Answer:
Year Stock A's Returns (rA) Stock B's Returns (rB)
2014 (19.80%) (16.10%)
2015 28.75% 17.80%
2016 14.50% 30.60%
2017 (3.00%) (8.90%)
2018 22.75% 19.80%
a) Calculate the average rate of return for each stock during the period 2014 through 2018.
Average rate of return of each stock will be calculated by taking an aggregate for all the returns of each stock and dividing it by 5, which is the total number of years.
a) The average rate of return for Stock A during the period 2014 through 2015 is given by ,
Average Return = ( -19.80 + 28.75 + 14.50 – 3.00 +22.75)/5 = 8.64%
The average rate of return for Stock b during the period 2014 through 2015 is given by ,
Average Return = ( -16.10 + 17.80 + 30.60 – 8.90 +19.80)/5 = 8.64%
b) Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year?
Since the investment in the portfolio created by stock A and stock B is 50-50, we will calculate portfolio return each year by multiplying each return with it's weight in the portfolio (50%) to find out the realized rate of return each year and then take an average to find out the average return of the portfolio during these 5 years
Realized Return for 2014:
= 0.5*(-19.80) + 0.5*(-16.10%) = -17.95%
Realized Return for 2015:
= 0.5*(28.75)+ 0.5*(17.80)= 23.27%
Realized Return for 2016:
= 0.5*(14.50) + 0.5*(30.60) = 22.55%
Realized Return for 2017:
= 0.5*(-3.0) + 0.5*(-8.90) = -5.95%
Realized Return for 2018:
= 0.5*(22.75)+ 0.5*(19.8) = 21.27%
The average return on the portfolio have been during this period is given by ,
Realized Rate of Return = ( - 17.95% + 23.27% + 22.55% - 5.95% + 21.27% )/5 = 8.638%
Victryl Company applies overhead based on direct labor hours. At the beginning of the year, Victryl estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000. During February, Victryl has 5,000 direct labor hours and 10,000 machine hours.
If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied?
a.$1,700 overapplied
b.$600 overapplied
c.$1,000 underapplied
d.$1200 underapplied
e.$800 overapplied
Answer:
a.$1,700 over applied
Explanation:
For computing the overhead variance, first we have to compute the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $700,000 ÷ 35,000 hours
= $20
Now we have to find the applied overhead which equal to
= Actual direct labor-hours × predetermined overhead rate
= 5,000 hours × $20
= $100,000
So, the overhead variance equals to
= Actual manufacturing overhead - applied overhead
= $98,300 - $100,000
= $1,700 over-applied
Hope & Faith Company reports net income of $40,000.
The partnership agreement provides for annual salaries of $24,000 for Hope and $15,000 for Faith.
Interest allowances of $4,000 and $6,000, respectively.
Any remaining is to be shared 70% and 30%, respectively.
Instructions: Prepare in proper format the amount of net income distributed to each partner.
Explanation:
The computation of net income distributed to each partner is given below:-
Hope Faith Total
Annual Salary $24,000 $15,000 $39,000
Interest allowance $4,000 $6,000 $10,000
Total salary and interest $28,000 $21,000 $49,000
Remaining deficiency ($9,000)
($49,000 - $40,000)
Hope ($9,000 × 70%) ($6,300)
Faith ($9,000 × 30%) ($2,700) ($9,000)
Total division net income $21,700 $18,300 $40,000
Based on your readings and any other research, why do you think that women are especially affected by the "glass ceiling" at work? What can HR do to help?
Answer:
The women are especially affected by the glass ceiling at work because they face the promotion and pay gap in comparison to the men.
Explanation: organizations can reduce gender discrimination by focusing on
(a) HR policies (i.e., diversity initiatives and family-friendly policies) and closely related organizational structures, processes, and practices.
(b) HR-related decision-making and enactment.
(c) the organizational decision-makers who engage in such actions.
Another means to reduce gender discrimination in HR-related decision-making and enactment is to focus directly on reducing the hostile and benevolent sexist beliefs of organizational decision makers.
Explanation:
Research on sex generalizations proposes that sex inclination is an imperceptible boundary—the alleged biased based impediment—keeping ladies from breaking into the most elevated levels of the board in business associations. Utilizing information from a state-based proficient HR association, we explored this marvel in the field of HR the executives. Expanding on the absence of fit model of sexual orientation segregation and past research, we tried two speculations: that ladies in HR are bound to be gathered in lower-level managerial situations in associations that underline representative contribution (in view of a related accentuation on characteristically ladylike managerial capacities) and that ladies in HR additionally are bound to be amassed in lower-level managerial situations in associations that underscore vital human asset the board (as a result of a related accentuation on characteristically manly attributes).
An average of 25 customers travel between Departments A and C each day, and an average of 10 customers travel between Department C and Department D each day. There is no other customer traffic between any other pairs of departments. What is the load-distance score of the department layout above?
Final answer:
The question cannot be answered precisely without knowing the distances between Departments A, C, and D. The load-distance score is calculated by multiplying the load by the distance for each department pair and summing them up.
Explanation:
The student is asking for the calculation of the load-distance score for the layout of a set of departments based on the customer traffic between them. This concept is typically covered in topics related to business operations management, facility layout, or supply chain logistics, which often fall under mathematical optimization or applied mathematics. The load-distance score can be determined by multiplying the load (average number of customers) by the distance between each pair of departments for all pairs with traffic, then adding the results together for a total score. In this case, the distances between Departments A, C, and D are not given, so a specific numerical answer cannot be provided without additional information. However, if these distances were known, you would calculate the load-distance score by adding the product of the average number of customers traveling between Department A and C by their distance, and the average number of customers traveling between Department C and Department D by their distance.
On January 1, 2020, Morgan Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at 101. Interest is payable annually on January 1. Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses straight-line amortization
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $ 5,050,000
To Bonds payable A/c $5,000,000
To Premium on Bonds payable A/c $50,000
(Being bond is issued)
2. Interest Expense A/c Dr $3,97,500
Premium on bonds payable A/c $2,500 ($50,000 ÷ 20)
To Interest payable A/c $400,000 ($5,000,000 × 8%)
(Being the interest expense is recorded)
Edgar uses the cash method to report the income from his software consulting business. A large publicly held corporation has offered to invest in Edgar’s business as a limited partner. What tax accounting complications would be created if Edgar and the corporation became partners?
Answer:
If Edgar decides to become partners with the corporation, he'll need to change from cash method to the use of accural method.
Explanation:
If Edgar engages with this large publicly held corporation in a limited partnership, he will have to change from the cash method and use the accrual method of accounting.
The use of the cash method by corporations isn't allowed by IRS and the accrual method is needed to report income earned for Federal income tax purposes to ensure proper and precise reflection of annual income.
In the cash method, Edgar will not currently recognize income until it is actually received. While under the accrual method Edgar would recognize income when it is earned, irrespective of when the income is to be collected.
Final answer:
Joining with a corporate partner in a partnership can create tax accounting complications for Edgar's business due to dual taxation issues and differences in accounting methods. Specialized accountants might be necessary and limited liability aspects would have to be considered.
Explanation:
When Edgar and a large publicly held corporation become partners in a software consulting business where Edgar uses the cash method for tax reporting, some complications can arise. For instance, while partnerships allow each partner to pay taxes on their share of the income, and the business itself does not have to pay taxes, this partnership would involve a corporate partner, which complicates matters due to dual taxation. Corporations are subject to tax on their profits, and shareholders also face taxes on dividends received. Furthermore, corporations report income using an accrual method which contrasts with Edgar's cash method, possibly necessitating a change in accounting methods for the business.
The introduction of a corporate partner could mean additional complexities such as the need to employ specialized accountants and attorneys to handle the partnership taxes, given the complexity of corporate tax regulations. Moreover, the partnership would need to consider the implications of limited liability, which shields shareholders from personal liability beyond the value of their investments in the company, a protection that is not traditionally afforded in a general partnership structure.
You have just made your first $4,000 contribution to your retirement account. Assume you earn a return of 14 percent per year and make no additional contributions. a. What will your account be worth when you retire in 25 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
You have just made your first $4,000 contribution to your retirement account. Assume you earn a return of 14 percent per year and make no additional contributions.
To calculate the final value, we need to use the following formula:
FV=PV*(1+i)^n
A) n= 25 years
FV= 4,000*(1.05^25)= $13,545.42
B) Wait 10 years:
n= 15
FV= 4,000*(1.05^15)= $8,315.71
Suppose the demand for Digital Video Recorders (DVRs) is given by Q=250 - .25P +4Pc, where Q is the quantity of DVRs demanded (in 1000s), P is the price of a DVR, and Pc is the price of cable television. How much does Q change if the price of cable changes slightly (i.e. the partial derivative of demand with respect to Pc?
Answer: 4000
Explanation:
Q=250 - .25P +4Pc, where Q is the quantity of DVR
We want to find the partial derivative of Q with respect to Pc
(dQ/dPc,partial) = 4
There is a change of 4 DVR added. Since the Q is measured in Thousands.
∆Q = 4000
Differentiation Q with respect to Pc gives other terms to be zero except wrt Pc.
The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called a. Negative equity. b. Low monthly payments. c. All of these are potential problems. d. Loan preapproval. Low-interest loan.
Answer:
The correct answer is letter "A": Negative equity.
Explanation:
Negative equity occurs when the value of an asset falls below the value of the outstanding balance of the loan requested to purchase the asset. The term is mostly used in Real Estate when the price of a property is lower than the outstanding balance mortgage. The asset price is determined by using the market value of the asset.
Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio
Answer:
The contribution margin ratio is 35%
Explanation:
The formula for contribution is given below:
Contribution margin = revenue − variable costs.
Contribution margin ratio is given as:
(Sales – variable expenses) ÷ Sales
In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.
Contribution is $7000
contribution margin ratio =$7000/($20*1000)
=0.35 or 35%
The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall
Each machine must be run by one of 19 cross-trained workers who are each available 35 hours per week. The plant has 10 type 1 machines available, 6 type 2 machines available, and 8 type 3 machines available. Products 1, 2, and 3 contribute $90, $120, and $150, respectively, in marginal profit per unit produced.
Answer:
The Linear programming model is given as below
Profit Function: [tex]P=90X+120Y+150Z[/tex]
Constraints:
[tex]2X+2Y+Z\leq 400[/tex]
[tex]3X+4Y+6Z\leq 240[/tex]
[tex]4X+6Y+5Z\leq 320[/tex]
[tex]\dfrac{2X+2Y+Z}{40}\leq 10[/tex]
[tex]\dfrac{3X+4Y+6Z}{40}\leq 6[/tex]
[tex]\dfrac{4X+6Y+5Z}{40}\leq 8[/tex]
[tex]\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19[/tex]
Explanation:
As the question is not complete, the complete question is found online and is attached herewith.
Let the number of product 1 to be produced is X, that of product 2 is Y and product 3 is Z
so the maximizing function is the profit function which is given as
[tex]P=90X+120Y+150Z[/tex]
Now as the number of hours in a week are 40 and there are a total of 10 type 1 machines so the total number of machine 1 hours are 40*10=400 hours
As from the given table product 1 uses 2 machine hours of machine 1, product 2 uses 2 machine hours of machine 1 and product 3 uses 1 hour of machine 1 so
[tex]2X+2Y+Z\leq 400[/tex]
Now as the number of hours in a week are 40 and there are a total of 6 type 2 machines so the total number of machine 2 hours are 40*6=240 hours
As from the given table product 1 uses 3 machine hours of machine 2, product 2 uses 4 machine hours of machine 2 and product 3 uses 6 hour of machine 2 so
[tex]3X+4Y+6Z\leq 240[/tex]
Now as the number of hours in a week are 40 and there are a total of 8 type 3 machines so the total number of machine 3 hours are 40*8=320 hours
As from the given table product 1 uses 4 machine hours of machine 3, product 2 uses 6 machine hours of machine 3 and product 3 uses 5 hour of machine 3 so
[tex]4X+6Y+5Z\leq 320[/tex]
Now as the machine 1 is used as 2X+2Y+Z in a week and the week is of 40 hours so the number of machines to be used are given as
[tex]\dfrac{2X+2Y+Z}{40}\leq 10[/tex]
Now as the machine 2 is used as 3X+4Y+6Z in a week and the week is of 40 hours so the number of machines to be used are given as
[tex]\dfrac{3X+4Y+6Z}{40}\leq 6[/tex]
Now as the machine 3 is used as 4X+6Y+5Z in a week and the week is of 40 hours so the number of machines to be used are given as
[tex]\dfrac{4X+6Y+5Z}{40}\leq 8[/tex]
Now the workers are available for 35 hours so the worker available at the machine 1 is given as
[tex]\dfrac{2X+2Y+Z}{35}[/tex]
That of machine 2 is given as
[tex]\dfrac{3X+4Y+6Z}{35}[/tex]
That of machine 3 is given as
[tex]\dfrac{4X+6Y+5Z}{35}[/tex]
As the total number of workers is 19 so the constraint is given as
[tex]\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19[/tex]
So the Linear programming model is given as below
Profit Function: [tex]P=90X+120Y+150Z[/tex]
Constraints:
[tex]2X+2Y+Z\leq 400[/tex]
[tex]3X+4Y+6Z\leq 240[/tex]
[tex]4X+6Y+5Z\leq 320[/tex]
[tex]\dfrac{2X+2Y+Z}{40}\leq 10[/tex]
[tex]\dfrac{3X+4Y+6Z}{40}\leq 6[/tex]
[tex]\dfrac{4X+6Y+5Z}{40}\leq 8[/tex]
[tex]\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19[/tex]
The information discusses a firm's decision-making process regarding production methods based on labor costs and machinery usage, emphasizing the impact of labor cost changes on production strategies.
Explanation:The discussion centers around the firm's strategic approach to manufacturing based on labor costs and machine usage, reflecting critical elements of business strategy and operations management. It particularly emphasizes how firms adapt to changes in labor costs, such as those induced by union negotiations. By considering the costs associated with labor ($16 to $20 an hour including benefits) and machines ($200 each for manufacturing), a firm chooses between different combinations of labor and machine use to minimize production costs.
The example provided illustrates that with labor costs at $16 an hour, the most cost-effective plan involves 50 hours of labor and one machine. However, when labor cost increases to $20 per hour, the firm becomes indifferent between using more labor and fewer machines or less labor and more machines, possibly opting for more capital-intensive production methods to maintain or enhance labor productivity.
Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given:
Possiable Market Reaction Sales in Units Probabilites
Low Response 20 0.10
Moderate Response 40 0.30
Hight Response 55 0.40
Very High Response 70 0.20
a. What is the expected value of sales for the new product?
b. What is the standard deviation of unit sales?
Answer:
Explanation:
a. Expected value of unit sales for the new product= 20*0.10 + 40*0.30 + 55*0.40 + 70*0.20 = 2+12+22+14 = 50 units
b.
Low response sales in units = 20:Deviation from the expected value of 50 sales: -30
(Sales-50)^2 = 900
Probability = 0.10
Probability*(Sales-50)^2 = 0.10*900 = 90
Moderate response sales in units = 40:Deviation from the expected value of 50 sales: -10
(Sales-50)^2 = 100
Probability = 0.30
Probability*(Sales-50)^2 = 0.30*100 = 30
High response sales in units = 55:Deviation from the expected value of 50 sales: 5
(Sales-50)^2 = 25
Probability = 0.40
Probability*(Sales-50)^2 = 0.40*25 = 10
Very High response sales in units = 70:Deviation from the expected value of 50 sales: 20
(Sales-50)^2 = 400
Probability = 0.20
Probability*(Sales-50)^2 = 0.20*400 = 80
Variance = 90+30+10+80 = 210
Standard deviation = root of 210 = 14.49
Blair Automotive performed mechanic services for two customers. The first customer owed $5,280 for services, so Blair Automotive made them sign a written promise to pay in full after six months with an annual interest rate of 3.5%. The second customer owed $326 for services, so Blair Automotive plans to send them a bill within the next two weeks, due within 30 days of receipt of the bill. What is the difference between these two transactions
Answer:
The first transaction will be recorded as a note receivable, whereas the second transaction will be recorded as an account receivable.
Explanation:
The first transaction is a note recievable which is a credit instrument that requires the debtor to pay interest. The period for repayment bis usually above 30 days. Blair Automotive made the first customer sign a written promise to pay in full after six months with an annual interest rate of 3.5%.
The second transaction is an account recievable which are claims for payment that is raised by a business for delivery of products and services, it is payable within an agreed time frame. Accounts receivable does not attract interest payment. Blair Automotive sends the second customer a bill within the next two weeks, due within 30 days of receipt of the bill.
Doug is an employee of McDowell Instruments. Doug takes longer breaks than his coworkers, and often rationalizes his behavior because he feels the organization does not pay him enough for the level of work that he does. Doug is reducing his perceived inequity by
A.changing his inputs.
B.changing his outcomes.
C.altering his perception of self.
D.altering his perception of the situation.
E.changing the object of comparison
Answer:
A) Changing his inputs
Explanation:
First, we have established that Doug thinks that the payment received as an employee of McDowell Instruments is not fair enough considering his level of input. This is according to the theory of equity, where it is theorized that the motivation of individuals to get work done is usually based on having a sense of fairnes sin their interactions.
As a result of this theory, Doug sees his interaction with the company as unfair based on wages received. By taking more break time therefore, he rationalizes that he can reduce his input time to match the level of payment he receives from the organisation and as such his input to McDowell Instrument should match the pay he recieves.
Final answer:
Doug is reducing his perceived inequity at work by changing his inputs, meaning he takes longer breaks to balance the lower pay he receives compared to the effort he believes he should exert.
Explanation:
Doug, an employee of McDowell Instruments, feels he is not sufficiently compensated for the level of work that he does. In response to the perceived inequity, Doug takes longer breaks than his coworkers to balance the situation. This behavior can be described as Doug changing his inputs since he is intentionally reducing the amount of effort he puts into his job, which, according to equity theory, is a typical response to perceived unfairness in the workplace. By reducing his contribution (inputs), he aligns his work efforts with his perception of the compensation he receives (outcomes), thereby reducing the inequity he experiences.
Research has shown that people might adjust their perceptions or actions in various ways to cope with inequity. These may include reducing work performance, altering the perception of self or the referent, negotiating better outcomes like pay raises, resorting to unethical behaviors such as stealing, comparing themselves to others who are worse off, quitting, or even taking legal action if the situation involves legal protections such as in cases of discrimination.
Rainier Industries has Raw materials inventory on January 1, 20x8 of $34,200 and Raw materials inventory on December 31, 20x8 of $28,400. If raw materials used during the year were $152,000 what was the amount of raw materials purchased during the year
Answer:
$146,200
Explanation:
Given that,
Raw materials inventory on January 1, 20x8 = $34,200
Raw materials inventory on December 31, 20x8 = $28,400
Raw materials used during the year = $152,000
Raw material consumed = Opening + Materials purchased - Closing stock
$152,000 = $34,200 + Materials purchased - $28,400
$152,000 - $34,200 + $28,400 = Materials purchased
$146,200 = Materials purchased
Therefore, the amount of raw materials purchased during the year is $146,200.
The amount of raw materials purchased during the year is $146,200.
Explanation:To calculate the amount of raw materials purchased during the year, we need to find the change in raw materials inventory. We can calculate this by subtracting the raw materials inventory on December 31, 20x8 from the raw materials inventory on January 1, 20x8. In this case, the change is $34,200 - $28,400 = $5,800.
Since raw materials used during the year were $152,000, we can subtract the change in inventory from the raw materials used to find the amount of raw materials purchased. Therefore, the amount of raw materials purchased during the year is $152,000 - $5,800 = $146,200.
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If each unit of output can be sold at a price of $5 and incurs variable costs which are constant at $3 per unit, and if the fixed costs already incurred are $15,000, then the break-even output is:
Answer:
Break-even point= 15,000/ (5 - 3)= 7,500 units
Explanation:
Giving the following information:
Each unit of output can be sold for $5, variable costs are constant at $3 per unit, and if the fixed costs are $15,000.
We need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 15,000/ (5 - 3)= 7,500 units
Answer:
the break-even output is 5,000 units
Explanation:
Total cost = fixed cost + variable cost = $15,000 + number of units * $3
Sales = number of units * price = number of unit * $5
Break-even output is number of output which generate sales equals to total cost
Sales = Total cost
⇔ number of unit * $5 = $15,000 + number of units * $3
⇔ number of unit* (5-3) = 15,000
⇒ number of unit = 15000/3 = 5,000
A differentiator has the advantage of: a. being able to respond to demands for deep price discounts from powerful buyers and still make money. b. selling on non-price factors, such as design or customer service. c. producing a large product variety without a large cost penalty. d. being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry. e. producing a basic offering that is relatively inexpensive to produce and deliver.
Answer:
The correct answer is letter "B": selling on non-price factors, such as design or customer service.
Explanation:
Product differentiation is a marketing tool used by companies to distinguish their products or services from the competition. Generally speaking, the more a product is distinguished and thus made exclusive, the higher the company's profit margin. The most common form of product differentiation includes emphasizing the quality of the goods or the customer service offered in contrast to the products in competition.
In a closed economy, the values for GDP, consumptionspending, investment spending, transferpayments, and taxes are as follows:
Y =$12 trillion.
C= $9 trillion
I=$ 3 trillion
TR=$2 trillion
T= $ 3 trillion
Using the information above, what is the value of private saving and public saving?
A. private saving equal $9 trillion and public saving equal $ 3 trillion.
B. private saving equal $1 trillion and public saving equal $ 2 trillion.
C. private saving equal $2 trillion and public saving equal $ 1 trillion.
D private saving equal $3 trillion and public saving equal $ 9 trillion.
Answer:
Option (C) is correct.
Explanation:
Private saving refers to the savings of the households which cannot be used for the consumption and tax payment.
Public saving refers to the savings of the government.
Private savings:
= Income - Consumption - Taxes + Transfer payments
= $12 - $9 - $3 + $2
= $2 trillion
Public savings:
= Taxes - Transfer payment
= $3 trillion - $2 trillion
= $1 trillion
Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. In 2015, the LLC generates $80,000 of ordinary taxable income. Enercio withdrew $10,000 from the partnership during 2015. Enercio is taxed on what amount of the LLC's 2015 income? On how much of the $10,000 distribution will Enercio be taxed?
Answer:
A. $32,000
B. $0
Explanation: Limited Liability Partnership is a partnership that combines the corporate benefit of limited liability for the owners with the benefits of partnership taxation, including the single level of tax and special allocations of income, losses, and cash flows.
Enercio contribution= $100,000
Ordinary income =(40% X 80,000)
Enercio withdrawal = $10,000
Partner's Basis:
(contribution + ordinary income - withdrawal )
=($100,000 + ( 40% X 80,000 ) - $10,000)
= ( $100,000 + $32,000 - $10,000)
= $122,000 basis
A. Enercio will only be taxed on its proportion of the ordinary income that is ($80,000 X 40%)= $32,000
B. Partners do not pay tax on
withdrawals. You will only pay tax on a withdrawal if you withdraw more than your personal basis.
Answer:
a) Enercio is taxed on $32,000 of the LLC's income
b) There will be no taxation on the $10,000 withdrawn
Explanation:
There are two events in the business
The first event is that Enercio contributes $100,000 to make up for 40% of the interest of ABC LLC
The second event is the withdrawal of $10,000 during the year 2015
Answer
1) From the partnership income of $80,000, Enercio will be taxed his full 40% of the income. Meaning he will be taxed 0.4 x $80,000 = $32,000. In other words, his full 40% of the income will stil be taxed regardless of the withdrawal
2) from the $10,000 collected, there will be no taxation because it is regarded as just a regular withdrawal by Enercio from the partnership.
EcoMart establishes a $1,050 petty cash fund on May 2. On May 30, the fund shows $312 in cash along with receipts for the following expenditures: transportation-in, $120; postage expenses, $369; and miscellaneous expenses, $240. The petty cashier could not account for a $9 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund, and (3) June 1 entry to increase the fund to $1,200. View transaction list Journal entry worksheet 2 Record the May 2 entry to establish the fund.
EcoMart establishes General Journal
May 2
Dr Petty cash 1050
Cr Cash 1050
May 30
Dr Merchandise inventory 120
Dr Postage expense 359
Dr Miscellaneous expenses 240
Dr Cash short and over 9
Cr Cash728
June 1
Dr Petty cash 150
Cr Cash 150
Workings:
May 30,Merchandise inventory 120+ Postage expense 359+ Miscellaneous expenses 240+ Cash short and over 9 = $728
June 1
1050-1200= 150
Final answer:
To account for the petty cash fund, the initial fund is established on May 2 by debiting Petty Cash and crediting Cash. The fund is replenished on May 30 for the expenses and shortage. On June 1, the fund is increased to $1,200 by further debiting Petty Cash and crediting Cash.
Explanation:
The question pertains to accounting for a petty cash fund in a company's financial records using the perpetual system of inventory accounting. Here are the journal entries required:
May 2 Entry to Establish the Fund:
Debit Petty Cash $1,050Credit Cash $1,050This establishes the petty cash fund by increasing the Petty Cash account and decreasing the Cash account.
May 30 Entry to Reimburse the Fund:
Debit Transportation-In $120Debit Postage Expenses $369Debit Miscellaneous Expenses $240Debit Cash Short and Over $9Credit Cash $738This entry replenishes the fund for the expenses paid out and accounts for the shortage.
June 1 Entry to Increase the Fund to $1,200:
Debit Petty Cash $150Credit Cash $150The fund is increased to $1,200 by debiting the Petty Cash account and crediting the Cash account.
Goiter's Delight, Inc., carries a line of titanium putters. Golfer's Delight, Inc., uses the FIFO method and a perpetual inventory system. The sales price oca entory system. The sales price of each putter is $195. Company records indicate the following activity for putters for the month of July.
Date Item Quantity Unit Cost
July 1 Balance 6 $110
7 Purchase 12 $ 112
11 Sale 17
19 Purchase 15 $ 114
28 Sale 12
Requied:
1. Prepare a perpetual inventory record for the putters to determine the amount Golfer's Delight, Inc., should report for ending inventory and cost of goods sold using the FIFO method.
2. Journalize the inventory transactions for Golfer's Delight, Inc., using the FIFO method. Assume all purchases and sales are on account.
Answer:
Explanation:
Perpetual Inventory Record
Date Description Qty Unit price Dr Cr
July 1 Balance B/f 6 $110 $660
July 7 Purchases 12 $112 $1,344
July 11 Sales 17 $195 $3,315
July 19 Purchases 15 $114 $1,710
July 28 Sales 12 $195 $2,340
Ending Inventory using FIFO is 4 @ $114 = $456
Cost of goods sold using FIFO = $660+ $1,344+$1,254 = $3,258
Journal Entries
Purchases A/c Dr Cr
July 7 Purchases $1,344
July 19 Purchases $1,710
Sales A/c Dr Cr
July 11 Sales $3,315
July 28 Sales $2,340
Account Receivable a/c Dr Cr
July 11 Sales $3,315
July 28 Sales $2,340
Account Payable a/c Dr Cr
July 7 Purchases $1,344
July 19 Purchases $1,710
Answer:
please find the answer below
Explanation:
1. Purchases Cost of Goods Sold Inventory on Hand
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total cost Quantity Unit Cost Total Cost
01-Jul 6 $110 $660
$660
07-Jul 12 $112 $1, 344 6 $110 $660
12 $112 $1, 344
11-Jul 6 $110 $660 $2, 044
11 $112 $1, 232 $1, 892 1 $112 $112
$112
19-Jul 15 $114 $1, 710 1 $112 $112
15 $114 $1, 710
$1, 822
28-Jul 1 $112 $112 4 $114 $456
11 $114 $1, 254 $1, 366 $456
Total 27 units $3, 054 29 units 4 units $456
2. Journal Entries
07-Jul Dr Inventory $1, 344
Cr Trade payables $1, 344
Purchased inventory on account
11-Jul Dr Trade Payables $1, 892
Cr Inventory $1, 892
Sold inventory on account
19-Jul Dr Inventory $1, 710
Cr Trade payables $1, 710
Purchased inventory on account
28-Jul Dr Trade Payables $1, 366
Cr Inventory $1, 366
Sold inventory on account
An architecture firm earned earned $1520 for architecture services provided with the fee to be paid in the future. No entry was made at the time the service was provided. If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause:
Answer:
Revenue is understated by $1520
Profit is understated by $1520
Accounts receivable is understated by $1520
Retained earnings is understated by $1520
Explanation:
The guideline on recognition of revenue is accrual basis of accounting, which is that revenue is recognized when it has been earned, in other words when the business has discharged its obligation to the other party by a way of delivering goods or services to clients.
Specifically,by not recording an adjusting for the $1520 revenue earned but not yet received,the revenue for the period would be understated by $1520 as well as profit for the year.
Also,asset,accounts receivable would also be understated by $1520 including retained earnings at the end of the year
Answer the questions about Keynes and his history. John Maynard Keynes famously said: "In the long run, we are all dead." the workers will revolt unless the government acts quickly." the government can solve all problems." all you need is love." the economy will decline." Keynes was an economist during the Great Depression. During the Great Depression there was high unemployment and high inflation. high unemployment and low inflation. high unemployment and high deflation. low unemployment and high inflation. low unemployment and low inflation.
Final answer:
John Maynard Keynes, a prominent economist during the Great Depression, stated that 'In the long run, we are all dead,' emphasizing the need for immediate economic policy action. He advocated for governmental intervention during economic downturns, during a time characterized by high unemployment and high deflation.
Explanation:
John Maynard Keynes famously said, "In the long run, we are all dead." This quote captures his belief that economic policies should have immediate impacts rather than waiting for long-term market corrections. During the Great Depression, Keynes challenged the classical economic thought, advocating that the government should take an active role in the economy to combat recessions and depressions. The correct characterization of the Great Depression period was high unemployment and high deflation, not inflation. His seminal work, The General Theory of Employment, Interest, and Money, argued that underspending was a major cause of economic downturns and proposed government intervention to stimulate spending and manage the economy.
You are the head of HR at an organic foods manufacturer. Your goal is to enable HR to transform the functioning of the company to a dramatically higher level of productivity, quality, and efficiency through HRX—your HR excellence program. In mapping out the design of HRX, you know that having a good action plan for implementation will be key to the long-term success of the program as well. Which of the following actions would be critical to the successful implementation of HRX?
a. Implement a 10% increase in the base salary of all employees.
b. Allocate sufficient resources and support for the HRX initiative.
c. Make sure to keep track of total expenditures on the HRX initiative.
d. Do not institute the use of teams with this initiative.
Answer:
Allocate sufficient resources and support for the HRX initiative ( B )
Explanation:
Allocating sufficient resources and support for the HRX initiative is a very good step in the right direction as the HR Manger in trying to implement the HRX initiative and also for the long term success of this Initiative as well.
since The main goal of the Head of the Human resources department is to transform the company's production level to a higher level of productivity in a quicker timer frame, dedicating more resources and support to the initiative will help to speed up activities and the company will start producing at a very fast rate. having to increase salary will not help because the workers can only do what they can do they can't go beyond their limit hence there will be health emergencies.
Billy Boi Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $88,480 and 2,800 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $80,160 and actual direct labor-hours were 2,700.
The overhead for the year was _____. (Round your intermediate calculations to 2 decimal places.) Please show the calculations.
Answer:
The correct answer is $5,160.
Explanation:
According to the scenario, the given data are as follows:
Estimated OH = $88,480
Estimated direct labor hour = 2,800 labor hour
So, Estimated OH per labor hour = $88,480 ÷ 2,800 = $31.6 / labor hour
Actual OH = $80,160
Actual Direct labor hour = 2,700 labor hour
Now, Applied OH = Estimated OH per labor hour × Actual Direct labor hour
= $31.6 × 2700
= $85,320
Since, Applied OH is Greater than Actual OH, it is underapplied OH.
Underapplied OH = Applied OH - Actual OH
= $85,320 - $80,160
= $5,160.
Hence, the underapplied OH for the year was $5,160.
The overhead for the year was $5,160 when the total evaluated overhead of $88,480 and 2,800 estimated direct labor hours.
What is overhead?Overhead is an expense that refers to the continued expense of operating a business.
Overheads are expenditures that cannot be conveniently traced to or recognized with any special revenue unit.
According to the scenario, the given data are as follows:
Computation of overheads(OH):
It is given that:
Estimated OH = $88,480
Estimated direct labor hour = 2,800 labor hours
Then, estimated OH per labor hour:
[tex]\text{Estimated OH Per Labor Hour}=\dfrac{ \text{Estimated OH}}{\text{Estimated Direct Labor Hour}}\\\\\text{Estimated OH Per Labor Hour}=\dfrac{\$88,480}{\$2,800}\\\\\text{Estimated OH Per Labor Hour}=\$31.6\text {Per Hour}[/tex]
Actual OH = $80,160
Actual Direct labor hour = 2,700 labor hours.
Then, Applied OH:
[tex]\text{Applied OH} = \text{Estimated OH Per Labor Hour}\times\text{ Actual Direct labor Hour}\\\\\text{Applied OH} =\$31.6\times2,700\\\\\text{Applied OH} =\$85,320[/tex]
As we know, when applied OH is greater than actual OH, then it is under applied OH.
Hence, under overhead is:
[tex]\text{Under Applied OH} = \text{Applied OH – Actual OH}\\\\\text{Under Applied OH} = \$85,320 - \$80,160\\\\\text{Under Applied OH} =\$5,160.[/tex]
Therefore, the under applied OH for the year was $5,160.
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Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TiX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Toot! TiX Total Users 9,000 15,000 24,000 Revenues $ 1,200,000 $ 800,000 $ 2,000,000 Engineering hours 10,000 6,000 16,000 Engineering cost $ 240,000 $ 360,000 $ 600,000 Administrative costs $ 480,000
Required:
a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the number of users to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service.
Answer:
Profit For Toot $ 780,000
Profit For TIX $ 140,000
Explanation:
The predetermined overhead rate= Administrative costs / Total Users
=$ 480,000/24,000= 20
Social Media, Inc. (SMI)
Toot! TiX Total
Users 9,000 15,000 24,000
Revenues $ 1,200,000 $ 800,000 $ 2,000,000
Engineering hours 10,000 6,000 16,000
Engineering cost $ 240,000 $ 360,000 $ 600,000
Administrative costs $ 480,000
Applying Rate
Administrative costs $ 180,000 $ 300,000 $ 480,000
Profit $ 780,000 $ 140,000 $ 920,000
Answer:
a) Predetermined Overhead rate = $20
b) Toot! TiX
Profit $780,000 $140,000
Explanation:
Predetermined Overhead rate = total cost / basis
= $480,000/24,000
= $20
the denominator 'basis' refers to what is used to allocate the cost between the two services.
b) Toot! TiX
Revenues $1,200,000 $800,000
Engineering Cost - $240,000 $360,000
Admin Cost (users * $20) -$180,000 -$300,000
Profit $780,000 $140,000
Calculate the price elasticity of supply for Bobbie's Bakery's sourdough loaf. When the price changes by 23 % 23% , the quantity supplied changes by 53 % 53% . Round your answer to two decimal places.
The price elasticity of supply for Bobbie's Bakery's sourdough loaf is approximately 2.30.
The price elasticity of supply (PES) measures the responsiveness of the quantity supplied of a good to a change in its price. The formula for calculating the price elasticity of supply is:
PES = (% Change in Quantity Supplied) / (% Change in Price)
Given that the price changes by 23% and the quantity supplied changes by 53%, we can plug these values into the formula:
PES = (53% / 23%) ≈ 2.30
Rounded to two decimal places, the price elasticity of supply for Bobbie's Bakery's sourdough loaf is approximately 2.30.
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The price elasticity of supply for Bobbie's Bakery's sourdough loaf is calculated as 53% divided by 23%, which equals 2.30. This means that for every 1% increase in price, the quantity supplied increases by 2.30%. The price elasticity of supply measures the responsiveness of quantity supplied to price changes.
Explanation:The price elasticity of supply measures how much the quantity supplied of a good changes when its price changes. It is calculated by dividing the percentage change in quantity supplied by the percentage change in price. In this case, for Bobbie's Bakery's sourdough loaf, when the price changes by 23% (which is the percentage change in price), the quantity supplied changes by 53% (which is the percentage change in quantity specified). Therefore, the price elasticity of supply would be calculated as follows: (53/23) which equals 2.30 when rounded to two decimal places. This means that for each 1% increase in price, the quantity supplied increases by 2.30%.
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Consumer groups have generally opposed the idea of product liability reform using which of the following arguments? Punitive damages should be limited. Strict liability should be retained. The burden of proof should be shifted to consumers. Losers should be made to pay some of the other side's legal bills.
Answer:
Strict Liability should be retained
Explanation:
Product liability refers to the liability that shall be assumed by the manufacturer in the case the product turns out to be faulty and consumer sustains loss or injury owing to it.
Strict liability clause refers to manufacturer being held responsible for all the individuals who may sustain an injury with or without any fault in the product. Under this, the injured whether he is the buyer or any third person who suffers an injury can sue the manufacturer for damages.
The strict liability clause is too harsh on the manufacturer since without any fault in the product, it makes the manufacturer or seller liable for product liability. Thus it has been opposed generally by the consumer groups.
U.S. residents accounted for over 75 percent of cruise ship passengers, and U.S. ports had 8 million passengers leaving on cruises in 2004. The growth in cruise travel was phenomenal after the terrorist attacks on September 11, 2001. According to a situational analysis, this event created an _____ for the industry.
Answer: External opportunity
Explanation:
External opportunities are legal, political, economical, social, technological, environmental and cultural factors that may benefit an organization. External opportunities are beyond the control the organization.
In the scenario illustrated, the act of terrorism in the United States on 11th September 2001, led to a growth in cruise travel. This is an example of external opportunity as the growth wasn't caused by an internal factor.
The Waking Dead Co provides services for both cash and on account The accounts are adjusted monthly, For September, the folowing information is available Accounts Receivable on September 1st is $22,400 Allowance for Doubtful Accounts on September 1st is $4,400 Services provided during September for cash $20,000 Services provided during September on account $45,000 During the month collections on account were $34,400 and accounts wrilten off as bad debts were $2.000 The Walking Dead essmates bad detes at อ% of credt sales Do not use the dollar sign or a decimal in your answer. Commas are ok. What is the September 30th net realzable value of Accounts Recelvable?
Answer:
$25,000
Explanation:
Given that,
Accounts receivable:
Beginning balance 1 September = $22,400
Services on account = $45,000
Cash collected = $34,400
Written off accounts = $2,000
Allowance For Doubtful accounts:
Beginning balance 1 September = $4,400
Adjusted balance for Accounts receivables on 30 Sept ember:
= Beginning balance 1 September + Services on account - Cash collected - Written off accounts
= $22,400 + $45,000 - $34,400 - $2,000
= $31,000
Adjusted balance for Allowance For Doubtful accounts on 30 Sept ember:
= Beginning balance 1 September - Written off accounts + Bad Debt Expense
= $4,400 - $2,000 + ($45,000 × 8%)
= $4,400 - $2,000 + $3,600
= $6,000
Therefore, the September 30th net realizable value of Accounts Receivable is calculated as follows:
= Accounts receivables – Allowance for Doubtful accounts
= $31,000 - $6,000
= $25,000
The September 30th net realizable value of Accounts Receivable for The Walking Dead Co. is $26,120.
Steps to Calculate the Net Realizable Value of Accounts Receivable
Starting Accounts Receivable on September 1st: $22,400Services provided during September on account: $45,000Total accounts receivable at the end of September before collections and write-offs: $22,400 + $45,000 = $67,400Collections on account during September: $34,400Accounts are written off as bad debts: $2,000Total accounts receivable on September 30 before adjusting for doubtful accounts: $67,400 - $34,400 - $2,000 = $31,000Allowance for Doubtful Accounts on September 1st: $4,400Write-offs reduce the allowance, resulting in an adjusted allowance: $4,400 - $2,000 = $2,400Bad debt estimation: 8% of $31,000 = $2,480New Allowance for Doubtful Accounts: $2,400 + $2,480 = $4,880Net Realizable Value of Accounts Receivable: $31,000 - $4,880 = $26,120Complete Question:
The Walking Dead Co. provides services for both cash and on-account. The accounts are adjusted monthly. For September, the following information is available:
Accounts Receivable on September 1st is $22,400
Allowance for Doubtful Accounts on September 1st is $4,400.
Services provided during September for cash $20,000.
Services provided during September on account for $45,000.
During the month collections on account were $34,400 and accounts written off as bad debts were $2,000.
The Walking Dead estimates that 8% of accounts receivable will default (not pay).
What is the September 30th net realizable value of Accounts Receivable?