Answer:
c. Increase interest receivable by $250
Explanation:
The question says that the interest and notes receivable amount will be received at maturity and till then the note is an asset while any interest accrued on the note will be our interest revenue and it will also be a current asset as it will be classified as receivable.
We calculate the interest on note receivable,
20000 * 0.05 = 1000 1000 is the total interest that will be receivable after one year on this notes of 20000The interest for the period from July to September is 1000 * 3/12 = 250So the interest income pertaining to the period ended 30 September is $250This will be recorded by the adjusting entry on 30 Sep as,Interest Receivable 250 Dr
Interest Income 250 Cr
So, the answer is C.
Final answer:
The correct adjusting entry is to increase interest receivable by $250, accounting for the interest earned by Falcon Company from July to September 2014 on the promissory note with Jordyn Company.
Explanation:
On July 1, 2014, Falcon Company received a $20,000 promissory note from Jordyn Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2015. Given Falcon’s fiscal year ends on September 30, 2014, an adjusting entry is necessary to account for the interest earned but not yet received. The amount of interest for three months (July to September) can be calculated as follows:
Interest = Principal x Rate x Time = $20,000 x 5% x (3/12) = $250.
Therefore, the correct adjusting entry to increase interest receivable by $250 is needed. This entry acknowledges the interest income earned during the fiscal period ending September 30, 2014, but not yet received, thus accurately reflecting Falcon Company’s financial position.
Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20. There are no fixed costs. The selling price per unit is $50. What is the incremental cost of the proposed change?
A) $10,000B) $20,000C) $30,000
D) $60,000
Answer: C - $30,000
Explanation: Johnston Company wants to double production of Product X from 1,000 units to 2,000 units.
The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20.
The selling price per unit is $50
To increase production by 1000 units
Total cost is $10 + $20 = $30
Total incremental cost = 1,000 * $30= $30,000
Refresh produces soft drinks and sodas. Production of 103,000 liters was started in February, 88,000 liters were completed. Material costs were $52,020 for the month while conversion costs were $32,580. There was no beginning work-in-process; the ending work-in-process was 40% complete. What is the cost of the product that remains in work-in-process?a.$54,600 b.$51,000 c.$46,410 d.$38,220
Answer:
$79200
Explanation:
Equivalent production
=$88000+[40%*(103000-88000)
=94 000 units
Cost per unit
=(52020+32580)/94 000
=$0.9
Costs=88 000* $0.9
=$79 200
Tennison Corporation has two service departments (Maintenance and Human Resources) and three production departments (Machining, Assembly, and Finishing). Maintenance is the larger service department and Assembly is the largest production department. The two service departments service each other as well as the three producing departments. On the basis of this information, which of the following cost allocations would not occur under the direct method?
a. Maintenance cost would be allocated to Human Resources.
b. Human Resources cost would be allocated to Finishing.
c. Machining cost would be allocated to Assembly.
d. Both machining cost would be allocated to Assembly and maintenance cost would be allocated to Human Resources.
e. Maintenance cost would be allocated to Finishing.
Answer:
The correct answer is "Both machining cost would be allocated to Assembly and maintenance cost would be allocate"
Explanation:
Under direct technique for designation, the expenses of administration divisions,
- are not distributed to another help office, and
- are distributed straightforwardly to the various offices.
In view of over, the cost distribution that WOULD NOT OCCUR under direct strategy is
Choice #4: Both machining cost would be designated to Assembly and support cost would be apportioned to Human Resources.
This is on the grounds that:-
- Machining cost would not be assigned to Assembly office as both are creation divisions.
- Maintenance cost would not be apportioned to Humar asset as both are administration divisions.
Verizon Manufacturing Company spent $400,000 in 2019 to inspect incoming components. Of the $400,000, $240,000 is fixed appraisal costs. The variable inspection cost is $0.20 per component. It takes two components for each finished product. Internal failure costs average $80 per failed unit of finished goods. In 2019, five percent of all completed items had to be reworked. External failure costs average $200 per failed unit. The company's average external failures are one percent of units sold. The company manufactures all units as ordered and carries no materials inventories. Seeking to decrease its total cost of quality (COQ), Verizon contracted Quality-is-Free Consultants, Inc. (QIFC) to study ways to improve product quality and to reduce costs. Upon completion of the study, QIFC recommended automatic inspection equipment that requires a $60,000 annual cost for training and $150,000 for equipment rental and maintenance. The new equipment will eliminate $40,000 of the fixed appraisal costs, reduce the amount of unacceptable product units in the manufacturing process by 10 percent, and cut product failures by half. The company paid the consulting firm $100,000 in early January 2020 for the project. Verizon expects no changes in its operating level in the foreseeable future. How much are internal failure costs in total projected to change
Answer:
The question is incomplete, the option include:
$20,000 decrease. $45,000 decrease. $80,000 decrease. $160,000 decrease. is Correct$320,000 decrease.Explanation:
1. In 2019 the number of finished units with internal faults = $400,000 completed units * 0.05 = $20,000.
2. In 2020 the number of finished units with internal faults = $20,000* (1 -0.1) = $18,000.
3. In 2020, the projected cost of internal failure= $18,000 * $80= $1,440,000;
4. In 2019 the expense of internal failure= $20,000 * $80 = $1,600,000.
5. Projected shift in the cost of internal failure = $1,600,000 - $1,440,000 = decrease of $160,000
The projection of internal failure costs is calculated by comparing the current costs at a 5% failure rate with the costs after a reduction of the failure rate to 4.5% due to new inspection equipment.
Explanation:The question concerns the projection of internal failure costs for Verizon Manufacturing Company after implementing recommendations from Quality-is-Free Consultants, Inc. To calculate the change in internal failure costs, first identify the current internal failure rate and cost. With a failure rate of 5% and an average internal failure cost of $80 per unit, the current internal failure costs can be calculated. If the implementation of the new inspection equipment reduces this rate by 10%, the new failure rate would be 4.5%. The expected change in total internal failure costs is thus the difference between the initial total internal failure costs and the new projected costs after implementing recommendations.
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Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franchised coffee shops. During her first month as store manager, Faith encountered the following internal control situations:
Faith caught an employee putting a case of 1,000 single-serving tea bags in his car. Not wanting to create a scene, Faith smiled and said, "I don’t think you’re putting those tea bags on the right shelf. Don't they belong inside the coffee shop?" The employee returned the tea bags to the stockroom.
I _______with Faith's method of handling this situation because she has _______the internal control principle of safeguarding of assets.
A. AGREEB. DISAGREEC. FOLLOWEDD. DID NOT FOLLOWED
Answer:
Disagree,did not followed
Explanation:
Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franchised coffee shops. During her first month as store manager, Faith encountered the following internal control situations:
Faith caught an employee putting a case of 1,000 single-serving tea bags in his car. Not wanting to create a scene, Faith smiled and said, "I don’t think you’re putting those tea bags on the right shelf. Don't they belong inside the coffee shop?" The employee returned the tea bags to the stockroom.
I disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets.
Internal control refers to a procedure or policy put in place by management to related measures and methods adopted in an organization to safeguard its assets, enhance reliability of accounting records, ensure compliance with laws and regulations and stop fraudulent behavior; this procedure might involve measures like physical security barriers, access restriction, locks and surveillance equipment.
The automobile industry in a developing country has very few sellers. If one automobile company raises the prices of its trucks by a certain amount, other automobile companies in the industry follow by raising prices by a similar amount.
This situation is an example of:
A. pure competition.
B. an oligopoly.
C. monopolistic competition.
D. a monopoly.
E. a monopsony.
Answer:
The correct answer is B. an oligopoly.
Explanation:
An oligopoly is a market structure where there are few relevant competitors and each of them has some capacity to influence the price and amount of equilibrium.
In the oligopoly, competitors have market power, but at a lower level than in the case of monopoly. This, since, instead of having only one bidder, there is a small group of companies.
This means that although each of the companies has an influence on the market price and quantity (they do not take it as given), the freedom to choose the level of these variables is limited by the existence of other competing firms. A special case of oligopoly is the duopoly, where there are only two bidders.
Answer: b. An oligopoly
Explanation: An oligopoly is an economic condition in which a small number of sellers exert control over the market of a commodity. The firms in an oligopoly collude, to either restrict output or fix prices and sometimes both, in order to achieve above normal market returns, higher than that of a competitive market. None of the firms however can keep the others from having significant influence. Now firms in an oligopoly set prices of goods and services collectively or under the leadership of one firm. They do not take prices from the market. Thus, if one automobile company raises the prices of its trucks by a certain amount, other automobile companies in the industry are likely to follow by raising prices by a similar amount.
Robusta Coffee Importers sold 6 comma 000 units in October at a sales price of $ 35 per unit. The variable cost is $ 15 per unit. The monthly fixed costs are $ 10 comma 000. What is the operating income earned in October?
Answer:
Operating Income= $110,000
Explanation:
Giving the following information:
Robusta Coffee Importers sold 6,000 units in October at a sales price of $35 per unit. The variable cost is $ 15 per unit. The monthly fixed costs are $10,000.
The operating income is the difference between the contribution margin and the fixed costs:
Contribution margin= selling price - unitary variable cost
Operating income= Total contribution margin - fixed costs
OI= 6,000*(35 - 15) - 10,000= $110,000
Operating income earned in October is $110,000, calculated as total revenue minus total variable costs and fixed costs.
To calculate the operating income earned in October, we need to determine the total revenue and the total expenses.
Step 1:
Calculate total revenue:
Total revenue = Sales price per unit * Number of units sold
Total revenue = $35/unit * 6,000 units = $210,000
Step 2:
Calculate total variable costs:
Total variable costs = Variable cost per unit * Number of units sold
Total variable costs = $15/unit * 6,000 units = $90,000
Step 3:
Calculate total fixed costs:
Total fixed costs = $10,000
Step 4:
Calculate operating income:
Operating income = Total revenue - Total variable costs - Total fixed costs
Operating income = $210,000 - $90,000 - $10,000
Operating income = $110,000
Therefore, the operating income earned in October is $110,000.
The statement of cash flows is: Multiple Choice A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date. Another name for the statement of financial position. A financial statement that presents information about changes in equity during a period. A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.
Answer:
The correct answer is: None of the above.
Explanation:
The Cash Flow Statement or Statement of Cash Flows shows how good a company manages its inflows and outflows of money over a certain period. It represents the ability firms have to generate cash to pay their debt. In this report, the cash flows are classified as operating activities, investing activities, or financing activities.
Leslie, who is single, finished graduate school this year and began repaying her student loan. The proceeds of the loan were used to pay her qualified higher education expenses. She has not received any type of educational assistance or scholarships. The amount of interest paid during the year amounted to $3,800. What is the amount and classification of her student loan interest education deduction if her modified AGI is $40,000?
Answer:
$2,500 from AGI
Explanation:
Given:
Adjusted Gross income = $40,000
Amount of interest pay = $3,800
According to the federal law of deduction from income tax, passed out students can take a deduction from their annual AGI payment up to $2,500, but to avail, this deduction students income must be under in specified range.
Modified Adjusted Gross income under this law must be less than $80,000.
Final answer:
The amount and classification of Leslie's student loan interest education deduction depends on her modified AGI. If her modified AGI is $40,000 or less, she can claim a deduction for up to $2,500 of student loan interest paid during the year.
Explanation:
The amount and classification of Leslie's student loan interest education deduction would depend on her modified AGI. If her modified AGI is $40,000 or less, she can claim a deduction for up to $2,500 of student loan interest paid during the year. However, the deduction is reduced if her modified AGI is between $40,000 and $70,000, and completely phased out if her modified AGI is $70,000 or more.
In this case, since Leslie's modified AGI is $40,000, she would be eligible to claim the full deduction of $3,800, as her modified AGI is below the phase-out threshold. This deduction can help reduce her taxable income and potentially lower her tax liability.
Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $980,000. Benning wants to be reimbursed for financing the machine at a 9% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the required lease payment if the first of 10 annual payments will be made immediately and Benning will be able to sell the machine to another customer for $50,000 at the end of the 10-year lease.
Solution:
PVA = Annuity amount × Annuity factor
Annuity amount = [tex]\frac{PVA}{Annuity factor}[/tex]
Annuity amount =
[tex]\frac{980,000}{7.36009}[/tex]
**Present value of an ordinary annuity of $1:n= 10, i= 6% (from PVA of $1)
Annuity amount = $108,694 = Lease payment
A city government hopes to decrease the quantity of sugary drinks consumed, and is planning to implement a tax on the drinks. Should the government tax companies that sell sugary drinks, or the consumers who purchase them?
Answer:
Government should tax consumers of sugary drinks, rather than sellers.
Explanation:
If government levies tax on sellers; Sellers might share the tax burden wholly, partially or none with the buyers.
Such tax burden share depends on inelasticities of demand & supply - if demand is more inelastic, more burden is on buyers & if supply is more inelastic, more burden is on sellers.
So in case : demand is relatively more elastic & supply more inelastic, more tax burden will be borne by sellers. Hence, despite of tax - there will be less or no change (rise) in buyer's price & therefore it won't be effectively reducing quantity of sugar drinks consumed
If the tax is on buyers, it will directly effect their demand & consumption of sugary drinks.
Answer:
The impact of the tax will be the same regardless of who pays the tax
Explanation:
Prices will adjust so that the impact on consumers and producers will be the same regardless of who officially pays the tax.
5b. MousePad Computer Company, in addition to its retail sales, conducts night classes in computer technology. MousePad has provided you the following information: Number of students 120 Revenue per student $450 Student-related variable costs $100 per student Salary for three instructors $1,800 each Administrative costs $30 per student Maintenance on building $15,000 per year Required: Construct a contribution margin format income statement.
Answer:
Net Income = $18,000
Explanation:
MousePad Computer Company
Contribution Margin Income statement
Revenue (120 students × $450) = $54,000
Less: Variable expenses:
Student-related costs (120 students × $100) = $12,000
Administrative costs (120 students × $30) = $ 3,600
Total variable expenses =($15,600)
Contribution Margin $38,400
Less: Fixed cost
Instructors salary (3 × $1,800) = $ 5,400
Maintenance on building = $15,000
Total fixed cost =$(20,400)
Net Operating Income =$18,000
Note:
Students cost is a variable expense, because if we decrease the student's number, the revenue and expenses will decrease proportionately. Moreover, the company is getting profit from the students.
Indicate whether the following scenarios represent an increase, decrease, or no change in the long-run aggregate supply (LRAS) curve. Each label may be used more than once.
A.The mandatory retirement age in Wonkaland is abolished.
B.Wonkaland?s main export is candy. Candy from this country increases in popularity as consumers all over the world want to buy Wonkalandian candy.
C.Since candy from Wonkaland has become an international sensation, factories in Wonkaland double the number of candy making machines.
D.The top candy companies in Wonkaland chose to relocate their means of production to other countries around the world.
Answer:
A. increase
B. decrease
C. no change
D. no change
Explanation:
The long-run aggregate supply (LRAS) curve is the curve used to show how aggregate supply varies with changes in demand in the long run.
Let me explain each of the choices one after the other;
A. The mandatory retirement age in Wonkaland is abolished; this leads to an increase in long run supply because more people will be in the workforce, and more workers mean more production and more supply.
B. Wonkaland's main export is candy. Candy from this country increases in popularity as consumers all over the world want to buy Wonkalandian candy; an increase in demand from all over the world will cause number of supply to drop long term, because, lesser number of products will be distributed among a larger number of people.
C. Since candy from Wonkaland has become an international sensation, factories in Wonkaland double the number of candy making machines; initially as described in B above, the supply decreases, but if number of candy making machines are doubled, the supply that has decrease begins to rise again until it reaches its original point, hence causing no chance in the LRAS, because it s assumed that the new machines are used to satisfy the external demand.
D.The top candy companies in Wonkaland chose to relocate their means of production to other countries around the world; in the case of relocation, there will be no change in overall supply because the change is only in location and not in production capabilities, but locally, the supply might decrease in the place where they relocated from.
you have 10 pairs of socks,five black and five blue,but they are not paired up.instead they are all mixed up in a drawer.it is early in the morning and you do not want to turn on the light.
1. how many socks must you pull out to guarantee that you have a pair of one color?
2. how many must you pull out to have two good pairs(each pair is the same color)?
3. how many must you pull out to be certain that you have a pair of black socks? use a systematic approach to list all possible outcomes as a way to justify the answer in each case.
The answer for
1) 3 socks
2) 5 socks
3) 1 pair of socks
Explanation:
1) In the second trial, you choose one color, you say black, first, and second, say blue. The third sock you're taking out now has two black or brown. Therefore, you must draw at least 3 socks to ensure that you have a single color pair..
2) You get black first.
You're pulling out brown, second.
You tear down charcoal, Thrid.
Second, you cut out charcoal. (one pair complete)
Second, you're only heading out. (2 pairs full) Thus, you have to take out at least 5 socks to guarantee two pairs in the same colour.
3) You want 1 pair of black socks
The worst case is: [ 5 blu ]
The 6th pick guarantees you will have 1 pair of black socks
Boston Company purchased equipment by signing a noninterest-bearing note with a face value of $64,800. The list price of the equipment is $50,000. Prepare the appropriate journal entry to record the purchase of the equipment.
Answer:
_____________________ __________________
Equipment $50,000 Debit
Discount on Note Payable $14,800 Debit
Note Payable $64,800 Credit
___________________ ___________________
Explanation:
The equipment that the boston purchased is an asset that have to debit the company in the journal entry. When an asset increase you have to debit the account. Therefore $ 50.000 equipment is a debit.
The noninterest-bearing note $64,800 its a note payable that you have to credit on the journal entry for being a liability.
With the purchased there is a discount on note payable,this is the difference of 64,800- 50,000 of the equipment purchased and so the discount is = $ 14,800.
Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major computer and semiconductor companies located close to each other there. This provides the location-specific advantage of
Answer:
Externalities
Explanation:
When we discuss externalities, we refer to specific benefits or costs an organisation enjoys or suffers as a third party as a result of having no direct control over how those benefits or costs are created.
Externalities are both positive (benefits) or negative (costs), they can also be private (to an individual or a business) or public (affect the enitre society)
When a computer based organisation is based in Silicon Valley, the advantages to business it enjoys as a result of that location is the location-specific advantage of Externalities.
Financial markets :a. determine tax rates. b. increase transactions costs. c. reduce diversification. d. are the same as resource markets. e. provide liquidity.
Answer:
The correct answer is letter "E": provide liquidity.
Explanation:
Financial market describes any manner in which buyers and sellers meet for trading assets, usually financial securities such as stocks, bonds currencies, options, and derivatives. Financial markets are a cornerstone of the capitalist economy because they assist entrepreneurs and businesses in facilitating capital formation and liquidity.
Financial markets create liquidity by making the trading of financial holdings easy for buyers and sellers without the need of a physical market.
Financial markets play an important role in providing liquidity, fostering efficiency, and promoting diversification. They are made up of different entities that include firms and households. These markets provide a platform where firms aim to raise financial capital and households look for a desirable mix of rate of return, risk, and liquidity.
Explanation:The question pertains to the purpose and impact of financial markets. Financial markets, which include entities like firms in the goods market and households in the financial market, play an important role in our economy. They don't determine tax rates (Government does that), nor do they increase transaction costs. In fact, financial markets strive to reduce costs and foster efficiency.
Financial markets neither reduce diversification but promote it, as they allow investors to spread their risk across a variety of investments. Furthermore, financial markets are not the same as resource markets; the former deals with assets and securities, while the latter deals with labor, raw materials, and physical capital. Lastly, financial markets provide liquidity, which means that they enable investors to easily convert their assets into cash without a significant loss of value
Different entities like firms in the labor market, households in the goods market, and firms in the financial market interact within these markets. Firms aim to raise financial capital while households look for a desirable combination of rate of return, risk, and liquidity. This dynamic interplay highlights the critical role of financial markets in society.
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5. Consider the following semiannual bonds: Bond C%(per year) Maturity(years) A 0% 15 B 0% 9 C 5% 15 D 11% 9 a. What is the percentage change in the price of each bond if its YTM falls from 5% to 4%
Answer:
The percentage changes in the price of the bonds are as follows:
Bond A 16%
Bond B 9%
Bond C 11%
Bond D 7%
Explanation:
Find detailed calculation in the attached.
Please note the line color-coded blue.
According to the World Bank, E.U. remittances to Senegal were $ 1,005,728,139 in 2015. Senegal's gross domestic product (GDP) was $ 13,779,570,750 in 2015. What percentage of Senegal's 2015 GDP is represented by the remittances? Round your answer to one place after the decimal.
Answer:
7.3%
Explanation:
To determine the percentage of Senegal's 2015 GDP that is represented by the remittances you have to divide the remittances by Senegal's GDP:
Remittances: $ 1,005,728,139
GDP: $ 13,779,570,750
$ 1,005,728,139/$ 13,779,570,750= 0.073*100= 7.3%
The percentage of Senegal's 2015 GDP that is represented by the remittances is 7.3%.
Josh Turner has done some research and has found that the population in the U.S. is aging, and this means that there will be an increased need for health care professionals in the future. This is an example of __________ influencing jobs in the future.
Answer:
demographic trends
Explanation:
Demographic trends -
Demography refers to the study of structure , size , distribution of the population , is referred to as demographic trends .
It is a type of statistical study , specifically humans .
All the trends about the human population is known as demographic trends .
Various factors like , life death , migration , aging etc. , is included in the demographic trends .
Hence , from the given scenario of the question ,
Then correct answer is demographic trends .
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $ 60 comma 000 for proposal A and $ 75 comma 000 for proposal B. The variable cost is $ 13.00 for A and $ 11.00 for B. The revenue generated by each unit is $ 24.00.What is the break-even point in units for proposal A?What is the break-even point in units for proposal B?
Answer:
Proposal A: 5,455 units
Proposal B: 5,770 units
Explanation:
The break-even point is the number of units required for the revenue to equal the total costs.
For proposal A:
Fixed Costs = $60,000
Variable Costs = $13 / unit
Selling Price = $24 / unit
[tex](P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units[/tex]
For proposal B:
Fixed Costs = $75,000
Variable Costs = $11 / unit
Selling Price = $24 / unit
[tex](P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units[/tex]
Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.
After Hiroshi’s client informs him that she was denied an apartment lease due to her race, he refers his client to the free legal clinic available to university students. This is an example from the ACA Advocacy Competency domain of_____________.a. Client\/Student Empowerment.b. Client\/Student Advocacy.c. Community Collaboration.d. Social\/Political Advocacy.
Answer:
The correct answer is letter "B": Client/Student Advocacy.
Explanation:
The American Counseling Association (ACA) Advocacy Competency describes the set of capabilities counselors can use to help students, clients or individuals of a population in front of cases problematic cases.
The Client/Student Advocacy refers to the power counselors have to act on behalf of students and clients in cases where the counselor has access to systems or processes students or clients do not. This advocacy is also useful when the clients do not want to engage in advocacy because they are afraid of retaliation.
ebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for Samson, Inc., under a long-term contract. The gross contract price was $2,300,000. Jebali finished construction in 2016 at a cost of $2,100,000. However, Samson insisted that Jebali redo the doorway; otherwise, the contract price would be reduced. The estimated cost of redoing the doorway is $80,000. In 2017, the dispute is settled and Jebali fixed the doorway at a cost of $65,000.
A) How much must Jebali include in gross income? What amount of deductions is Jebali allowed for 2016?
B) In 2017, how much must Jebali include in gross income? What amount of expenses can Jebali deduct in that year?
Answer:
Explanation:
2016 2017
Contract price = 2300000 2300000
Cost to date = (2100000) (2160000)
Further estimated Cost = (80000) 0
Profit = 120000 140000
Stage of completion = 2100/2180 = 96.33% 100%
As at Profit and loss
Revenue 2300*96.33 = 2215596.33 2300000
Profit 120*96.33 = -115596.3303 -140000
Cost of Sales = 2100000 2160000
For the period profit and loss
Revenue = 2215596 84404
Cost of sales = (2100000) 60000
Profit = 115596 24404
proposed new project has projected sales of $124,000, costs of $58,000, and depreciation of $12,700. The tax rate is 34 percent. Calculate operating cash flow using the four different approaches
Answer:
Please see explanation
Explanation:
The four different approaches for calculating operating cash flows are given as follows:
1.Operating cash flow=Earning before tax+ Depreciation expense – Tax expense
=($124,000-$58,000-$12,700)+$12,700-[($124,000-$58,000-$12,700)*34%]
=$53,300+$12,700-$18,122
=$47,878
2.Operating cash flow=Sales-expenses other than depreciation-Tax expense
=$124,000-$58,000-[($124,000-$58,000-$12,700)*34%]
=$124,000-$58,000-$18,122
=$47,878
3.Operating cash flow=(Sales-expenses other than depreciation)*(1-tax rate)+tax rate*depreciation
=($124,000-$58,000)*(1-0.34)+0.34*$12,700
=$43,560+$4,318
=$47,878
4.Operating cash flow=Net income+depreciation
=Sales-costs-depreciation-tax expense+depreciation
=$124,000-$58,000-$12,700-$18,122+$12,700
=$47,878
The use of debt is called A. financial leverage. B. production leverage. C. operating leverage. D. total asset turnover risk. E. business risk. Reset Selection
Answer:
A- Financial leverage
Explanation:
The use of debt is called FINANCIAL LEVERAGE because it involve the use of debt or borrowed money rather than equity when an asset is purchased with the hope that the profit gain after deducting tax from the equity holder transaction will be higher than the borrowing cost.
Financial leverage is based on the used of borrowed money or debt to acquire an additional assets which will cause the returns on the owner's cash investment to be amplified.
The return on equity is increased through leverage leading to the excess amount of the financial leverage to increases the risk of failure, since it will becomes more difficult to repay back the debt or borrowed money.
Financial leverage is measured as the ratio of total debt to total assets meaning the greater the amount of debt , the greater the financial leverage.
Answer:
A. financial leverage.
Explanation:
Financial leverage refers to the use of debt in order to buy more assets. This is measured by comparing the ratio of total debt to total assets. This means that, as the proportion of debt to assets increases, so does the amount of financial leverage. As a very large amount of debt can be hard to pay, an excessive amount of financial leverage can greatly increase the risk of failure.
Fuller Company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on the frame, to be priced at $40 each. Normally, Fuller would charge $90 per frame for this type of order. Fuller figures that wood and glass will cost $16 per frame, variable overhead (machining, electricity) is $4 per frame, direct labor is $12 per frame, and one setup will be required at $1,000 per setup. The set-up charge costs are 100% labor. Currently, the workers needed to set up for and make the frames are working at Fuller. Their wages will be paid whether or not the special order is accepted. Fuller's policy is to avoid layoffs to the extent possible.
Which of the following is a qualitative factor that Fuller would consider in making the decision to accept or reject the special order?
a. the no-layoff policy
b. cost of setup labor
c. cost of yarn and backing
d. the machining and electricity
e. the use of machinery
Answer:
The qualitative factor which Fuller will consider for this order is:
b. Cost of setup labor.
Explanation:
Answer:
The qualitative factor which Fuller will consider for this order is:
b. Cost of setup labor.
B. Cost of setup Labor: It includes salaries that are been paid to all workers working as full time and part time
While the number of wages and the number of employees wage requirements vary by cost controls, their industries and the center on achievment of their best results with possible lower labour costs.
As any leader of the company knows the things related to it that, the most important and biggest cost of doing any sort of business is often labor. Cost of labor setup, which may account for as 70% of almost total business costs which include wages of the employees,their benefits, payroll and all other taxes related to them.
Any HR professionals spend only their 15% of time managing the labor costs. Engaging new employees, hiring new and efficient workers and developing them over their course of their career are always top of mind for HR professionals.
So, the most important point here is the cost labors setup.
On January 1, C company sells 50,000 shares of $3 par common stock for $5. It does not issue any preferred stock. Later on the company buys back 10% of its common shares outstanding for $7 per share. Total equity on December 31 is $300,000. What is retained earnings on December 31
Answer:
$85,000
Explanation:
Given that,
Shares sold = 50,000 shares of $3 par common stock for $5
Buys back = 10% of its common shares outstanding for $7 per share
Total equity on December 31 = $300,000
Balance in stockholder's equity without retained earnings:
= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity
= $0 + (50,000 × $5) - (50,000 × 10% × $7)
= $250,000 - $35,000
= $215,000
Retained earnings on December 31:
= Total equity at December 31 - Balance in stockholder's equity without retained earnings
= $300,000 - $215,000
= $85,000
Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return the car. d. enforceable since it is for a necessary. e. none of the above
Answer:
The correct answer is letter "A": voidable.
Explanation:
Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.
Thus, Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).
Many American companies enter china through joint ventures with local firms, but china is succeeding in the United States primarily with a strategy of buying companies outright. What are some factors that might account for this difference?
Answer:
(1) The preference of the Chinese firms to expand through outright purchase which aides them to retain key positions in order to have a firm control on the business.
(2) Chinese companies are ready to take more risk than American companies
(3) Chinese companies are more interested in opportunities to provide growth and innovation.
Explanation:A Joint venture business is a business organisation owned by two or more persons or organisations who pull resources together in order to achieve a common goal.
The resources pulled together can be in the form of finance, expertise,infrastructures etc, a joint venture business is also another form of merger known commonly with profit making organisations.
Differences in regulation, culture, market access, IP concerns, government support, risk perception, and market maturity influence American joint ventures in China and Chinese acquisitions in the U.S.
Several factors contribute to the difference in market entry strategies between American companies in China and Chinese companies in the United States:
1. Regulatory Environment : China's regulatory environment historically favored joint ventures as a means for foreign companies to enter the market, with the Chinese government often mandating local partnerships for certain industries. Conversely, the U.S. has generally had more open regulations regarding foreign ownership, allowing Chinese firms to acquire companies outright.
2. Cultural Differences : Chinese business culture tends to prioritize relationships and long-term partnerships. Joint ventures can be seen as a way to build trust and establish connections with local partners. On the other hand, American business culture often values independence and control, which may lead U.S. companies to prefer full ownership when expanding abroad.
3. Market Access : China's vast market and potential for growth may incentivize American companies to enter through joint ventures to gain quicker access and local expertise. Conversely, Chinese companies entering the U.S. market may have sufficient resources to directly acquire companies to gain immediate market share.
4. Intellectual Property Concerns : Some American companies may be wary of sharing intellectual property and proprietary technology in joint ventures in China, opting instead to retain full control through acquisitions in the U.S. market where intellectual property protection is generally stronger.
5. Government Support and Subsidies : Chinese government support and subsidies for overseas acquisitions, particularly for strategic industries, may encourage Chinese companies to pursue outright acquisitions in the United States as a means of expanding their global footprint.
6. Risk Management : American companies may perceive joint ventures in China as riskier due to concerns about regulatory changes, intellectual property theft, and potential conflicts with local partners. Acquiring companies outright in the U.S. may be seen as a more straightforward way to mitigate these risks.
7. Market Maturity : The maturity of the market also plays a role. China, being a developing market, might require closer collaboration and knowledge-sharing through joint ventures. In contrast, the U.S. market is more mature, and Chinese companies may find it easier to acquire existing businesses rather than starting from scratch.
These factors, among others, shape the differing strategies employed by American companies in China and Chinese companies in the United States.
A Swiss watch company advertises its history of superior craftsmanship. The company thinks that this would a. Make the demand for the product less elastic b. Make the customers less sensitive to the price c. Assist them with differentiating their product d. All of the above
Answer:
The correct answer is letter "B": Make the customers less sensitive to the price.
Explanation:
There are several reasons that could make products become elastic or inelastic. Reputation typically makes goods and services be considered inelastic. These types of products do not see a change in their quantity demanded in front of changes in price.
Thus, if a Swiss watch company promotes their history of superior craftsmanship is attempting to aware consumers about its watch quality and reputation so if they decide to increase prices consumers will be less sensitive to the change.
The correct answer is d) All of the above.
Explanation:The correct answer is d) All of the above.
When a Swiss watch company advertises its history of superior craftsmanship, it can have multiple effects on the demand for the product. First, it can make the demand for the product less elastic, meaning that consumers are less likely to be sensitive to price changes. This is because the craftsmanship and reputation of the company create a perception of high quality, which can make consumers willing to pay higher prices. Second, it can make the customers less sensitive to the price, as they value the craftsmanship and uniqueness of the product, which differentiates it from other watches in the market. Lastly, advertising the history of superior craftsmanship can assist the company with differentiating their product from competitors, as it highlights the company's expertise and reputation in producing high-quality watches.