Anchor Company purchased a manufacturing machine with a list price of $82,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and freight costs amounted to $1,600. Anchor paid $2,100 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $2,600 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be:
Answers
Answer:
Asset account would be $81,000
Explanation:
See attached picture.
Related Questions
A company would repurchase its own stock for all of the following reasons except a. it needs the stock for employee bonuses. b. it wishes to make an investment in its own stock. c. it wishes to prevent unwanted takeover attempts. d. it wishes to improve the company's financial ratios.
Answers
Stock repurchase involves various reasons, but it is not done if the stock is needed for employee bonuses. The correct answer is A.
Stock repurchase, also known as stock buyback, is a strategy used by companies to buy back their own shares from the marketplace. Companies may repurchase stock for various reasons, including improving financial ratios, preventing unwanted takeover attempts, and making investments in their own stock. However, a company would not repurchase its stock if it needs the stock specifically for employee bonuses.
Davy Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was placed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is applied at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year. What is the ending work in process inventory balance
Answers
Answer:
Explanation:
Davy Company
Ending Work in process inventory:
Beginning Work in process inventory $32,000
Materials placed in production $54,500
Direct Labor $63,400
Manufacturing Overhead applied $79,250 [125% of $63,400]
Total cost of work in process $229,150 [add up all of the above numbers]
Less: Jobs completed during the year $225,000
Ending Work in process inventory $4,150
An electronics company makes devices for two different federal agencies. The company just completed the two contracts. The Homeland Security contract was for 2,200 devices and took 27 workers two weeks (40 hours per week) to complete. The DEA contract was for 5,454 devices that were produced by 35 workers in three weeks. Calculate the productivity for the Homeland Security contract in units produced per labor hour. (Round your answers to 2 decimal places.)
Answers
Answer: 1.02 unit per hour
Explanation: total unit of devices for homeland security is 2200 units
Total labourer = 27 people
Total hour for two weeks = 40 × 2 = 80
Productivity per hour = devices number/total hour 2200/ 80 = 27.5
productivity for the Homeland Security contract in units produced per labor hour = 27.5/27 = 1.0185 = 1.02
1. Select two categories of records that are exempt from public disclosure under the Freedom of Information Act.
a. Environmental impact statements
b. National security documents
c. Documents with confidential information
d. Documents written by past presidents
e. Bills that were rejected in congressional committees
2. The Government in the Sunshine Act ______ all agency meetings to be ______ to the public unless they meet certain criteria. If a person is going to be ______, if ______ agency action would be frustrated, or if the meeting involves ______ litigation or rulemaking, then the meeting may be ______.
3. Which law requires the government to reassess the impact on business and continue to look for less burdensome means of achieving a governmental goal?
a. Government in the Sunshine Act
b. Freedom of Information Act
c. Regulatory Flexibility Act
d. Small Business Regulatory Enforcement Fairness Act
4. The Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes.
True or False?
5. The Small Business Regulatory Enforcement Fairness Act gives Congress days to review new federal regulations to be sure that they do not unduly burden small businesses.
True or False?
Answers
Answer:
1) b. National security documents
c. Documents with confidential information
2) i - requires
ii - open
iii - accused of a crime
iv - future
v - future
vi - closed
3) c. Regulatory Flexibility Act
4) True
5) True, 60days
Explanation:
1) Two categories of records that are exempt from public disclosure under the Freedom of Information Act are; "National security documents & Documents with confidential information".
2) The Government in the Sunshine Act requires all agency meetings to be open to the public unless they meet certain criteria. If a person is going to be accused of a crime, if future agency action would be frustrated, or if the meeting involves future litigation or rule making, then the meeting may be closed.
3) The law which requires the government to reassess the impact on business and continue to look for less burdensome means of achieving a governmental goal is Regulatory Flexibility Act.
4) It is true that the Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes.
5) The Small Business Regulatory Enforcement Fairness Act gives Congress 60 days to review new federal regulations to be sure that they do not unduly burden small businesses.
Answer:
Explanation:
1. Categories of records that are exempt from public disclosure under the Freedom of Information Act are:
1. National security documents
2. Documents with confidential information
The above stated are exempted from the freedom of information act.
2. The Government in the Sunshine Act requires all agency meetings to be open to the public unless they meet certain criteria. If a person is going to be accused of a crime , if national defence agency action would be frustrated, or if the meeting involves legal litigation or rule making, then the meeting may be kept private.
3. C. Regulation Flexibility Act: This act is used to balance the social goals of federal regulations with the needs and capabilities of small businesses and other small entities in the American society.
It was enacted in September 1980 which requires agencies to consider the impact of their regulatory proposals on small entities and analyze effective alternatives that minimize small entity impacts, and make their analyses available for public comment.
4. The Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes. True or False?
False- this is because the regulatory flexibility act requires agencies to examine public policy issues using an analytical process that identifies barriers to small business competitiveness and seeks a level playing field for small entities, not an unfair advantage.
5. The Small Business Regulatory Enforcement Fairness Act gives Congress days to review new federal regulations to be sure that they do not unduly burden small businesses. True or False?
False
You're trying to save to buy a new $230,000 Ferrari. You have $32,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?
Answers
Answer:
37 years
Explanation:
We know,
Future value = Present value (1 + r)^n
Given,
Future value, FV = $230,000;
Present value, PV = $32,000;
Interest rate, r = 5.5% = 0.055;
We have to determine how many years later I can purchase the Ferrari.
Now, putting the values into the formula, we get,
FV = PV × (1 + r)^n
or, $230,000 = $32,000 × (1 + 0.055)^n
or, $230,000 ÷ $32,000 = (1 + 0.055)^n
or, 7.1875 = (1 + 0.055)^n
or, log 7.1875 = n × log 1.055
or, n × log 1.055 = log 7.1875 [Changing the side]
or, n = log 7.1875 ÷ log 1.055
Using financial calculator/Scientific Calculator,
or, n = 0.8566 ÷ 0.0233
Therefore, n = 36.76 or almost 37 years.
An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a $100,000 salvage value. The MACRS depreciation rates for years 1, 2, and 3 are 20%, 32% and 19.2% respectively. What is the book value at the end of year 6
Answers
Answer:
Book Value at end of year 6 = $100,000
Explanation:
An Asset is depreciated to salvage value therefore when depreciation is complete the book value equals salvage value or zero.
Salvage value is an estimated value of what the company expects to earn after using the asset maybe when selling off the asset.
Answer:
Check the explanation
Explanation:
Year Depreciation Rate Depreciation=400000*rate Book value
1 20 80000 320000
2 32 128000 192000
3 19.2 76800 115200
4 11.52 46080 69120
5 11.52 46080 23040
6 5.76 23040 0
Therefore, the book value at the end of year 6 = 0
The incomes of all families in a particular suburb can be represented by a continuous random variable. It is known that the median income for all families in this suburb is $60,000 and that 40% of all families in the suburb have incomes above $72,000.
a) For a randomly chosen family what is the probability that its income will be between $60000 and $72000.
b) If the distribution function for the income is known to be uniform what is the probability that a random chosen family has an income below $65000.
Answers
Answer:
a) 0.10 or 10%
b) 0.5417 or 54.17%
Explanation:
a) The median income of $60,000 is at the 50th percentile of the distribution. If 40% if incomes are above $72,000, then an income of $72,000 is at the 60th percentile of the distribution. Therefore, the probability that a family's income will be between $60,000 and $72,000 is:
[tex]P( \$60,000 \leq X \leq \$72,000)=0.6-0.5\\P( \$60,000 \leq X \leq \$72,000)=0.1 = 10\%[/tex]
b) If the distribution is known to be uniform, the probability that a random chosen family has an income below $65,000 is:
[tex]P( X \leq \$65,000)=0.5+\frac{65,000-60,000}{72,000-60,000}*0.1\\ P( X \leq \$65,000)=0.5417 =54.17\%[/tex]
In probability and statistics, a randomly chosen family has a 10% chance of having an income between $60,000 and $72,000 given the provided information. If the income distribution is uniform and the upper limit is assumed at $72,000, the probability of a family having an income below $65,000 is approximately 42%.
Explanation:The questions pertain to the fields of probability and statistics in mathematics.
For (a), it is indicated that 40% of families have an income above $72,000, which means that 60% of families have an income of $72,000 or less. Since the median income is $60,000, half of the families earn this amount or less. Therefore, the probability that a randomly chosen family has an income between $60,000 and $72,000 is the difference between these two percentages, which is 10% or 0.10.
For (b), in a uniform distribution, the probability is calculated as the length of the interval divided by the total length. Here, we don't know the upper limit of the income range. However, we can still make an estimation. If we assume the upper limit to be $72,000 (as 40% of people make more than this), the probability of a randomly chosen family having income below $65,000 would be the ratio of (the difference between the lower bound of $60,000 and $65,000) to (the difference between the lower and upper bounds, which is $12,000). So that would roughly be $5,000/$12,000 = 0.42 or 42%.
Learn more about Probability and Statistics here:https://brainly.com/question/30448794
#SPJ3
In 2019, Aurora received a $25,000 bonus computed as a percentage of profits. In 2020, Aurora’s employer determined that the 2019 profits had been incor-rectly computed, and Aurora had to refund the $8,000 in 2020. Assume that Aurora was in the 35% tax bracket in 2019 but in the 12% bracket in 2020.
a. In 2019, how much is Aurora required to include in income?
b. In 2020, what is the amount of the deduction Aurora can claim? What is the reduction in taxes for 2020 as a result of the deduction?
Answers
Answer:
Answers are explained below in the explanation part.
Explanation:
(a) In 2019, Aurora is required to add $25000 income because this was the amount that was transferred initially to employee from the employer.
(b) In 2020, Aurora can claim a deduction of $2800 (8000*35% = 2800). Now in 2020, Aurora will not be given reduction in taxes as she has claim amount due from taxes which she claimed of the extra taxes charged in year 2019.
Becky only eats out at Macaroni Grill, and she eats out three times per month. She receives a raise from $31,900 per year to $33,500 per year and decides to eat out five times per month. Use the midpoint method to calculate the monthly income elasticity of demand for eating out. Round your answer to two decimal places. units units This good is a normal good and income-inelastic. an inferior good. a normal good and income-elastic.
Answers
Answer:
This good is a normal good and income-inelastic
Explanation:
Elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.
Elasticity of demand = (new quantity demanded - old quantity demanded) / ( new quantity demanded - old quantity demanded) / 2) / (New income - Old income ) / (old income + new income)/2)
(5 - 3) / (3 + 5)/ 2) / ( 33500-31900) / (31900+33500)/2) = 6.45
The coefficient of elasticity is greater than one, therefore, demand is income elastic.
This means that a small change in income leads to a greater change in quantity demanded.
A normal good is a good whose demand increases when income increases and falls when income falls.
Eating out is a normal good because her demand increased when income increased.
I hope my answer helps you
The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value.The process for converting present values into future values is calledcompounding . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables?a. The present value (PV) of the amount depositedb. The trend between the present and future values of an investmentc. The duration of the deposit (N)The interest rate (I) that could be earned by deposited funds
Answers
Answer:
B. The trend between the present and future values of an investment
Once the patent for a drug in the pharmaceutical industry expires, the market for the generic equivalents a. Has no effect on the profits earned by the original producer b. Is usually considered competitive c. Would not exist d. Is a monopolistic market
Answers
Answer:
The correct answer is letter "C": Is usually considered competitive.
Explanation:
Patents are grants of property given to creators on their inventions. Most patents are valid for 20 years counted from the filing date with the United States Patent and Trademark Office (USPTO). After the patent expires, other individuals can make use and exploit the creation. In such circumstances, the invention becomes competitive since it can be replicated by other entities, which was forbidden while the patent was valid.
If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?
Answers
Answer:
6,000
Explanation:
This question is incomplete. I have given the complete question in addition to my solution below.
If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?
Morganton Company makes one product and it provided the following information to help prepare the master budget:
The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,700, 28,000, 30,000, and 31,000 units, respectively. All sales are on credit.
Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
The ending finished goods inventory equals 20% of the following month’s unit sales.
The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.
Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.
The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $67,000.
Variable manufacturing overhead = $10 per direct labor hour
Amount of time required to finish one unit of goods = 2 hours
Direct labor wage rate = $15 per hour
Amount of raw materials required to finish one unit of goods = 4 pounds
Cost of raw materials = $2.50 per pound
Budgeted selling price per unit = $70
Budgeted unit sales for August = 30,000
Therefore, Unit costs = (4*2.50)+(15*2)+(10*2) = $60 per unit
And cost of goods sold = 28,000 * 60 = $1,680,000
(Gross margin) = (70-60)*28,000
= $280,000
The ending finished goods inventory balance for July = 20% of the following month's (August’s) unit sales.
= 0.20 * 30,000 = 6,000
The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years and produce cash flows of $44,503 per year. What is the project's IRR?
Answers
Answer:
IRR of the project is 18%
Explanation:
The first table showing the cash flows for the 10 years and the formula for computing the IRR.
The second table showing the IRR of the project, which is 18%.
Computing the IRR by using the excel formula, which as:
=IRR(values,guess)
where
values are from year 0 to year 10
guess will be 0
So,
=18%
NOTE: The cash flow of year 0 is negative because it is costs of the project, which is paid.
The fair rate is 8%. What is 100 per year, forever, worth now?
2.What is the same 100 per year worth if it only lasts for 15 years?
3.What if the 100 was the past cash flow and we expect it to grow at 5% forever?
4.What if we only get the 100 once at the end of this year?
5.What if it we get it once, at the end of ten years?
6.If we get the 100 each year for ten years and invest each payment in an account that earns 8% how much will be there at the end?
Answers
Answer:
1. $1,250
2. $855.95
3. $3,333.33
4. $92.59
5. $46.32
6. $671.01
Explanation:
1.
$100 per year forever
Constant Cash flow every year forever is actually a perpetuity its present value is
PV of Perpetuity = Cash flow / rate of return
PV of $100 Perpetuity = $100 / 0.08 = $1,250
2.
$100 per year for 15 years
Constant Cash flow every year for specific time period is actually a Annuity its present value is
PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-15 ) / 0.08 ] = $855.95
3.
$100 per year grow at 5% forever
It is a growing perpetuity and its present value will be calculated as follow
Present value of growing perpetuity = Cash flow / Rate of return - growth rate
Present value of growing perpetuity = $100 / 0.08 - 0.05 = $3,333.33
4.
$100 once at the end of this year
Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-1 = $92.59
5.
$100 once after 10 years
Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-10 = $46.32
6.
$100 each year for 10 years @ 8%
PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-10 ) / 0.08 ] = $671.01
Answer: Please refer to the explanation section
Explanation:
Investment = 100
Interest rate = r = 8%
1. Value of a Perpetual (forever) investment
Present Value = Investment/r = 100/0.08 = 1250
Present Value = $ 1250
2. Present Value with a period of 15 years
Present Value = Investment/(1+r)^n
Present Value = 100/(1+0.08)^15 = 31.524170497
Present Value = $ 31.52
3. Present Value of a Perpetual (forever) investment with Growth rate of 5%
Present Value = Investment/r = 100/0.08 – 0.05 = 3333.333333
Present Value = $ 3333.33
4. Future Value if we get 100 at the end of the year
Future Value = investment(1+r) = 100(1+0.08) = 108
Future Value = $ 108
5. Future Value if we get 100 at the end of 10 years
Future Value = investment(1+r) = 100(1+0.08)^10 = 251.524170497
Future Value = $ 251.52
6. Future Value if 100 is reinvested every year for 10 years
Future Value = Payment x [(1+r)^n – 1)/ r]
Future Value = 100 x [(1+0.08)^10 – 1)/ 0.08)
Future Value = 1448.6562466 = $ 1448.66
One difference between nancial and managerial accounting is that the external users that use nancial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.
a. true
b. false
Answers
Answer:FALSE
Explanation:Financial statements includes income statements, expenditure statement etc they are prepared following specified guidelines and are prepared to monitor and regulate the flow of funds within an organisation.
Managerial accounting is an accounting system designed to help managers take effective and efficient managerial decisions. THE EXTERNAL USERS OF FINANCIAL STATEMENTS ARE NOT MANDATED TO USE IT TO plan for the future THE INTERNAL USERS OF MANAGERIAL ACCOUNTING MUST NOT USE IT TO DECIDE TO
INVEST IN OR LEND TO A COMPANY.
You were given $16,000 by a relative with no strings attached. You decide to pursue 2 goals: (1) buy a motorbike today and (2) buy a used car for $12,000 when you graduate college in 4 years. Your interest rate is 2% compounded annually. How much can you spend on a motorbike today?
Answers
Answer:
You can spend $4,913.86 to buy a motorbike.
Explanation:
Giving the following information:
You were given $16,000 by a relative with no strings attached. You decide to pursue 2 goals: (1) buy a motorbike today and (2) buy a used car for $12,000 when you graduate college in 4 years. Your interest rate is 2% compounded annually.
To buy the car, you can separate in the present the amount of money required to reach $12,000 in 4 years. The rest of the money can be used to buy a motorbike.
First, we need to calculate the present value of $12,000 using the following formula:
PV= FV((1+i)^n
PV= 12,000/1.02^4= $11,086.14
16,000 - 11,086.14= $4,913.86
Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)
Answers
Answer:
Simple Payback period is 2.52 years.
Discounted Payback period is 2.97 years
Explanation:
Payback period is the number of years that a project takes to recover the project's initial investment.
Simple Payback
Project A
Time: 0 1 2 3 4 5
Cash flow –$1,500 $550 $630 $620 $400 $200
Payback period = 550/550 + 630/630 + (1500-550-630)/620 = 2.52 years
Payback period = Approximately 2.52 years
In simple term it will take 2.52 years to recover the initial investment.
Discounted payback
Project A
Time: 0 1 2 3 4 5
Cash flow –$1,500 $550 $630 $620 $400 $200
PV @ 9% –$1,500 $505 $530 $479 $283 $130
Payback period = 505/505 + 530/530 + (1500-505-530)/479 = 2.97 years
Payback period = Approximately 2.97 years
It will take about 2.97 years to recover the initial investment of $1,500 using discount rate of 9%
Project A's payback statistic is 3.06 years, indicating that it takes 3.06 years for the project to recoup its initial investment.
Project A Cash Flows
| Year | Cash Flow |
| 0 | -$\$10,000 |
| 1 | \$2,000 |
| 2 | \$3,500 |
| 3 | \$5,000 |
| 4 | \$9,000 |
Payback Calculation
Determine the cumulative cash flows at the end of each year:
| Year | Cumulative Cash Flow |
| 0 | -$\$10,000 |
| 1 | -$\$8,000 |
| 2 | -$\$4,500 |
| 3 | \$500 |
| 4 | \$14,500 |
Identify the year where the cumulative cash flow becomes positive. In this case, it's year 3.
Calculate the remaining investment:
Remaining investment = Initial investment - Cumulative cash flow at the end of year 2
Remaining investment = $10,000 - $500 = $9,500
Calculate the proportion of the remaining investment that is recovered in the next year:
Proportion of remaining investment recovered in year 4 = Remaining investment / Cash flow in year 4
Proportion of remaining investment recovered in year 4 = $9,500 / $9,000 = 1.0556
Calculate the payback statistic:
Payback statistic = Year 2 + (Proportion of remaining investment recovered in year 4)
Payback statistic = 2 + 1.0556
Payback statistic = 3.0556
Rounded Payback Statistic
The payback statistic for Project A is 3.06 years, rounded to two decimal places. This means that it takes 3.06 years for the project to recover its initial investment.
For more Question on statistic
https://brainly.com/question/15525560
#SPJ6
Exxon Mobil Corporation explores, produces, refines, markets, and supplies crude oil, natural gas, and petroleum products in the United States and around the world. Required: Indicate how the accounts normally should be categorized on a classified balance sheet. Also indicate whether the account normally has a debit or credit balance.
Answers
Answer:
The accounts to be categorized are as follows.
(1) Notes and loans payable (short term) (2) Materials and supplies (3) Common stock (4) Patents (an intangible asset) (5) Income taxes payable (6) Long-term debt (7) Marketable securities (short term investments) (8) Property, plant and equipment (9) Retained earnings (10) Notes and accounts receivable (short term) (11) Investments (long term) (12) Cash and cash equivalents (13) Accounts payable (14) Crude oil products and merchandise (15) Additional paid up capital
The balance sheet classification of these accounts is as follows.
Account Classification Balance
(1) Notes and loans payable Current liability Credit
(2) Materials and supplies Current asset Debit
(3) Common stock Shareholders' equity Credit
(4) Patents Non-current asset Debit
(5) Income taxes payable Current liability Credit
(6) Long-term debt Non-current liability Credit
(7) Marketable securities Current asset Debit
(8) Property, plant and equipment Non-current asset Debit
(9) Retained earnings Shareholders' equity Credit
(10) Notes and accounts receivable Current asset Debit
(11) Investments (long term) Non-current asset Debit
(12) Cash and cash equivalents Current asset Debit
(13) Accounts payable Current liability Credit
(14) Crude oil products Current asset Debit
(15) Additional paid up capital Shareholders' equity Credit
The activities of Exxon Mobil Corporation are represented in different categories on a classified balance sheet. These categories include Non-Current Assets (mostly with debit balance), Current Assets, Current Liabilities (mostly with credit balance), Non-Current Liabilities, and Shareholder's Equity (with credit balance). The crude oil, natural gas, and petroleum products form part of the Inventory under Current Assets.
Explanation:The accounts represented in Exxon Mobil Corporation's activities - exploration, production, refining, marketing, and supplying of crude oil, natural gas, and petroleum products are typically categorized under several categories on a classified balance sheet. These categories include Non-Current Assets, Current Assets, Current Liabilities, Non-Current Liabilities, and Shareholder's Equity.
The exploration, production, and refining activities mostly relate to Non-Current Assets and would usually have a debit balance. These include accounts such as Property, Plant, and Equipment, Intangible Assets, and Investments.
The marketing and supplying activities usually pertain to Current Assets and Current Liabilities. Current Assets like Inventory, and Accounts Receivable, would ordinarily have a debit balance while Current Liabilities, like Accounts Payable, would have a credit balance. The crude oil, natural gas, and petroleum products they sell would fall under Inventory in Current Assets.
Lastly, the Shareholder's Equity section would usually have a credit balance, representing the owners' claim on the company's assets after all debts have been paid. This section includes Retained Earnings and Common Stock.
Learn more about the Classified Balance Sheet here:https://brainly.com/question/33446476
Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $67,000
Sales tax 5,600
Shipment of machine 920
Insurance on the machine for the first year 620
Installation of machine 1,840
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine.
Answers
Answer:
Debit: Machine $75,360
Debit: Insurance $620
Credit: Cash $3,380
Credit: Accounts Payable $72,600
Explanation:
Before the journal is prepared, we have to do some calculations and provide explanation as follows:
Apart from the insurance cost which will be reports as just insurance expenses for the year, all other costs in the questions are relevant costs that will be added together as the costs of the machine equipment as follows:
Machine cost = Purchase price + Sales tax + Machine shipment + Machine Installation
= $67,000 + $5,600 + $920 + 1,840
Machine cost = $75,360
Account payable and cash can also be calculated as follows:
Account payable = Purchase price + Sales tax = $67,000 + $5,600 = $72,600
Cash = Machine shipment + Machine Installation + Machine insurance = $920 + 1,840 + $620 = $3,380
Journal entries
Debit: Machine $75,360
Debit: Insurance $620
Credit: Cash $3,380
Credit: Accounts Payable $72,600
Being the record of purchase of new machine
Note: Also see the journal entries in the attached as a complement to the above.
The total cost of the machine purchased by Orion Flour Mills is recorded by capitalizing the purchase price, sales tax, shipment, insurance, and installation costs, summing up to $75,980. The machinery asset account is debited, and accounts payable or cash is credited accordingly for each expenditure.
Explanation:When Orion Flour Mills purchased a new machine, the total expenditures should be recorded as the cost of the machine on the company's books. The expenditures to be included are the purchase price of the machine, sales tax, shipment cost, insurance for the first year, and installation costs. Here is how each cost is recorded:
Purchase price: $67,000Sales tax: $5,600Shipment of machine: $920Insurance on the machine for the first year: $620Installation of machine: $1,840All these costs are capitalized as they are necessary to bring the machine to its intended use. Therefore, the journal entry to record the machine's cost would debit the machinery asset account and credit accounts payable for the purchase price plus sales tax, and debit machinery asset account while crediting cash for the other expenditures.
Journal Entry:
Debit Machinery $72,600 (Purchase Price + Sales Tax)Credit Accounts Payable $72,600Debit Machinery $3,380 (Shipment + Insurance + Installation)Credit Cash $3,380The total recorded cost of the machine will be $72,600 + $3,380 = $75,980.
Carrie enjoyed observing wildlife in natural habitats. She wanted to be able to hide at a distance but observe wildlife close up in a variety of circumstances. She visited five different outdoors shops and tried using several different pairs of binoculars. She liked the feel and features of the Nikon 7576 MONARCH 5 and decided to purchase it. What two levels of the product levels model did Carrie experience in this process?
Answers
Answer: 1. The core benefit
2. Expected product
Explanation:
Product Levels model indicates the degree to which certain products and services meet the expectations of customers. There are basically five product levels models which include; Core benefit, Generic product, Expected product, Augmented product, and Potential product.
The two product levels model Carrie experienced in her purchase of the Nikon 7576, and Monarch 5 are;
a. The core benefit: A product meets the core benefit when it meets the needs of the customer. The two products purchased by Carrie satisfy her basic need of binoculars that would enable her to observe wildlife from a distance.
b. Expected Product: This is factored when the product features meets the expectation of the customer. In Carrie's case, she liked the feel and features of these devices and this implies that they met her expectations.
The two levels of the product levels model that Carrie experimented with in this buying process were the core benefit and the expected product.
What is the core benefit of the product?Corresponds to the satisfaction of the basic needs of the customer through the characteristics of a product.
The Product Levels model is able to describe how customer expectations are met through products and services. The expected product is a level that corresponds to the positive perception of the product.
Therefore, by purchasing the binoculars, Carrie satisfied her need for remote viewing of wildlife with a favorable perception of the product's features and functionality.
Find out more about purchase process here:
https://brainly.com/question/5295378
A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier and bagger on each lane per shift. One cashier mans all 4 self-checkouts per shift (answering questions, checking for un-scanned items, taking coupons, etc). Checkout on the new lanes takes 1.25 minutes (customers bag their own orders) while checkout with the old lanes took only 45 seconds. In addition, the electricity costs for both setups are $0.06 per checkout while bagging (material) costs are $0.12 per checkout with the old system and $0.20 for the new system. The new 4 self-checkout lanes also requires a total of $25 in capital costs per day. Assume that the lanes are always in use for 16 hours per day (2 shift), for the old system the average revenue per checkout is $12 and $10 for the new system, and a worker (cashier and bagger) makes $10/hour.
(a) How many checkouts did the old system provide in a shift?
(b) How many checkouts does the new system provide?
(c) What is the multifactor productivity for each system?
Answers
Answer:
a. 2560 checkout
b. 3072 checkout
c. Old system = 3.85 checkout/$
New system = 5.56 checkout/$
Explanation:
Given:
Checkout lanes = 4
a.
How many checkouts did the old system provide in a shift?
Given
Lanes = 2
Time in use = 16 hours --- Convert to seconds
Time = 16 * 3600 = 57600 seconds
Checkout = 1 per 45 seconds
Number of check outs is calculated as:
2 lanes * 57600 seconds * 1 checkout / 45 seconds
Number of checkout = 2560 checkouts
b.
How many checkouts does the new system provide?
Lanes = 4
TimeTime in use = 16 hours --- Convert to minutes
Time = 16 * 60 = 960 minutes
Number of check outs is calculated as:
4 lanes * 960 minutes * 1 checkout / 1.25 minutes
Number of checkout = 3072 checkouts
c.
Given
Electricity costs for both setups are $0.06 per checkout
Bagging (material) costs are $0.12 per checkout with the old system
Bagging (material) costs are $0.20 per checkout with the old system
Cost for the old system is calculated by:
$0.06 * 2560 + $0.12 * 2560
= $153.6 + $307.2
= $460.3
Multifactor = 2560 checkout/$460.3
Multifactor = 5.56 checkout/$
Cost for the new system is calculated by:
0.06 * $3072 + 0.20 * $3072
= $184.32 + $614.4
= $798.72
Multifactor = 3072 checkout/$798.72
Multifactor = 3.85 checkout/$
The old system could provide 1280 checkouts in one shift while the new system can provide 768. The multifactor productivity, which equals output divided by the sum of labor, capital, and material inputs, is higher for the old system (37.5) as compared to the new system (29.5).
Explanation:(a) The old system: First, we need to convert 16 hours (the length of one shift) into minutes since our other time measurements are in minutes. That gives us 960 minutes (16 * 60). Considering each checkout took 45 seconds, or 0.75 minutes, we can calculate the number of checkouts in one shift by dividing the total minutes by the checkout time: 960 / 0.75 = 1280 checkouts.
(b) The new system: Here, the checkout time is 1.25 minutes. Using the same method as above, 960 / 1.25 gives us 768 checkouts in one shift.
(c) The multifactor productivity is calculated as the output divided by the sum of labor, capital, and material inputs.
For the old system: Output = $12 * 1280 (revenue per checkout * number of checkouts) = $15,360. Labor = 2 workers * 16 hours * $10/hour = $320. Capital is the electricity cost, which is $0.06 * 1280 = $76.8. Material is the bag cost, which is $0.12 * 1280 = $153.6. Therefore, the multifactor productivity is $15,360 / ($320+$76.8+$153.6) = 37.5.
For the new system: Output = $10 * 768 = $7680. Labor = 16 hours * $10/hour = $160. Capital is both the electricity cost, $0.06 * 768 = $46.08, and the daily capital cost of $25. Material is the bag cost, which is $0.20 * 768 = $153.6. Therefore, the multifactor productivity is $7680 / ($160+$46.08+$25+$153.6) = 29.5.
Learn more about Productivity calculation here:https://brainly.com/question/34072975
#SPJ12
Stacy Monroe wants to create a fund today that will enable her to withdraw $35,000 per year for 6 years, with the first withdrawal to take place 4 years from today. Click here to view factor tables If the fund earns 15% interest, how much must Stacy invest today? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Answers
Final answer:
To calculate how much Stacy must invest today to be able to withdraw $35,000 per year for 6 years, starting 4 years from today, we can use the present value of an annuity formula.
Explanation:
To calculate how much Stacy must invest today, we can use the formula for present value of an annuity. The formula is:
PV = A * (1 - (1+r)^(-n)) / r
Where PV is the present value, A is the amount that Stacy wants to withdraw each year, r is the interest rate, and n is the number of years. In this case, Stacy wants to withdraw $35,000 per year, the interest rate is 15%, and she wants to withdraw for 6 years starting 4 years from today. Let's substitute these values into the formula:
PV = 35000 * (1 - (1+0.15)^(-6)) / 0.15 = $146,049.21
Therefore, Stacy must invest $146,049.21 today in order to be able to withdraw $35,000 per year for 6 years, starting 4 years from today.
"In about 100 words, describe how an n-tier architecture might be used by an online business. Include in your answer an outline of the functions that would likely be performed by computers configured in this way."
Answers
Answer:
The three main reasons that might make n-tire architectures used in online businesses are Their intuitive system structure for administrators, their layering organization of processes, and the ability to maintain data separated in two different pools.
Explanation:
Three main reasons make n-tire architecture could be used in an online business.
The first one is that its structure allows administrators to identify the problems of the webpage and focus on the matter instead of having to review all of the structure to find out what is going on.
The second reason is that its layering organization provides the best setup to reuse applications. Which in other words says that the structure itself can make it possible to apply this structure to different purposes.
The third one is that the data access and data storage pools are separated and can be reviewed as well as provide maintenance to them in different times, to keep some functionality available in the process to test it and review if it works properly instead of doing it all together and testing after the process is done.
An n-tier architecture is used by online businesses to build scalable and robust systems. It includes layers for presentation, business logic, and data storage. This architecture enables separation of concerns, maintainability, and scalability.
Explanation:An n-tier architecture is often used by online businesses to build scalable and robust systems. In this architecture, the system is divided into multiple layers or tiers, each responsible for a specific set of functions. The typical n-tier architecture includes a presentation layer, business logic layer, and data storage layer.
The presentation layer is responsible for displaying the user interface and handling user interactions. It may consist of web servers, mobile apps, or desktop applications. The business logic layer contains the core functionality of the application and handles the processing of user requests. It interacts with the presentation layer and other layers to perform tasks such as data validation, business rules implementation, and communication with external systems. The data storage layer consists of a database or data storage system where information is stored and retrieved.
By using an n-tier architecture, an online business can achieve separation of concerns, maintainability, and scalability. Each layer can be developed, tested, and maintained independently, making it easier to update or modify specific components without affecting the entire system. Additionally, the modular nature of the architecture allows for scalability by adding additional servers or resources to handle increasing user and data demands.
Learn more about n-tier architecture here:https://brainly.com/question/34610979
#SPJ12
Snider Industries sells on terms of 2/10, net 45. Total sales for the year are $800,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 50 days after their purchases. Assume a 365-day year. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 45th day? Do not round intermediate calculations. Round your answer to the nearest dollar. $
Answers
Final answer:
The days sales outstanding (DSO) is 0.104 days and the average amount of receivables is $226,849. If Snider toughens its collection policy to all nondiscount customers paying on the 45th day, the DSO would be 0.095 days and the average receivables would be $207,671.
Explanation:
The days sales outstanding (DSO) can be calculated using the formula:
DSO = [(30% × 10) + (70% × 50)] / 365
Plug in the values:
DSO = [(30% × 10) + (70% × 50)] / 365
= [3 + 35] / 365
= 38 / 365
= 0.104
Now, to find the average amount of receivables, we can use the formula:
Average Receivables = (DSO × Annual Sales) / 365
Plug in the values:
Average Receivables = (0.104 × $800,000) / 365
= $226.849
If Snider toughens its collection policy and all nondiscount customers pay on the 45th day, the new DSO can be calculated as:
DSO = [(30% × 10) + (70% × 45)] / 365
= [3 + 31.5] / 365
= 34.5 / 365
= 0.095
Using the formula for average receivables, the new average receivables would be:
Average Receivables = (0.095 × $800,000) / 365
= $207,671
DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $44
a. What is your best guess as to the total cost to DRK of the equity issue?.
b. Is the entire cost of the underwriting a source of profit to the underwriters?
Answers
Answer:
A. $460,000
B. No
Explanation:
Given:
Number of share = 100,000
underwriter’s explicit fee = $60,000
Offer price = $40
New Price = $44
A.
The Total cost of Equity share = [tex][Number of equity share \times (New price - old price)] + explicit fees[/tex]
[tex]= [100,000 \times (44-40)] + 60,000\\= [100,000 \times4] + 60,000\\= 400,000 + 60,000\\= 460,000[/tex]
B.
No. The brokers do not catch the portion of the costs relating to the price quoted.
Final answer:
The total cost to DRK, Inc. for the equity issue is $460,000, considering both explicit fees and the opportunity cost from underpricing. Not all the underwriting costs are profit, as underwriters also have associated expenses.
Explanation:
The total cost to DRK, Inc. of the equity issue can be calculated by considering both the explicit fees paid to the underwriters and the opportunity cost of underpricing the shares. The explicit fees are given as $60,000.
The opportunity cost, known as underpricing, is the difference between the offering price and the immediate post-issue share price, multiplied by the number of shares. This can be calculated as follows: (Post-issue price – Offering price) × Number of shares = ($44 – $40) × 100,000 = $400,000.
Therefore, the total cost of the equity issue would be the explicit fees plus the underpricing cost: $60,000 + $400,000 = $460,000.
As for the second question, the entire cost of underwriting is not pure profit for the underwriters. They incur costs to market, sell and organize the share issue. However, the difference between the price they pay for the shares and the price at which they sell the shares to investors (minus their costs) would be their profit.
Based on your understanding of help desk operations a job stress, make a list of ten or more different factors in a help desk environment that can increase or decrease the job stress experienced by agents.
Answers
Explanation:
Monotonous work: Sometimes monotonous work irritates the help desk.
Seeking for same information: When providing the same information again and again to a different customer.
Lack of work recognition: At times failing to appreciate the effort create stress.
Talking without rest: Continuously answering without taking a break might cause stress.
Work pressure: When the work pressure increases there is a possibility of stress being more.
Inflexible working hours: Change in life style due to change in work hours might create stress.
Work-life imbalance: This also act as a source for stress.
Taking regular medications, family pressure, undervalued pay scale everything counts for stress.
An airline expects to SELL one million gallons of jet fuel in one month and decides to use heating oil futures for hedging. We suppose the correlation between jet fuel price and heating oil price is 0.93, the volatility of heating oil price is 0.03, the volatility of jet fuel oil price is 0.02. Each heating oil futures contract allows you to trade 42,000 gallons of heating oil. How many contracts should be used in hedging
Answers
Answer:
14 contracts should be used in hedging.
Explanation:
The heating oil price is 0.93
The volatility of heating oil price is 0.03,
The volatility of jet fuel oil price is 0.02
Determining Minimum variance ratio
0.93×0.02/0.03 = 0.62
Each heating oil futures contract trade is 42,000 gallons of heating
ThereforeThe optimal number of contract is :
O.62×1,000,000/ 42,000 = 14.76
Converting 14.65 to nearest whole number will give us 14
1. Find a site on the Web that offers classified ads for horses. Compare this site to exchangehunterjumper in terms of the services offered (the customer value proposition). What does The Exchange offer that other sites do not?
Answers
Answer:
Bigeq.com is a site that also offers classified ads for horses, and is one of the ExchangeHunterJumper.com’s biggest market competitor. One service that the Exchange offers that this site does not is that the Exchange professionally screens horses that are listed, while Bigeq.com allows anyone to post sales ads. Therefore, the horses on the Exchange are more likely to be appropriately described and have a better track record than those on Bigeq.com. However, this does mean that Bigeq.com typically has more horses listed than the Exchange does.
Another service that the Exchange provides is that all of the horses listed have high-quality videos and photos within the site that the customer can view, while not all of the horses on Bigeq.com have videos or photos, and those that do are linked to outside websites, some of which are not very good quality. The Exchange continually updates information on the horses available, while the ads on Bigeq.com are static once they have been submitted by the seller.
ExchangeHunterJumper is a specialized platform providing niche services for hunter/jumper show horses, emphasizing professional presentation and marketing, unlike broader classified ad sites like EquineNow or HorseClicks.
Explanation:To compare classified ad sites for horses, one would look for reputable platforms such as EquineNow or HorseClicks, which offer a variety of services ranging from ads for selling horses to equipment and even real estate. When compared to ExchangeHunterJumper, which specializes in the sale of hunter/jumper show horses, it's evident that The Exchange offers a more niche service. The Exchange provides a customer value proposition focused on high-caliber show horses and includes services such as professional photography and marketing for each listed horse to ensure they are presented in the best possible way. Other sites may have a broader scope but might not offer the same level of presentation or specialization in the hunter/jumper discipline.
By focusing on quality over quantity and the niche of show horses, The Exchange establishes itself as a premium offering within the equestrian market.
Learn more about Classified Ads for Horses here:https://brainly.com/question/14989741
#SPJ3
Units to Earn Target Income Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense).Required:
Be sure to read the instructions on each panel for additional guidance.
1. Calculate the number of helmets Head-First must sell to earn operating income of $81,900.
2. Check your answer by preparing a contribution margin income statement based on the number of units calculated
Answers
Explanation:
1. The computation of the number of helmets sell to earn operating income is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $75 - $40
= $30
So, the number of helmets sold is
= ($49,500 + $81,900) ÷ ($30)
= 4,380 helmets
2. And , the contribution margin income statement is presented below:
Sales (4,380 helmets × $75) $328,500
Less: Variable cost (4,380 helmets × $45) ($197,100)
Contribution margin $131,400
Less: Total fixed cost (49,500)
Net income $81,900
"For minimizing the cash conversion cycle, a firm should" ________. A. increase mail managing, processing, and clearing time when collecting from customers B. turn over inventory as quickly as possible without stockouts C. pay off accounts payables as fast as possible to gain credibility D. grant longer credit terms to customers to maintain healthy business relations
Answers
Answer:
B. turn over inventory as quickly as possible without stockouts.
Explanation:
Inventory turnover is defined as the number of times a business sells off its stock on hand and so require replenishment in a year.
The higher the inventory turnover, the higher the number of sales and higher profits.
Cash conversion cycle is how long a business can survive without cash and investing in inventory to increase sales.
To minimise cash conversion cycle a business should ensure it sells of its inventory quickly without stockout.