Answer:1) Foreign direct
Question 2.
B. Pursuing inward-oriented policies
C. increasing taxes on income from savings
D.Protecting property rights and enforce contracts.
Explanation:Foreign direct investment is a type of investment which is carried out by another country in another country. The foreign country either it invest directly or through corporations or other companies from its country into another country.
The goal of increasing productivity and growth in developing countries IS CONSISTENT WITH THE PURSUING INWARD-ORIENTED POLICIES, increasing TAXES ON INCOME FROM SAVINGS and PROTECTING PROPERTY RIGHTS AND ENFORCE CONTRACTS.
Yamahonda's establishment of a production plant in Alabama is an example of foreign direct investment. For developing countries aiming to boost productivity and growth, certain policies like protecting property rights and enforcing contracts are vital. Conversely, imposing restrictions on foreign capital, adopting inward-oriented policies, and raising taxes on savings could hinder economic development.
Explanation:When Yamahonda, a Japanese-owned motorcycle manufacturer, decides to build a production plant in Alabama, this is an example of foreign direct investment in the United States. This kind of investment is crucial for economic growth and development, not just in developed countries like the US but also in developing nations seeking to increase their productivity and growth.
Regarding policies consistent with the goal of increasing productivity and growth in developing countries, not all strategies are equally effective. For example, protecting property rights and enforcing contracts (option D) is fundamental to encouraging investment and ensuring a stable economic environment. This measure helps in creating a conducive environment for both local and foreign investments, which is essential for economic growth.
On the contrary, imposing restrictions on foreign ownership of domestic capital (option A), pursuing inward-oriented policies (option B), and increasing taxes on income from savings (option C) could potentially stifle economic growth. These policies can deter foreign investment, limit access to global markets, and discourage savings and investment, respectively.
Lionworks, Inc. has goods available for sale in the amount of $123,000; beginning inventory is $41,000; ending inventory is $38,000; and cost of goods sold is $80,000. How many days could Lionworks operate without buying any more inventory? (Round any intermediary calculations two decimal places, X.XX, and your final answer to the nearest day.)
Answer:
DSI = 180.21 DAYS.
Explanation:
Average inventory = [(open) inventory +(end) inventory] / 2
= (41000+38000)/2 = 39500
As we know that : Days sales of inventory (DSI)= ( Average inventory / cost of goods sold) * 365
= (39500 / 80000 ) * 365
= 180.21 days. It tells the effectiveness of company inventory management,here lionworks takes 180 average days to sell of his entire inventory
Lowlife Company defaulted on a $250,000 loan that was due on December 31, 2018. The bank has agreed to allow Lowlife to repay the $250,000 by making a series of equal annual payments beginning on December 31, 2019.
1. Calculate the required annual payment if the bank’s interest rate is 10% and four payments are to be made.
2. Calculate the required annual payment if the bank’s interest rate is 8% and five payments are to be made.
3. If the bank’s interest rate is 10%, how many annual payments of $51,351 would be required to repay the debt?
4. If three payments of $104,087 are to be made, what interest rate is the bank charging Lowlife?
Provided is a step-by-step calculation of loan repayments under varying conditions, demonstrating how to compute the required annual payment for different interest rates and payment plans.
Explanation:The subject of this question is the calculation of loan repayments under varying conditions, a critical aspect of financial management and business math. The factors to consider are principal amount ($250,000), the annual interest rate, the number of payments, and the payment amount.
Step-By-Step Calculation
1. When the bank's interest rate is 10% and four payments are to be made, the required annual payment is calculated using the formula for the payment of an ordinary annuity, which is P * r / 1 - (1 + r)^ -n. Here, n=4, r=10% and P=$250,000. Substituting these values, we get an annual payment of $82,731.97
2. When the bank's interest rate is 8% and five payments are to be made, substituting n=5, r=8%, and P=$250,000 into the formula above, we get an annual payment of $64,402.88
3. If the bank's interest rate is 10%, and the annual payment is $51,351, it would take approximately 6 payments to repay the loan completely. This can be calculated by rearranging the annuity formula above to solve for n.
4. If three payments of $104,087 are made, the interest rate charged by the bank can be calculated by rearranging the annuity payment formula to solve for r. Plugging in P=$250,000, PMT=$104,087 and n=3, we get an interest rate of approximately 11%.
Learn more about loan repayments here:https://brainly.com/question/31838901
#SPJ3
1. Required annual payment if the bank’s interest rate is 10% and four payments are to be made: $78,899.37
2. Required annual payment if the bank’s interest rate is 8% and five payments are to be made: $70,200.91
3. Number of annual payments of $51,351 required to repay the debt at a 10% interest rate: 5 payments
4. Interest rate the bank is charging Lowlife if three payments of $104,087 are to be made: 7.75%
Let's address each question one by one:
Step 1
1. Calculate the required annual payment if the bank’s interest rate is 10% and four payments are to be made:
We can use the formula for the annual payment of an installment loan:
[tex]\[ P = \frac{PV \times r}{1 - (1 + r)^{-n}} \][/tex]
Where:
- P = annual payment
- PV = present value of the loan ($250,000)
- r = annual interest rate (as a decimal)
- n = number of payments (4)
Substituting the given values:
[tex]\[ P = \frac{\$250,000 \times 0.10}{1 - (1 + 0.10)^{-4}} \]\[ P = \frac{\$250,000 \times 0.10}{1 - (1.10)^{-4}} \]\[ P = \frac{\$250,000 \times 0.10}{1 - 0.6830} \]\[ P = \frac{\$25,000}{0.317} \]\[ P \approx \$78,899.37 \][/tex]
So, the required annual payment is approximately $78,899.37.
Step 2
2. Calculate the required annual payment if the bank’s interest rate is 8% and five payments are to be made:
Using the same formula:
[tex]\[ P = \frac{\$250,000 \times 0.08}{1 - (1.08)^{-5}} \]\[ P \approx \$70,200.91 \][/tex]
So, the required annual payment is approximately $70,200.91.
Step 3
3. If the bank’s interest rate is 10%, how many annual payments of $51,351 would be required to repay the debt?:
We can rearrange the formula to solve for n:
[tex]\[ n = -\frac{\log(1 - \frac{PV \times r}{P})}{\log(1 + r)} \][/tex]
Substituting the given values:
[tex]\[ n = -\frac{\log(1 - \frac{\$250,000 \times 0.10}{\$51,351})}{\log(1 + 0.10)} \]\[ n \approx 5.0 \][/tex]
So, approximately 5 annual payments of $51,351 would be required to repay the debt.
Step 4
4. f three payments of $104,087 are to be made, what interest rate is the bank charging Lowlife?:
We can rearrange the formula to solve for [tex]\( r \):[/tex]
[tex]\[ r = \left( \frac{P}{PV} \right)^{1/n} - 1 \][/tex]
Substituting the given values:
[tex]\[ r = \left( \frac{\$104,087}{\$250,000} \right)^{1/3} - 1 \]\[ r = \left( \frac{0.41635}{0.10} \right)^{1/3} - 1 \]\[ r \approx 0.0775 \][/tex]
So, the bank is charging an interest rate of approximately 7.75%.
The following costs were incurred in September:
Direct materials
$40,100
Direct labor
$29,700
Manufacturing overhead
$21,200
Selling expenses
$25,600
Administrative expenses
$32,100
Conversion costs during the month totaled:
a.$148,700
b.$69,800
c.$50,900
d.$61,300
Answer:
Option (c) is correct.
Explanation:
Given that,
Direct materials = $40,100
Direct labor = $29,700
Manufacturing overhead = $21,200
Selling expenses = $25,600
Administrative expenses = $32,100
Therefore, the Conversion costs during the month as follows:
= Direct labor + Manufacturing overhead
= $29,700 + $21,200
= $50,900
Assume the following amounts: Total fixed costs $ 23 comma 000 Selling price per unit $ 19 Variable costs per unit $ 12 If sales revenue per unit increases to $ 22 and 14 comma 000 units are sold, what is the operating income? A. $ 163 comma 000 B. $ 117 comma 000 C. $ 308 comma 000 D. $ 140 comma 000
Answer:
B. $ 117 comma 000
Explanation:
Selling price per unit $ 19 *14, 000= $ 266000
Variable costs per unit $ 12 *14, 000= $ 168,000
Contribution Margin $ 98,000
Less Total fixed costs $ 23, 000
Operating Income $ 75,000
If sales revenue per unit increases to $ 22
Selling price per unit $ 22 *14, 000= $ 308000
Variable costs per unit $ 12 *14, 000= $ 168,000
Contribution Margin $ 140,000
Less Total fixed costs $ 23, 000
Operating Income $ 117,000
Answer:
B. $ 117 comma 000
Explanation:
The Net/operating income is the difference between the total sales and total costs, Total cost is made up of the fixed and variable cost.
Like the total sales, the total variable cost is also affected by the level of activities or units produced/sold.
Mathematically,
Net income = Total sales - variable cost - fixed cost
= $22(14,000) - $12(14,000) - $23,000
= $117,000
There is a bond that has a quoted price of 94.023 and a par value of $2,000. The coupon rate is 6.51 percent and the bond matures in 13 years. If the bond makes semiannual coupon payments, what is the effective annual interest rate
Answer:
The effective annual rate is gotten to be 7.36%
Explanation:
Given the par value = $2,000
Annual Coupon Rate = 6.51%
Semiannual Coupon Rate = 6.51% / 2 = 3.255%
Semiannual Coupon = 3.255% * $2,000 = $65.10
Current Price = 94.023% * $2,000 = $1,880.46
Time to Maturity = 13 years
Semiannual Period = 26
Let semiannual yield to maturity be s%
$1,880.46 = $65.10 x PVIFA(s%, 26) + $2,000 x PVIF(s%, 26)
Making use of Ms excel and calculating we have;
N = 26
PV = -1880.46
PMT = 65.10
FV = 2000
s = 3.613%
Semiannual yield to maturity = 3.613%
The effective annual rate can be obtained thus;
Effective annual rate = (1 + Semiannual YTM[tex])^{2}[/tex] - 1
= (1 + 0.03613[tex])^{2}[/tex] - 1
= 1.0736 - 1
= 0.0736 or 7.36%
Therefore the effective annual rate is gotten to be 7.36%
To find the effective annual interest rate of a bond, calculate the semiannual interest rate and convert it to annual terms by multiplying by two.
Explanation:To find the effective annual interest rate of a bond, we need to calculate the semiannual interest rate and then convert it to annual terms.
Step 1: Calculate the semiannual coupon payment by multiplying the coupon rate by the par value and dividing by 2, since there are semiannual coupon payments.
Step 2: Calculate the semiannual interest rate by dividing the semiannual coupon payment by the quoted price of the bond.
Step 3: Convert the semiannual interest rate to an annual interest rate by multiplying it by 2.
Based on the given values, the effective annual interest rate is 13.27 percent.
Learn more about effective annual interest rates here:https://brainly.com/question/35116151
#SPJ3
a) Deployment Specialist pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 4% thereafter. If the required return for Deployment Specialist is 8.5%, what is the intrinsic value of its stock
Answer:
Explanation:
we will apply multi stage dividend growth model = Do(1+g)/Ke-g
Do = Dividend just paid
(1+g) = Dividend for next year
Ke = Return
g = Growth in dividend
Year Year Year
0 1 2
20% 20%
Dividend 1 1.2 1.44
infinity value @4% 44.8 8*
Present value @8.5% 1 1.11111 39.64334
Value of stock=1+1.111111111+ 39.64334= 41.75445
*Do(1+g)/Ke-g
1.44(1+4%) / 8.5%-4%
2.016 / 4.5%
Value= 44.88
You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $ 8 comma 000$8,000 and will be posted for one year. You expect that it will generate additional revenue of $ 1 comma 280$1,280 a month. What is the payback period?
Answer:
The Payback period is
Explanation:
Payback period is the time in which initial investment is recovered from project cash inflows. It shows the time to pack back the initially cost incurred on the project or asset.
Cost to project = $8,000
Additional Revenue = $1,280
Payback period = Cost of project / additional revenue
Payback period = $8,000 / $1,280
Payback period = 6.25 years
Payback period = 6 years 3 months
Van Nuen Inc. began a defined-benefit pension plan for its employees on January 1, 2018. The following data are provided for 2018, as of December 31, 2018:
Projected benefit obligation $ 785,000
Accumulated benefit obligation 740,000
Plan assets at fair value 655,000
Pension expense 715,000
Employer's cash contribution (end of year) 655,000
What amount should Van Nuen report as its net pension liability at December 31, 2018?
a. $45,000
b. $85,000
c. $130,000
d. $0
Answer:
c. $130,000
Explanation:
The net pension liability is the difference between the total pension liability (the present value of projected benefit payments to employees based on their past service) and the assets (mostly investments reported at fair value) set aside to pay current employees, retirees, and beneficiaries.
To calculate this:
Net Pension Liability = Projected benefit Obligation - Plan assets at fair value
= $ 785,000 - $655,000
= $130,000
Therefore Van Nuen's net pension liability at December 31, 2018 can be reported as $130,000.
Answer:The answer is C $130,000
Explanation:
Using the formula
Net pension liability = Projected benefit obligation - Fair value of the plan Asset
Projected benefit obligation = $785,000
Fair value of the plan Asset = $655,000
785,000 - 655,000
= $130,000
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization collects enough donations to stop the farm's pollution.Which of the following types of private solutions to the externality of pollution has occurred in this case?a. (Contacts, moral codes and social sanctions, integration of different types of businesses through merger or acquisition)b. It’s important to note that sometimes private solutions to externalities do not work. For example, this occurs when the number of parties involved is so large that it makes...(government action the only viable solution, the market failure from the externality unimportant, coordinating negotiations among all of the parties too costly)
Answer:
See attached photo.
Explanation:
Refer to the photo attached.
The purposes of charity must fall into categories that are legally charitable. These are things like preventing or alleviating poverty or promoting art, culture, heritage or science.
It must be established exclusively for the so-called public good (see below). This means that its sole purpose is to be charitable. Charities cannot make a profit. All the money they collect must be used to achieve their goals. A charity cannot have owners or shareholders who benefit from it.
To learn more about charity, refer;
https://brainly.com/question/16705905
#SPJ2
"Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp business. The savings account paid 2% interest. What is Bubba's annual opportunity cost of the financial capital that he invested in his business
Options:
A. $20
B. $200
C. $40
D. $400
Answer:C. $40
Explanation: Opportunity cost is a term used in Economics to describe the value of the next most profitable alternative of this an investor puts his or her resources into,in this case the opportunity cost for Bubba is the percentage of the interest which Bubba earned from the interest.
Opportunity cost for Bubba can be calculated as follows
(2%/100)* $2,000=$40.
Opportunity cost helps economists to ensure that resources are effectively put to use.
Bubba's annual opportunity cost for using his $2,000 to buy a boat and equipment for his shrimp business, instead of leaving it in a savings account with a 2% interest rate, is $40 per year.
Explanation:The annual opportunity cost of the financial capital that Bubba invested in his shrimp business is the amount of interest he would have earned if he had left the $2,000 in his savings account. Since the savings account paid 2% interest, the opportunity cost is 2% of $2,000.
To calculate this, we use the formula for simple interest: Interest = Principal × Rate × Time. Here, the principal is $2,000, the rate is 2% (or 0.02 as a decimal), and the time is 1 year, since we are interested in the annual opportunity cost.
So, Bubba's opportunity cost is $2,000 × 0.02 × 1 = $40 per year.
One study found that companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels?
Answer:
The response options are as follows:
A) 2
B) 3
C) 4
D) 5
E) None of the above because quality has no impact on productivity (units / labor hour)
The correct answer is: D) 5
Explanation:
Currently there are challenges and especially competition in organizations, which allows us to face high competition, both nationally and internationally.
Good quality is a quality that any service must have in order to obtain a better performance in its operation and durability, complying with norms and rules necessary to satisfy the needs of the client.
Quality within an organization is an important factor that generates satisfaction for its customers, employees and shareholders, and provides practical tools for comprehensive management. Nowadays, it is necessary to meet the quality standards to be able to compete in an increasingly demanding market; For this, continuous improvement, customer satisfaction and standardization and process control must be sought. You must also make the different departments of the company make quality by defining the objectives that correspond to you always seeking customer satisfaction and continuous improvement.
Quality indicators are measuring instruments, tangible and quantifiable, which allow the quality of processes, products and services to be evaluated to ensure customer satisfaction. In other words, they measure the level of compliance with the specifications established for a given business activity or process. Management indicators measure, overall, the final result of business activities based on a standard, which responds to the level of objective quality that the company expects and wants to achieve.
A city is trying to estimate the most money it should offer to contractors as an incentive for them to finish a disruptive road project early. The transportation project lengthens transport times by 10 hours per week for 40,000 workers. Assume that all workers are paid $10 per hour in a perfectly competitive labor market. What is the most that the city should pay to the contractors as an incentive for completing the project four weeks early? HTML EditorKeyboard Shortcuts
Answer:
The city should pay at most $16 million to the contractors as an incentive for completing the project four weeks earlier.
Explanation:
Total number of saved work hours = 4 weeks * 40000 workers/week * 10 hours/worker = 1,600,000 work hours
So, Money saved = 1,600,000 work hours * $10/ work-hour
= $16 million
Therefore, the city should pay at most $16 million to the contractors as an incentive for completing the project four weeks earlier.
Answer:
$16,000,000
Explanation:
To answer this question we pull out information relevant to us as follows
What is the number of workers = 40,000workers
How many labour hours per week = 10 hours per week
What is the hourly wage = $10/hour
First, Amount spent per worker in a week =
$10 x 10 hours = $100 per week
Second, Amount to be expended for 4 weeks
= $100 x 4 weeks = $400
Finally, the most that should be paid to the contractor for workers
$400 x 40,000 workers
= $16,000,000
Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.
a. aggregate supply shifts right.
b. aggregate demand shifts right
c. aggregate demand shifts left
d. aggregate supply shifts left.
Answer:
b. aggregate demand shifts right
Explanation:
When the aggregate demand curve shifts right, the quantity of output demanded for a given price level rises. Therefore, a shift of the aggregate demand curve to the right represents an economic expansion.
Scotland Corporation had net income for 2018 of $ 77 comma 000. Scotland had 13 comma 000 shares of common stock outstanding at the beginning of the year and 26 comma 000 shares of common stock outstanding at the end of the year. There were 11 comma 000 shares of preferred stock outstanding all year. During 2018, Scotland declared and paid preferred dividends of $ 22 comma 000. What is Scotland's earnings per share? (Round the answer to two decimal places.)
Answer:
$2.82 per share
Explanation:
The computation of the earning per share is shown below:
Earning per share = (Net income - preferred dividend) ÷ (Weighted average Number of common shares)
where,
Weighted average number of common shares is
= (13,000 shares + 26,000 shares) ÷ 2
= 19,500 shares
So, the earning per share is
= ($77,000 - $22,000) ÷ (19,500 shares)
= $2.82 per share
On July 1, 2008, Sheeley Company pays $8,000 to its insurance company for a 2-year insurance policy.InstructionsPrepare the necessary journal entries for Sheeley on July 1 and December 31.
Answer:
Debit Prepaid insurance $8,000
Credit Cash account $8,000
Being entries to recognize prepaid insurance as at July 1 , 2008
Debit Insurance expense $2,000
Credit Prepaid Insurance $2,000
Being entries to recognize insurance expense as at December 31.
Explanation:
The amount paid by Sheeley Company On July 1, 2008 is a prepayment (an asset) as it is paid in advance. The insurance cover was yet to be enjoyed as at that date.
Entries required to recognize this payment
Debit Prepaid insurance $8,000
Credit Cash account $8,000
Being entries to recognize prepaid insurance as at July 1 , 2008
As at 31 December, the company would have incurred expenses for 6 months out of the 24 months (2 years) paid for.
This amounts to
= 6/24 × $8,000
= $2,000
To recognize this by December 31
Debit Insurance expense $2,000
Credit Prepaid Insurance $2,000
Being entries to recognize insurance expense as at December 31.
_______ are the fastest growing segment of today's workforce. They are optimistic, inventive and individualistic; they seek a balance between life and work and want work that is meaningful.
Answer:
Millennials
Explanation:
People (workers) who were born after the year 1980 are considered "Millennials" or part of the "Millennial Generation." They comprise 25% of the total workforce these days. It is said that the percentage will increase to 75% by 2025. It is common for Millennials and Gen Xers to manage the Baby Boomers. Most of these veterans (Baby Boomers) go back working for they don't have enough money after retiring. So, this causes a hierarchy that looks overturn. This causes some tension in the workplace.
So, this explains the answer.
Brief Exercise 5-7 Record the adjustment for uncollectible accounts (LO5-3) At the end of the year, Dahir Incorporated’s balance of Allowance for Uncollectible Accounts is $3,000 (debit) before adjustment. The company estimates future uncollectible accounts to be $15,000. What is the adjustment Dahir would record for Allowance for Uncollectible Accounts? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
At the end of period the allowance for uncollectible debts will be: 15000-3000 = $ 12000 because 3000 account receivable is written off.
Explanation:
(Opening) Allowance for uncollectible accounts = 3000 (Dr)
During the year company estimates = $ 15000
Entry : Dr Bad debts expense 15000
Cr Allowance for bad debts 15000
( To record uncollectible accounts)
Emily Corporation sells two products: hurricane lamps and flashlights. Hurricane lamps account for 70 percent of the units sold, while the flashlights account for the remaining 30 percent of unit sales. The unit sales price of the lamps is $9.00, and the unit variable cost is $4.00. The unit sales price of the flashlights is $7.00, and the unit variable cost is $3.00. What is the weighted-average contribution margin per unit?
Answer:
weighted-average contribution margin= $4.7
Explanation:
Giving the following information:
Hurricane lamps account for 70 percent of the units sold, while the flashlights account for the remaining 30 percent of unit sales. The unit sales price of the lamps is $9.00, and the unit variable cost is $4.00. The unit sales price of the flashlights is $7.00, and the unit variable cost is $3.00.
To calculate the weighted-average contribution margin, we need to calculate first the weighted-average selling price and weighted average variable cost for each product.
weighted average selling price= (selling price* weighted sales participation)
weighted average selling price= (0.7*9 + 0.3*7)= $8.4
weighted average variable cost= (variable cost* weighted sales participation)
weighted average variable cost= (0.7*4 + 0.3*3)= 3.7
Now, we can calculate the weighted average contribution margin:
weighted-average contribution margin= 8.4 - 3.7= $4.7
Final answer:
The weighted-average contribution margin per unit for Emily Corporation's products—hurricane lamps and flashlights—is $4.70. This is found by calculating the contribution margin for each product and then multiplying by the percentage of total units sold.
Explanation:
To calculate the weighted-average contribution margin per unit, we need to consider how many units of each product are sold and the contribution margin of each. The contribution margin per unit is calculated by subtracting the unit variable cost from the unit sales price.
Hurricane lamps: Sales price - Variable cost = $9.00 - $4.00 = $5.00 contribution margin per unit
Flashlights: Sales price - Variable cost = $7.00 - $3.00 = $4.00 contribution margin per unit
Emily Corporation sells 70% hurricane lamps and 30% flashlights. Now, we multiply the percentage of units sold by the contribution margin for each product and add them to find the weighted-average:
Hurricane lamps: 70% x $5.00 = $3.50
Flashlights: 30% x $4.00 = $1.20
Now, add these two amounts:
$3.50 (hurricane lamps) + $1.20 (flashlights) = $4.70 weighted-average contribution margin per unit.
"E3-26A Record manufacturing overhead (Learning Objectives 5 & 6) Refer to the data in Exercise 3-25A. Smith’s accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $364,000, not the $480,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was $610,000."
a. Prepare the journal entry (entries) to record manufacturing overhead costs incurred.
b. Prepare the journal entry to record the manufacturing overhead allocated to jobs in production.
c. Use a T-account to determine whether manufacturing overhead is underallocated or overallocated, and by how much.
d. Record the entry to close out the underallocated or overallocated manufacturing overhead.
Final answer:
The detailed answer provides the journal entries for manufacturing overhead costs, allocation to jobs, T-account analysis, and closing out overallocated manufacturing overhead.
Explanation:
a. Journal entry for manufacturing overhead costs incurred:
Debit Manufacturing Overhead $364,000
Credit Accumulated Depreciation $364,000
b. Journal entry for manufacturing overhead allocated to jobs:
Debit Work in Process Inventory $116,000
Credit Manufacturing Overhead $116,000
c. T-account analysis: Since the actual depreciation was less than reported, manufacturing overhead is overallocated by $116,000.
d. Entry to close out overallocated manufacturing overhead: Debit Cost of Goods Sold $116,000, Credit Manufacturing Overhead $116,000
Gilberto's Performance Pizza is a small restaurant in Philadelphia that sells gluten-free pizzas. Gilberto's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Gilberto signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Gilberto's kitchen cannot fit more than four ovens, Gilberto cannot change the number of ovens he uses in his production of pizzas in the short run.
However, Gilberto's decision regarding how many workers to use can vary from week to week because his workers tend to be students.
Each Monday, Gilberto lets them know how many workers he needs for each day of the week. In the short run, these workers are ________ inputs, and the ovens ________ inputs.
Answer:
In the short run, these workers are variable inputs, and the ovens fixed inputs.
Explanation:
In this matter, we can say that workers are variable inputs, due to the fact that there is a possibility that Gilberto varies the number of workers hired in relation to their production needs. Ovens, on the other hand, can be considered as fixed inputs, which are those inputs, whose quantities cannot be changed in the short term.
Assume Blue Spruce Corp. has the following reported amounts: Sales revenue $724,200, Sales returns and allowances $21,300, Cost of goods sold $468,600, and Operating expenses $156,200. (a) Compute net sales. Net sales $enter Net sales in dollars (b) Compute gross profit. Gross profit $enter Gross profit in dollars (c) Compute income from operations. Income from operations $enter Income from operations in dollars
Answer:
(a) Net sales is $702,900
(b) Gross profit is $234,300
(c) Income from operations is $78,100
Explanation:
Net sales is the result of the total sales less discounts, allowances and sales return.
The gross profit is the net sales less the cost of goods sold while the income from operations is the gross profit less the operating expenses.
Net sales
= $724,200 - $21,300
= $702,900
Gross profit
= $702,900 - $468,600
= $234,300
Income from operations
= $234,300 - $156,200
= $78,100
Net Sales for Blue Spruce Corp. are found to be $702,900, Gross Profit is $234,300, and Income from Operations is $78,100, using standard business accounting calculations.
Explanation:To compute the answers to your questions for Blue Spruce Corp. we first need to understand a few business accounting terms.
Net Sales are calculated as Sales Revenue minus Sales returns and allowances. In this case, $724,200 (Sales Revenue) - $21,300 (Sales Returns and Allowances) = $702,900 (Net Sales).
Gross Profit is calculated as Net Sales minus the Cost of Goods Sold. Using the Net Sales we just computed: $702,900 (Net Sales) - $468,600 (Cost of Goods Sold) = $234,300 (Gross Profit).
Income from Operations is calculated as Gross Profit minus Operating Expenses. So, $234,300 (Gross Profit) - $156,200 (Operating Expenses) = $78,100 (Income from Operations).
Learn more about Business Accounting here:https://brainly.com/question/29608710
#SPJ3
Unlike traditional manufacturing, flexible manufacturing: a. decreases efficiency. b. lowers unit costs. c. allows the production of only standardized products. d. limits an organization's ability to customize products. e. limits an organization's ability to offer greater product variety.
Answer:
The correct answer is letter "B": lowers unit costs.
Explanation:
Traditional manufacturing is the production process by which companies produce goods part to be delivered for sale and part to have them stored in case of shortages which could increase inventory costs.
Flexible manufacturing concentrates on using technology for mass-production of products characterized to be subject to rapid market changes. Flexible manufacturing saves money in labor costs, thus, lowers the unitary costs of the output.
An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by
Cd = 3000 - 2000r + 0.10Y
Id = 1000 - 4000r
where Y is output and r is the expected real interest rate. The real interest rate that clears the goods market is equal toA. 25.00%.B. 8.33%.C. 2.50%.D. 1.25%.
Answer:
Option (B) is correct.
Explanation:
Given that,
Full-employment output = 5,000
Government purchases = 1,000
Desired consumption: Cd = 3000 - 2,000r + 0.10Y
Desired investment: Id = 1000 - 4,000r
Y = Cd + Id + Gd
Y = (3000 - 2000r + 0.10Y) + (1,000 - 4,000r) + 1,000
Y - 0.10Y = 5,000 - 6,000r
0.90Y = 5,000 - 6,000r
At full employment output level of 5,000,
0.90(5,000) = 5,000 - 6,000r
4,500 = 5,000 - 6,000r
6,000r = 500
r = 0.0833 or 8.33%
Therefore, the real interest rate that clears the goods market is equal to 8.33%.
Final answer:
After setting up the equilibrium condition and plugging in the given functions for desired consumption and investment, along with the given full-employment output and government purchases, we solve for the real interest rate, which is found to be 8.33%.
Explanation:
To find the real interest rate that clears the goods market, we need to solve for r in the following equilibrium condition where the sum of government purchases (G), desired consumption (Cd), and desired investment (Id) equals the full-employment output (Y):
Y = G + Cd + Id
Substituting the given values and expressions, we have:
5000 = 1000 + (3000 - 2000r + 0.10×5000) + (1000 - 4000r)
Simplifying this, we get:
5000 = 1000 + 3000 - 2000r + 500 + 1000 - 4000r
5000 = 5500 - 6000r
Rearranging for r gives us:
6000r = 5500 - 5000
6000r = 500
r = ⅖
r = 0.0833 or 8.33%
Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2. Purchased supplies on account. 3. Received utility bill to be paid at later date. 4. Paid utility bill previously accrued.
Each of the transactions mentioned have different impacts on the accounting equation. Purchasing an insurance policy or supplies affects assets and liabilities in a way that keeps the equation balanced. Receiving and paying a utility bill affects liabilities, assets, and equity, also in a way that keeps the equation balanced.
Explanation:The accounting equation is Assets = Liabilities + Equity. So, each of the transactions you mentioned will impact this equation in a specific way:
Purchased 36-month insurance policy for cash: This decreases cash (an asset) and increases prepaid insurance (another asset). So, the overall equation stays balanced. Purchased supplies on account: This increases supplies (an asset) and increases accounts payable (a liability). Again the equation stays balanced. Received utility bill to be paid at a later date: This increases utilities expense (which reduces equity) and increases accounts payable (a liability). As expenses increase equity decreases, but since liability also increases, the equation is in balance. Paid utility bill previously accrued: This reduces cash (an asset) and reduces accounts payable (a liability). So, assets decrease, liabilities decrease, and the equation stays in balance. Learn more about Accounting Equation here:
https://brainly.com/question/33441178
#SPJ3
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 80,000 $ 180,000 February $ 85,000 $ 200,000 March $ 48,000 $ 160,000 April $ 43,000 $ 128,000 May $ 53,000 $ 230,000 June $ 110,000 $ 220,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 50% in month of sale 40% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $75,000, of which $47,000 represents uncollected December sales and $28,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 31
Answer:
Budgeted Accounts Receivable Balance on May 31 = $127,800
Explanation:
Accounts Receivables are current assets of a company resulting from selling on credit and these accounts are the uncollected, outstanding balances.
Judging by the collection schedule we can determine the budgeted Accounts Receivables (uncollected) balances at 31 May
The November balance equals to 10% of total Credit sales and 10 % of November sales are collected in January
the December balance equals 50% and 40% of the balance will be collected on January and 10% collected in February.
Fast forward to the collection of May
details credit sales May Uncollected
Mar $160,000*10% $16,000
April $128,000 * 40% $51,200
$128,000 *10% $12,800
May $230,000 *50% $115,000
$230,000 *50% $115,000
TOTAL $127,800
The budgeted June sales at 31 May have not yet occurred so the balance accounts receivable at 31 May include only the uncollected percent from April and May.
The LaGrange budgeted Accounts Receivable Balance on May 31 is computed as follows:
10% of March credit sales $16,000 ($160,000 x 10%)
40% of April credit sales 51,200 ($128,000 x 40%)
50% of May credit sales 115,000 ($230,000 x 50%)
Total balance $182,200
Data and Calculations:
Cash Sales Credit Sales
January $ 80,000 $ 180,000
February $ 85,000 $ 200,000
March $ 48,000 $ 160,000
April $ 43,000 $ 128,000
May $ 53,000 $ 230,000
June $ 110,000 $ 220,000
Thus, at the end of the month of May, the Accounts Receivable Balance of The LaGrange Corporation is $182,200.
Learn more: https://brainly.com/question/24230946
Rob's wife, Marie, has a wage income of $250,000. They jointly sold stocks in 2019 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2019, they take the standard deduction of $24,400. The income threshold for QBI limitations starts at $315,000 for married filing jointly taxpayers.
a. What is Rob and Marie's taxable income before the QBI deduction?
b. What is Rob and Marie's QBI?
What is Rob and Marie's QBI deduction?
Answer:
Explanation:
According to IR Many individuals, including owners of businesses operated through sole proprietorships, partnerships, S corporations, trusts and estates may be eligible for a qualified business income deduction, also called the section 199A deduction. Some trusts and estates may also claim the deduction directly.
The deduction allows them to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. Income earned by a C corporation or by providing services as an employee isn't eligible for the deduction.
1. QBI component. This component of the deduction equals 20 percent of QBI from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust or estate. Depending on the taxpayer's taxable income, the QBI Component is subject to limitations including:
a. The type of trade or business,
b. The amount of W-2 wages paid by the qualified trade or business, and
c. The unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business.
These limitations do not apply to taxpayers with taxable income at or below a certain threshold. For 2018, the threshold amount is $315,000 for a married couple filing a joint return, and $157,500 for all other taxpayers.
STEPS ARE:
1. Original QBID = 154K*20% = 30,800
2. Wage/Cap. Investment limitation: a) wage limitation = 58K*50%= 29,000
b) wage/capital limit. = wage(58K*25%) +capital(300K*2.5%) =14,500+7,500=22K
We take the larger of them => 29K
3) Since original QBID is greater than wage limitation, we must use reduction ratio. In this case:
408K (taxable income) - 315K(threshold)/100,000 = 0.93
4) Now we subtract the wage limitation from original QBID (30,800 - 29,000) * 0.93= 1,674.
5) Finally, subtract that from original QBID 30,800-1,674=29,126.
29,126 their final QBID
Megley Cheese Company is a small manufacturer of several different cheese products. One of the products is a cheese spread that is sold to retail outlets. Jason Megley must decide how many cases of cheese spread to manufacture each month. The probability that the demand will be six cases is 0.1, for 7 cases is 0.3, for 8 cases is 0.5, and for 9 cases is 0.1. The cost of every case is $45, and the price that Jason gets for each case is $95. Unfortunately, any cases not sold by the end of the month are of no value, due to spoilage.
How many cases of cheese should Jason manufacture each month?
Answer:
Explanation:
Cost of every cases is $45.6 cases cost is = $45*6=$270
Demand
Profit Expected Profit
6 0.1 300 30
0.3 300 90
0.5 300 150
0.1 300 30
Answer: Total 300
Answer 7 to 9:
Profit Expected Profit
9 0.1 165 16.5
0.3 260 78
0.5 355 177.5
0.1 450 45
Answer Total 317.00
Answer 8 to 9 :
6(0.1) + 7(0.3) + 8(0.5) + 9(0.1) = 7.6
Jason should manufacture 8 cases of cheese spread each month to maximize his profit.
Explanation:In order to determine how many cases of cheese Jason should manufacture each month, we need to calculate the expected value of the demand. The expected value is calculated by multiplying each possible demand by its corresponding probability and summing them up. So, the expected value would be: (6 cases)(0.1) + (7 cases)(0.3) + (8 cases)(0.5) + (9 cases)(0.1) = 7.9 cases. Since we can't manufacture a fractional number of cases, Jason should manufacture 8 cases each month.
Let's calculate the profit for manufacturing 8 cases. The cost for 8 cases is 8 * $45 = $360, and the revenue is 8 * $95 = $760. The profit is revenue minus cost, so $760 - $360 = $400.
Therefore, Jason should manufacture 8 cases of cheese spread each month in order to maximize his profit.
Learn more about manufacturing cheese here:https://brainly.com/question/31962978
#SPJ3
Simple Interest versus Compound Interest [LO1] First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually. If you made a $6,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of nine years?
Answer:
You would have $1,251 more money in second city bank than the first city bank.
Explanation:
First city bank pays 7% simple interest.
Interest = (PRT)/100
Interest = (6000 * 7 * 9)/100 = 378000/100 = $3,780
Amount in first city bank after 9 years = 6000 + 3780 = $9,780
The second city bank pays 7% interest compounded annually, so we would find the amount after 9 years.
P = $6,000
R = 7% = 7/100 = 0.07
T = 9
A = P(1 + R) ^ {t}\\
A = 6000(1 + 0.07)^ {9}\\
A = 6000(1.07)^{9}\\
A = 6000 * 1.838459212420\\
A = 11030.75527452\\
A = 11031
Amount after 9 years in second city bank = $11,031
Difference between first city bank and second city bank: 11031 - 9780 = 1251.
Final answer:
By comparing a $6,000 deposit over nine years at a 7% interest rate, you would earn $1,250.76 more with compound interest at Second City Bank than with simple interest at First City Bank.
Explanation:
The question asks about the difference in earnings between simple interest and compound interest on a $6,000 deposit over nine years at a 7% interest rate. To solve this, we need to calculate the total amount for both simple and compound interest and then find the difference.
Simple Interest Calculation:
Simple Interest = Principal × Rate × Time
= $6,000 × 0.07 × 9
= $3,780
Total with Simple Interest = Principal + Interest
= $6,000 + $3,780
= $9,780
Compound Interest Calculation:
Compound Interest = Principal × (1 + Rate)^Time
= $6,000 × (1 + 0.07)^9
= $6,000 × 1.83846
= $11,030.76
The difference in earnings between Second City Bank (compound) and First City Bank (simple) is:
$11,030.76 - $9,780 = $1,250.76
Therefore, by choosing the compound interest option at Second City Bank, you would earn an additional $1,250.76 over nine years.
Billings Company has the following information available for September 2017.
Unit selling price of video game consoles $444
Unit variable costs $311
Total fixed costs $59,850
Units sold 666
a.)Compute the unit contribution margin.
b.)Prepare a CVP income statement that shows both total and per unit amounts.
c.)Compute Billing's break even points in units.
d.)Prepare a CVP income statement for the break even point that shows both total and per unit amounts.
Answer:
Part a
Contribution Margin = 29.95% (2 d.p)
Part b
Billing Company
CVP Income for as at September 2017
Total Per Unit
$ $
Sales 295704 444
Less Variable Costs (138084) (311)
Contribution 157620 133
Fixed Costs (59850) 89.86
Net Income 97770 43.14
Part c
Billing`s break even point is 450 units
Part d
Billing Company
CVP Income for as at September 2017 - Break Even Point
Total Per Unit
$ $
Sales 199800 444
Less Variable Costs (139950) (311)
Contribution 59850 133
Fixed Costs (59850) 133
Net Income 0 0
Explanation:
Part a
Contribution Margin = Contribution/Sales × 100
Therefore contribution margin is ($444-$311)/$444 * 100 = 29.95% (2 d.p)
Part b
Sales - Variable Cost = Contribution
Net Income = Contribution - Total Fixed Costs
Part c
Break Even Point is when Billings neither makers a profit or loss.
Break Even Point ( Units) = Total Fixed Cost/Contribution per unit
Therefore Break Even Point (Units) = $59850/$133 = 450 units
Part d
The total and unit CVP should neither reflect a profit or loss at a capacity of 450 units as this is the break even point. In this case profit = nill
Final answer:
The Billings Company's unit contribution margin is $133, with a CVP income statement showing a total operating income of $28,728. The break-even point is approximately 450 units. A break-even CVP income statement illustrates the company's financials at this level of sales, indicating what is needed to cover costs without generating either profit or loss.
Explanation:
Answers to the Billings Company Case
a.) To compute the unit contribution margin, subtract the unit variable cost from the unit selling price. The unit contribution margin = $444 (unit selling price) - $311 (unit variable cost) = $133.
b.) To prepare a CVP income statement that shows both total and per unit amounts for the given units sold (666), first calculate the total contribution margin (666 unit × $133 per unit = $88,578). Then, subtract the total fixed costs ($59,850) from the total contribution margin to get the operating income: $88,578 - $59,850 = $28,728. Per unit, the operating income would be $28,728 / 666 units = $43.14.
c.) The break-even point in units is calculated by dividing the total fixed costs by the unit contribution margin. Break-even point = $59,850 / $133 = approximately 450 units.
d.) For the break-even CVP income statement, at 450 units, total variable costs are 450 × $311 = $139,950, and total sales are 450 × $444 = $199,800. However, since we're calculating for the break-even point, the sales will exactly match the sum of the total variable costs and total fixed costs, leading to an operating income of $0. Per unit amounts at break-even would reflect the calculation divided by the break-even unit sales (450).
Garfield Industries is expanding its operations throughout the Southeast United States. Garfield anticipates that the expansion will increase sales by $1,000,000, and increase the costs of goods sold by $700,000. Depreciation expenses will rise by $50,000 and interest expense will increase by $150,000. The company’s tax rate will remain at 40 percent. If the company’s forecast is correct, how much will net income increase or decrease, as a result of the expansion?
Answer:
$60,000 increase
Explanation:
The company's additional earnings before interest and taxes (EBIT) are subjected to a 40% tax rate. The company's EBIT is:
[tex]EBIT = Sales - Cost+Depreciation\\EBIT = 1,000,000-700,000+50,000\\EBIT =\$350,000[/tex]
The change in income is determined as the EBIT minus taxes and interest expense:
[tex]I = \$350,000*(1-0.4) -\$150,000\\I=\$60,000[/tex]
Therefore, Garfield Industries experienced a $60,000 increase in its income as a result of the expansion.
The net income will increase by $100,000 as a result of the expansion.
Explanation:To calculate the net income increase or decrease, you need to subtract the increased costs of goods sold, depreciation expenses, and interest expense from the increased sales. The tax rate of 40 percent should be applied to the resulting amount to calculate the net income. So, the net income increase or decrease can be calculated as follows:
Increased sales: $1,000,000Increased costs of goods sold: $700,000Depreciation expenses increase: $50,000Interest expense increase: $150,000Net income increase or decrease = (Increased sales - Increased costs of goods sold - Depreciation expenses increase - Interest expense increase) * Tax rate
= ($1,000,000 - $700,000 - $50,000 - $150,000) * 0.40
= $100,000
Therefore, the net income will increase by $100,000 as a result of the expansion.