Answer:
b. exogenous
Explanation:
Exogenous variations are variations that occur in one independent variable that helps one predict one or more dependent variables in a model.
Endogenous variations on the other hand are values that are determined by other variables ( these controlling variables are exogenous variables).
So in this scenario one-time shocks to a time series from a distinctly external influence (exogenous variable), such as a sudden dip in consumer sales (endogenous variable) after a disruptive event.
Answer: B. Exogenous
Explanation: Exogenous variations are caused by variables that are not affected by other variables in the system. Their values are determined outside the model and as such are imposed on the model; they are fixed when they enter the model, are taken as a “given” in the model, and are not determined or explained by the model. They also influence endogenous variations in the model. For example, a change in the consumer's income, sudden dips in consumer sales after a disruptive event etc.
Folsom Fashions sells a line of women's dresses. Folsom's performance report for November is shown below. (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.
Actual
Budget
Dresses sold
5,000
6,000
Sales
$235,000
$300,000
Variable costs
($145,000)
($180,000)
Contribution margin
$90,000
$120,000
Fixed costs
($84,000)
($80,000)
Operating income
$6,000
$40,000
1. The effect of the sales quantity variance on the contribution margin for November is:
$30000 U , $18000 U, $20000 U , $15000 U
2. The sales price variance for November is:
$30000 U , $18000 U , $20000 U , $15000 U
Answer:
(1) $20,000 U
(2) $15,000 U
Explanation:
(1) Effect of the sales quantity variance on the contribution margin for November:
= (Budget dresses sold - Actual dresses sold) × (Budgeted contribution margin ÷ Budgeted dresses sold)
= (6,000 - 5,000) × (120,000 ÷ 6,000)
= $20,000 unfavorable
(2) Sales price variance for November:
= [(Budgeted sales ÷ Budget dresses sold) - (Actual sales ÷ Actual dresses sold)] × Actual dresses sold
= [(300,000 ÷ 6,000) - (235,000 ÷ 5000)] × 5000
= $15,000 unfavorable
Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows:
Casino Hotel
Revenues $80,000,000 $ 55,000,000
Costs 45,000,000 40,000,000
The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $12,000,000. The discount coupons redeemed at the hotel totaled $5,000,000. As of the end of the year, all coupons for the current year expired.
Required (please show work) :
What are the operating profits for each division (Casino & hotel) considering the effects of the costs arising from the joint marketing agreement?
Answer:
Explanation:
casino hotel
Revenue $80,000 $55,000
Coupons $12,000 $5,000
Total revenue $92,000.00 $60,000
Less:
Costs $45,000 $40,000
Transfer price $5,000 $12,000
Total costs $50,000 $52,000
Operating profit before tax $42,000 $8,000
How does a person with strong GRIT Gauge results deal with a high-stress work situation? Group of answer choices By finding someone to blame By keeping a positive attitude By leaving for a better job By asking for more money
Answer: By keeping a positive attitude.
Explanation: GRIT is the ability to search wide and accomplish whatever it holds to achieve one's capable purpose. However, this personality trait helps the person to keep a positive attitude in dealing with a high-stress work situation and dealing with any modification that may arise during the work. Also, the person can deal with this situation by not concentrating on losses rather looking towards the betterment of tomorrow and having enjoyment while at it.
True or False: Increasing the number of stocks in a portfolio reduces market risk.Consider two stock portfolios. Portfolio B consists of 20 different stocks from firms in different industries. Portfolio A consists of 10 different stocks, also from firms in different industries. The return on Portfolio B is likely to be volatile than that of Portfolio A.
Answer:
The correct answer is False.
Explanation:
A basic principle of investments is the creation of portfolios (or portfolios) for diversification purposes. At any given time, investors simultaneously hold a set of assets that make up their investment portfolio. A basic principle in finance is that an investor should not place all of his resources in a single asset or in a relatively small number of assets, but in a large number of investment instruments. In this way, the possible bad results in certain assets would be offset by the good results of others. Diversification allows the investor to lower the risk of his portfolio without sacrificing returns or, alternatively, increase the return on his portfolio without increasing his risk. Of course, diversification does not guarantee profits under any circumstances, but it does help to dampen the variability of returns on individual assets.
Read the following sentence, and determine which technique is most applicable to improve its readability.
Please follow these steps when filling out an expense report: begin by writing your name, date, and position; record the exact expense amount; and obtain your supervisor’s signature.
A. Using numbered or bulleted lists
B. Using graphic techniques
C. Developing parallelism for balance
Answer:
The correct option is A. Using numbered or bulleted lists.
Explanation:
EXPLANATION
A. Using numbered or bulleted lists
Use numbered lists when you're explaining instructions that need to be performed in sequence. In situations where numbers are not essential use bullets, especially in business related documents
Bulleted lists are used to make items stand out from the text without implying order of importance. They may include punctuation marks like commas and semicolons
This is the correct answer, use of numbered list. We were told in the question to follow a particular order to fill out an expense report. You begin by writing your name and end by obtaining the supervisor’s signature
B. Using graphic techniques
Graphics are visual elements that can be used to point readers and viewers to a particular information. Graphic techniques are visually engaging in order to attract and inform a large audience. Diagrams and graphs can help learners comprehend abstract concepts using visual language to depict meaning. For instance, in diagrams the connecting lines between elements help learners understand relationships. Bar graphs make it easy to compare data; line graphs help learners understand trends
This option is wrong. The expense report is not a new concept
C. Developing parallelism for balance
Parallelism in literature is the repetition of a word or phrase within a sentence or group of sentences. It is used to help organize ideas, but also to make the ideas memorable.
This option is also wrong
Final answer:
The most applicable technique to improve the readability of the expense report instructions is A. using numbered or bulleted lists, which helps to emphasize key points and make the information easier to follow.
Explanation:
To improve the readability of the sentence, 'Please follow these steps when filling out an expense report: begin by writing your name, date, and position; record the exact expense amount; and obtain your supervisor’s signature.' the technique most applicable is using numbered or bulleted lists. This method enhances clarity and organization, making the information easier to follow for the reader.
Numbered or bulleted lists help to emphasize key points and break up blocks of text, ensuring that each step in the process is clearly identifiable and follows a logical order. When you enumerate the steps, readers can process the content with less cognitive strain, thereby improving comprehension and the likelihood of correct execution of listed tasks.
Real estate salespersons can lose their licenses for: Group of answer choices
All of the other answers
Not showing buyers all available properties in an area
Using aggressive sale techniques
Commingling escrow (trust) money with personal funds
Answer:Commingling escrow (trust) money with personal funds.
Explanation: Commingling of funds is the bringing together of two or more funds from different source in such a way that the owner of the funds can not properly determine how much is his or her own.
COMMINGLING OF FUNDS BELONGING TO THE PRINCIPAL WITH PERSONAL FUNDS IS PUNISHABLE UNDER THE UNITED STATES OF AMERICA CONSTITUTION AND CAN LEAD TO REVOCATION OF THE LICENSE OF AREAL ESTATE SALES PERSON.
other options are permissible like the use of aggressive sales techniques(extraordinary actions like creating artificial urgency,thinking like a marketer etc),not showing buyers all the available properties in a given area is not punishable as there are various reasons that can lead to such.
There are 100 apartment complexes (worth ~$350K annually in potential contracts), that the Go Green recycling company has identified which don’t offer recycling for their tenants. The city just passed a law requiring large apartment complexes to recycle. Go Green has contacted apartment complex owners offering their services with mixed results. Which one of the criteria for defining a potential market is missing from this example?
Answer:
An organisation has the ability to pay for the service.
Explanation:
In this scenario Go Green recycling company has identified a need by getting information on complex owners that do not provide recycling services to their tenants.
Legislation has also been passed requiring large complex owners to provide recycling services for tenants.
However they did not determine if the organisations have the ability to pay for services being offered.
So they will get mixed reactions when they approach complex owners.
A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%.
a. Calculate the total additional sales revenue needed to support the desired net income after tax.
b. Calculate the total sales revenue required to cover fixed costs, tax, and net income after tax.
Answer:
Explanation:
Answer:
A) Total Additional Sales Revenue =
B) Total Sales Revenue =
Explanation:
Requirement A
We know, according to the break-even formula, Target Profit = Target Sales - Variable expense - Fixed Cost - Tax
(according to the net income after tax)
As we need to find target sales, we do not have the variable expense and as the tax is based on the target profit, the new equation is -
Target Profit = (Sales - Variable expense - Fixed Expense) (1 - Tax Rate)
Target Profit = (Sales - Sales × 44% - $188,000) × (1 - 0.28)
$50,400 = (Sales - 0.44 Sales - $188,000) × 0.72
or, Sales - 0.44 Sales - $188,000 = $50,400 ÷ 0.72
or, Sales - 0.44 Sales = $70,000 + $188,000
or, 0.56 Sales = $258,000
Sales = $258,000 ÷ 0.56
Sales = $460,714 (Approx)
Therefore, the company does not need to sell more to cover the tax rate. The sale of the company will decrease by $1,286.
Req. B
The company's total sales revenue will be $460,714 to cover fixed costs, variable costs, and net income after tax.
It can be showed under the following calculation
Sales $460,714
Less: Variable expense (44% of sales) $(202,714)
Contribution Margin $258,000
Less: Fixed Expense $(188,000)
Net Income before tax $70,000
Less:Tax (70,000*28%) $(19,600)
Net income after tax = $50,400
he following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.0 hours Standard labor rate $ 15.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 8,100 hours Actual total labor cost $ 119,880 Actual output 800 units What is the labor rate variance for the month? Group of answer choices
Answer:
Direct labor rate variance= $2,430 favorable.
Explanation:
Giving the following information:
Standard labor rate $ 15.10 per hour
Actual hours worked 8,100 hours
Actual total labor cost $ 119,880
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 119,880/8,100= $14.8
Direct labor rate variance= (15.1 - 14.8)*8,100= $2,430 favorable.
It is favorable because the actual rate for direct labor was lower than the estimated rate.
Susan, a salesperson for a clothing company, always encourages her customers to be candid with her and requests them to be honest about the services they do not find satisfactory. In this scenario, Susan is:
Answer:
Susan encourages criticism.
Explanation:
In business, critical judgments are necessary for one to be able to improve and meet up to standards. Critical judgements might either be positive or negative responses.
Critics are accepted and significant because the quality of assessments by the critic can make one come up with better ways to achieve goals or meet customers demands. A good critic should have evidences to back up his or her claim. It's not the job of the critic to either be right or wrong but it's his job to convey his or her opinion on certain issues clearly.
Answer:
Is encouraging critical encounters.
Explanation:
Susan by encouraging her customers to give honest feedback on services they do not find satisfactory is encouraging critical encounters.
Customer satisfaction is a critical success factors for a business and when candid opinion of a business's performance with regards to service is received, it gives pointer to critical areas the business can improve to vecome more successful.
Other means of getting customer feedback include the Net Promoter Score and Customer Satisfaction survey.
An incentive conflict is when a. The agent and the principal have identical incentives b. The agent has different incentives than does the principal c. The agent and the principal neither have any incentives to work hard d. None of the above
Answer:
The correct answer is letter "B": The agent has different incentives than does the principal.
Explanation:
Incentive conflicts more often called principal-agent problems arise when a principal (stakeholder) hires an agent (manager) to handle businesses on behalf of the principal but the principal's interest is different from the agent's purpose.
Agents are paid for following the principal's instructions but in most cases, when it comes to decision-making, the point of view of the agent differs from the position of the principal. The principal's point of view is typically self-biased.
Final answer:
An incentive conflict happens when the agent's incentives differ from the principal's, creating a divergence in their goals and interests.
Explanation:
An incentive conflict occurs when the agent has different incentives than does the principal, leading to a divergence in goals between the two parties. For instance, employees may waste time on personal activities during work hours, or attorneys may avoid settling a case promptly to generate more fees, both of which demonstrate the agent acting against the principal's best interests. This misalignment of incentives is a core issue in agency theory, where the principal-agent problem is a part of economic studies regarding contracts and incentive structures designed to align the agent's actions with the principal's goals.
Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,217 Sale price each $1,700 Total labor hours 46,672 Wage rate $12 /hour Total materials $60,000 Total energy $4,000 Calculate the productivity in sales revenue/labor expense. (Round your answer to 2 decimal places.) Productivity
Answer:
3.69
Explanation:
We know,
The productivity in sales revenue/labor expense = [tex]\frac{sales revenue}{labor expense}[/tex]
Given,
Sales revenue = Units sold × Sale price per unit
Sales revenue = 1,217 units × $1,700
Sales revenue = $2,068,900
labor expense = Total labor hours × wage rate per hour
labor expense = 46,672 × $12
labor expense = $560,064
Putting the values into the formula, We can get,
The productivity in sales revenue/labor expense = [tex]\frac{2,068,900}{560,064}[/tex]
The productivity in sales revenue/labor expense = 3.69
(7 points)
4. Suppose a store’s towel inventory is managed with a periodic review system and the vendor visits every week (reorder period = 7 days) to check the inventory and make an order. Once the order is placed, the lead time is three days. Suppose that over the reorder period plus lead time the demand for a popular item averages 80 with a standard deviation of 10. If a service level of 99% is desired and 30 units are on hand, then how many of the popular item should be ordered?
Number to order = ________
SOLUTION AND EXPLANANTION:
Let us define :Protection period” = P = Reorder period + Lead time = 7 + 3 days = 10 days
Z value for service level of 99% as per Z table= 2.33
Demand during protection period = = D = 80
Standard deviation of demand during Protection period = Sd = 10
Safety stock during protection period =[tex]Zxalue $*$ Sd $*$ Square root ( $P$ )[/tex]
[tex]2.33 * 10 * \text { square root }(10)[/tex][tex]23.3 \times 3.162=73.67[/tex]
Therefore,
Gross quantity to be ordered = Demand during protection period + Safety stock during protection period = 80 +73.67 = 153.67
However, number of items already in hand = 30 units
Hence,
Net quantity to be ordered = Gross quantity to be ordered – Number of items already in hand = 153.67 – 30 = 123.67 ( 124 rounded to nearest whole number)
True or False: Beta testing is the act of implementing a new idea, system or product on a large scale, controlled environment within the entire organization.
Answer: True.
Explanation: Beta testing is the act of implementing a new idea, system, or product with a select group of people or processes in as controlled an environment as possible. ... The purpose of beta testing is to reduce the risks and costs inherent in launching an unproven product or system to a widespread audience.
The correct answer for this is : False
Beta testing is an opportunity for real users to use a product in a production environment to uncover any bugs or issues before a general release. Beta testing is the final round of testing before releasing a product to a wide audience.
What is Beta Testing?Beta testing is a type of user acceptance testing where the product team gives a nearly finished product to a group of target users to evaluate product performance in the real world.
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Titanic Roofing Company has estimated the following amounts for its next fiscal year: Total fixed costs $ 840 comma 000 Sale price per unit 60 Variable cost per unit 30 If the company spends an additional $ 35 comma 000 on advertising, sales volume would increase by 2 comma 500 units. Before the change, the company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of Titanic?
Answer:
Operating income increases by $40,000.
Explanation:
Given that,
Total fixed costs = $840,000
Sale price per unit = $60
Variable cost per unit = $30
Additional amount spend on advertising = $35,000
Sales volume would increase by 2,500 units.
Contribution margin:
= Sales - Variable costs
= $60 - $30
= $30 per unit
Increase in operating income:
= Increase in contribution margin - Increase in Fixed costs
= ($30 × 2,500 units) - $35,000
= $75,000 - $35,000
= $40,000
A sample of 51 elements is selected to estimate a 95% confidence interval for the variance of the population. The chi-square values to be used for this interval estimation are
a. -1.96 and 1.96
b. 32.357 and 71.420
c, 34.764 and 67.505
d. 12.8786 and 46.9630
Answer:
Correct option: (b) 32.357 and 71.420
Explanation:
The confidence interval for population variance σ² is:
[tex]\frac{(n-1)s^{2}}{\chi^{2}_{\alpha/2, (n-1) }}\leq \sigma^{2}\leq \frac{(n-1)s^{2}}{\chi^{2}_{(1-\alpha/2), (n-1) }}[/tex]
Given:
[tex]n=51\\\alpha =1-0.95=0.05[/tex]
Compute the critical values of chi-square as follows:
[tex]\chi^{2}_{\alpha/2, (n-1)}=\chi^{2}_{0.025,50}=71.42[/tex]
[tex]\chi^{2}_{(1-\alpha/2), (n-1)}=\chi^{2}_{0.975,50}=32.36[/tex]
Use the chi-square table for the critical value.
Thus, the critical values are 32.36 and 71.42.
Edward leaves an organization for three years to fulfill military duties. Which observation is true of his employer's obligation to reemploy Edward under the Uniformed Services Employment and Reemployment Rights Act?
A) The employer is not obligated to reemploy Edward.
B) The employer must reemploy Edward with the same seniority and status he would have earned if his employment had not been interrupted.
C) The employer must reemploy Edward but is exempted from providing him any fringe benefits or retirement benefits.
D) The employer must implement an early retirement incentive program for Edward.
E) The employer must reemploy Edward with a lower pay scale to compensate for his absence.
Answer:
The corrwct option is B
Explanation:
The USERRA is a federal statute that protects servicemen and veterans civilian employment rights. Under certain conditions USERRA requires employers to put individuals back to work after their military service
Surplus Mining Company has leased a machine from Craft Machinery Company. The annual payments are $6,000 and the life of the lease is 8 years. It is estimated that the useful life of the machine is 9 years. How would Surplus Mining record the acquisition of the machine
Answer:
The machine would be recorded as an asset, at the present value of the annual cash payments, $6,000 for 8 years
Explanation:
Surplus mining company is leasing the machine at the rate of $6,000 annual payment. So the acquisition of the machine will be recorded as an asset and it will reflect for the 8 years it was leased for in the books of Surplus mining.
The annual cash payments will be considered when this entry is being recorded, and it will be at the present value of annual cash payments of the $6,000 for 8 years.
China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $22,000 and $12,000 (original cost of $45,000 less accumulated depreciation of $33,000), respectively. To equalize market values of the exchanged assets, China Inn paid $9,000 in cash to Midwest Chicken. At what amount did China Inn record the delivery truck? How much gain or loss did China Inn recognize on the exchange?
Answer:
$31,000; $10,000
Explanation:
Given that,
Fair value of the equipment = $22,000
Book value of the equipment = $12,000
Original cost of the equipment = $45,000
Accumulated depreciation = $33,000
Fair value of delivery truck:
= Cash paid to Midwest Chicken for delivery truck apart from equipment + Fair value of equipment sold in exchange
= $9,000 + $22,000
= $31,000
Gain recognize on exchange:
= Fair value of equipment given in exchange - Book value of equipment
= $22,000 - $12,000
= $10,000
China Inn recorded the delivery truck at $31,000. It also recognized a gain of $19,000 from the exchange of the assets with Midwest Chicken.
Explanation:China Inn exchanged its equipment worth $22,000 (fair value) and gave an additional $9,000 in cash to Midwest Chicken for a delivery truck. Hence the cost of the truck for China Inn is the total value it gave up, which is $31,000 ($22,000 + $9,000). Therefore, China Inn recorded the delivery truck at $31,000 in its books.
Regarding the gain or loss on this exchange, we need to consider the book value of the equipment given up by China Inn which was $12,000. When this is subtracted from the fair value of the truck received, we get a difference of $19,000 ($31,000 - $12,000). This indicates that China Inn recognized a gain of $19,000 on this exchange of assets.
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Without engaging in international trade, Candonia and Sylvania would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)
True or False
The given statement " Without engaging in international trade, Candonia and Sylvania would have been able to consume at the after-trade consumption bundles " is FALSE
Explanation:
Any amount outside the initial PPF of a country is considered unlikely without participating in international trade. This means that the PPF bundles are the largest quantity of the items that a nation can produce (and thus consume) without exchange provided the capital of an individual country.
Candonia and Sylvania will actually consume specialization outside their own PPFs, by using the comparative advantage of each nation to realize income from the exchange.
Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Thompson paid $732,500 for the land and building together. At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400. Land B was acquired on October 2, 2019, in exchange for 2,200 newly issued shares of Thompson’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $17 per share. During October 2019, Thompson paid
Answer:
He will not pay any depreciation during October.
Explanation:
Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.
Depreciation for Building A would be zero for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
The depreciation expense will be computed on 1st of November.
A state tobacco sales tax causes the demand curve for a particular brand of cigars to shift from D1 to D2. The tax is assessed at the point of sale as a tax on buyers. Use the area tool to draw the three-cornered area representing the producer surplus after the tax. To refer to the graphing tutorial for this question type, please click
Answer:
Demand curve shifts to the left due to sales tax. Producer surplus will decrease. Please see attached graph
Explanation:
The sales tax on the cigar caused the Demand curve to shift from D1 to D2 (as shown on the graph). A sales tax will cause the price of the cigar to rise (P1 to P2 on the graph); and ultimately a decrease in quantity demanded will occur (Q1 to Q2 on the graph). This, however, increases revenue collected by the government (B on the graph).
The producer surplus is shown by the shaded area (labelled A on the graph). “Producer surplus is the difference between how much a person would be willing to accept for given quantity of a good versus how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market” (Chappelow, 2019). Producer surplus will decrease as some of it goes to the government.
A state tobacco sales tax shifts the demand curve from D1 to D2, decreasing the demand for cigars. This decrease in demand, combined with the tax being assessed at the point of sale, reduces the producer surplus, evidenced by a smaller area above the supply curve and below the new price level.
Explanation:In normal circumstances, the producer surplus is the difference between the actual price a producer receives and the minimum amount they would be willing to accept, depicted as the area above the supply curve and below the price level. However, when a tobacco sales tax is introduced, this decreases the demand for cigars and shifts the demand curve from D1 to D2. The amount the producers receive for each unit sold decreases, as the tax is applied at the point of sale. Consequently, producer surplus diminishes. This can be graphically represented by a smaller area above the supply curve and below the new price level (after the tax).
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Which of the following activities that Private Sector Companies Can Do support the NIPP 2013 Core Tenet category, "Innovate in managing risk"? A. Identify shared goals, define success and document effective practices. B. Participate in training and exercises; Attend webinars, conference calls, cross-sector events and listening sessions. C. Adopt the Cybersecurity Framework. D. Establish relationships with key local partners including emergency management
Answer:
A. Identify shared goals, define success and document effective practices.
Explanation:
The NIPP has established some strategies that must be followed by government sectors and private organizations, in partnership, for the risk management innovation to occur. One of the factors established by NIPP to achieve this goal is the identification of shared goals, the definition of success and the documentation of effective practices.
This information must be shared and cooperated by private companies and government sectors in order for the region's economic success to be stimulated and to suffer less problems related to poorly planned management.
Partially correct answer iconYour answer is partially correct. This information relates to Windsor Co.
1. On April 5, purchased merchandise from Wildhorse Company for $25,100, terms 2/10, n/30.
2. On April 6, paid freight costs of $530 on merchandise purchased from Wildhorse.
3. On April 7, purchased equipment on account for $32,500.
4. On April 8, returned $3,600 of April 5 merchandise to Wildhorse Company.
5. On April 15, paid the amount due to Wildhorse Company in full.
Prepare the journal entries to record the transactions listed above on Wildhorse Co.’s books. Wildhorse Co. uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
1. Dr Merchandise inventory 25100
Cr Accounts payable 25100
(To record purchase of inventory on account)
2. Dr Merchandise inventory 530
Cr Cash 530
( To record freight cost )
3. No entry
4. Dr Accounts payable 3600
Cr Merchandise inventory 3600
( To record purchase return)
5. Dr Accounts payable ( 25100-3600) 21500
Cr Cash 21500
(To record paid the amount due).
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 150-unit purchase at $68 per unit; the second was a 200-unit purchase at $72 per unit. During the period, it sold 270 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO. LIFO. Weighted average.
Answer:
Kindly refer to the attached table for breakdown of answers
Explanation:
FIFO is a costing method that assigns costs to production based on a First in First out basis. Meaning the oldest stocks are transferred to production before the earlier purchased stock
LIFO is a costing method which assigns costs to production on the newness of the stock item, that is Last in First out. The latests stock is always the first to be transferred to production
Weighted Average attempts to find a mix between FIFO & LIFO by employing a uniform valuation based on total value of stock divided by the Quantity of stock available at every point in time.
Cost of Goods sold is the relative cost associated with the sales volume based on the cost method adopted of the 3 listed above
And Closing inventory is the valuation of the stock left over at year end based on the Costing method earlier employed.
Answer:
FIFO
Cost of Goods Sold = $17640
Inventory = $12960
LIFO
Cost of Goods Sold = $19160
Inventory = $11440
Weighted Average
Cost of Goods Sold = $18360
Inventory = $12240
Explanation:
FIFO
FIFO stands for First In First Out, meaning that Inventory bought in first should be the first to be sold
Cost of Goods Sold = (100×60)+(150×68)+(20×72)
Inventory = 180 ×72
LIFO
LIFO stands for Last In First Out, meaning that the recent inventory is sold first
Cost of Goods Sold = (200×72)+(70×68)
Inventory = (80×68)+(100×60)
Weighted Average
A new unit cost of inventory is calculated on each purchase using the average
Cost of Goods Sold = (270×68)
Inventory = (180×68)
Revenue at a major smartphone manufacturer was $2.2 billion for the nine months ending March 2, up 87 percent over revenues for the same period last year. Management attributes the increase in revenues to a 129 percent increase in shipments, despite a 16 percent drop in the average blended selling price of its line of phones.Given this information, is it surprising that the company’s revenue increased when it decreased the average selling price of its phones?
Answer:
No
Explanation:
Based on this information, it is not surprising that the company's revenue increased when the average selling price of its phones decreased. Based on the information provided in this passage, the demand for this product is elastic. This means that a reduction in price would most likely increase revenue. We can see that although the price of the phones decreased, there was an increase of 129% in shipments.
Despite the company decreasing the average selling price of its phones, the company's revenue increased due to a significant increase in shipments. This is an example of volume-driven revenue growth.
Explanation:The subject of this question pertains to the business concept of volume-driven revenue growth. Even though the company dropped the average selling price of its phones by 16%, it was still able to increase its revenue by 87%. This is because they increased their shipments by 129%. Imagine if they only sold 100 phones at $100 each last year, that's a revenue of $10,000. But this year, they've dropped the price to $84 (16% reduction) but sold 229 phones (129% increase). The revenue this year would be $19,236 which is an 87% increase despite the price drop. The key learning is that a decrease in price does not necessarily mean a decrease in revenue, especially if the drop in price led to an increase in the number of units sold, or in other words, volume-driven revenue growth.
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An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions.
1. A $195 refund to a customer for faulty merchandise was debited to Sales Revenue $195 and credited to Cash $195.
2. A $180 credit purchase of supplies was debited to Inventory $180 and credited to Cash $180.
3. A $215 sales discount was debited to Sales Revenue.
4. A cash payment of $20 for freight on merchandise purchases was debited to Freight-Out $200 and credited to Cash $200.
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.
Answer:
The Journal entries are as follows:
(i) Sales Returns and allowance A/c Dr. $195
To sales revenue $195
(To record the correct entry for faulty merchandise)
(ii) Supplies A/c Dr. $180
Cash A/c Dr. $180
To Account Payable A/c $180
To Merchandise Inventory A/c $180
(To record the correct entry for the purchase of supplies)
(iii) Sales Discount A/c Dr. $215
To Sales Revenue $215
(To record the sales discount)
(iv) Inventory A/c Dr. $20
Cash A/c Dr. $180
To Freight -Out $200
(To record the freight on merchandise purchases)
Good cash management is an essential job of the financial manager. You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following:
JAN $5,000
FEB -$30,000
MAR $20,000
APRIL -$35,000
MAY $25,000
JUNE -$10,000
JULY $25,000
AUG $25,000
SEPT -$30,000
OCT $15,000
NOV $15,000
DEC $25,000
You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month.
1. Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.
2. Do you believe that the company needs outside financing?
3. What is the minimum line of credit to request from a lender?
Do you think you are a good candidate for the line of credit? Why?
Answer:
Explanation:
The answer to the above question is given in the attached document.
Answer:
The prepared cash flow and external funding summary are found in the attached.
I believe the company needs external funding in February-June as well as in September.
The company is a good candidate for line of credit as it has positive cash flows with which it could pay back any external financing taken.
The minimum line of credit required is $40,000 as shown by cash flow summary in April.
Explanation:
Find attached for details
As discussed in the textbook, which of the following is true in China when an outsider allegedly commits or actually commits fraud in the course of business dealings with Chinese firms?
Answer:
Outsiders have been fined heavily and refused permission to enter into more agreements with Chinese firms.
Explanation:
Chinese laws and regulations governing commercial conduct generally pair prohibitions of specific practices with prescriptions of applicable administrative penalties. Common penalties to any outsider or outsider companies that engages in fraud in china include warnings, confiscation of illegal monetary gains, heavy fines, the temporary suspension of business and ability to conduct business with any Chinese firm, or permanent revocation of the company's business license to conduct business with any Chinese firm. Some penalties are special to particular sectors or professions, such as the suspension or revocation of individual licences to trade securities to conduct business transactions with any Chinese firm.
Record the following transactions of Fronke’s Fashions in a general journal assuming that they use the periodic system.
DATE TRANSACTIONS
2013
April 1 Purchased merchandise for cash, $1,280.
2 Returned merchandise for cash purchased on April 1; received a cash refund of $115.
4
Purchased merchandise on credit from Ramos Distributors, Invoice 125, $668, terms n/30; freight of $43 prepaid by Ramos and added to the invoice.
7
Returned damaged merchandise purchased on April 4 from Ramos Distributors; received Credit Memorandum 202 for $50.
30
Paid the amount due to Ramos Distributors for the purchase of April 4, less the return on April 7, Check 1458.
2.
Record the following transactions of J. Min Designs in a general journal assuming that they use the periodic system.
DATE TRANSACTIONS
2013
April 1
Purchased merchandise on credit from O’Rourke Fabricators, Invoice 885, $2,200, terms 2/10, n/30; freight of $44 added paid by O’Rourke Fabricators and added to the invoice (total invoice amount, $2,244).
9
Paid amount due to O’Rourke Fabricators for the purchase of April 1, less the 2 percent discount, Check 457.
15
Purchased merchandise on credit from Kroll Company, Invoice 145, $1,350, terms 2/10, n/30; freight of $85 prepaid by Kroll and added to the invoice.
17
Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $50.
24
Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 2 percent discount, Check 470.
Explanation:
The Journal entry is given below:-
1. Purchase Dr, $1,280
To cash $1,280
(being merchandise is purchased)
2. Cash Dr, $115
To Purchase return $115
(Being merchandise is returned)
3. Purchase Dr, $668
Freight In Dr, $43
To Account payable $771
(being Purchase on credit)
4. Account payable $50
To Purchase return $50
(Being purchase return is recorded)
5. Account payable $661
To cash $661
(Being cash is paid)