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
Mayor Magnus wants to recruit a Harvard economist, Milton, to be the Chief Developer for the Small Town's economic development division. The legal cap on the job of Chief Developer is $60,000. Mayor Magnus offers Milton $100,000. The contract is:
A. unconscionable based on unequal bargaining power.
B.injurious to public service.
C. exculpatory.
D. enforceable.
Answer:
The correct answer is letter "B": injurious to public service.
Explanation:
Contracts that are injurious to public service are those where public deputies deviate from their duties going out of the law. In most cases, the deviation implies using public resources incorrectly to benefit a third party or the representative in charge of allocating those resources efficiently. The contract is injurious to public service because it decreases the benefits the population should receive according to what central authorities have provided.
When prices rise a. the effect in the rich and poor is uncertain. b. both the rich and poor lose real income. c. the poor benefit at the expense of the rich. d. the rich benefit at the expense of the poor.
Answer:
The correct answer is letter "B": both the rich and poor lose real income.
Explanation:
Real income refers to the amount of money left to individuals after adjustments for inflation. In front of an increase in prices or, inflation, the purchasing power of individuals decreases since wages tend to remain at the same level. The same situation is faced by poor and wealthy individuals, thus, both of them see their real income decreased when inflation hits the markets.
Final answer:
When prices rise, b) both the rich and poor generally lose real income, with a potentially greater impact on the poor due to their reliance on basic necessities. In situations where income changes, the consequences for poverty and inequality depend on the relative changes in income levels among different socio-economic groups.
Explanation:
When prices rise, it typically affects individuals differently based on their income levels and wealth status. If we assess the options provided, the most likely scenario is that b) both the rich and poor lose real income. This is because as prices go up, the purchasing power of a given amount of money diminishes, which is referred to as a decrease in real income. However, the impact might be more significant on the poor because they spend a higher proportion of their income on basic necessities.
In the case of self-check questions, when incomes rise more for high-income earners than for low-income workers, inequality is likely to increase even though the level of poverty might remain stable or even decrease if low-income workers' wages rise above poverty thresholds. Conversely, if incomes fall more for high-income earners, inequality might lessen as the income gap between the high-income and low-income workers narrows.
The income effect and substitution effect play a role when prices change. The income effect affects buying power, and the substitution effect comes into play when consumers switch their preferences due to changes in price relative to other goods. These economic concepts are crucial in understanding the broader implications of changes in wages, profits, and prices.
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%.
On January 1, a shareholder purchased 81 shares of stock in Beta company for $115 per share. On August 20, the company paid an $8 dividend per share. On December 31, the shareholder sold all the shares for $113 per share. What is the overall Economic Rate of Return for this investment?
Answer:
Explanation:
Economic rate of return on the investment is as follows
Total Cash Received =
Dividend = 8
Share disposal = 113
Total 121
Total investment = 115
Net return on investment = 121-115 = 6
Net return on investment = 6/115*100 =5.217%
Answer:
5.22%
Explanation:
Dividend per share = $8
Loss on sales per share = Purchase price - Sales price - = $115 - $113 = -$2
Total return per share = Dividend per share - Loss on sales per share
= $8 -$2 = $6
Overall Economic Rate of Return = (Total return per share ÷ purchase price) × 100
Overall Economic Rate of Return = ($6 ÷ $115) × 100
= 5.217391304347830
= 5.22% approximately
Therefore, the overall Economic Rate of Return for this investment is 5.22%.
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.
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
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
3) What are the main factors behind economic growth? Write a short essay. Be expansive. Take a broad view of this question. What institutional factors are important? What cultural factors are important? But be sure to include the traditional economic factors. What factors are most important?
Explanation:
It is a level of goods and services provided by the country in a specific periodCertain factors associated with the economic growth are1. Natural resources: Every country must protect their land forms so that the natural resources like oil or mineral can be obtained adequately and thus it can boost the economy of the country
2. Infrastructure: Creating an successful infrastructure make goods and services faster and thus increasing the economic growth.
3. Higher population: There are both advantages and disadvantages. We have high man power and on the other side there might be huge unemployment too.
Culture is closely associated with the branch of economy because it can turn the country upside down. Because, it is the culture which decides the like and unlike of a particular product.
Final answer:
The main factors behind economic growth include physical capital, human capital, technology, institutional factors, and cultural factors. These factors contribute to increasing production and income over time. While their importance may vary, investment in physical and human capital, technological advancements, and favorable institutional and cultural factors all play key roles in driving economic growth.
Explanation:
Economic Growth: Factors and Impacts
Economic growth refers to the increase in a country's production and income over time. There are several main factors that contribute to economic growth:
Physical capital: This refers to the stock of machinery, equipment, and infrastructure that is used in production. Developing countries often need to invest in physical capital to boost economic growth.Human capital: This includes the knowledge, skills, and health of the workforce. Education and training programs are important for building human capital and increasing productivity.Technology: Technological advancements drive economic growth by increasing efficiency and productivity. Innovation and research and development (R&D) are crucial in this regard.Institutional factors: Institutions such as the rule of law, property rights, and a stable political environment are important for fostering economic growth. They provide a framework for economic transactions and investment.Cultural factors: Cultural values and attitudes can also impact economic growth. For example, a culture that values entrepreneurship and innovation may be more conducive to economic growth.While all these factors are important, their relative importance may vary from country to country. For example, a country with abundant natural resources may prioritize physical capital investment, while a country with a highly educated workforce may focus more on technology and innovation.
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.
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.
Ventaz Corp manufactures small windows for back yard sheds.Historically, its demand has ranged from 30 to 50 windows per day with an average of 41. Alex is one of the production workers and he works eight hours a day, five days a week. Each order is one window and each window takes 55 minutes.
What is the cycle time for an order?
A. 6.86 minutes per window
B12.5minutes per window
C.5minutes per window
D. 250minutes per window
Answer:
C. 5 minutes per window
Explanation:
Hello, I felt there was an error in the question, and I believe it should be "each window takes 5 minutes" and not "each window takes 55 minutes". I was able to retrieve the question elsewhere and have attached it for your perusal :)
Cycle Time is the time taken between two successive deliveries. Simply spoken, it is the time taken from when the order is initiated to when the order is successfully accomplished. It is important not to confuse cycle time with lead time. Lead time is the time between when an order is requested to when it is delivered. For example, in this case, the window may have been requested to be manufactured half hour before Alex started work on it. Thus, the lead time would be 35 minutes (30 minutes prior + 5 minutes it takes to complete). Cycle time on the other hand is simply 5 minutes on an order. It takes 5 minutes to complete a window and each order is only one window. Hence, cycle time is 5 minutes per window.
Hope this helps :)
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.
If you have any further queries regarding this topic, feel free to contact me.
Thanks!
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
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.
You run a small farm that grows fresh produce to sell at your roadside stand. You employ workers, you rent land and you rent capital in order to grow the produce. If the marginal product per dollar of capital is $2, the marginal product of labor is 20, the price of labor is $10 and the marginal product of land is 32, what is the price of land?
Answer:
The price of land is $16
Explanation:
Provided data from the question;
The marginal product per dollar of capital = $2
The marginal product of labor = 20
The price of labor = $10
The marginal product of land = 32
To determine the price of land, The formula below is given:
Marginal Product of Labor ÷ Price of Labor = Marginal Product of Land ÷ Price of Land
20 ÷ $10 = 32 ÷ P
$2 = 32 ÷ P
P = $16
Therefore, Price of land = $16
Answer:
The price of the land is $16
Explanation:
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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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
When calculating the maximum home price using either the front ratio or the back ratio, one result is the maximum monthly payment the household can sustain. This amount covers:_____
a. Principal, interest, and escrow for taxes and insurance
b. The annual mortgage payment
c.The before-tax cash flow
d. The break-even occupancy level
e. The debt service coverage ratio
Answer:A. Principal, interest, and escrow for taxes and insurance
Explanation: Front-end ratio is a percentage of your total annual gross income which can be dedicated to the payment of your home loan monthly.
Back-end ratio is a term used to describe the total percentage of your annual gross income which you can put into the servising of your debts.
The maximum monthly payment which a household can sustain covers the PRINCIPAL, INTEREST, AND ESCROW FOR TAXES AND INSURANCE When calculating the maximum home price using either the front ratio or the back ratio.
Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automation Services: Fees Earned $614,500 Dividends 45,000 Rent Expense 140,000 Retained Earnings 3,250,000 Supplies Expense 18,200 Wages Expense 320,000 Miscellaneous Expense 8,700 Journalize the closing entries. If an amount box does not require an entry, leave it blank.
Answer:
Fees Earned $614,500
Fees Earned $614,500 (debit)
Profit and Loss $614,500 (credit)
Dividends 45,000
Shareholders Equity $45,000 (debit)
Dividends $45,000 (credit)
Rent Expense 140,000
Profit and Loss $140,000 (debit)
Rent Expense $140,000 (credit)
Retained Earnings 3,250,000
Retained Earnings $ 3,250,000 (debit)
Shareholders Equity $3,250,000 (credit)
Supplies Expense 18,200
Profit and Loss $ 18,200 (debit)
Supplies Expense 18,200 (credit)
Wages Expense 320,000
Profit and Loss $ 320,000 (debit)
Wages Expense $ 320,000 (credit)
Miscellaneous Expense 8,700
Profit and Loss $8,700 (debit)
Miscellaneous Expense $ 8,700 (credit)
Explanation:
Fees Earned $614,500
Close off income to Profit and loss Account
Dividends 45,000
Close off to Shareholders Equity
Rent Expense 140,000
Close off expense to Profit and loss Account
Retained Earnings 3,250,000
Close off to Shareholders Equity in Retained Earning Reserve
Supplies Expense 18,200
Close off expense to Profit and loss Account
Wages Expense 320,000
Close off expense to Profit and loss Account
Miscellaneous Expense 8,700
Close off expense to Profit and loss Account
This detailed answer explains how to journalize closing entries for Automation Services Co., including the debit and credit amounts for each account.
Closing Entries for Automation Services Co:
Debit Fees Earned $614,500
Debit Dividends $45,000
Debit Rent Expense $140,000
Credit Retained Earnings $799,200
Debit Supplies Expense $18,200
Debit Wages Expense $320,000
Debit Miscellaneous Expense $8,700
Credit Fees Earned $614,500
Credit Dividends $45,000
Credit Rent Expense $140,000
Credit Retained Earnings $3,223,400
Credit Supplies Expense $18,200
Credit Wages Expense $320,000
Credit Miscellaneous Expense $8,700
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.
Adam, Bill, and Charlie are partners. The profit and loss sharing rule between them is 2:5:1, with Bill receiving the largest share and Charlie receiving the smallest. The partnership incurs a net loss of $ 76 comma 000. While closing the Income Summary ________. (Do not round any intermediate calculations.)
Answer:
Adam's capital will be debited for $19,000
Bill's capital will be debited for $47,500
Charlie's capital will be debited for $9,500
Explanation:
Net loss = $76,000
The loss will be distributed according to their sharing ratio
Total of Ratios = 2 + 5 + 1 = 8
Adams's Share = 76,000 x 2 / 8 = $19,000
Bill's Share = 76,000 x 5 / 8 = $47,500
Charlie's Share = 76,000 x 1 / 8 = $9,500
As there is a loss the Journal Entry will be as follow
DR. Adam's capital account $19,000
DR. Bill's capital account $47,500
DR. Charlie's capital account $9,500
CR. Income Summary Account $76,000
Final answer:
The net loss of $76,000 incurred by the partnership of Adam, Bill, and Charlie is allocated based on their profit and loss sharing ratio of 2:5:1. The loss is divided by calculating the value of one part of the ratio from the total loss and then multiplying by the number of parts each partner has, resulting in Adam getting $19,000, Bill $47,500, and Charlie $9,500.
Explanation:
The question relates to how a partnership deals with a net loss and how that loss is allocated between the partners according to their agreed profit and loss sharing ratio. When a partnership such as that of Adam, Bill, and Charlie incurs a net loss of $76,000, this loss must be divided among the partners based on their loss sharing agreement, in this case, a ratio of 2:5:1. Bill, having the largest share, will bear the most significant portion of the loss, while Charlie will bear the least.
Here is how to calculate the division of the loss:
First, add up the parts of the ratio: 2 + 5 + 1 = 8 parts in total.
Calculate the value of one part by dividing the total loss by the total parts: $76,000 / 8 = $9,500 per part.
Multiply the value per part by the number of parts each partner has to find their share of the loss: Adam (2 parts) = 2 * $9,500 = $19,000; Bill (5 parts) = 5 * $9,500 = $47,500; Charlie (1 part) = 1 * $9,500 = $9,500.
Thus, while closing the Income Summary, the partnership will allocate the net loss of $76,000 between the partners in the following amounts: Adam will be allocated $19,000, Bill $47,500, and Charlie $9,500.
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.
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.
The main difference between CPM and PERT is Group of answer choices
CPM and PERT use different activity time estimates.
PERT analysis is less expensive to conduct.
PERT lends itself to computerization while CPM networks must be constructed manually.
CPM integrates time and cost performance while PERT is based solely on time performance.
Answer: CPM and PERT use different activity time estimates.
Explanation:
Program (Project) Management and Review Technique (PERT) is appropriate when the project time needed to complete different activities are unknown while the Critical Path Method or CPM is fitted for recurring projects in nature. PERT deals with activities that are not predictable but CPM deals with repetitive activities. PERT focuses/concentrates on time while CPM focuses on time-cost & trade-off. Also, PERT requires three-time estimate while CPM requires one-time estimate. PERT uses a probabilistic model and on the other hand, CPM uses a deterministic model. In PERT, a technique of planning and controlling time is used but CPM uses a technique to control cost and time.
Answer:
The correct answer is letter "D": CPM integrates time and cost performance while PERT is based solely on time performance.
Explanation:
The Project Management and Review Technique also called PERT is used to plan and control the time of uncertain activities during the development of a project. The PERT is an event-oriented technique. The Critical Path Method or CPM is a statistical technique used to control the cost and time of well-defined activities of a project. The CPM is activity-oriented.
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.
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.
The Rehabilitation Act of 1973: a. applies only to employers receiving federal financial assistance. b. is enforced by the EEOC. c. does not apply to federal contractors. d. a, b, and c
Answer:
d. a, b, and c
Explanation:
The Rehabilitation Act of 1973 is the law enforced by the EEOC which is not applied to federal contractors while giving special importance on employers receiving federal financial assistance to those with the most difficult handicaps, to develop special federal capacities and research and training programs with respect to handicapped people, to build special capacities in the correspondent of education, health, and welfare for coordination of all programs with respect to handicapped people under the department of education, health and welfare, and for other targets.
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
Cynthia hates writing term papers and reports, so when she receives an assignment to write a paper for her law class, she calls her friend Stephanie and agrees to pay Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a paper from a small, remote law journal that publishes faculty-written papers from throughout the world online. When the plagiarism is discovered, an infringement claim is brought. Cynthia is guilty of_______________.
Answer: Vicarious infringement
Explanation:
Vicarious infringement is a term used in legal processes to describe the Liabilities of which a person or an organisation incurs or inherits as a result of the infringement acts of another person, the other person may be a person's agent who represents him in certain circumstances.
VICARIOUS INFRINGEMENT IS THE SAME FOR BOTH COPYRIGHT AND TRADEMARK LAWS.
c. Cynthia hates writing term papers and reports, so when she receives an assignment to write a paper for her law class, she calls her friend Stephanie and agrees to pay Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a paper from a small, remote law journal that publishes faculty-written papers from throughout the world online. When the plagiarism is discovered, an infringement claim is brought. Cynthia is guilty of indirect, or contributory, infringement.
Indirect or contributory infringement happens when a person contributes to or facilitates someone else's direct infringement. In this case, Cynthia made an arrangement with Stephanie, knowingly enabling her to engage in copyright infringement by copying and submitting a paper from a law journal without proper attribution.
Complete question
Cynthia hates writing term papers and reports, so when she receives an assignment to write a paper for her law class, she calls her friend Stephanie and agrees to pay Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a paper from a small, remote law journal that publishes faculty-written papers from throughout the world online. When the plagiarism is discovered, an infringement claim is brought. Cynthia is guilty of_______________.
a. nothing because Stephanie, not Cynthia, infringed on the author's/publisher's copyright.
b. vicarious infringement.
c. indirect, or contributory, infringement.
d. nothing because once a work is published online, the fair use doctrine permits unlimited use of the work without attribution.
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.