Answer:
Explanation:
2016 2017
Contract price = 2300000 2300000
Cost to date = (2100000) (2160000)
Further estimated Cost = (80000) 0
Profit = 120000 140000
Stage of completion = 2100/2180 = 96.33% 100%
As at Profit and loss
Revenue 2300*96.33 = 2215596.33 2300000
Profit 120*96.33 = -115596.3303 -140000
Cost of Sales = 2100000 2160000
For the period profit and loss
Revenue = 2215596 84404
Cost of sales = (2100000) 60000
Profit = 115596 24404
The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31 Advertising Expense $11,100 Cost of Goods Sold 88,000 Delivery Expense 4,300 Insurance Expense 1,100 Income Tax Expense 6,560 Rent Expense 12,000 Interest Expense 1,400 Sales Revenue 162,000 Sales Discounts 9,100 Sales Returns and Allowances 18,600 a. Prepare a multistep income statement.b. Compute the gross profit percentage.
a. The Gross Profit is = 46300
b. Then the Gross Profit Percentage is 34.48 %.
Computation of the Gross profit
a.) When Multi-Step income statement separately shows operating and also non-operating revenues and then Expenses.
Then Advertising Expense = 11000
Cost of Goods Sold = 88000
Delivery Expense is = 4300
Then Insurance Expense = 1100
Income Tax Expense = 6560
Rent Expense is = 12000
Then Interest Expense = 1400
Sales Revenue is = 162000
Sales Return & Allowance is = 18600
Sales Discount is = 9100
Computation
Sales Revenue 162000
Sales Discount -9100
Sales return & allowance -18600
Net Sales revenue 134300
Cost of goods sold -8800
Gross Profit 46300
Operating Expenses
Selling Expenses
Advertising Expense -11000
Delivery Expense 4300
Administrative Expenses
Rent Expense -12000
Insurance Expense -1100
Operating income 17900
Non-Operating Revenues % Expense
Interest Expense -1400
Net Income Before Tax 16500
Income Tax Expense -6560
Net Income After Tax 9940
b. When the Gross Profit Percentage is = (Gross Profit / Net Sales ) x 100
Gross Profit %age is = (46300/134300) x 100 = 34.48 %
Find more information about Gross profit here:
https://brainly.com/question/24442621
To prepare a multistep income statement, start with sales revenue and subtract sales discounts and returns/allowances. Then subtract cost of goods sold and other expenses to get operating income. Finally, subtract income tax expense to get net income. The gross profit percentage is calculated by dividing gross profit by net sales and multiplying by 100.
Explanation:a. Multistep Income Statement:To prepare a multistep income statement, we need to break down the various components of revenue and expenses. Here's how we can do it:
Start with Sales Revenue: $162,000Subtract Sales Discounts: $9,100Subtract Sales Returns and Allowances: $18,600This gives us Net Sales: $134,300Subtract Cost of Goods Sold: $88,000This gives us Gross Profit: $46,300Subtract other expenses: Advertising Expense ($11,100), Delivery Expense ($4,300), Insurance Expense ($1,100), Rent Expense ($12,000), and Interest Expense ($1,400)This gives us Operating Income: $16,400Finally, subtract Income Tax Expense: $6,560This gives us Net Income: $9,840b. Gross Profit Percentage:
To compute the gross profit percentage, divide Gross Profit ($46,300) by Net Sales ($134,300) and multiply by 100:
Gross Profit Percentage = (Gross Profit / Net Sales) * 100 = ($46,300 / $134,300) * 100 = 34.5%
Ethan conducted multiple marketing research activities for the Protiviti global consulting firm. After he created reports highlighting his marketing findings he considered his next step.
What is the next step Ethan needs to take with sharing the information?
Answer: Implementation of Findings and Sharing Information gathered with decision-makers to aid implementation.
Explanation:
Marketing Research is a series of steps taken in gaining a better understanding of a company's goods and services in the market field, as well as, methods that can be employed to improve the distribution and value of the product.
The series of steps involved in marketing research include; Problem Identification, Enumeration of the research goals, Research Planning and design, Data collation, Data analysis, presentation of the report, and Implementation of findings.
Ethan has just reached the concluding part of his marketing research where he now creates a report of his findings and proposes several actions.
His next step would be to take action. He should also be willing to share the information gathered from the findings with decision-makers in the organization as this would be a helpful guide to them in executing actions.
2. You own and operate a bike store. Each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. In addition, you pay $20,000 for electricity, taxes, and other expenses per year. Instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. A large clothing retail chain wants to expand and offers to rent the store from you for $50,000 per year. How do you explain to your friends that despite making a profit, it is too costly for you to continue running your store
Answer:
Economic profit is negative
Explanation:
The difference between accounting and economic profit is that economic profit includes notional profit or implicit profit/loss, referred to as opportunity cost.
Opportunity cost refers to the benefits foregone of opting for an alternative when another alternative is chosen instead.
In the given case, Accounting profit = Revenues - Costs
Accounting Profit = $200,000 - ($100,000 + 20,000)
Accounting Profit = $80,000
Economic Profit = Accounting profit - Implicit Costs
Economic Profit = $80,000 - (40,000 + 50,000)
= ($10,000)
Here, the salary foregone of $40,000 and rent foregone of $50,000 represents implicit or opportunity cost.
Thus, economic loss of $10,000 makes the option of running the bike store non viable.
Final answer:
Despite an accounting profit of $80,000 for the bike store, the economic profit is negative $30,000 after considering a potential salary as an accountant ($40,000) and rental income from the store ($50,000). Thus, it's too costly to continue operating the store compared to alternative options.
Explanation:
To explain why running the bike store is too costly despite making a profit, we discuss the differences between accounting profit and economic profit.
The accounting profit for the bike store is calculated by subtracting explicit costs (the cost to obtain the bikes and other expenses) from the revenue, which is $80,000 ($200,000 revenue - $100,000 cost to obtain bikes - $20,000 other expenses).
However, the economic profit also considers implicit costs, which are opportunity costs of not pursuing the next best alternative.
In this case, the opportunity cost includes the potential salary as an accountant ($40,000) and the rental offer from the clothing retail chain ($50,000).
When these implicit costs are factored in, the total costs rise to $170,000 ($100,000 + $20,000 + $40,000 + $50,000), making the economic profit a negative $30,000 ($200,000 - $170,000 implicit and explicit costs).
Despite the accounting profit, the business owner would be better off financially by taking the accounting job and renting out the store, hence running the store is too costly when considering the economic profit.
3335 Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.
Answer:
A
Dr. Insurance Expense.....3335
Cr. Prepaid Insurance.............3335
Being Insurance policies expired during the period
B
Dr. Teaching supplies expense....( 10,420 – 2,891).....7,529
Cr. Teaching Supplies ...............................................................7,529
Being teaching supplies made for the period
C
Dr. Depreciation Expense - Equipment............13,342
Cr. Accumulated Depreciation - Equipment......................13,342
Being Equipment Depreciation expense for the period
D
Dr. Depreciation Expense – Professional Library....6,671
Cr. Accumulated Depreciation – Professional Library.........6,671
Being Depreciation of Professional Library for the period
E
Dr. Unearned Training Fees (2 months * 3000) ...6,000
Cr. Training fees earned.................................................6,000
Being recognition of revenue against prepaid income for Nov and Dec
F
Dr. Tuition Receivable (2.5 months x 3,561) ...8,902.5
Cr. Tuition earned ...........................................................8,902.5
Being recognition of Tuition revenue against Account receivable for Oct 15 to Dec
G
Dr. Wages Payable......................400
Cr. Accrued Wages...........................400
Being Wages Accrued for 2 workers for 2 days as at Dec 31st at the rate $100 per day
Explanation:
Required:
1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.
Additional Information Items
1. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,891 are available at year-end 2017.
3. Annual depreciation on the equipment is $13,342.
4. Annual depreciation on the professional library is $6,671.
5. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,000, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,561 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
JOURNAL ENTRIES
A
Dr. Insurance Expense.....3335
Cr. Prepaid Insurance.............3335
Being Insurance policies expired during the period
B
Dr. Teaching supplies expense....( 10,420 – 2,891).....7,529
Cr. Teaching Supplies ...............................................................7,529
Being teaching supplies made for the period
C
Dr. Depreciation Expense - Equipment............13,342
Cr. Accumulated Depreciation - Equipment......................13,342
Being Equipment Depreciation expense for the period
D
Dr. Depreciation Expense – Professional Library....6,671
Cr. Accumulated Depreciation – Professional Library.........6,671
Being Depreciation of Professional Library for the period
E
Dr. Unearned Training Fees (2 months * 3000) ...6,000
Cr. Training fees earned.................................................6,000
Being recognition of revenue against prepaid income for Nov and Dec
F
Dr. Tuition Receivable (2.5 months x 3,561) ...8,902.5
Cr. Tuition earned ...........................................................8,902.5
Being recognition of Tuition revenue against Account receivable for Oct 15 to Dec
G
Dr. Wages Payable......................400
Cr. Accrued Wages...........................400
Being Wages Accrued for 2 workers for 2 days as at Dec 31st at the rate $100 per day
Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a blender to mix certain beverages that he knew his guests would like. Having never purchased a blender before, Jerome felt that he needed to shop carefully and enlist in the help of friends for advice. After visiting several stores and examining numerous models, Jerome settled on a Kitchen-Aid model that cost nearly $100.
(Scenario 5-5) Jerome mentions to someone else shopping at the store that low-quality blenders are made of plastic and high-quality blenders have a stainless steel base. This comment represents Jerome’s
beliefs.
brand loyalty.
brand attitude.
habits.
Answer:
The correct answer is letter "A": beliefs.
Explanation:
Beliefs are preconceived ideas individuals have based on their thoughts and experiences. Some beliefs could be wrong moreover when the individual experience is little or insignificant about a topic. Beliefs tend to be subjective most of the time and represent a true for individuals that can be confirmed or corrected.
Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Sales Revenue $ 140,000 Cost of Goods Sold Beginning Inventory $ 15,000 Purchases 91,000 Goods Available for Sale 106,000 Ending Inventory 22,000 Cost of Goods Sold 84,000 Gross Profit 56,000 Operating Expenses 31,000 Income from Operations 25,000 Income Tax Expense (30%) 7,500 Net Income $ 17,500 Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Purchase Cost Item Quantity Per Unit Total Replacement Cost per Unit A 1,500 $ 3 $ 4,500 $ 4 B 750 4 3,000 2 C 3,500 2 7,000 1 D 1,500 5 7,500 3 $ 22,000 Required: Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1.
Answer:
Ending Inventory Net Realisable Value or LCM is $ 14,000
Net Income Net Realisable Value or LCM is $ 11,900
Explanation:
Purchase Cost Replacement Cost per
Item Quantity Per Unit Total Unit Total Cost NRV
A 1,500 $ 3 4,500 $ 4 $ 4500 $4500
B 750 4 3,000 2 $1500 $ 1500
C 3,500 2 7,000 1 $3500 $ 3500
D 1,500 5 7,500 3 $ 4500 $ 4500
$ 14000
Ending Inventory $ 22,000
Income Statement
Sales Revenue $ 140,000
Cost of Goods Sold
Beginning Inventory $ 15,000
Purchases 91,000 Goods
Available for Sale 106,000
Ending Inventory 14,000 Applying LCM/NRV
Cost of Goods Sold 92,000
Gross Profit 48,000
Operating Expenses 31,000
Income from Operations 17,000
Income Tax Expense (30%) 5,100
Net Income $ 11,900
The new cost of inventory using the LCM/NRV valuation method is $15,500. This adjustment results in a new cost of goods sold of $90,500 and thus a gross profit of $49,500. After accounting for operating expenses, the revised net income at LCM/NRV valuation comes out to be $12,950.
Explanation:Lower Cost or Market (LCM) or Net Realizable Value (NRV) is an accounting principle that an entity applies to record its inventory at the lower of the cost or the market value. In this case, Springer Anderson Gymnastics Company hasn't applied LCM/NRV to its inventory valuation. Let's do this step-by-step:
Let's calculate the new costs under LCM/NRV for each item:Item A = quantity of 1,500 * replacement cost of $4 = $6,000Item B = quantity of 750 * replacement cost of $2 = $1,500Item C = quantity of 3,500 * replacement cost of $1 = $3,500Item D = quantity of 1,500 * replacement cost of $3 = $4,500So, the new total at LCM is $6,000 + $1,500 + $3,500 + $4,500 = $15,500Now, let's restate the income statement. The change in inventory cost will affect the Cost of Goods Sold (COGS) and thus the gross profit.
Here is the restated income statement:
Beginning Inventory: $15,000Purchases: $91,000Goods Available for Sale: $106,000Ending Inventory at LCM: $15,500New COGS = Beginning Inventory + Purchases - Ending Inventory at LCM = $15,000 + $91,000 - $15,500 = $90,500Sales Revenue: $140,000COGS: $90,500Gross Profit: $140,000 - $90,500 = $49,500Operating Expenses: $31,000Income from Operations: $49,500 - $31,000 = $18,500Income Tax Expense (30%) = $18,500 * 30% = $5,550Net Income = Income from Operations - Income Tax Expense = $18,500 - $5,550 = $12,950Learn more about LCM/NRV Valuation here:https://brainly.com/question/30029846
#SPJ3
When there are many producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a A. single planner who makes all production decisions and allocates all goods and services to consumers. B. freely operating economy with some very large firms that make most production and pricing decisions. C. freely operating economy in which all markets are perfectly competitive. D. centralized system in which the government owns all productive resources and allocates all goods and services to consumers.
Answer:
C. freely operating economy in which all markets are perfectly competitive.
Explanation:
When we have a lot of producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a freely operating economy in which all markets are perfectly competitive.
In such a free economy, demand for goods and services are not controlled. The consumers behavior towards purchasing will determine if producers should allocate more resources to a production process or not. It is better to make such market competitive without interfering into how resources are managed and dispensed.Colonial Furniture's net profits before taxes for 2019 totaled $354,000. The company's total retained earnings were $338,000 for 2018 year-end and $389,000 for 2019 year-end. Colonial is subject to a 21 percent tax rate. What was the cash dividend declared by Colonial Furniture in 2019?
The cash dividend declared by Colonial Furniture in 2019 is calculated by first finding the difference in retained earnings between 2019 and 2018, then subtracting the after-tax net profit from this amount. The resulting number is $228,660.
To calculate the dividend declared by Colonial Furniture in 2019, we start with the retained earnings at the end of 2019 and subtract the retained earnings at the end of 2018.
This difference is then reduced by the net profit after tax for 2019.
To find the net profit after tax, we take the total net profits before tax and subtract the company's tax (which is calculated as 21% of the net profits before tax).
So, first, we find the difference in retained earnings between 2019 and 2018, which is $389,000 - $338,000 = $51,000.
Then, we calculate the net profits after tax, which is $354,000 - ($354,000 * 0.21) = $279,660.
Now, we subtract this from the increase in retained earnings: $51,000 - $279,660 = -$228,660.
Because dividends reduce retained earnings and we're looking for a reduction in retained earnings, we take the absolute value of this number to find the declared dividend, which is $228,660.
Learn more about Dividend declared here:
https://brainly.com/question/31809618
#SPJ3
The method used by managers when comparing unit costs with budgeted costs or other measures is broadly known as: Multiple Choice Account reconciliation. Sales management. Cost control. Employee evaluation.
Answer:
Option A, ACCOUNT RECONCILIATION.
Explanation:
Reconciliation is an accounting process that compares two sets of records to check that figures are correct and in agreement. Account reconciliation also confirms that accounts in the general ledger are consistent, accurate, and complete.
Account reconciliation is particularly useful for explaining the difference between two financial records or account balances.
* Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations.
* Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process.
* An employee evaluation is the assessment and review of a worker’s job performance.
The method used by managers when comparing unit costs with budgeted cost or other measures is broadly known as ACCOUNT RECONCILIATION.
Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used S1 Department S1 S2 P1 P2 Direct costs $180,000 $162.000 $ 197000 $140000 S2 0.70 P1 0.10 0.300.50 P2 0.20 0.20 Under the step-method of cost allocation, the amount of costs allocated from $2 to P2 would be_________________.a. $81000b. $84 250c. $180,000d. $93.500
Solution:
S1 $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )
S2 total is $162,000 + $126,000 = $288,000
S2 $126,000 is allocated 19.7% to P2 or $81000
Under the step-method of cost allocation,
the amount of costs allocated from $2 to P2 would be $81000
Cohesion case Consider the types of hardware and software your business requires. You should consider the following: computers, mobile devices, servers, hardware for reading credit cards, telephones, etc. You should consider software requirements for: bookkeeping, customer payments, mobile apps, employee payroll, etc. Will you use local servers or a Cloud computing structure? You need to be thinking about what will be required within the first six months of updating your business. Describe everything you need to get your company up to date?
Answer:
human Resources
Explanation: the company will after having hardware and software, will require the services of human resources, a management structure to drive both the hardware and the software. building, motor vehicle, policies, visions and mission that will give the company direction to follow.
To update your company, you'll need computers, mobile devices, servers, credit card readers, telephones, as well as bookkeeping, payment processing, mobile apps, and payroll software. Cloud computing and collaboration platforms will aid in document sharing and communication, while office suite software will support daily operations.
Explanation:To bring your company up to date with its digital and technical requirements within the first six months, you will need to consider acquiring various types of hardware and software. For hardware, this includes computers, mobile devices, servers, credit card reading hardware, and telephones. For software, you will need systems for bookkeeping, processing customer payments, possibly a mobile app, and employee payroll management. Deciding between using local servers or a Cloud computing structure will depend on the specific needs and scale of your business. Cloud computing options like Microsoft's OneDrive or Drive could be beneficial for document storage and sharing. Additionally, collaboration platforms such as Slack, , Zoom, and Microsoft Teams can facilitate communication and teamwork. Office suite software, like Microsoft Office, will be crucial for day-to-day operations, including the use of Word processors for document creation and revision, as well as spreadsheet software, such as Microsoft Excel, for data analysis and reporting.
Suppose a new process was developed that could be used to make oil out of seawater. The equipment required is quite expensive, but it would in time lead to low prices for gasoline, electricity, and other types of energy. What effect would this have on interest rates
Answer:
Interest rate will be higher
Explanation:
Funds invested in such opportunity will attract higher payoff,because only higher interest rate can be paid to attract such funds. Fewer people are ready to safe because they needed to consume their money in the purchase of expensive gasoline. The investment risk is higher because the returns are higher and that is what all investors look out for.Under what conditions could a company artificially increase their current ratio at the end of their accounting reporting period by taking out a short term loan and placing the proceeds in the cash account? a. When the current ratio is equal to one before this transaction. b. When the current ratio is less than one before this transaction. c. When the current ratio is greater than one before this transaction. d. The company's current ratio would not increase after this transaction.
Answer:
d. The company's current ratio would not increase after this transaction.
Explanation:
Taking out a short-term loan includes taking out cash via short-term loan. Present liabilities are known as short term loan.
Revenues from Short term loan positions in cash account meaning that current assets will grow as cash is listed as current assets.
This implies the existing liabilities are now raised in the same proportion as the current assets.
Current Ratio formula is as follows, Current Ratio = Current Assets / Current Liabilities.
If the current assets and current liabilities are both increased in the same proportion then this ratio has no impact.
Which means the ratio won't change after this transaction.
Answer:
The answer for the condition under which a company could artificially increase their current ratio at the end of their accounting reporting period by taking out a short term loan and placing the proceeds in the cash account is option A) When the current ratio is equal to one before this transaction.
Explanation:
When a company seeks to increase their current ratio at the end of their account reporting, It shows that the company is less liquid and the business is closer to having no working capital.
In terms of current ratio for the condition of less liquidity, the current ratio is either approaching one and when it finally gets to 1:1, a company will be forced to take a short term loan as shown in the question to aid with operating expenses while taking the necessary steps to reduce liability and increase assets.
The following information is available for Birch Company at December 31:
Money market fund balance $2,790
Certificate of deposit maturing June 30 of next year $10,000
Postdated checks from customers $1,475
Cash in bank account $21,430
NSF checks from customers returned by bank $650
Cash in petty cash fund $200
Inventory of postage stamps $24
U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $5,000
Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:
A $29,420
B $41,345
C $31,345
D $39,420
E $38,770
Answer:
Cash and cash equivalents of $29,420,option A.
Explanation:
The amount of cash and cash equivalents Birch should report on December 31 is made up of the following:
Money market fund balance $2790
Cash in bank account $21430
Cash in petty cash fund $200
U.S treasury bill $5000
Total cash and cash equivalents $29,420
Cash and cash equivalents are resources of the company that are readily amount of cash and those can could be easily converted to cash without significant portion of its value.
Money market fund is the fund set aside for trading in securities on a recognized exchange ,since securities being bought and sold are tradeable on stock exchange,the securities can be converted into cash in no distant time.
U.S treasury bills are viewed as cash equivalent if maturity is less than 3 months.
Bruno Company accumulates the following data converning a mixed cost, using miles as the activity level.
.......................Miles Driven......................Total Cost
January........... 8,000...................................$14,150
February..........7,500...................................$13,500
March..............8,500.................................. $15,000
April................. 8,200................................. $14,490
Compute the variable - and fixed-cost elemts using the high-low method.
Answer:
The answer is stated below:
Explanation:
Taking the highest and second lowest cost and miles driven as:
Cost = Highest - Lowest
Cost = $15,000 - $14,150
Cost = $850
Miles Driven = Highest - Lowest
Miles driven = 8,500 - 8,000
Miles Driven = 500
So,
= Cost / Miles driven
= $850 / 500
= $1.70
Total Cost would be 15,000 and 13,500
So, computing the variable cost as:
Variable cost of highest cost (VC) = Miles driven of $15,000 cost × $1.70
VC = 8,500× $1.70
VC = $14,450
Variable cost of lowest cost (VC) = Miles driven of $13,500 cost × $1.70
VC = 7,500× $1.70
VC = $12,750
Computing fixed cost as:
Fixed cost of highest cost = Total cost - VC
= $15,000 - $14,450
= $550
Fixed cost of lowest cost = Total cost - VC
= $13,500 - $12,750
= $750
Reliable is debating whether to add 2 million units or 1.5 million units of capacity to the Asia plant. The larger plant increase will cost $18 million, whereas the smaller addition will cost $15 million. Assume that Reliable users a discount factor of 10 percent. What do you recommend?
Answer:
Explanation:
10% of 18 million =1.8 million for 2 million units
10% of 15 million =1.5 million for 1.5 million units
For 2 million units at 10 percent discount you would spend
18 million -1.8 million= 16.2 million
For 1.5 million units at 10 percent discount you would spend
15 million -1.5 million = 13.5 million
You have a shortfall of 500 000 units between spending 16.2 million and 13.5 million.
My strong recommendation will be to use $15 million.
In a small, closed economy, national income (GDP) is $ 500.00 million for the current month. Individuals have spent $ 300.00 million on the consumption of goods and services. They have paid a total of $ 200.00 million in taxes, and the government has spent $ 150.00 million on goods and services this month. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy?
Answer:
The total investment in the economy is $50 million
Explanation:
The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports)
Using this formula we can determine the amount of investment.
Investment = 500 (GDP) - 300 (private consumption) - 150 (government spending) = $50.
Crossett Trucking Company claims that the mean weight of its delivery trucks when they are fully loaded is 6,000 pounds and the standard deviation is 310 pounds. Assume that the population follows the normal distribution. Fifty-five trucks are randomly selected and weighed.
Answer:
95% of 55 trucks will have weights between 5915.5 lbs and 6084.5 lbs
Explanation:
Complete question:
Crossett Trucking Company claims that the mean weight of its delivery trucks when they are fully loaded is 6,000 pounds and the standard deviation is 310 pounds. Assume that the population follows the normal distribution. Fifty-five trucks are randomly selected and weighed. Within what limits will 95% of the sample mean occur
Subtract 1 from sample size to find degree of freedom(df). Here sample size is 55,sodf= 55-1= 54
To determine α, subtract confidence interval from 1 and then divide by 2. Here confidence interval is 95% or 0.95, soα= (1-0.95)/2= 0.025
Use t-distribution table(see attachment) to find t-value for α=0.025 and df=54. So t=2.021(since df=54 is not listed in the table, I have used the table row corresponding to the next lowest value of df that is 40)divide sample deviation, 310, by root of sample size that is 55. So,[tex]\frac{310}{\sqrt{55} }[/tex]= 41.8
Now multiply the answers from last two steps 41.8 × 2.021= 84.5lower limit= 6000-84.5=5915.5upper limit= 6000+84.5=6084.595% of 55 trucks have weights between 5915.5 lbs and 6084.5 lbs
Tangshan Mining borrowed $100,000 for one year under a line of credit with a stated interest rate of 7.5 percent and a 15 percent compensating balance. Normally, the firm keeps almost no money in its checking account. Based on this information, the effective annual interest rate on the loan is ________.
Final answer:
The effective annual interest rate for Tangshan Mining, which borrowed $100,000 at a stated interest rate of 7.5% with a 15% compensating balance, is approximately 8.82%.
Explanation:
To calculate the effective annual interest rate on a loan with a compensating balance, you need to consider the actual amount of loan funds available for use. For Tangshan Mining, which borrowed $100,000 with a compensating balance of 15%, this means $85,000 is available ($100,000 less the 15% compensating balance of $15,000). The stated interest rate is 7.5%, but since the company must maintain a 15% compensating balance, the effective interest rate is higher. The effective interest rate can be calculated by dividing the annual interest by the available funds. The annual interest amount is the product of the total loan amount and the stated interest rate, which is $100,000 * 7.5% = $7,500. To find the effective annual interest rate, divide $7,500 by $85,000 and multiply by 100 to convert to a percentage. This gives us an effective annual interest rate of approximately 8.82%.
The effective annual interest rate on the loan is 8.82%.
The firm borrowed $100,000 at an annual interest rate of 7.5 percent.A 15 percent compensating balance requirement means the company must keep 15 percent of $100,000 in the bank, which is $15,000.This means the firm effectively has access to only $85,000 ($100,000 - $15,000).The interest to be paid on the $100,000 loan is $7,500 ($100,000 × 7.5%).The effective interest rate is then calculated as the actual interest paid divided by the usable funds: $7,500 / $85,000 = 0.0882 or 8.82%.Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,550, $1,750, $1,750, and $2,050. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
You are looking to buy a car. You can afford $360 in monthly payments for four years. In addition to the loan, you can make a $1,900 down payment. If interest rates are 9.25 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Answer: a) total value of deposits becomes $18,332
b) price of car affordable is $17716.93364
Explanation:detailed calculation and explanation is shown in the image below
Final answer:
You can calculate the future value of deposits made in different years and determine the maximum price of a car you can afford based on monthly payments and down payment with a given interest rate.
Explanation:
Future Value of Deposits:
Year 1: $1,550(1.03)^5 = $1,818.35Year 2: $1,750(1.03)^4 = $1,932.73Year 3: $1,750(1.03)^3 = $1,868.13Year 4: $2,050(1.03)^2 = $2,121.32Car Affordability Calculation:
Monthly payment for 4 years: $360, Down payment: $1,900, Interest rate: 9.25%
Using the loan payment formula, you can afford a car priced at approximately $15,338.43.
Probett Toy Company makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continuous, the motors are intermittent flow. Demand is 2000 units per month, setup costs are $85 per batch, carrying costs are $2.00 per unit per year, daily subassembly production rate is 1000 units and daily subassembly usage rate is 400 units. To minimize cost, how large should each batch of subassemblies be?
Answer: 1683 units
Explanation:
On April 1, 2018, On April 1, 2018, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $570,000 to its supplier using a 12-month, 11% note. Required: 1. The loan of $570,000 and acceptance of the note receivable on April 1, 2018. 2. The adjustment for accrued interest on December 31, 2018. 3. Cash collection of the note and interest on April 1, 2019. Record the above transactions for Shoemaker Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $570,000 to its supplier using a 12-month, 11% note. Required: 1. The loan of $570,000 and acceptance of the note receivable on April 1, 2018. 2. The adjustment for accrued interest on December 31, 2018. 3. Cash collection of the note and interest on April 1, 2019. Record the above transactions for Shoemaker Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Explanation:
1. April 1, 2018
Dr Notes Receivable 570,000
Cr Cash 570,000
2. Dec 31, 2018
Dr Interest Receivable 47,025
Cr Interest revenue 47,025
*Interest Revenue = Face value*Annual int. rate*Fraction of the year = 570,000*11%*9/12 = 47,025
3. April 1, 2019
Dr Cash 632,700
Cr Notes receivable 570,000
Cr Int receivable 47,025
Cr Int revenue 15,675
*Int revenue = 570,000*11%*3/12 = 15,675
Answer:
JOURNAL ENTRIES
1) Debit Note Receivable $570,000 Credit Bank $570,000
2) Debit Accrued Interest income $47,025 Credit Interest income $47,025
3) Debit Bank $632,700 Credit Note receivable $570,000 Credit Accrued interest income $47,025 Credit interest income $15,675
Explanation:
Interest income = $570,000 * 11% * 9/12 = $47025 for 2018
interest income for 2019 = $570,000*11%*3/12 = $15,675
Four friends plan to form a corporation for purposes of constructing a shopping center. Charlie will be contributing the land for the project and wants more security than shareholder status provides.
He is contemplating two possibilities:
receive corporate bonds for his land or take out a mortgage on the land before transferring it to the corporation.
Comment on the choices Charlie is considering. What alternatives can you suggest?
Charlie is contemplating the degree of risk and security in either receiving corporate bonds or mortgaging the land before transferring it to the corporation. Both options have their pros and cons related to risk, cash flow, and personal financial responsibility. Another possibility for Charlie is to enter the corporation as a secured creditor by lending the corporation money secured by the land.
Explanation:Charlie's deliberation between receiving corporate bonds for his land or taking out a mortgage on the land prior to its transfer to the corporation involves weighing different levels of security and risk. If Charlie opts for corporate bonds, he essentially exchanges his land for debt securities that can be monetized or held until maturity. This option has a predictable cash flow, though it may not increase in value. However, the risk is the corporation's solvency and bond coverage.
If he mortgages and then transfers the land, he can access immediate funds, retaining a sort of ownership on the property due to the lien. However, this increases his personal financial burden as he is legally obligated to repay the mortgage, even if the corporation fails.
An alternative suggestion might include entering the corporation as a secured creditor where instead of receiving shares, Charlie lends money to the corporation using the land as security for the loan. This could potentially offer more security than being just a shareholder.
Learn more about Corporate Bonds vs Mortgage here:https://brainly.com/question/34886392
#SPJ3
Some research has suggested that laissez faire leadership in conjunction with transactional and transformational leadership may be most effective, bringing to light one of the main themes in the textbook, which is ______.
A. situational leadership is the most effective form of leadership
B. oftentimes the best approach is a combination of leadership approaches
C. the traits of effective leaders depend on the context
D. all leadership approaches have an element of laissez faire
Answer:
D. all leadership approaches have an element of laissez faire.
Explanation:
Laissez faire is the leadership style where the leader sets objectives, communicates them, and leaves the employees toale decision on how to achieve the set targets.
This style of leadership goes with some level of trust as the leader is hands off from the day to day activities of subordinates.
Every leadership style Jada degree of laissez faire because the leader cannot do everything but must delegate some functions.
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:
Job X32Z
Beginning balance $ 7,000
Charged to the job during May
Direct materials $ 12,600
Direct labor $ 3,500
Manufacturing overhead applied $ 6,900
Units completed 250
Units in process at the end of May 0
Units sold during May 115
In May, overhead was overapplied by $450. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied.
Required:
1. Using the direct method, what is the cost of goods sold for May?
Cost of good sold: ______
2. What is the total value of the finished goods inventory at the end of May?
Total cost of ending finished good inventory: ______
3. What is the total value of the work in process inventory at the end of May?
Ending work in process inventory: _______
Answer:
1 Cost of goods sold $ 13,350
2. Value of finished goods ending inventory $ 16,200
3. Value of work in process inventory $ 0
Explanation:
Computation of cost of goods sold
Determination of per unit cost
Opening balance $ 7,000
Direct Materials $ 12,600
Direct Labour $ 3,500
Manufacturing overhead applied $ 6,900
Total cost of Job X32Z $ 30,000
Units completed 250
Cost per unit $ 120
Units sold 115 units
Cost of goods sold $ 120 * 115 $ 13,800
Add; Adjustment for over applied overhead $ ( 450)
Cost of goods sold $ 13,350
Computation of Finished Goods Inventory value
Units produced 250
Units sold 115
Units in ending inventory 135
Cost per unit $ 120 per unit
Value of ending inventory $ 120 unit * 135 units $ 16,200
Computation of Work in process inventory
There are no units in process at the end of May, so there is no work in process. so then value is $ 0
Final answer:
The cost of goods sold for Morrow Corporation in May was $29,100. The total value of the ending finished goods inventory was $34,155. Since Job X32Z was the only job and it was completed, the ending work in process inventory was $0.
Explanation:
Calculation of Cost of Goods Sold for May
Cost of goods sold (COGS) is the carrying value of goods sold during a particular period. Jobs are measured by the costs of direct materials, direct labor, and manufacturing overhead applied, and these costs must be adjusted for any overapplied or underapplied overhead to determine the accurate cost of goods sold.
In this scenario with Morrow Corporation, we calculate COGS for May by adding the beginning balance to the additional charges incurred during May and subtracting the overapplied overhead.
COGS = Beginning Balance + Direct Materials + Direct Labor + Manufacturing Overhead Applied - Overapplied Overhead
COGS = $7,000 + $12,600 + $3,500 + $6,900 - $450
COGS = $29,550 - $450
COGS = $29,100
Total Value of Finished Goods Inventory at the End of May
The total cost of the ending finished goods inventory can be calculated by taking the total costs accumulated for the job and subtracting the cost of goods sold. Only 115 out of 250 units were sold, which means the remaining units are part of the finished goods inventory.
Total job cost = COGS (for units sold) + Cost of ending inventory
Since COGS for 115 units is $29,100, we need to find the cost per unit and then multiply it by the number of unsold units to find the ending inventory value.
Cost per unit = Total COGS for May / Units sold = $29,100 / 115
Cost per unit = $253
Cost of ending inventory = Cost per unit × (Total units completed - Units sold)
Cost of ending inventory = $253 × (250 - 115)
Cost of ending inventory = $253 × 135
Cost of ending inventory = $34,155
Value of Work in Process Inventory at the End of May
Ending work in process inventory refers to the costs associated with the production that has not been completed by the end of a period. Since Job X32Z was completed in May and there was no mention of any other jobs in process, the ending work in process inventory for Morrow Corporation would be $0.
A major purpose of SPIN (situation questions, problem questions, implication questions, and need-payoff questions) or ADAPT (assessment questions, discovery questions, activation questions, projection questions, and transition questions) is to help a salesperson identify the _____ of a product for a buyer.
Answer:
The correct word for the blank space is: confirmed benefits.
Explanation:
SPIN (situation questions, problem questions, implication questions, and need-payoff questions) is an approach used by salespeople to understand the current situation of consumers and through a series of four (4) questions help them understand the implications of the decision they will take thanks to the solution the salesperson is to provide.
ADAPT (assessment questions, discovery questions, activation questions, projection questions, and transition questions) as well as SPIN, aims to assess consumers in their decision-making. The difference relies on how the questions are formulated. ADAPT uses a sequence of questions starting from the broadest questions to end with the most specific, narrow inconvenience the consumer might have.
Both SPIN and ADAPT allow salespeople to find out what are the confirmed benefits of the product that should be offered to the clients.
Answer:
Comfirmed Benefits
Explanation:
I'm pretty sure it wrong, but why not try to answer it...
XYZ makes and sells bicycle parts. Last year XYZ sold 6,000 handlebars, generating sales of $180,000. This year they are considering a new pricing strategy with a target profit goal of $72,000. They determined that for every $2 increase to the selling price, a 100 decrease in unit sales was expected. Their total costs were $100,000 with fixed costs accounting for $64,000. This year, XYZ is considering changing the selling price to $36.
a) What was XYZ's average selling price per handlebar last year?
b) What were XYZ's total variable costs last year?c)What were XYZ's average unit variable costs last year?
d) What were XYZ's average unit contribution margins ($) last year?
Answer:
a. XYZ's average selling price per handlebar last year was $30
b.
XYZ's total variable costs last year were $36,000
c. XYZ's average unit variable costs last year were $6
d. XYZ's average unit contribution margins ($) last year were $24
Explanation:
a.
XYZ's average selling price per handlebar last year = Total Sales/number of handlebars sold = $180,000/6,000 = $30
b.
XYZ's total variable costs last year = total costs - fixed costs = $100,000 - $64,000 = $36,000
c. XYZ's average unit variable costs last year = Total variable costs/number of handlebars = $36,000/6,000 = $6
d. XYZ's average unit contribution margins ($) last year = Selling price per handlebar - average unit variable costs = $30 - $6 = $24
The price which the consumers pays for a service or product is called the selling price while the variable cost is the amount that varies according to the companies sale and produce.
The prices are a) $30, b) $36000, c) $6 and d) $24.
The values can be estimated as:
Given,
Number of handlebars sold = 6000Annual sales = $180,000Profit Goal = $72,000Total cost = $100,000Fixed cost = $64,000Selling Price = $36a. XYZ's average selling price (SP) per handlebar last year:
[tex]\rm Selling\; Price = \dfrac {Total \;Sales}{Number\; of\; handlebars\; sold}[/tex]
[tex]\rm Selling\; Price = \dfrac {\$ \;180,000}{6000}\\\\= \$30[/tex]
b. XYZ's total variable costs (VC) last year:
[tex]\rm Variable\; cost = Total\; costs - Fixed \;costs[/tex]
[tex]\rm VC = \$100,000 - \$64,000 \\\\= \$36,000[/tex]
c. XYZ's average unit variable costs (VC) last year:
[tex]\rm VC = \dfrac {Total \;variable \;costs}{Number\; of \;handlebars}[/tex]
[tex]\rm VC = \dfrac{\$36,000}{6,000} \\\\= \$6[/tex]
d. XYZ's average unit contribution margins ($) last year:
[tex]\rm Contributional\; margin = Selling\; price\; per\; handlebar - Average\; unit \;variable \;costs[/tex]
[tex]\rm Margin = \$30 - \$6 \\\\= \$24[/tex]
Thus, a) $30, b) $36000, c) $6 and d) $24 are the prices.
To learn more about selling price and variable cost follow the link:
https://brainly.com/question/22401743
Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $480,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,100. Merchandise with an invoice amount of $3,200 was returned for credit. Cost of goods sold for the year was $366,000. Northwest uses a perpetual inventory system.
What is ending inventory assuming Northwest uses the gross method to record purchases?
Answer:
$210,596
Explanation:
Northwest Fur Co.
Beginning inventory $105,000
Inventory purchase $480,000
Freight $9,100
Merchandise return ($3,200)
Discounts [(480,000-3,200)×3%] ($14,304)
Cost of goods available for sale $576,596
Cost of goods sold ($366,000)
Ending inventory $210,596
Therefore the ending inventory assuming Northwest uses the gross method to record purchases is $210,596
Answer: $210,596
Explanation:
GIVEN the following ;
Beginning inventory = $105,000
Inventory Purchased = $480,000
Discount = 3% = 0.03
Freight charge = $9,100
Returned merchandise = $3,200 Cost of goods sold = $366,000
Calculate the ending inventory :
Discount = $(480,000 - 3200) × 0.03
Discount = $14,304
Cost of goods sold = (Beginning inventory + inventory purchased + Freight - ending inventory) - (returned merchandise + discount)
$366,000 = $(105,000 + 480,000 + 9,100 - ending inventory) - $( 3,200 + 14,304)
$366,000 = $594,100 - ending inventory - $17,504
$366,000 = $576,796 - ending inventory
Ending inventory = $(576,596 - 366,000) = $210,596
:
The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $700. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $8,000. Mar. 4 Purchased office supplies for $700 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $7,800 on account for the services previously recorded What is the balance in Cash on March 6?
The balance in the Cash account on March 6, after accounting for the listed transactions, is $10,400.
To calculate the balance in Cash on March 6, we need to account for all the cash inflows and outflows from March 1 through March 6, as per the transactions given. Here's a breakdown of the cash transactions:
Mar. 1: Cash inflow from issued common stock: +$7,000
Mar. 2: Rent payment: -$700
Mar. 3: Purchase of equipment by paying cash: -$3,000
Mar. 4: Purchase of office supplies: -$700
Mar. 5: No change in cash as it is billing on account.
Mar. 6: Received cash for services: +$7,800
Starting with the initial cash balance of $0 before March 1st, we can add and subtract these amounts to find the final cash balance.
Calculation:
Starting balance: $0
Add $7,000 (common stock issued)
Subtract $700 (rent)
Subtract $3,000 (equipment purchase)
Subtract $700 (office supplies)
Add $7,800 (cash received for services)
Final Cash balance on March 6 = $0 + $7,000 - $700 - $3,000 - $700 + $7,800 = $10,400.
Therefore, the balance in the Cash account on March 6 is $10,400.
Scenario 13-6 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce Refer to Scenario 13-6. An economist would calculate Ziva's total cost of farming to equal _____________.A. $300B. $250C. $130 D. $380
Answer:
The correct answer is:
$380 (D.)
Explanation:
The cost of production of a good or service is the amount used up or forfeited in the production of the good or service. In this scenario, from Ziva used 10 hours for farming and because she dedicated 10 hours, if she had been available for her consultancy service which paid her $25 per hour, she would have earned a total of $250 at the end of the 10 hours she used in farming. In addition, she also spend $130 on the seed that she used for planting, which is the direct cost of farming (production). Hence the total amount given up in the farming process will make up the total cost of farming, and this includes; the $250 given up for consultancy, and the $130 spent on seeds, hence, the total cost of production is;
= 250 + 130 = $380