Explanation:
The preparation of the contribution margin income statement is presented below:
Sales (71,500 × $6) $429,000
Less: Variable cost
Commission of 5% of sales ($21,450)
Manufacturing cost (71,500 × $0.45) ($32,175)
Contribution margin $375,375
Less: Fixed cost
Monthly rent ($12,000)
Payment to staff ($79,000)
Net income $284,375
This year, Barney and Betty sold their home (sales price $660,000; cost $180,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income
Answer:
The whole of the $480,000 gained
Explanation:
Barney and Betty are selling their home for $660,000 and the cost incurred is $180,000. Their net profit is 660,000-180,000= $480,000.
However Barney and Beth have lived in the house for 18 months, they have not stated for up to two years, so they do not meet the two year ownership and use test.
All of the gain on the sale will be included as gross income. That is the whole $480,000 gained.
1. When a business finds it necessary to layoff some employees (due to slowing sales), what positive effects might this have for the business?
2. Mr. Smith was disabled in a car accident in 1995 and has not been able to work since. Is Mr. Smith included in the unemployment statistics? Why or why not?
Answer:
PART A
(1) To reduce wastages
(2) To increase profit margin
(3) To reduce cost of operations.
PART B
(1) NO,he is not included
(2) Because he is unable to work or be gainfully employed.
Explanation:
Layoff is a manpower management process through which Organisations down size their manpower strength or number in order to meet certain specified Objectives. Layoffs usually takes place in Organisations that are not meeting their Strategic objectives such profit making,cost reduction and Control etc.
Unemployment is a term used to describe the inability of a person or group of persons who are willing and have the capacity to work but could not secure gainful employment in an economy.
MR. SMITH DOES NOT HAVE THE CAPACITY TO WORK,HENCE HE CAN NOT BE INCLUDED IN THE UNEMPLOYMENT STATISTICS.
When the price of Nike tennis shoes goes from $100 to $80, the quantity demanded increases from 20 to 30 million. Over this price range, the absolute value of the price elasticity of demand is a. 1. b. 1.80. c. 2.50. d. 0.55. e. 1.25
Answer:
c. 2.50.
Explanation:
Elasticity of demand is defined as the degree of responsiveness of quantity demanded to changes in the price of a commodity. It is calculated as percentage change in quantity demanded divided by percentage change in price.
Elasticity is considered elastic if the value is above one, and is means an increase in price results in significant decrease in demand.
When elasticity is less than 1 it is said to be inelastic and increase in price does not result in significant change in demand.
Percentage change in quantity= (30millon- 20 million)/20 million= 0.5
Percentage change in price= (100-80)/100
Percentage change in price= 20/100= 0.2
Elasticity= 0.5/0.2= 2.5
To calculate the price elasticity of demand for Nike tennis shoes when the price goes from $100 to $80 and quantity demanded increases from 20 to 30 million, the elasticity is calculated as 1.80.
Explanation:Price elasticity of demand measures how the quantity demanded of a good changes with a change in its price. To calculate it, you can use the formula: percentage change in quantity demanded divided by the percentage change in price. In the given scenario of Nike tennis shoes, the price elasticity of demand is 1.25, which represents a relatively elastic demand.
To calculate the price elasticity of demand, we need to determine the percentage changes in both price and quantity demanded. The original price decreases from $100 to $80, which is a $20 decrease on a base of $90 (the average of $100 and $80), leading to a -22.22% change in price. The quantity demanded increases from 20 million to 30 million, which is an increase of 10 million on a base of 25 million (the average of 20 million and 30 million), resulting in a 40% change in quantity demanded. The formula for price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price, which gives us -40% / -22.22% = 1.80.
A sudden increase in inflation, ceteris paribus, a. Raises the real income of lenders relative to borrowers. b. Raises the CPI and reduces real income. c. Reduces the nominal income of those who have constant real incomes. d. Makes everyone worse off.
Answer: Raises the CPI and reduces real income.
Explanation:
Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.
Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.
1. Do you believe that ERM will continue to evolve, and if so, how? 2. Do believe that risk is a two-sided coin with both upside gains and downside losses? 3. How is value measured in your organization and do you believe the ERM process can add new value? 4. Besides risk maps and value maps, what other tools and techniques are available to manage risk and make risk-informed decisions?
Answer:
Explanation:
1. Yes, I believe that ERM will continue to evolve as long as the world is evolving. In the course of recent decades, ERM has advanced from ideas and vision of how the risks ought to be routed to a technique that is getting to be dug in the present day and is currently progressively expected by those in oversight roles. As Felix Kloman depicts in his section “A Brief History of Risk Management,” distributed in Fraser and Simkins (2010), a considerable lot of the ideas return an exceptionally prolonged stretch of time and a significant number of the purported newfound procedures can be referenced to the previous works and practices portrayed by Kloman. In any case, it is just from around the mid-1990s that the idea of giving a name to overseeing dangers in an all-encompassing manner over the many working storehouses of an endeavor began to grab hold. During the 1990s, terms, for example, incorporated risk the executives and enterprise wide chance administration were likewise utilized. Many idea pioneers, for instance, the individuals who made ISO 31000, accept that the term risk the executives is all that is expected to portray great risk the board; in any case, numerous others accept that the last term is regularly used to depict chance administration at the lower dimensions of the association and does not really catch the ideas of big business level ways to deal with risk. As ERM keeps on developing there is still much exchange and perplexity over precisely what it is and how it ought to be accomplished. Realize that it is as yet advancing and may take a lot more years before it is completely systematized and polished in a reliable manner. Truth be told, there is a grave peril now of accepting that there is just a single method for doing ERM. This is most likely an error by controllers who have too anxiously held onto a portion of these ideas and are attempting to force them when the strategies are not completely comprehended, and now and again the necessities are probably not going to deliver the ideal outcomes.
2. Indeed. The connection among return and risk resembles the different sides of a coin: the upside to a cave man of effectively chasing a mammoth is that he may nourish his family for a month (i.e., the arrival), or he may get trampled by his potential prey (i.e., the risk). He could choose to concentrate on getting hares rather (i.e., littler returns), with impressively diminished danger of getting destroyed by such a prey. The higher the arrival, the more noteworthy the risk, while lower returns accompany less risk in a continuum that money hypothesis names as the proficient boondocks. There might be an intriguing parallel with going out on a limb, basic leadership, guideline and the financial framework. The primary role of a bank, one could contend, is risk intermediation. Pre-emergency, stacking up with risk (and influence) was “something to be thankful for” that produced out-sized returns for banks, investors and obviously for the financiers themselves. Guideline presently shapes practically every part of movement in a bank. While at the extreme as a division, brokers are conviction not the only one in confronting developing examination.
3. Most companies focus around high metrics that measure advance toward accomplishing an company’s vision, mission, and values. Likewise, we need to make sure to quantify the significant results of long-term company achievement instead of just estimating what is anything but difficult to gauge. Our measures ought to have the option to be evaluated as far as quantity, quality, time, and cost. They likewise place that there are 4 basic key achievement measures and one aux measure that are all of incredible worth. The 4 fundamental key measures are: 1. Financial viability. Ex: profits. 2. Customer fulfillment. Ex: performance on consumer loyalty overviews. 3. Employee fulfillment. Ex: performance on employee fulfillment overviews. 4. Contribution to society. Ex: number of trees spared by creating paperless procedures. The one aux measure is: 5) Key operational outcomes. Ec: percent of hotel rooms were occupied.
4. The Risk Informed Decision making can be expanded in to sequence of six process steps.1. Identification of Alternatives: Understanding the stakeholder expectations and derive the performance measures Compile the feasible alternatives2. Risk Analysis of Alternatives Set the Framework and Choose the Analysis Methodologies Conduct the Risk Analysis and Document the Results3. Risk-Informed Alternative Selection Develop Risk-Normalized Performance Commitments Deliberate, Select an Alternative, and document the decision rationalesUsing risk to inform decisions involves three distinct components . These components, each having their own purpose and function, are: Risk analysis Risk assessment Risk management The tools and techniques used for managing and make RIDM.
The following income statement contains errors.Curbstone CompanyIncome StatementFor the Year Ended August 31, 20161 Sales $8,595,000.00 2 Cost of merchandise sold 6,110,000.003 Income from operations $2,485,000.004 Operating expenses: 5 Selling expenses $800,000.00 6 Administrative expenses 575,000.00 7 Delivery expense 425,000.00 8 Total operating expenses 1,800,000.009 $685,000.0010 Other income and expense: 11 Interest revenue 45,000.0012 Gross profit $640,000.00Identify the errors by preparing a corrected multiple-step income statement. Be sure to complete the heading of the statement. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.
Final answer:
To correct the income statement, the gross profit must be calculated by subtracting the cost of merchandise sold from sales, and the net income is determined by adjusting the income from operations with other income, such as interest revenue.
Explanation:
The income statement provided contains several errors that we need to correct to present the financial performance properly. The corrected multiple-step income statement should sequentially deduct various costs and expenses from the sales to arrive at net income. It is also important to correctly categorize and sequence items like gross profit, income from operations, and total operating expenses.
Corrected Income Statement
Curbstone Company
Income Statement
For the Year Ended August 31, 2016
An assembly drawing: Question 22 options: A) shows an exploded view of the product. B) describes the dimensions and finish of each component. C) shows, in schematic form, how the product is assembled. D) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material. E) provides detailed instructions on how to perform a given task.
Answer:
A) shows an exploded view of the product.
Explanation:
An assembly drawing is a technical drawing that displays all parts of a product and how they fit together. Multiple drawings from various angles are used to give the user an idea of how the parts for together.
Assembly drawings may also involve instructions, list of component parts, reference numbers, and specification information.
Assembly drawings are presented in two forms: the exploded pictorial view, and the 2-D sectioned view.
A BBB-rated corporate bond has a yield to maturity of 7.7 %. A U.S. treasury security has a yield to maturity of 6.3 %. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 7.3 % and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? c. What is the credit spread on the BBB bonds?
Answer:
The price as a percentage of the treasury stock is 104.23%
The price as a percentage of the BBB-rated corporate bond is 98.37%
The credit spread on the bond is 1.40%
Find detailed computations in the attached.
Explanation:
The credit spread on BBB-rated corporate bond is the difference between its effective interest rate and the interest rate on the U.S government treasury security,that is:
7.7%-6.3%=1.40%
Note that the par value of a bond is usually $1000.
You expect KT industries (KTI) will have earnings per share of $4 this year and expect that they will pay out $1.75 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 13% and their equity cost of capital is 10%. The value of a share of KTI's stock today is closest to ________.
Final answer:
To calculate the value of a share of KTI's stock today, we use the Dividend Discount Model (DDM) to determine the present value of future dividend payments. By multiplying the expected payout ratio by the expected earnings per share, we can calculate the future dividends per share. Then, by discounting these future dividends to the present using the equity cost of capital, we can calculate the present value of the expected dividends per share. In this case, the value of a share of KTI's stock today is closest to $0.39773.
Explanation:
To calculate the value of a share of KTI's stock today, we need to determine the present value of the future dividend payments. We can use the Dividend Discount Model (DDM) to calculate this. First, we need to calculate the future dividends per share by multiplying the expected payout ratio (dividend per share / earnings per share) by the expected earnings per share. In this case, the expected dividends per share would be $1.75 (dividend per share) / $4 (earnings per share) = $0.4375.
Next, we calculate the present value of these future dividends by discounting them to the present using the equity cost of capital. We can use the formula PV = Dividend / (1 + r), where PV is the present value, Dividend is the expected dividend per share, and r is the equity cost of capital. In this case, r is 10%.
Using this formula, we can calculate the present value of the expected dividends as follows: PV = $0.4375 / (1 + 0.10) = $0.39773 (rounded to 5 decimal places). Therefore, the value of a share of KTI's stock today is closest to $0.39773.
The balance sheet reports the A. financial position on a specific date. B. financial position for a specific period. C. results of operations on a specific date. D. results of operations for a specific period
Answer:
c
Explanation:
Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate is 6%. Your client chooses to invest 85% of a portfolio in your fund and 15% in a T-bill money market fund.
a. What is the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.)
b. Suppose your risky portfolio includes the following investments in the given proportions:
Stock A 26%
Stock B 35%
Stock C 39%
What are the investment proportions of your client
Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
w1 * r1 + w2 * r285% * 18% + 15% * 6% = 16.20%The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
85% * 42% = 35.70%b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
Stock A = 85% * 26% = 22.10%Stock B = 85% * 35% = 29.75%Stock C = 85% * 39% = 33.15%T-bills = 15%These all add up to make 100%Answer:
1a)16.2% 1b)35.7% 2a. 2b. 2c
Explanation:
1a)Expected Return=Prop in risky*exp return+Prop in t-bill*return in t-bill
=(0.85*0.18)+(0.15*0.6)
=0.162/16.2%
1b) prop in Rsky *standard deviation of risky
= 0.85*0.42
=0.357/35.7%
2a. The prop invested in risky is 85% so
=0.85*0.26=0.221/21.2%
=0.85*0.35=0.2975/29.75%
=0.85*0.39=0.3315/33.15%
Eliza took her car to her regular mechanic, who had a private business. The mechanic often advertised on billboards, writing "Reliable fixes
and low costs" and "The cheapest prices." After getting her engine checked, she incurred over $2,000 in costs. Out of curiosity, she went to
a competing private firm that also fixed cars, and the private firm said that she paid significantly more to her mechanic than the costs of both
the parts and labor. Eliza sued her mechanic, alleging that she had been misled by her mechanics advertisements. The court applied the
Central Hudson test, and found the mechanic’s advertisements were misleading. The mechanic argued that pursuant to his first amendment
rights, his speech was protected, especially because they were generalizations that should not have been taken literally. The court ruled in
favor of Eliza, ordering the mechanic to pay Eliza for damages and to take the advertisements down.
But what if the facts of the case were different? Select the appropriate set of facts below that would change the outcome of the case.
a) The court found that the advertisements were not inherently misleading. However, it did find that regulating the advertisement in question
was more extensive than necessary to protect the public interest.
b) The court found that the advertising in question constituted commercial speech.
c) The court found that the advertisements in question did not advance the state’s interest.
d) The court finds that the speech in the advertisements is not misleading, but that the state’s interest would be advanced if the advertising in question were restricted
Answer: a) The court found that the advertisements were not inherently misleading. However, it did find that regulating the advertisement in question was more extensive than necessary to protect the public interest.
Explanation: An advertisement is a notice or action promoting a product or service and soliciting patronage.
When there is no regulation of an advert, abuse is expected. Protecting the public interest is important as advertisement may be misleading if there are no extensive rules.
In a situation whereby the mechanics advertisement was found not to be inherently misleading, a different verdict may have been given.
Answer:
a) The court found that the advertisements were not inherently misleading. However, it did find that regulating the advertisement in question was more extensive than necessary to protect the public interest.
Explanation:
The circumstances seemed distinct and by endorsing Eliza the court handed down a decision. However it is up to consumers to continue with ads or otherwise, which relies on their conscience.
Because while the purpose of an advertisement would be to make the people and encourage individuals to view it or listening to it.
This doesn't mean that everything in the image is honest and truthful and most of the time it's generic statements or vague generalizations.
In this respect, I assume that the important set of circumstances is: the court found that the ads were not intrinsically deceptive.
Nevertheless, it did find that the advertising in question was limited.
Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $961,000. Without new projects, both firms will continue to generate earnings of $961,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a return of 14 percent. (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16))
a. What is the current PE ratio for each company?
Price / Earnings ________________________ times
b. Pacific Energy Company has a new project that will generate additional earnings of $111,000 each year in perpetuity. Calculate the new PE ratio of the company.
Price / Earnings ________________________ times
c. U.S. Bluechips has a new project that will increase earnings by $211,000 in perpetuity. Calculate the new PE ratio of the firm.
Price / Earnings ________________________ times
Answer:
a.
Price / Earnings 7.04 times
b.
Price / Earnings 7.14 times
c.
Price / Earnings 7.14 times
Explanation:
a.
Earning = $961,000
Rate of return = 14%
PV of Perpetuity = Cash flow / rate of return
PV of Perpetuity = $961,000 / 0.14 = $6,864,286
As we know that Price is the Present value of future cash flows which is perpetuity of $6,764,286.
Price Earning Ratio = $6,764,286/ $961,000 = 7.04 times
b.
Earning = $961,000 + $111,000 = $1,072,000
Rate of return = 14%
PV of Perpetuity = Cash flow / rate of return
PV of Perpetuity = $1,072,000 / 0.14 = $7,657,143
As we know that Price is the Present value of future cash flows which is perpetuity of $7,657,143.
Price Earning Ratio = $7,657,143/ $1,072,000 = 7.14 times
c.
Earning = $961,000 + $211,000 = $1,172,000
Rate of return = 14%
PV of Perpetuity = Cash flow / rate of return
PV of Perpetuity = $1,172,000 / 0.14 = $8,371,429
As we know that Price is the Present value of future cash flows which is perpetuity of $6,764,286.
Price Earning Ratio = $8,371,429 / $1,172,000 = 7.14 times
JHC, Inc. contributed $12,000 to its pension during the past year. Pension expense for the year was $35,000. What will be the adjustment line item for pensions in JHC's indirect style statement of cash flows?
Answer:
$23,000
Explanation:
The amount to be recognized in he adjustment line item for pensions in JHC's indirect style statement of cash flows will be the difference between the opening and closing balances of the pensions payable account.
This is same as the movements in the account. Given that the expense for the year is $35,000 and the amount paid was $12,000. It means that the account balance increased by
= $35,000 - $12,000
= $23,000
This will be represented as an inflow of $23,000
Kyler Shea Productions held investments in equity securities (in Essence Company) with a fair value of $ 60 comma 000 at December 31, 2018. These investments cost Kyler Shea Productions $ 55 comma 000 on January 1, 2018. What is the appropriate amount for Kyler Shea Productions to report for these investments on the December 31, 2018, balance sheet? (Assume that Kyler Shea has insignificant influence over Essence Company.)
Answer:
The fair value of $ 60 comma 000
Explanation:
Although under US GAAP, the basic accounting principle is historical cost principle in which original cost of purchasing assets are used to record most assets, especially fixed assets, despite that there might have been significant rise in their value over time.
However, not all assets are recorded at their historical cost. Financial assets which are intangible such as market securities are recorded in the balance sheet at their fair value. Intangible assets which have impaired are reduced their fair value from the historical cost.
Since investments in equity securities (in Essence Company) by Kyler Shea Productions is an intangible marketable security, the appropriate amount for Kyler Shea Productions to report for these investments on the December 31, 2018 in the balance sheet is fair value of $ 60 comma 000.
College sophomores were given a short course in speed reading. Three groups had courses lasting for 5, 15, or 25 sessions. At the conclusion of the course, participants were asked to read a paragraph, followed by a test of comprehension. Before taking the test, participants in each group were offered a monetary incentive-no money, $1, or $10 for a certain level of performance. The researcher collected the reading time and number of correct items on the comprehension test for each participant
Answer:
Answer explained below
Explanation:
College sophomores were given a short course in speed reading. Three groups had courses lasting for 5, 15, or 25 sessions. At the conclusion of the course, participants were asked to read a paragraph, followed by a test of comprehension. Before taking the test, participants in each group were offered a monetary incentive - no money, $1, or $10 for a certain level of performance. The researcher collected the reading time and number of correct items on the comprehension test for each participant.
1. Identify the design (e.g., 2 X 2 factorial).
Design = 3X3 factorial
2. Identify the total number of conditions.
3³= 27 conditions
3. Identify the manipulated variable(s).
Sessions( 5,15 and 25) and a monetary incentive(no money, $1, or $10)
4. Is this an IV X PV design? If so, identify the participant variable(s).
Yes. Participant variable are reading time
5. Identify the dependent variable(s).
Two dependent variables: reading time and number of correct items
1. The design is a 3X3 factorial design, which has independent and participant variables, showing that the k factors are considered at three levels as low, intermediate and high levels.
2. The total number of conditions of a 3X3 factorial design is 27, calculated as 3³, which = 27 conditions.
3. The manipulated variable(s) are the sessions (5, 15, and 25) and the monetary incentives (no money, $1, or $10).
4. The design is an IV X PV design. It features the independent variables (IV) and the participant variables (PV) The participant variable are identified as the three participant groups.
5. The dependent variables include the reading time and the number of correct items on the comprehension test for participants.
Question Completion:
1. Identify the design (e.g., 2 X 2 factorial).
2. Identify the total number of conditions.
3. Identify the manipulated variable(s).
4. Is this an IV X PV design? If so, identify the participant variable(s).
5. Identify the dependent variable(s).
Thus, a 3X3 factorial design always has k factors, with three levels, considered as low, intermediate and high levels.
Learn more about a 3X3 factorial design here: https://brainly.com/question/24405423
Courington Detailing's cost formula for its materials and supplies is $2,060 per month plus $12 per vehicle. For the month of August, the company planned for activity of 86 vehicles, but the actual level of activity was 46 vehicles. The actual materials and supplies for the month was $2,350. The materials and supplies in the planning budget for August would be closest to______________.
Explanation:
The material and supplies in the planning budget is
Planning Budget Actual
Materials $2,060 $2,350
Vehicles $1,032 $552
$3,092 $2,902
The vehicles for planning budget is
= 86 vehicles × $12
= $1,032
And, for the actual budget it is
= 46 vehicles × $12
= $552
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) $ 2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin 432,000 Fixed costs 324,000 Pretax income $ 108,000 Exercise 05-16 Break-even LO P2 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Selling price= 225
Unitary variable cost= 180
Fixed costs= 432,000
The break-even point method is useful to determine the level of unit and sales in dollars required to cover for the fixed costs.
To calculate the break-even point in units, we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 432,000/ (225 - 180)= 9,600 unts
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 432,000/ (45/225)= $2,160,000
Now, we can prove it:
Sales= 9,600*225= 2,160,000
Total variable cost= (9,600*180)= (1,728,000)
Contribution margin= 432,000
Fixed costs= (432,000)
Net operating profit= 0
Required information [The following information applies to the questions displayed below.] The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations. February 2, 2021 Provide services to customers on account for $26,000. July 23, 2021 Receive $17,000 from customers on account. December 31, 2021 Estimate that 20% of uncollected accounts will not be received. April 12, 2022 Provide services to customers on account for $39,000. June 28, 2022 Receive $6,000 from customers for services provided in 2021. September 13, 2022 Write off the remaining amounts owed from services provided in 2021. October 5, 2022 Receive $35,000 from customers for services provided in 2022. December 31, 2022 Estimate that 20% of uncollected accounts will not be received. Required: 1. Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Journal 1 : February 2, 2021 Provide services to customers on account for $26,000
Trade Receivables $26,000 (debit)
Revenue $26,000 (credit)
Journal 2 :July 23, 2021 Receive $17,000 from customers on account.
Bank $17,000 (debit)
Trade Receivables $17,000 (credit)
Journal 3 :December 31, 2021 Estimate that 20% of uncollected accounts will not be received
Profit and Loss $ 1,800 (debit)
Allowance for Doubtful Debts $ 1,800 (credit)
(26,000-17,000)×20%
Journal 4 :April 12, 2022 Provide services to customers on account for $39,000
Trade Receivables $39,000 (debit)
Revenue $39,000 (credit)
Journal 5 :June 28, 2022 Receive $6,000 from customers for services provided in 2021.
Bank $6,000 (debit)
Trade Receivables $6,000 (credit)
Journal 6 :September 13, 2022 Write off the remaining amounts owed from services provided in 2021.
Bad Debts $3,000 (debit)
Trade Receivables $3,000 (credit)
(26,000-17,000-6,000)
Journal 7 :October 5, 2022 Receive $35,000 from customers for services provided in 2022
Bank $35,000 (debit)
Trade Receivables $35,000 (credit)
Journal 8 :December 31, 2022 Estimate that 20% of uncollected accounts will not be received.
Profit and Loss $800 (debit)
Allowance for Doubtful Debts $800 (credit)
39,000-35,000×20% = 800
Explanation:
"Services to customers on account"
Recognise an Asset - Trade Receivables and also Recognise Revenue
"Receipt of Cash from Receivables"
Recognise the Assets of Cash and De-recognise the Trade Receivable
"Estimate of uncollected accounts"
Recognise an Expense in the Profit and Loss and recognise a Contra - Account Allowance for Doubtful Debts to De-recognise the Trade Receivables
A company began the year with $500 in raw materials and purchased $10,250 more during the year. If the company has $725 in raw materials at the end of the year, then they would report direct materials used of
Answer:
$10,025
Explanation:
The change in raw material account balance at the start of a period and at the end of the period is as a result of 2 factor namely; use and purchases.
While use will result in a decrease in the account balance, purchases will cause an increase. This may be expressed mathematically as
Opening balance + purchases - use = closing balance
$500 + $10,250 - G = $725
where G represents the cost of the materials used during the period
G = $500 + $10,250 - $725
= $10,025
"Another term for online word-of-mouth marketing is ________, which refers to the transmission of messages in much the same way that biological viruses are transmitted from person to person."
Answer:
The correct answer is letter "B": viral marketing.
Explanation:
Word-of-mouth marketing or viral marketing is the type of advertising consumers make of a product or service based on their own experiences. They could represent a benefit or a risk for the company of the product in reference since the comments being spread about it are based on subjective ideas.
Comments of people with a certain degree of influencing others are likely to affect more a firm's sales negatively or positively.
Jupiter Explorers has $7,800 in sales. The profit margin is 4 percent. There are 6,100 shares of stock outstanding, with a price of $1.80 per share. What is the company's price–earnings ratio?
Answer:
The company's price–earnings ratio is 36.
Explanation:
Price earning ratio is the ratio of market value of share to earning per share. It shows that how much investors are willing to pay for each dollar of earning of the company.
Profit margin = Net income / sales
0.04 = Net Income / $7800
Net Income = $7800 x 0.04 = $312
Earning Per share = Net Income / number of outstanding shares
Earning Per share = $312 / 6,100 = $0.05
Price earning ratio = Market price of share / Earning per share
Price earning ratio = $1.8 / $0.05 = 36
The company Jupiter Explorers has a price-earnings ratio of approximately 35.18, calculated by dividing the stock price ($1.80) by the earnings per share ($0.051147), which is derived from the earnings before tax ($312).
To calculate the price-earnings ratio for Jupiter Explorers, you first need to determine the company's earnings before tax (EBT). As Jupiter Explorers has $7,800 in sales with a profit margin of 4 percent, this implies the EBT is $7,800 * 0.04 = $312.
Next, divide the EBT by the number of outstanding shares. Jupiter Explorers has 6,100 shares outstanding, so the earnings per share (EPS) would be $312 / 6,100 = $0.051147. Finally, you divide the stock price ($1.80) by the EPS to get the price-earnings ratio. So, the price-earnings ratio is $1.80 / $0.051147 = approximately 35.18.
Learn more about Price-Earnings Ratio here:https://brainly.com/question/33719717
#SPJ3
Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three. What best accounts for her improving dexterity?
Answer: Increased myelination of the central nervous system
Explanation: skill in performing tasks, especially with the hands is what is known as dexterity. According to the question Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three was due to her Increased myelination of the central nervous system. Her dexterity has improved, Myelin has enabled her nerve cells to transmit information faster and allows for more complex brain processes
Final answer:
Ella's improved dexterity in using scissors to cut out small paper dolls since the age of three is attributed to the continued development of her fine motor skills. As children grow older, they engage in activities that refine these skills, such as drawing and using eating utensils, which enhance their ability to coordinate their hands and fingers more precisely.
Explanation:
At the age of three, children are exiting the toddler stage and are developing skills that allow them to handle small objects, such as doing simple puzzles or copying a circle. As children grow, their fine motor skills continue to improve, which involves the coordination of small muscles in movements—usually involving the synchronization of hands and fingers—with the eyes. The improved dexterity that enables Ella, who is now eight years old, to use scissors to cut out small paper dolls is a result of this continued development and refinement of fine motor skills. The ability to cut with scissors involves various fine motor skills like hand-eye coordination, bilateral coordination, and the ability to manipulate the scissors and paper with precision. These skills generally improve with age and practice, as the child engages in activities that promote fine motor skills development, such as drawing, coloring, or completing more complex puzzles. Mastering tasks such as cutting figures from craft paper is indicative of a significant level of fine motor skill proficiency, which comes with maturation and can be supported by engaging in various activities or songs that encourage the development of these abilities. By five years of age, children can typically demonstrate good control with a pencil and use scissors to cut on a line. As they reach middle childhood, activities such as pouring water into a container, properly managing a spoon and fork, and dressing oneself become easier as their fine motor skills become more advanced. This natural progression explains Ella's improvement in dexterity by the age of eight when compared to her abilities at age three.
Imagine that businesspeople from a high-context culture (e.g., Japan or China) meet their counterparts from a low-context culture (the United States) for the first time to negotiate and sign a manufacturing contract. What could go wrong? How about conflicting perceptions of time?
Answer:
As per Chegg guidelines .
Explanation:
For a high-context culture, the social environment or social context has more importance than the words being spoken. This means that in a high context culture, low-contex culture is not as important as the nonverbal communication, because nonverbal communication has more importance . For the high-context culture, a contract is just a beginning point for negotiations in closing the deal. Signing of the contract does not necessary means closing of the business deal. Some of the examples of high-context cultures are China, most Arab countries, Latin America, most African countries, most other Asian countries, and Italy. In reality, most cultures fall somewhere along a continuum, or sliding scale, in their perception of the importance of context (with high and low being the end points of the continuum
Negotiations between high-context and low-context cultures can face challenges due to contrasting communication styles and perceptions of time. Misunderstandings can arise due to indirect vs direct speech. Additionally, conflicting time perceptions could affect scheduling and pace of negotiations.
Explanation:In negotiations between high-context cultures like Japan or China and low-context cultures like the United States, a range of issues can arise due to contrasting communication styles and perceptions of time. In high-context cultures, communicators tend to employ more indirect speech and emphasize maintaining harmony, which can lead to misinterpretations and confusion in the more direct, task-oriented low-context cultures.
Another issue is the difference in perception of time. High-context cultures often view time as cyclical and more flexible, while low-context cultures perceive time as linear and punctual. This could cause conflicts in scheduling, deadlines, and pace of negotiations.
It is essential for businesspeople to have an understanding of these differences and to be respectful of the other culture's communication style and time perception to prevent misunderstandings and ensure successful negotiations.
Learn more about Cultural Differences in Business here:https://brainly.com/question/33034393
#SPJ3
You hire an experienced pet industry executive to consult with you both throughout the process. In your first meeting, she presents you with an initial market analysis and trend report.
The first decision you need to make is what type of retail format you think will be best for your new venture.
- Superstore (general merchandise discount store)
- Specialty store
- Category killer
Answer:
Specialty store.
Explanation:
Since it's your new business and you surely don't want to incur huge investment at this stage. So choosing for the other stores such as superstore or category killer will be costly and moreover, they will be irrelevant for your business. Because why would you need to open a general store when your business is related to pet industry?
Tater and Pepper Corp. reported free cash flows for 2015 of $39.1 million and investment in operating capital of $22.1 million. Tater and Pepper incurred $13.6 million in depreciation expense and paid $28.9 million in taxes on EBIT in 2015. Calculate Tater and Pepper's 2015 EBIT.
Answer:
$76.5 million
Explanation:
For computing the EBIT, first we have to do the following calculations
Free cash flow = Operating cash flow – Investment in operating capital
$39.1 million = Operating cash flow -$ 22.1million
So, operating cash flow is
= $39.1 million + $22.1 million
= $61.20 million
Now
Operating cash flow = EBIT – Taxes on EBIT + Depreciation expenses
$61.2 million = EBIT- $28.9 million + $13.6 million
So, the EBIT is
= $61.2 million + $28.9 million - $13.6 million
= $76.5 million
How much will you have at the end of 5 years in a European vacation account if you deposit $200 a month in an account that is paying a nominal 12 percent per year, compounded monthly
Answer:
The final value is $16,333.93
Explanation:
Giving the following information:
You deposit $200 a month for 5 years on an account with an annual interest rate of 12% compounded monthly.
First, we need to calculate the monthly interest rate:
Interest rate= 0.12/12= 0.01
Now, we can calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit= 200
i= 0.01
n= 5*12= 60
FV= {200*[(1.01^60)-1]}/ 0.01= $16,333.93
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $250,000. The company produced 25,000 units, and sold 20,000 units, leaving 5,000 units in inventory at year-end. Income calculated under variable costing is determined to be $315,000. How much income is reported under absorption costing? Group of answer choices $365,000 $290,000 $315,000 $265,000 $565,000
Answer:
424000
Explanation:
Answer: Net income under absorption costing = $424000
Explanation:
Given that,
Direct materials =$4 per unit
Direct labor = $2 per unit
Variable overhead = $3 per unit
Fixed overhead = $256,000
company produced = 32,000 units
company sold = 26,500 units
inventory at year-end = 5,500 units
Income under variable costing = $380,000
Total variable cost = (Direct materials+Direct labor +Variable overhead) × units produced
= (4+2+3) × 32000
=$288000
Per unit fixed cost =
=
= $8
Fixed cost on inventory = inventory at year-end × Per unit fixed cost
= 5500 × 8
= 44000
Net income under absorption costing = Income under variable costing + Fixed cost on inventory
= 380000 + 44000
=$424000
Read more on Brainly.com - https://brainly.com/question/13025383#readmore
Numeric Company uses the periodic inventory method and had no beginning inventory. The company purchased 7 units of inventory at $8 per unit during January, 5 units of inventory at $10 per unit during February, and 6 units of inventory at $11.00 per unit during June. The company sold 6 units of inventory during October. There were no additional purchases or sales during the remainder of the year. If Numeric Company uses the weighted average method, what is the cost of its ending inventory?
Answer:
$115
Explanation:
The computation of the cost of the ending inventory is shown below:
Total units purchased
= 7 units + 5 units + 6 units
= 18 units
And, the total cost is
= 7 units × $8 + 5 units × $10 per unit + 6 units × $11 per unit
= $56 + $50 + $66
= $172
And, the closing units inventory units is
= 18 units - 6 units
= 12 units
So, the cost of ending inventory is
= $172 × 12 units ÷ 18 units
= $115
The price of a bond is equivalent to: I. Face value II. Projected interest payments discounted to the present III. The amortization amount of a bond IV. The present value of the principal payment Select one: A. I + III B. I – III C. II + IV D. I + II
Answer:
The price of a bond is equivalent to II + IV (option C).
Explanation:
The promise made between two or more persons legally is referred to as a bond. Bonds are provided by companies in order to increase their capital balance. Interest is received during regular intervals by the purchaser.
The price of a bond is equal to the present value of all future interest payments added to the present value of the principal.
The price of the bond is not equal to face value; neither is
the amortisation amount of bond equivalent to the price of the bond.
Therefore, price of the bonds and amortisation amount of bond is not equivalent to the price of the bond.
So, The price of a bond is equivalent to II + IV (option C).
The price of a bond is equivalent to Projected interest payments discounted to the present and The present value of the principal payment.
A bond is simply known as a type of loan contract that exist between an issuer, the seller of the bond and a holder which is the purchaser of a bond.The present value (PV) of a bond shows the sum of all the future cash flow from that contract until it matures with full repayment of the par value. .
Conclusively, To determine the present value of bond, is by the value of a bond today for a fixed principal (par value) to be repaid in the future at any predetermined time.
Learn more from
https://brainly.com/question/15567868