $161,830.33.
Finally, to estimate the monthly overhead costs for next year at an average of 7,500 machine-hours without considering inflation, we multiply the variable cost per machine-hour with the number of machine-hours and add the estimated fixed costs, that is, ($52.83 * 7,500 + $161,830.33) = $557,057.5.
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A news reporter follows an important story from its origins to its ultimate end by digging into every possible corner of the story. This would be an example of ______ journalism.
Answer:Good
Explanation:
In the TEQUILA MINI CASE, the bartender in the Viva advertisement is intended to suggest that Viva Vodka is trendy and foreign. What type of consumer would respond best to this element of the advertisement?
Answer:
Consumers low in ethnocentricity.
Explanation:
Ethnocentricity is defined as the belief an individual has that his own culture is superior to others. It is based on his personal beliefs, values and norms.
Individuals that highly ethnocentric are biased to their culture.
The advertisement in this scenario the message being passed is that Viva Vodka is trendy and foreign. This will appeal more to someone who is liberal and has low ethnocentricity.
People with high ethnocentricity will prefer a drink that promotes their particular culture.
McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's total fair value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's net assets revealed the following:
Book value Fair value
Buildings (10 year life) 10,000 8,000
Equipments ( 4 year life) 14,000 18,000
Land 5,000 12,000
Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2010, what adjustment is necessary for Hogan's Buildings account?
A. $1,620 increase.
B. $1,620 decrease.
C. $1,800 increase.
D. $1,800 decrease.
E. No adjustment is necessary.
Answer:
D. $1,800 Decrease
Explanation:
book value Fair value adjustment
01 Jan 10,000 8,000 2,000
Depreciation -1000 -800 -200
31 Dec 9,000 7,200 1,800 Decrease
Basile Corporation has budgeted sales of 36,000 units, target ending finished goods inventory of 6,000 units, and beginning finished goods inventory of 1,800 units. How many units should be produced next year
Answer:
40,200 units
Explanation:
Data given in the question
Budgeted sales units = 36,000 units
Ending finished goods inventory units = 6,000 units
Beginning finished goods inventory units = 1,800 units
So by considering the above information, the units produced next year is
= Budgeted sales units + ending finished goods inventory units - beginning finished goods inventory units
= 36,000 units + 6,000 units - 1,800 units
= 40,200 units
An expected sales of company products and services for a budgeted time is called a sales budget. It can be estimated in dollars or units.
The 40,200 units should be produced in next year.
The unit can be estimated by:
Given,
Budgeted sales (BS) units = 36,000 unitsTarget ending finished services (TEFS) units = 6,000 unitsBeginning finished goods (BFG) commodities = 1,800 unitsThe units to be produced next year will be:
[tex]\begin{aligned} \rm BS + TEFS - BFG &= 36,000 \;\rm units + 6,000 \;\rm units - 1,800 \;\rm units\\\\&= 40,200 \;\rm units\end{aligned}[/tex]
Therefore, 40,200 units should be manufactured.
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Consider buying Coca-Cola stock. Calculate the fundamental value of Coca-Cola using the following information. Quarterly dividend of $0.33/share (assume a dividend was just paid) Coca-Cola plans to keep the dividend fixed for the next 4quarters Projected price in1 2-months = $48 Quarterly discount rate of 2%
Answer:
Present Vlaue of the stock = $45.60
Explanation:
The question is primarily to determine the present value of the investment in Coc-Cola Stock based on the information provided as follows
The Stock Price ast the end = $48 (this will be added at the end with the last dividend)
The Quarterly dividend per year = $0.3
The period = 4 quarters (in a 12 month period) = n
Discount rate = 2% = r
The present value = Dividend per share / (1+r)∧1 + Dividend per share / (1+r)∧2 + Dividend per share / (1+r)∧3 + Stock Price given + Dividend per share / (1+r)∧4
= 0.33 / 1.02∧1 + 0.33 / 1.02∧2 + 0.33 / 1.02∧3 + (48 + 0.33) / 1.02∧4
= $45.60
Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used the available funds to acquire equipment costing $200,000 and to fund current operating expenses. The partnership agreement provides that depreciation will be allocated 80% to Bryan and 20% to Cody. All other items of income and loss will be allocated equally between the partners. Upon liquidation of the partnership, property will be distributed to the partners in accordance with their capital account balances. Any partner with a negative capital account must contribute cash in the amount of the negative balance to restore the capital account to $0. In its first year, the partnership reported an ordinary loss (before depreciation) of $80,000 and depreciation expense of $36,000. In its second year, the partnership reported $40,000 of income from operations (before depreciation), and it reported depreciation expense of $57,600.
a. Calculate the partners’ bases in their partnership interests at the end of the first and second tax years. Are any losses suspended? Explain.
b. Does the allocation provided in the partnership agreement have economic effect? Explain.
Solution:
1. It is given that capital contribution on year 1 is $120,000. Loss allocation is $40,000. It is equal. Depreciation is allocated on the basis of 80:20. Thus, depreciation expense of $36,000 is allocated as $28,800 and $7,200. They all are added. Therefore, basis on the end of year 1 is $51,200 and $72,800. Income allocation on year 2 is $20,000. Depreciation allocation on year 2 is also allocated same with $57,600. It is $46,080 and $11,520. Therefore, basis on the end of year 2 is $25,120 and $81,280. No losses were suspended for any partner. As there is no loss beyond partner’s tax basis it is not suspended.
2. It is true that the allocations on the agreement of partnership have “economic effect”. Given gains, income or any losses are reflected through their allocation in the balance of capital accounts. Capital balances that are deficit must be restored and capital accounts balance on end should be in accordance with liquidating distributions.
Avery is a single, 26-year-old graduate student at State University with no children. She is a US citizen with a valid Social Security number. Her only income is from a part-time job on campus from which she earned wages of $6,000. Avery qualifies for the earned income credit.
(A) True
(B) False
Answer:True, Avery qualifies for the earned income credit.
Explanation:How do someone qualifies for earned income credit in the U.S.?
For a person to qualify and claim the earned income credit they need to be in a position in which they have earned an income and have been living in the United States as citizens or as resident alien for the complete tax year. They need to posses a valid social security number and that of their spouse if they are filing jointly
She is a US citizen with a valid Social Security number.
Answer:
True
Explanation:
Avery is eligible to take earned income credit because of the following reasons.
1. To be eligible for earned income credit, you must have at least $1 of earned income (pensions and unemployment don’t count). Avery has a job that pays $6,000 monthly.
2. Your investment income in the previous year must be $3,600 or less (that rises to $3,650 in the current year).
3. You can’t claim the earned income tax credit if you’re married filing separately. Avery is single.
3.You must not file Form 2555, Foreign Earned Income; or Form 2555-EZ, Foreign Earned Income Exclusion.