Listed below are costs found in various organizations.
1. Direct labor
2. Executive salaries
3. Factory rent
4. Property taxes, factory.
5. Boxes used for packaging detergent produced by the company
6. Salespersons' commissions
7. Supervisor's salary, factory
8. Depreciation, executive autos.
9. Wages of workers assembling computers
10. Insurance, finished goods warehouses
11. Lubricants for production equipment.
12. Advertising costs
13. Microchips used in producing calculators.
14 Shipping costs on merchandise sold
15. Magazine subscriptions, factory lunchroom
16. Thread in a garment factory
17 Executive life insurance
18. Ink used in textbook production
19. Fringe benefits, materials handling workers
20. Yarn used in sweater production
21. Wages of receptionist, executive offices
Required:
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.

Answers

Answer 1

Variable costs change in direct extent to the degree of creation or deals, while fixed costs stay consistent paying little mind to yield.

Variable costs:

Direct workBoxes utilized for bundling cleanserSalespersons' bonusesWages of laborers gathering PCsOintments for creation gearComputer chips utilized in delivering number crunchersTransporting costs on stock soldString in a piece of clothing plantYarn utilized in sweater creation

Fixed costs:

2. Chief pay rates

Processing plant leaseLocal charges, processing plantBoss' compensation, production lineDeterioration, leader automobilesProtection, completed products stockroomsPromoting costsMagazine memberships, processing plant loungeChief disaster protectionInk utilized in reading material creationIncidental advantages, materials taking care of laborersWages of secretary, chief workplaces

Selling Expenses:

6. Salespersons' bonuses

Transporting costs on stock soldPromoting costs

Regulatory Expenses:

2. Chief pay rates

Deterioration, leader carsMagazine memberships, manufacturing plant loungeChief disaster protectionWages of assistant, leader workplaces

Producing Expenses:

Direct work (Direct)Manufacturing plant lease (Indirect)Local charges, production line (Indirect)Manager's compensation, manufacturing plant (Indirect)Wages of laborers gathering PCs (Direct)Ointments for creation hardware (Indirect)Computer chips utilized in delivering mini-computers (Indirect)String in a piece of clothing production line (Indirect)Ink utilized in course book creation (Indirect)Incidental advantages, materials dealing with laborers (Indirect)Yarn utilized in sweater creation (Indirect)

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Answer 2
Final answer:

Costs incurred by businesses can be classified into fixed or variable costs, and further broken down into manufacturing, selling, or administrative costs, each with specific direct or indirect associations with the production of goods or services.

Explanation:

Businesses incur various types of costs, which can be classified into fixed costs and variable costs. Fixed costs are expenses that do not change with the level of production, such as rent or equipment, while variable costs fluctuate with production levels, like direct materials or commissions. Additionally, costs can be categorized as manufacturing costs (either direct or indirect), selling costs, or administrative costs.

Direct labor: Variable, Manufacturing Cost, DirectExecutive salaries: Fixed, Administrative CostFactory rent: Fixed, Manufacturing Cost, IndirectProperty taxes, factory: Fixed, Manufacturing Cost, IndirectBoxes used for packaging detergent: Variable, Manufacturing Cost, IndirectSalespersons' commissions: Variable, Selling CostSupervisor's salary, factory: Fixed, Manufacturing Cost, IndirectDepreciation, executive autos: Fixed, Administrative CostWages of workers assembling computers: Variable, Manufacturing Cost, DirectInsurance, finished goods warehouses: Fixed, Manufacturing Cost, IndirectLubricants for production equipment: Variable, Manufacturing Cost, IndirectAdvertising costs: Fixed, Selling CostMicrochips used in producing calculators: Variable, Manufacturing Cost, DirectShipping costs on merchandise sold: Variable, Selling CostMagazine subscriptions, factory lunchroom: Fixed, Manufacturing Cost, IndirectThread in a garment factory: Variable, Manufacturing Cost, DirectExecutive life insurance: Fixed, Administrative CostInk used in textbook production: Variable, Manufacturing Cost, DirectFringe benefits, materials handling workers: Variable, Manufacturing Cost, IndirectYarn used in sweater production: Variable, Manufacturing Cost, DirectWages of receptionist, executive offices: Fixed, Administrative Cost

Related Questions

51. The national government helped to finance transcontinental railroad construction in the late nineteenth century by providing railroad corporations with A) cash grants from new taxes. B) land grants. C) cash grants from higher tariffs. D) reduced prices for iron and steel. E) aid for construction of railroad stations.

Answers

Answer:

B) land grants

Explanation:

The national government helped to finance transcontinental railroad construction in the late nineteenth using land grants.

Which two options are available to share Report or Dashboard folder with other users in the Organization? Choose 2 answers
A. Public Groups

B. Roles

C. Teams

D. Profiles

Answers

Answer:

Roles and public groups

Explanation:

A public group is a collection of individual users, other groups, individual roles, and/or roles with their subordinates that all have a function in common.

Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. Assume that the partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Kramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally.

1. Determine the partners' shares of Kramer and Knox given a first-year net income of $98,800. (Losses and amounts to be deducted should be entered with a minus sign.)
2. Determine the partners' shares of Kramer and Knox given a first-year net loss of $16,800. (Losses and amounts to be deducted should be entered with a minus sign.)

Answers

Answer:

1. $53.4 for Kramer and $45.5 for Knox

2. -$4.4 for Kramer and -$12.4 for Knox

Explanation:

Partner’s agreement before dividing profit or loss is to grant salaries and 10% interest to the partners. In effect, this agreement will be followed whether the partnership incurs profit or losses for the period. First, all salaries should be given to the partners and the 10% interest as well. Any excess whether profit of loss will be divided equally by the partners. Computation of division of profit or loss are attached for proper demostration.

Final answer:

1. Kramer's share: $43,500; Knox's share: $55,300.

2. Kramer's share: -$3,100; Knox's share: -$13,700.

Explanation:

1. For the first-year net income of $98,800, the partners' shares are calculated as follows:

  - Kramer: $50,000 (salary) + $6,000 (interest on $60,000) + (($98,800 - $50,000 - $6,000) / 2) = $43,500.

  - Knox: $40,000 (salary) + $8,000 (interest on $80,000) + (($98,800 - $40,000 - $8,000) / 2) = $55,300.

2. For the first-year net loss of $16,800, the partners' shares are calculated as follows:

  - Kramer: $50,000 (salary) + $6,000 (interest on $60,000) + (($16,800 - $50,000 - $6,000) / 2) = -$3,100 (loss).

  - Knox: $40,000 (salary) + $8,000 (interest on $80,000) + (($16,800 - $40,000 - $8,000) / 2) = -$13,700 (loss).

On November 1, Arvelo Corporation had $42,000 of raw materials on hand. During the month, the company purchased an additional $68,000 of raw materials. During November, $75,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $5,000. Prepare journal entries to record these events. Use those journal entries to answer the following question:The credits to the Raw Materials account for the month of November total:a) $75,000 b) $68,000 c) $42,000 d) $110,000

Answers

Answer:

a) $75,000

Explanation:

Given data about Arvelo Corporation;

On November 1

Cost of raw materials at hand = $42,000

Purchases during the month = $68,000

Raw materials requisitioned from storeroom (direct and indirect) = $75,000

Balance of inventory = $42,000 + $68,000 - $75,000

= $35,000

For the inventory amount requisitioned from the storeroom, the entries to be posted on issuance

Dr Cost of sale   $75,000

Cr Inventory (Raw materials)  $75,000

Being entries to recognize inventory issued for use.

The credits to inventory account in the month (November) is $75,000.

Final answer:

Arvelo Corporation's journal entries reflect the purchase and use of raw materials. The total credits to the Raw Materials account for November is $75,000 (option a).

Explanation:

The journal entries for these transactions would look like this:

When the raw materials are purchased:
Raw Materials 68,000
Cash or Accounts Payable   68,000 When the raw materials are used in production:
 Work in Process 70,000
   Factory Overhead  5,000
   Raw Materials         75,000

So, the credits to the Raw Materials account for the month of November would total $75,000, represented by the raw materials that were requisitioned from the storeroom for use in production. Therefore, the correct answer is (a) $75,000.

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Jay Co. reported the following financial data for its most current year: Beginning-of-year common stock $105,000 Beginning-of-year retained earning 175,400 Net Income 33,400 Dividends Paid 10,500 Issuance of common stock 24,000 Compute Jay’s end-of-year total stockholders’ equity.

Answers

The correct statement is that the closing balance of shareholder's equity in the books of Jay Co. will be $327,300.

The computation of the total stockholder's equity can be calculated by adding any incomes to the opening balances and deduction of reissued securities.

Computation of total stockholder's equities (Closing Balance)

Computation is done after applying the given values to the known formula and necessary adjustments to be made, if any. Here the closing stock will be,

[tex]\$105000+ $24000= \$29000[/tex]

As no information regarding the treasury stock is given, it has been assumed that no treasury stock transactions took place.

So in this case, the formula to calculate the closing balance of stockholder's equities will be,

[tex]\rm Closing\ Balance = Closing\ Stock + Closing\ Retained\ Earnings[/tex]

To calculate the closing balance of retained earnings, doing the following calculations,

[tex]\rm Earnings = Balance\ at\ the\ Beginning + Net\ Income- Dividend\\\\\rm Earnings =175400+33400-10500\\\\\rm Earnings =\$ 198300[/tex]

Now putting the obtained values into the formula above, we get,

[tex]\rm Closing\ Balance= 129000+198300\\\\\rm Closing\ Balance=\$327,300[/tex]

So the closing balance of the total stockholder's equities in the hands of Jay Co. will be $327,300.

Hence, the total stockholder's equities at the end of the year in the books of Jay Co. is $327,300.

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Calculate net income and stockholders equity (LO2) Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the current period, the company reports the following amounts: Assets = $38,000; Liabilities = $21,000; Dividends = $1,800; Revenues = $11,600; Expenses = $7,800. Required: 1. Calculate net income. Net income 2. Calculate stockholders' equity at the end of the period. Stockholders' equity

Answers

Answer:

Explanation:

Net Income = Revenue -Expenses

                   =  $11,600 -$7,800

                   =  $3,800

Retained Earnings =  $3,800- $1,800

                              =  $2,000

According Accounting Equation ;

Total Assets = Total liabilities + Total equity

Stockholders' Equity = $38,000- $21,000

                                  = $17,000

If firms in a competitive market are making positive economic profits, you would expect firms to ________ the market, causing the ________ curve to shift to the ________. Group of answer choices

Answers

Answer:

Enter

Supply

Right

Explanation:

A competitive market is when there are many buyers and sellers of homogenous goods and services. There are no restrictions to entry or exit of firms. In the long run, firms make zero economic profit.

If in the short run, if firms are making economic profit, in the long run, new firms would enter into the industry, this increases supply and drives economic profit to zero.

I hope my answer helps you

The 1974 federal legislation that exempted employers from certain state laws governing health insurance was

A. COBRA
B. ERISA
C. CON
D. HIPAA
E. SCHIP

Answers

Answer:

The correct answer is letter "B": ERISA.

Explanation:

The Employee Retirement Income Security Act (ERISA) of 1974 is a United States federal law governing health insurance in regards f how they should be provided by employers. Through different amendments, the ERISA has given provisions under different circumstances so employees can have the coverage of health insurance for a certain period after being laid off.

A defeasible estate is one that can be lost in the future by the happening of a specific event.
True/False

Answers

The given statement is true a defeasible estate is one that can be lost in the future by the happening of a specific event

Explanation:

When the land is transferred upon conditionally by the grantor or the owner then it is called as defeasible estate and the property is subjected to some conditions intentionally or unintentionally upon the happening of the events

This is not permanent to the owner hence with the time of run it can eventually be lost or it will be handed over back to the grantor and hence it can be lost in the future

Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in Zenland can produce either 5 units or organic grain or 15 units of incense per year. There are 20 workers in Agland and 10 workers in Zenland. Currently, the two countries do not trade. Agland produces and consumes 100 units of grain and 20 units of incense per year. Zenland produces and consumer 50 units of grain and no incense per year. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then what will the combined yearly output of the two countries increase by?

A) 30 units of grain and 100 units of incense.
B) 30 units of grain and 150 units of incense.
C) 50 units of grain and 90 units of incense.
D) 50 units of grain and 130 units of incense.

Answers

Answer:

D

Explanation:

Agland produces 100 units of organic grain and Zenland produces 50 units of organic grains; their combine total = 150 grains

Agland produces 20 units of incense while Zenland produces nothin; their combine total = 20 incense

if each country specialize in producing the good in which they have comparative advantage then

Agland produce (10 × 20 ) organic grains which 200 organic grain with Zenland producing nothing; their combine total will 200 grains

Zenland doing the same by producing (10 × 15) incense which will equal 150 incense and Agland produce nothing  their combine total is 150 incense

their combined yearly output of the two countries increase by

200 - 150 for grains = 50 units of grains

150 - 20 for incense = 130 units of incense

You have ​$19,000 to​ invest, part at 6% and the rest at 7%. If x is the amount invested at 6 %6%​, write an algebraic expression that represents the total annual income from both investments. Simplify the expression.

Answers

Answer:

total annual income  = 1330 - 0.01x

Explanation:

given data

invest = $19,000

some part at =  6%

remaining part = 7%

x is  amount invested at =  6 %

solution

we know x part invested = 6 %

so ( $19,000 - x ) part invested = 7 %

so we get here total annual income from both investment that is

income = 6% x + ( 19000 -x ) 7%

so  total annual income  = 0.06x + ( 19000 -x) 0.07

total annual income  = 1330 - 0.01x

KCCO, Inc., has current assets of $4,200, net fixed assets of $23,400, current liabilities of $3,750, and long-term debt of $8,400.



What is the value of the shareholders’ equity account for this firm?

Answers

Answer:

Share holder's equity  = $15,450

Explanation:

given data

current assets = $4,200

net fixed assets = $23,400

current liabilities = $3,750

long-term debt = $8,400

solution

we get here value of the shareholders equity that is express as

Share holder's equity = (current assets + net fixed assets) - (current liabilities + long term debt)    ....................1

put here value we get

Share holder's equity  = ( $4,200 + $23,400) - ( $3,750 + $8,400 )

Share holder's equity  = $15,450

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.

Account Title Debits Credits
Cash 5,800
Accounts receivable 2,800
Inventory 5,800
Equipment 11,800
Accumulated depreciation—equipment 4,300
Accounts payable 3,800
Common stock 10,000
Retained earnings 8,100
Sales revenue 0
Cost of goods sold 0
Salaries and wages expense 0
Rent expense 0
Advertising expense 0

Totals 26,200 26,200

The following transactions occurred during January 2016:
Jan. 1
Sold merchandise for cash, $4,300. The cost of the merchandise was $2,800. The company uses the perpetual inventory system.

2 Purchased equipment on account for $6,300 from the Strong Company.
4
Received a $100 bill from the local newspaper for an advertisement that appeared in the paper on January 2.

8 Sold merchandise on account for $5,800. The cost of the merchandise was $3,600.
10 Purchased merchandise on account for $9,900.
13 Purchased equipment for cash, $700.
16 Paid the entire amount due to the Strong Company.
18 Received $5,600 from customers on account.
20 Paid $700 to the owner of the building for January’s rent.
30 Paid employees $3,800 for salaries and wages for the month of January.
31
Paid a cash dividend of $1,000 to shareholders.

Prepare general journal entries to record each transaction.

Answers

Answer:

The journal entries to record each transaction is given below.

1  Sold merchandise for cash, $4,300. The cost of the merchandise was $2,800. The company uses the perpetual inventory system.

Debit Cash Account Asset      $ 4,300

Credit Sales Income Account  $ 4,300

Debit Cost of good sold           $ 2,800

Credit Inventory Account          $ 2,800

2 Purchased equipment on account for $6,300 from the Strong Company.

Debit Equipment Asset     $ 6,300

Credit Payable                    $ 6,300

4  Received a $100 bill from the local newspaper for an advertisement that appeared in the paper on January 2.

Debit Advertisement expense    $ 100

Credit Payable                              $ 100

8 Sold merchandise on account for $5,800. The cost of the merchandise was $3,600.

Debit Account Receivable    $ 5,800

Credit Sales Income              $ 5,800

Debit Cost of Good Sold       $ 3,600

Credit Inventory                     $ 3,600

10 Purchased merchandise on account for $9,900.

Debit Inventory   $ 9,900

Credit Payable    $ 9,900

13 Purchased equipment for cash, $700.

Debit Equipment Asset   $ 700

Credit Cash                      $ 700

16 Paid the entire amount due to the Strong Company.

Debit Payable                    $ 6,300

Credit Cash                        $ 6,300

18 Received $5,600 from customers on account.

Debit Cash             $ 5,600

Credit Receivable  $ 5,600

20 Paid $700 to the owner of the building for January’s rent.

Debit Rent expense    $ 700

Credit Cash                  $ 700

30 Paid employees $3,800 for salaries and wages for the month of January.

Debit Salary expense    $ 3,800

Credit Cash `                   $ 3,800

31  Paid a cash dividend of $1,000 to shareholders.

Debit Dividend payable/Retain Earning      $ 1000

Credit Cash                                                    $ 1000

Final answer:

The student's question requires preparing general journal entries for certain transactions in January 2016. Each transaction is documented step-by-step to reflect its impact on different accounts, highlighting the dual nature of bookkeeping where every debit has a corresponding credit.

Explanation:

The question involves the preparation of general journal entries for a series of transactions that occurred in January 2016 for the Whitlow Manufacturing Corporation. These entries will reflect various financial activities such as sales, equipment purchases, and payment of expenses, which impact the company's financial statements. Let's proceed to document each of these events.

Journal entry for the cash sale:
Debit Cash $4,300
Credit Sales Revenue $4,300
Debit Cost of Goods Sold $2,800
Credit Inventory $2,800

Journal entry for purchasing equipment on account:
Debit Equipment $6,300
Credit Accounts Payable $6,300

Journal entry for advertising expense:
Debit Advertising Expense $100
Credit Accounts Payable $100

Journal entry for sales on account:
Debit Accounts Receivable $5,800
Credit Sales Revenue $5,800
Debit Cost of Goods Sold $3,600
Credit Inventory $3,600

Journal entry for purchasing merchandise on account:
Debit Inventory $9,900
Credit Accounts Payable $9,900

Journal entry for the cash purchase of equipment:
Debit Equipment $700
Credit Cash $700

Journal entry for payment to Strong Company:
Debit Accounts Payable $6,300
Credit Cash $6,300

Journal entry for cash collections on account:
Debit Cash $5,600
Credit Accounts Receivable $5,600

Journal entry for rent payment:
Debit Rent Expense $700
Credit Cash $700

Journal entry for salaries and wages payment:
Debit Salaries and Wages Expense $3,800
Credit Cash $3,800

Journal entry for cash dividend payment:
Debit Retained Earnings $1,000
Credit Cash $1,000

Learning to communicate with candor can mean breaking old habits, which is sometimes difficult.
What benefits of using candor make the effort worthwhile? Check all that apply.

a. Decision making will slow down due to increased time spent in communication, resulting in more thoughtful decisions.
b. Employees feel comfortable speaking freely, knowing that they can trust their managers.
c. When managers speak their minds, employees quickly learn what ideas are and are not acceptable, and there is less dissent.
d. There is a greater exchange of ideas, which promotes learning in the organization.

Answers

Final answer:

Candor in communication promotes trust, supports a free exchange of ideas, and sets clear expectations, which are all significant benefits that contribute to a healthier, more transparent, and more effective workplace.

Explanation:

Learning to communicate with candor can be challenging, but it brings numerous benefits to an organization, making the effort to develop clear and open communication worthwhile. Several benefits to using candor in communication include:

Employees feel comfortable speaking freely, which fosters a trustworthy environment.It encourages a greater exchange of ideas, promoting organizational learning and innovation.When managers communicate openly, it sets clear expectations, reducing confusion and encouraging alignment with the organization's values and objectives.

Emphasizing these benefits can help justify the need to break old habits and adopt more candid communication styles in the workplace. Remember, effectively utilizing these communication skills can enhance collaboration, improve decision-making, and build more robust team dynamics.

Final answer:

Candor in communication ensures employees feel comfortable speaking freely, reduces dissent by providing clarity on acceptable ideas, and promotes a beneficial exchange of ideas leading to organizational learning and innovation. Ethical and forthright communication prevents misunderstandings and increases job satisfaction and employee morale.

Explanation:

The benefits of using candor in communication are numerous and significantly contribute to a more effective and engaged workplace. Among the options provided, the following are benefits that make the effort to communicate with candor worthwhile:

Employees feel comfortable speaking freely, knowing that they can trust their managers. This openness fosters a sense of mutual respect and trust within the organization.When managers are candid, employees quickly learn which ideas are acceptable, leading to more clarity and less dissent.There is a greater exchange of ideas, which promotes learning and innovation in the organization.

It is important to note that although candor might initially slow decision making, the resulting decisions are often more well-thought-out and can improve long-term outcomes. Ethical and forthright communication within a company can prevent misunderstandings, increase job satisfaction, and boost employee morale. This can ultimately lead to improved performance and an increase in market value. Option B , C and D are correct .

The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues and costs Sales revenue $ 270,000 Direct materials costs 63,000 Direct labor costs 33,000 Variable manufacturing overhead 18,000 Fixed manufacturing overhead 41,000 Variable marketing and administrative costs 11,500 Fixed marketing and administrative costs 38,000Required:a. Prepare a gross margin income statement.b. Prepare a contribution margin income statement

Answers

Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue                                                           $ 270,000

Direct Materials                                                            $63,000

Direct Labor                                                                 $ 33,000

Variable Manufacturing Overheads                            $ 18,000

Fixed Manufacturing Costs                                          $ 41,000

Gross Margin                                                                $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs                                                 $ 38,000

Variable Marketing Costs                                           $ 11,500

Net Profit                                                                    $ 65,500

Nile Castings

Income Statement Under Absorption Method

Year 2

Sales Revenue                                                           $ 270,000

Direct Materials                                                            $63,000

Direct Labor                                                                 $ 33,000

Variable Manufacturing Overheads                            $ 18,000

Variable Marketing & Administrative Costs               $ 11,500

Contribution Margin                                                  $ 144,500

Less Fixed Costs

Fixed Manufacturing Costs                                       $ 41,000

Fixed Marketing Coss                                                $ 38,000

Net Profit                                                                    $ 65,500

Weaver Company had 100,000 shares of common stock issued and outstanding at January 1. On July 1, Weaver issued a 10% stock dividend. Unexercised call options to purchase 20,000 shares of Weaver’s common stock (adjusted for the stock dividend) at $20 per share were outstanding at the beginning and end of the year. The average market price of Weaver’s common stock (which was not affected by the stock dividend) was $25 per share during the year. Net income for the year ended December 31 was $550,000. What should be Weaver’s diluted earnings per share (DEPS) for the year?

Answers

Answer: $4.82

Explanation: Diluted EPS is a calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. It can be said to be a profitability calculation that measures the amount of income each share will receive if all of the diluted securities are realized

From the above question, the DEPS is calculated thus:

Proceeds from unexercise call options(20,000 shares × $20)=$400,000

Treasury shares = $400,000/$25 = 16,000

Purchased shares = 20,000 -16,000 = 4,000

Therefore Incremental shares = 4,000

The incremental shares of 4,000 + 100,000+10% stock dividend of 10,000 = 114,000 shares.

DEPS = $550,000/114,000 = 4.82

The diluted earnings per share (DEPS) for Weaver Company is calculated by adjusting for a 10% stock dividend and the effect of exercised call options, leading to a total of 130,000 shares. The net income of $550,000 is then divided by this amount, resulting in a DEPS of $4.23.

To calculate the diluted earnings per share (DEPS) for Weaver Company, we must first adjust for the 10% stock dividend. The initial 100,000 shares increase by 10%, becoming 110,000 shares. Next, we consider the effect of the call options. The call options are for 20,000 shares, and since the exercise price of $20 is less than the average market price of $25, we assume they are exercised, adding 20,000 shares. Therefore, the total number of shares for the DEPS calculation is 130,000 (110,000 + 20,000).

Finally, we divide the net income ($550,000) by the total number of shares (130,000) to get the DEPS. Thus, Weaver's diluted earnings per share is $4.23 (550,000 / 130,000).

Discuss the concept of downsizing and provide 4 of the hidden costs associated with it.

Answers

Answer:

firms that lay off staff can see a significant reduction in the performance of their remaining workers, according to our experimental study. our research suggests that firms that decide to ‘downsize’ their workforce should be wary of how the layoff decision is perceived by the remaining (“surviving”) workers. if the surviving staff interpret the decision as a way to boost profits at the cost of the workers, they might react negatively.

lay-offs are an integral part of dynamic economies. for example, in germany at least one large firm announces cuts of at least 800 jobs on each third working day of the year. lay-offs impose massive costs on the displaced workers, the regional economy and social insurances. hence, it is no surprise that layoffs are often discussed controversially in the general public and the media, and receive a lot of attention by scholars and practitioners.

from the firm’s perspective, the benefits of lay-offs seem to be obvious – in particular, labor costs and organisational slack can be reduced. firms considering laying off workers have to weigh these benefits with potential costs. some types of costs (e.g. severance payments) are more or less calculable in advance, while other costs are ex ante hard to estimate. in particular, there may be substantial costs associated with a decrease in the motivation of the workers who stay in firms after lay-offs – a phenomenon called ‘survivor syndrome’.

we set up a lab experiment with 400 students at the goethe-university frankfurt to study how non-fired employees respond to an employer’s

decision to fire a co-worker. in our experiment, employees work for an employer whose payoff depends on the employees’ performance in a real-effort task. subsequently, the employer is provided with an incentive to layoff one of her/his employees. after her/his decision for or against firing, the remaining employees continue to work for the employer.

to analyse whether the remaining employees’ performance is driven by the employer’s decision to layoff an employee or its implementation, we conduct a control treatment in which it is randomly decided whether an employee is fired or not.

we find that survivors reduce their performance substantially in response to the employer’s decision to lay off a co-worker. the reduction is strongest for survivors who interpret the employer’s decision as a method to increase profits at the cost of the workers; it is weaker if they can comprehend the layoff decision, and it vanishes (in the control treatment) if the employer is forced to fire a co-worker. it seems that the survivors in our experiment perceive an employer’s decision to lay off a co-worker as a signal that she does not expect them to perform well or cares more about her/his own payoff than the well-being of the employees. our results suggest that this negative signal leads to a decrease in employees’ performance.

our experimental results imply that firms deciding in favour of layoffs should be wary about how their decision is perceived by their workforce. in firms laying off workers, one can observe a number of business practices that are puzzling at first glance. our study can provide one potential explanations for these practices.

first, firms often use natural fluctuations to reduce the level of staffing instead of firing workers. the existence of such a policy is quite surprising – firms can more rapidly adjust their labor force by simply firing some workers. one potential explanation for this business practice could be that firms try to mitigate the survivor syndrome.

a second fact is that firms laying off workers often claim that they have “no choice”. a rational for this communication strategy could be that firms try to prevent that employees perceive the employer’s layoff decision as an attempt to increase profits at the cost of the workers. it is, however, an open question whether employees really believe management’s declaration. one way to verify declarations could be a strong cooperation with the works council.

third, research has shown that top management turnover is higher after downsizing. one explanation for this phenomenon could be that firms try to limit the negative impact of the lay-off decision by separating from the management with the lay-off history. after the separation, the new management can blame the predecessors.

a fourth fact is that firms that are downsizing often provide outplacement services for the leavers, and make financial offers for voluntary leavers (even if these offers are quite expensive and, because of their better outside options, the more able workers who separate). a rational for such business practices could be that firms try to attenuate the negative signal of the lay-off decision by the provision of positive signals.

Jack is yelling at Samantha because she was late last week. Unfortunately, the whole office can hear. Now Samantha is not only upset, but also angry and planning to go to Human Resources to file a complaint against Jack. In this case, Jack’s _________ skills failed. The skills that Jack is failing to use are important for _______.

Answers

Final answer:

Jack's interpersonal communication skills failed, negatively impacting the work environment and teamwork. His misstep could result in formal complaints and reduced productivity.

Explanation:

In the scenario described, Jack's interpersonal communication skills failed. These skills are especially important for creating a supportive work environment and fostering effective teamwork. Rather than publicly scolding Samantha, a more professional approach would have been to address the issue in private, offering constructive feedback and seeking understanding about the reasons for her tardiness. The larger implications of his actions disrupt the office atmosphere, erode trust, and diminish team cohesion, which can lead to formal complaints and a decrease in overall productivity.

These interpersonal skills are fundamental for any professional setting as they help in maintaining respect, professionalism, and confidentiality. For example, in another scenario, an employee who understands the importance of these skills might speak in person with a colleague who is falling behind on project deadlines rather than embarrassing them in front of others or resorting to unprofessional email communications.

The Supreme Court once denied tax-exempt status to a private university that discriminated on the basis of race. What is likely to have influenced or guided the interpretation of the statute relevant to this case?

Answers

Answer and explanation:

According to Section 501(c)(3) of the U.S. Internal Revenue Code (IRC), private universities that have discriminatory admissions are not eligible for tax exemptions. In the U.S. this was applied in the Bob Jones University v. United States case (1983), where the Supreme Court stated that no tax exemption could be granted to the evangelic private university.

Unlike Generally Accepted Accounting Principles (GAAP) for accountants, there are not principles, standards, concepts, or values common to business ethics.A. TrueB. False

Answers

Answer:

Unlike Generally Accepted Accounting Principles (GAAP) for accountants, there are not principles, standards, concepts, or values common to business ethics is a FALSE statement.

Explanation:

The GAAP has a wide range of applications owing to the unanimous addition of functions to the discipline of accountancy. Other than GAAP, certain countries and businesses follow the accounting methods given by 'other comprehensive basis of accounting' (OSBOA). Some businesses choose to follow both at once, while the majority choose to follow either of them.
Final answer:

The statement is false. Just like the GAAP, there are indeed common principles, standards, concepts or values within business ethics, including but not restricted to honesty, fairness, responsibility and accountability (option b).

Explanation:

The statement in the question is actually false. In fact, there are principles, standards, concepts, or values common to business ethics. Much like the Generally Accepted Accounting Principles (GAAP) that serve as a guide for accountants, business ethics also has its own set of guidelines designed to manage ethical behavior in business environments.

These include but are not limited to honesty, integrity, transparency, fairness, respect, responsibility, and accountability. There's also the concept of Corporate Social Responsibility (CSR), which encourages companies to behave ethically and contribute to societal goals.

Learn more about Business Ethics here:

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For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 8% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

Answers

Answer:

Explanation:

Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital

= [($22,000,000 - $19,000,000)*(1 - 0.35)] - [$15,000,000*8%]

= $750,000

Holding all other things constant, an increase in the company's required return on investment (ROI) will affect:

Answers

Answer:

It will affect the profit after taxes of the company.

Explanation:

A higher ROI means that for the same level of investment, higher levels of return are achieved. In this case, the company's return is the profits after taxes, those that shareholders have the right to claim. Without considering variances in the level of investment, higher levels of profit can be obtained by a more significant difference between revenue and total expenses (including costs, operative expenses and depreciation and interests)

Final answer:

An increase in the company's required return on investment (ROI) impacts investment decisions, financing costs, and potentially the prices of goods or services. It may signal ambitious targets or higher perceived risks, affecting investor perception and possibly the stock price.

Explanation:

Holding all other things constant, an increase in the company's required return on investment (ROI) implies that the company needs to generate a higher percentage of profit from its investments.

When a company raises its required ROI, it directly influences investment decisions, since projects or investments now need to generate a higher return to be considered viable. This could lead to a reduced number of projects that meet the new, higher hurdle rate, potentially limiting growth opportunities or prompting a search for more efficient or profitable ventures.

If the required ROI is linked to the cost of capital, an increase could mean the company will have to pay more for financing, whether through equity or debt. Consequently, the company might either look for cheaper forms of financing or aim to increase operational efficiencies to maintain profit margins.

In some cases, it could also lead to an increase in the prices of the company's goods or services to maintain the higher required ROI. On the other hand, it could put pressure on the company to decrease costs, which could involve renegotiating supplier contracts, downsizing operations, or investing in technology that may improve productivity.

Moreover, the increase in required ROI might influence the perception of investors. A higher ROI could be seen as a sign of a company setting ambitious targets, but it might also raise concerns about the risk profile of the company's investments.

If perceived as too aggressive, it could potentially lead to a drop in the company's stock price if shareholders believe the risk is not being adequately managed or if they feel dividends could be affected.

The volume of international trade is governed by factors including the level of domestic economic activity (for example, prosperity versus recession) and restrictions imposed by countries on their imports.True or false?

Answers

Answer:

True

Explanation:

International trade is trade across national boundaries and it includes the import and export of goods and services. An economic prosperity is synonymous with rising incomes and it would increase the propensity to import; that is, people in the domestic economy now have more incomes to spend on imports. Alternatively, a recession would lead to a fall in incomes and imports, and also a fall in investment which conseqeuntly reduces exports volumes.

Trade restrictions (protectionism) such as tariffs, quotas, competitive devaluation, administrative complexities, export subsidy hinder free trade and they could reduce the volume of imports into a country. This is because trade restrictions would make imports to be more expensive; the aim might be that the government is trying to correct a current account deficit. However, the effectiveness of trade restrictions in  reducing import volumes and influening export is dependent on the price elasiticty of demand for imports and exports, the quality of a country's good or service, and how the country's rate of inflation compares with that of other countries.

On September 1, 2020, Flounder Corporation acquired Shamrock Enterprises for a cash payment of $690,000. At the time of purchase, Shamrock’s balance sheet showed assets of $650,000, liabilities of $190,000, and owners’ equity of $460,000. The fair value of Shamrock’s assets is estimated to be $770,000.Compute the amount of goodwill acquired by Flounder.

Answers

Answer:

$110,000

Explanation:

Net value of assets = Fair value of assets - Fair value of liabilities

                                 =  $770,000 - $190,000

                                 = $580,000

Fair value of goodwill:

= Purchase price - Net value of assets

= $690,000 - $580,000

= $110,000

Therefore, the amount of goodwill acquired by Flounder is $110,000.

The Halpert Group produces a single product selling for $ 20 per unit. Variable costs are $ 2 per unit and total fixed costs are $ 10,000. What is the contribution margin​ ratio?

Answers

Answer:

90 percent

Explanation:

Given that,

Selling price per unit = $20

Variable costs per unit = $2

Total fixed cost = $10,000

Contribution margin = Selling price per unit - Variable cost per unit

                                  = $20 - $2

                                  = $18

Contribution margin​ ratio:

= (Contribution margin ÷ Selling price) × 100

= ($18 ÷ $20) × 100

= 0.9 × 100

= 90 percent.

Therefore, the contribution margin ratio is 90%.

As of April 2015, the Fed no longer holds any mortgage-backed securities or federal agency debt securities as assets. O True O False

Answers

Answer:

False

Explanation:

The given statement is false because Federal Reserve System (The FED) Does hold Mortgage backed securities and Federal agency debt securities in the month of April 2015 According to their annual report clearly mentioned in the Statistical Tools Table 1 of Federal Reserve, in the month of April 2015 Note 5.

Shanika lives in Oregon which imposes a state tax on income. For 2017, Shanika had the following transactions related to her state income taxes:

State taxes withheld in 2017 $ 3,500
State refund received in 2017 of 2016 tax 600
Additional assessment paid in 2017 of 2015 tax 750

Shanika plans to itemize on her 2017 return. What amount of state and local taxes should Shanika deduct in calculating itemized deductions for her 2017 federal income tax return?

Multiple Choice

$4,850.

$3,500.

$750.

Which of the following organizations do not qualify for deductible charitable contributions?

Multiple Choice

A political party.

All of these.

The Salvation Army.

Religious organizations.

Answers

Answer:

Explanation:

Deductible state income tax = $3,500 + $750 = $4,250

A political party is not a qualified charitable organization and it does not qualify for deductible charitable contributions.

A research analyst at PDQ Securities mentions to a registered representative at that firm that a new research report is coming out about ACME Corporation that is "highly positive." Prior to the issuance of the research report, the registered representative calls his customers and tells them to buy ACME stock. Based on this information, which statement is TRUEa. Research has some loop holesb. Research is accurate

Answers

Answer:

Explanation:bvcx

Tiny Town Kennel earns service revenue by caring for the pets of customers. T Town Kennel is organized as a sole proprietorship and owned by Earle Martin the past month, Tiny Town Kennel has the following transactions: a. Received $520 cash for service revenue earned. iny b. Paid $325 cash for salaries expense. c. Martin contributed $1,000 to the business in exchange for capital. d. Earned $640 for service revenue, but the customer has not paid Tiny Town Kennel yet. e. Received utility bill of $85, which will be paid next month. f. Martin withdrew $100 cash. Indicate the effects of the business transactions on the accounting equation for Town Kennel. Transaction (a) is answered as a guide. a. Increase asset (Cash): Increase equiy (Service Revenue

Answers

Answer:

Accounting equation : Equity + Liability = Assets or Equity=Assets - Liability.

(a)  Increase asset (Cash): Increase equity (Service Revenue) by $520

(b)  Decrease asset (Cash): Decease equity (Salaries Expense) by $325

(c)  Increase asset (Cash): Increase equity (Capital) by $1,000    

(d)  Increase asset (Debtor): Increase equity (Service Revenue) by $640

(e) Increase liability (utility bills payable): Decease equity (utility bill  Expense)

     by $85

(f)  Decrease asset (Cash): Decease equity (Drawing) by $100

Explanation:

The accounting equation is the basis of the double-entry in accounting. Accounting equation ensure Statement of Financial position(i.e. balance sheet) balance all the time. It shows balance sheet. It shows that sum of assets equals to the addition of liabilities and equity.

With the aid of accounting equation, we establised that for every debit (affecting asset or expense) entry, there must be corresponding credit (affacting liability or equity).

If the demand for a good increases by more than the supply of the good increases, then the goods equilibrium price will __________ and its equilibrium quantity will __________.

Answers

Answer:

If the demand for a good increases by more than the supply of the good increases, then the goods equilibrium price will increase and its equilibrium quantity will also increase.

Explanation:

Please refer to the attachment.

D zero is the initial demand curve.

D one is the new increased demand curve.

S zero is the initial supply curve.

S one is the new increased supply curve.

P zero is the initial equilibrium price, where D zero = S zero

Q zero is the initial equilibrium quantity, where D zero = S zero

A is the initial equilibrium point, where D zero = S zero.

P one is the new equilibrium price and it is greater than P zero. Here, D One is equal to S One.

Q one is the new equilibrium quantity and it is greater than Q zero. Here, D One is equal to S One.

B is the new equilibrium point, where S one is equal to D one.

Note- Here, increase in demand is more than the increase in supply as seen from the diagram.

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