Answer:
B) the power and influence of social/demographic trends.
Explanation:
Porters five forces describe forces that exists in an industry and shapes that industry.
They include:
1. Competition among firms in the industry
2. Potential of new firms entering into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
I hope my answer helps you
All of the above are part of the five forces of competitive pressure except B) the power and influence of social/demographic trends.
According to Michael Porter:
There are 5 forces of competitive pressure in an industry The forces of pressure dictate how successful a business will beAll options above are part of those pressures with the fifth being the power of buyers. The second option is not one of those forces but can also be quite influential.
In conclusion, option B is correct.
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Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. The investment costs $45,000 and has an estimated $6,000 salvage value. Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA
Answer:
NPV =$(36,602.61)
Explanation:
The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite.
NPV = PV of cash inflows - PV of cash outflows
PV of cash inflow= A × (1- (1+r)^(-n)/r
A- net cash inflow 1,950, r- discount rate- 15%, n- number of years- 3
PV of cash inflows = 1,950 × ((1- (1.15)^(-3))/0.15
= 4,452.28
PV of scrap value = F ×(1+r)^(-n)
F- Scrap value - 6000, r- discount rate = 15% n- number of years- 3
PV of scrap value = 6,000 ×(1.15)^(-3)=3,945.09
NPV = 4,452.28 + 3,945.097 - 45,000
= (36,602.61)
NPV =$(36,602.61)
If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, and the expected return on dollar depreciation against the euro is 8 percent, thenA.an investor should invest only in dollars.B.an investor should invest only in euros.C.an investor should be indifferent between dollars and euros.D.It is impossible to tell given the information.E.All of the above.
Answer:
The answer is option B
Explanation:
Given the information provided, an investor would be indifferent between investing in dollars and euros as there is no clear advantage in terms of expected return.
Explanation:In this scenario, the U.S. dollar interest rate is higher than the euro interest rate, which may make investing in dollars more attractive to investors. However, the expected return on dollar depreciation against the euro is also considered. If the dollar is expected to depreciate against the euro, it means that the value of the dollar is expected to decrease compared to the euro. This would mean that even though the interest rate on dollars is higher, the decrease in the value of the dollar may offset the higher interest rate.
Therefore, an investor should consider both the interest rate differential and the expected return on currency depreciation. Given the information provided, an investor would be indifferent between investing in dollars and euros as there is no clear advantage in terms of expected return.
Assume that you are a human resource manager of a 5-star international resort chain operating in a South Pacific country. Your resort CEO recently assigns you to hire one hundred housekeepers and waiters for your chain of hotels. Besides personality tests, discuss three other selection measures you could use to select your targeted employees. Justify your choices with relevant examples.
Answer:
Three other selection measures to be used to select my targeted employees are:
1. Customer relationship skills: This is the most important of all the selection criteria. As an employee in a hospitality and tourism sector such as a resort center, having good customer service skill is very important because, customer service is basically what is marketed in this sector. Customers pay a lot of money for these services in international hotels and if they are not treated to their satisfaction, could easily be frustrated, and that can lead to a reduction in the hotel's rating. An example is in the case of a newly arriving customer from another country, this person is probably stressed and jet lagged and needs to get some rest as soon as possible. In this case, the receptionist is supposed to attend to the customer very fast and should understand that the customer might get angry or easily irritated. No matter what, the receptionist is to be as calm and polite as possible, and should be empathetic with the customer.
2. Multi lingual abilities: In an international resort, the ability to communicate with customers is the soul of the business. Customers in this line of business are usually from diverse cultures and languages, which should never be a barrier. Employing employees skilled in some major languages will be very useful as they can help bridge the communication gap between the resort and the customers. An employee skilled in dutch can easily cater to European customers from Germany, the Netherlands and even Austria.
3. A good knowledge of the region: Employees with a very sound knowledge of the resort region will be more effective in rendering better service to the customers. As a resort center, most customers are here for holidays, vacations, honeymoons, etc. These customers ask a lot of questions, especially about the region, and they expect any employee around them to give them a very good and factual answers to their questions. It wont be appealing to the customers if an employee does not know much about the region and cant attend to their questions.
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $151,000. The machine's useful life is estimated to be 4 years, or 130,000 units of product, with a $2,000 salvage value. During its second year, the machine produces 26,000 units of product. Determine the machines' second year depreciation under the straight-line method. Multiple Choice $38,250. $30,200. $29,800. $37,750. $37,250.
The machines' second year depreciation under the straight-line method is $37250. The machine is having an cost of $151,000 and a residual value of $2000 after 4 years. Thus, the last option is the appropriate answer.
Depreciation, according to the straight-line technique, is the distribution of an asset's cost over its anticipated useful life. A typical form of depreciation that reduces the value of a fixed asset over the course of its useful life is straight line depreciation.
It is employed to lower a fixed asset's carrying amount throughout the course of its useful life. When using straight line depreciation, the cost of an asset is lost over each accounting period by the same amount. Then, on your firm balance sheet or tax income statement, you can deduct important assets.
Calculation for depreciation is as follows:
[tex]\dfrac{\rm Cost- Residual\ value}{\rm No. \ of \ years} \\\\=\dfrac{\$151,000-\$2000}{4} \\\\=\$37,250[/tex]
Therefore, $37,250 yearly depreciation expense.
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In a classic prisoners' dilemma example, Larry and Duncan, possible criminals, will get one year in prison if neither talks, two years in jail if both talk, and if one talks, that one goes free while the other gets five years. (Note: The payoffs are negative because they represent years in jail, which is a negative payoff.) The payoff matrix for Larry and David is illustrated to the right. Given this payoff matrix and the payoffs, each criminal A. will only confess if the other does. B. has an incentive to confess. C. can not determine their best response. D. does not know the payoffs. E. seeks to maximize joint payoffs.
Answer:
The correct answer is option B - Given this payoff matrix and the payoffs, each criminal has an incentive to confess.
Explanation:
The prisoner's dilemma demonstrates the tradeoffs between cooperative and non-cooperative behavior.
The two individuals are being held prisoner for the same crime. However, they are in separate cells with no possibilities of communication.
With the payoff's given in the table, the best response of player 1 is to confess whether or not player 2 chooses to cooperate. Confess is also a dominant strategy for player 2 whether or not player 1 chooses to cooperate.
Therefore, the correct answer is option B - Given this payoff matrix and the payoffs, each criminal has an incentive to confess.
The adjusted account balance of Spooky Town Internal Service Fund on June 30, 2016, was as follows: Cash $4,000 Receivable from Enterprise Fund $3,000 Building $313,000 - Inventory of supplies $32,150 Vouchers payable $7,150 Transfer in from General Fund $12,000 Net Assets, July 1,2015 $315,000, Charges for services $81,000, Personal services expense $10,600, Supplies expense $42,000, Heat, light, and power expense $3,000, Depreciation expense $24,000, Accounts Payable $1,500 Prepare a statement of revenues, expenses, and changes in net assets l for the Spooky Town Internal Service Fund for the fiscal year ended June 30, 2016.Academia
Answer:
Explanation:
assets:Cash95,000Accounts receivable47,000Due from general fund40,000Materials and supplies18,000Total current assets200,000Noncurrent assets:Capital assets700,000Total noncurrent assets700,000Total assets900,000LiabilitiesCurrent liabilities:Accounts payable115,000Accrued interest payable4,000Total current liabilities119,000Noncurrent liabilities:Revenue bonds payable625,000Total noncurrent liabilities625,000Total liabilities744,000Net PositionNet investment in capital assets30,000Unrestricted69,000Total net position99,000
The master budget is a.typically for a 1-year period corresponding to the fiscal year of the company. b.the selective financial plan for the organization as a whole. c.used for misinformation and coordination. d.broken down into daily and weekly budgets. e.All of these choices are correct.
Answer:
a) 1-year period corresponding to the fiscal year of the company.
Explanation:
The master budget is perhaps the most important planning tool that top management has at its disposal when deciding the actions of the organization.
The master budget consists of the sum of all the budgets from the different functional areas of the company (for example, the budget of the production department, plus the budget of the finance department, and so on), and also includes financial statements, and a statement of expected cash flows into the company.
A master budget is a comprehensive financial plan used by an organization typically for a period of one fiscal year, which is subsequently broken down into smaller time frames. It aids in the coordination of all financial aspects of the organization.
Explanation:A master budget refers to a comprehensive projection of how management expects to conduct all aspects of business over a given period, typically one fiscal year. It is indeed the selective financial plan for the organization as a whole. The master budget is not used for misinformation but for coordination of all the financial aspects of the organization. While the master budget covers an entire fiscal year, this period will be further broken down into quarterly, monthly, or even daily and weekly budgets to ensure operational efficiency.
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Trendy's and Style Store are the only two clothing manufacturers in a market. The two stores wish to collude to form a cartel. Based on the payoff matrix to the right, what level of output should each firm select if they wish to maximize joint profits? The first number in each pair is Trendy's profit; the second is Style Store's profit. All numbers are in millions of dollars. Trendy should choose ▼ a high output a low output , and Style Store should choose ▼ a high output a low output . One reason why this cartel is likely to fail is because A. the cartel's output is too high. B. it is not profitable. C. each firm has an incentive to cheat and produce more. D. there are too many firms in the market.
Answer: Trendy should choose a low output, and Style Store should choose a low output; One reason why this cartel is likely to fail is because each firm has an incentive to cheat and produce more (low output, a low output, option c: each firm has an incentive to cheat and produce more)
Explanation:
a cartel can simply be said to be a union or the association of producers in some specific industry that arrive at a joint agreement/consensus to bring about or set common prices specific and also output quotas so as to mitigate, limit or prevent competition.
in the enforcement of a cartel agreement, it is very unreliable and difficult because firms in the cartel have an incentive to cheat on the agreement
Which of the following is true concerning employer funding of nonqualified deferred compensation plans? Multiple Choice Employers are required to invest salary deferred by employees in investments specified by the employees. Employers are required to annually fund their deferred compensation obligations to employees. Employers annually deduct the amount earned by employees under the plan. Employers may discriminate in terms of who they allow to participate in the plan.
Answer:
Employers may discriminate in terms of who they allow to participate in the plan.
Explanation:
A deferred unqualified payment agreement is a contractual arrangement between a very employer as well as a worker in which the employer intends to compensate the worker at a future date.
The provider expressly gives an unprotected commitment to provide future compensation to a worker, according to the clear conditions of the agreement.
However, such funding is not mandatory by the government and also their is a high direction for the employer in choosing the conditions, thus, their is high Chance of discrimination by employer also.
What does it mean for an item to be sterile?
To scrape the crust off
To wipe down with a rag
To be free from any harmful organisms
To polish to a sparkling shine
Answer:
wipe me down
Explanation:
Sunland Company issued $530,000, 15-year, 6% bonds at 96. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
January 1, 2022
Dr. Cash $508,800
Dr. Discount on Bond $21,200
Cr. Bond Payable $530,000
Explanation:
The bond is issued on discount when the bond issuance proceeds are less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.
Issuance value = $530,000 x 96% = $508,800
Discount on the bond = Face value - Issuance value = $530,000 - $508,800 = $21,200
If market interest rates rise after a bond is issued, the bond's price will decrease to remain competitive. To determine the price you'd pay for a bond with higher prevailing interest rates, you discount the bond's future payments by the current market rate. In this case, you'd likely pay less than the bond's face value due to the interest rate increase from 6% to 9%.
Explanation:Understanding Bond Pricing and Interest Rates
When a bond is issued, its face value and interest payments are based on the current interest rates. If the market interest rates increase, as in the scenario from 6% to 9%, the bond's fixed interest payments become less attractive compared to new bonds on the market offering higher rates. As a result, the existing bond's price will decrease to offer a potential investor the same effective yield as the new bonds issued at the higher rate. Therefore, if you are considering buying a $10,000 bond one year before its maturity when the market interest rate is 9%, you would expect to pay less than the face value of $10,000.
To calculate what you would be willing to pay for the bond, you need to discount the bond's remaining payments (interest and principal) back to their present value at the current market rate of 9%. Assuming annual interest payments, you would be entitled to one more interest payment of $600 (6% of $10,000) and the repayment of the $10,000 principal at maturity. Discounting these amounts back at 9% would give you the price you should be willing to pay today.
Using the formula for present value (PV) of a single payment, PV = FV / (1 + r)n, where FV is the future value, r is the interest rate, and n is the number of periods, calculate the present value of the interest payment and the principal, then sum them for the total price of the bond.
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A city government reported a $9,000 increase in net position in the motor pool internal service fund, a $12,000 increase in net position in the water enterprise fund, and a $7,000 increase in the employee pension fund. The motor pool internal service fund provides service primarily to the police department.
What amount should the city report as the change in net position for business-type activities in its statement of activities?
A. $ 9,000
B. $12,000
C. $21,000
D. $28,000
Consider the equation %ΔM + %ΔV ≈ %ΔP + %ΔY. If the velocity of money does not change (%ΔV = 0), and the change in real GDP exactly keeps pace with the change in the money supply (%ΔM = %ΔY), what will happen to the price level (P)?
Answer: It will stay the same i.e %ΔP = 0
Explanation:
We are given the following formula,
%ΔM + %ΔV ≈ %ΔP + %ΔY
And told that,
%ΔV = 0
%ΔM = %ΔY
If that is the case therefore then the new formula should be written as follows,
%ΔM = %ΔY
This is because the % change in money supply is the only variable that is on the left side of the equation. For it to be equal to % change in real GDP on the right side of the equation then ONLY the % change in real GDP can exist on the right side. Which means that %ΔP has to be 0 as well.
For example, assume both %ΔM and %ΔY are 2 and %ΔP is 1
%ΔM = %ΔY
2 ≠ 2 + 1
The equation is not satisfied.
Now assume %ΔP = 0.
2 = 2 + 0.
Equation is satisfied.
Seeing as %ΔP is 0 that means there is no change in Prices so the Price Level stays the same.
When The Equation is satisfied %ΔP is = 0 norms there is no change in Prices so the Price Level stays the same.
What is Real GDP?
We are given the ensuing formula,
After that %ΔM + %ΔV ≈ %ΔP + %ΔY
And also the told that is,
Then %ΔV is = 0
After that %ΔM is = %ΔY
When If that is the case Thus then the new procedure should be written as follows,
Then %ΔM is = %ΔY
This is because the % change in money supply is the greatest variable that is on the left flank of the equation. For it to be equal to the % change in real GDP on the right side of the equation then Exclusively the % change in real GDP can exist on the right side. This indicates that %ΔP has to be 0 as well.
For illustration, consider both %ΔM and %ΔY are 2 and %ΔP is 1
Then %ΔM = %ΔY
After that 2 ≠ 2 + 1
Then The equation is not satisfied.
Now we assume that %ΔP = 0.
Then 2 = 2 + 0.
Thus, The Equation is satisfied.
Then Noticing as %ΔP is 0 means there is no change in Prices so the Price Level stays identical.
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An author just signed a lucrative contract with a publisher that offers to pay her the amount of $600 at the end of year 9 when the book is scheduled to be released. The author, being profligate, desires to receive a different package: an immediate payment of $100 that is followed by an annuity (an equal amount) to be paid at the end of each year for 9 consecutive years. What annuity will make his package equivalent to the publisher's advance. Use an interest rate is 6%.
Answer:
annuity = $37.51
Explanation:
future value of the annuity = $600 - future value of the initial $100 paid
$100 x 1.06⁹ = $168.95
future value of the annuity = $600 - $168.95 = $431.05
FV of an annuity = payment x {[(1 + r)ⁿ - 1] / r}
payment = FV / {[(1 + r)ⁿ - 1] / r}
FV = $431.05r = 6%n = 9payment = $431.05 / {[1.06⁹ - 1] / 0.06} = $431.05 / {0.68948 / 0.06} = $431.05 / 11.4913 = $37.51
The annuity that will make the author's package equivalent to the publisher's advance is approximately $37.52 per year for 9 years.
To determine the annuity that will make the author's package equivalent to the publisher's advance, we need to calculate the present value (PV) of both packages and ensure they are equal.
1. Calculate the present value of the publisher's advance:
The publisher offers $600 at the end of year 9. To find the present value of this amount, we use the formula:
[tex]\[ PV = \frac{FV}{(1 + r)^n} \][/tex]
where:
- FV = future value ($600)
- r= interest rate (6% or 0.06)
- n = number of years (9)
[tex]\[ PV = \frac{600}{(1 + 0.06)^9} \][/tex]
Let's calculate this step-by-step:
[tex]\[ PV = \frac{600}{(1.06)^9} \][/tex]
Using a calculator or a power function:
[tex]\[ (1.06)^9 \approx 1.689478 \][/tex]
[tex]\[ PV = \frac{600}{1.689478} \approx 355.20 \][/tex]
2. Calculate the present value of the desired package:
The author's desired package consists of:
- An immediate payment of $100.
- An annuity paid at the end of each year for 9 consecutive years.
Let the annuity payment be A.
The present value of the immediate payment is simply $100.
The present value of the annuity can be calculated using the present value of an ordinary annuity formula:
[tex]\[ PV_{\text{annuity}} = A \times \left( \frac{1 - (1 + r)^{-n}}{r} \right) \][/tex]
where:
- A = annuity payment
- r = interest rate (6% or 0.06)
- n = number of years (9)
The total present value of the desired package is the sum of the immediate payment and the present value of the annuity:
[tex]\[ PV_{\text{total}} = 100 + A \times \left( \frac{1 - (1 + 0.06)^{-9}}{0.06} \right) \][/tex]
3. Set the present values equal to each other:
[tex]\[ 355.20 = 100 + A \times \left( \frac{1 - (1.06)^{-9}}{0.06} \right) \][/tex]
4. Solve for A:
First, calculate the annuity factor:
[tex]\[ \left( \frac{1 - (1.06)^{-9}}{0.06} \right) \][/tex]
Calculate [tex]\((1.06)^{-9}\)[/tex]:
[tex]\[ (1.06)^{-9} \approx 0.591898 \][/tex]
Now:
[tex]\[ \left( \frac{1 - 0.591898}{0.06} \right) = \left( \frac{0.408102}{0.06} \right) \approx 6.8017 \][/tex]
Substitute back into the equation:
[tex]\[ 355.20 = 100 + A \times 6.8017 \][/tex]
[tex]\[ 255.20 = A \times 6.8017 \][/tex]
[tex]\[ A = \frac{255.20}{6.8017} \approx 37.52 \][/tex]
The following are selected items derived from Dibb Company's adjusted trial balance on December 31, 2016: Loss on sale of land $5,000 Cost of goods sold $130,000 Sales (net) $198,000 Operating expenses 45,000 Twelve thousand shares of common stock were outstanding the entire year. Required: Assuming a 30% income tax rate on all items of income, prepare a 2016 income statement for Dibb's Company using a multiple-step format. Round earnings per share computations to two decimal places. DIBB COMPANY Income Statement (Multiple-Step) For Year Ended December 31, 2016
Answer:
See the explanation below.
Explanation:
DIBB COMPANY
Income Statement (Multiple-Step)
For Year Ended December 31, 2016
Details Amount ($)
Sales (net) 198,000
Cost of goods sold (130,000)
Gross profit 68,000
Operating expenses (45,000)
Operating profit before tax 23,000
Tax (23,000 * 30%) (6,900)
Profit after tax 16,100
Loss on sale of land (5,000)
Profit for the year 11,100
Earning per share (11,100/12,000) 0.93
To prepare a multiple-step income statement for Dibb Company for the year ended December 31, 2016, we need to follow a structured format that separates different components of income and expenses.
Here's how you can create the income statement:
DIBB COMPANY Income Statement (Multiple-Step)
For Year Ended December 31, 2016
Sales (Net): $198,000
Cost of Goods Sold:
Beginning Inventory: $0 (assuming no information provided)
Purchases: (if given, subtract this amount)
Ending Inventory: (if given, subtract this amount)
Cost of Goods Sold: $130,000
Gross Profit: $198,000 - $130,000 = $68,000
Operating Expenses:
Operating Expenses: $45,000
Income Before Tax: $68,000 - $45,000 = $23,000
Other Income and Expenses:
Loss on Sale of Land: $5,000
Income Before Income Tax: $23,000 - $5,000 = $18,000
Income Tax Expense (30%): $18,000 * 0.30 = $5,400
Net Income: $18,000 - $5,400 = $12,600
Earnings per Share (EPS):
EPS = Net Income / Number of Outstanding Shares
EPS = $12,600 / 12,000 shares = $1.05 per share
In this income statement, we used a multiple-step format, which separates various components of income and expenses. It starts with the gross profit, then deducts operating expenses, followed by other income and expenses. Finally, income tax is calculated to arrive at the net income, and the earnings per share are computed.
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Zitrik Corporation manufactured 130,000 buckets during February. The variable overhead cost-allocation base is $5.30 per machine-hour. The following variable overhead data pertain to February: Actual Budgeted Production 130,000 units 130,000 units Machine-hours 9,500 hours 9,000 hours Variable overhead cost per machine-hour $5.35 $5.30 What is the variable overhead efficiency variance?
Answer:
Efficiency variance $2,650 unfavorable
Explanation:
Variable overhead efficiency variance: A variance is the difference between a standard cost and the actual cost. Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.
Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
Hours
130,000 units should have taken 9,000
but did take (actual hours) 9,500
Efficiency variance 500 unfavorable
Standard variable overhead rate $5.30
Efficiency variance $2,650 unfavorable
Raul, an engineer with a leading manufacturer, pointed out a few things have contributed to his motivation. First, top managers were sharing company goals with employees. Second, his manager recently met with Raul's group to discuss the goals relevant to their jobs. Third, his manager requested that each person think about how he or she could personally help achieve these goals. As he followed through on his manager's request, Raul found himself becoming clearer about the role he is expected to play in reaching the organization's goals. This manufacturer is using __________ to help its managers boost employee motivation.
The manufacturer employs Management by Objectives (MBO) to motivate employees by aligning their SMART goals with the overall organizational objectives, thus enhancing productivity and motivation.
The manufacturer Raul works for is using Management by Objectives (MBO) to boost employee motivation. This approach involves setting specific, measurable, aggressive, realistic, and time-bound (SMART) goals that help employees to focus their efforts in a direction that benefits the organization. The goals are designed to challenge employees, make them rethink traditional methods, and align with the company's broader objectives. By sharing the company's goals, engaging employees in goal-setting, and reviewing their contributions during performance appraisals, managers can ensure employee goals align with the organization's goals. This systematic alignment can significantly enhance motivation and productivity within the company.
AcuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 900 pounds of alloy in process, which were 40% complete as to conversion. The Work in Process balance for these 900 pounds was $102,960, determined as follows:
Direct materials (900 x $110) $99,000
Conversion (900 x 40% x $11) 3,960
$102,960
During May, the Casting Department was charged $901,000 for 8,500 pounds of alloy and $33,920 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 8,700 pounds of finished castings to the Machining Department. The May 31 inventory in process was 20% complete as to conversion.
Determine the Work in Process-Casting Department May 31 balance.
Answer:
Work In Process Ending Inventory 700 pounds
Cost Of Ending Inventory $ 75,873.69
Explanation:
AcuBlade Castings Inc.
The Work in Process Ending inventory is calculated by adding the beginning inventory WIP to the Work started and subtracting the transferred out.
Opening Work In Process Inventory = 900 pounds
Add Work Started 8500 pounds
Less Transferred Out (8700) pounds
Work In Process Ending Inventory 700 pounds
We only need to find the Ending Work in Process Inventory which is 700 pounds complete for materials and 20 % complete as to conversion. which means it has 700 pounds of materials and 140 pounds were worked on .
Equivalent Units Of Production
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Transferred Out 8700 100 100 8700 8700
Work In Process
Ending Inventory 700 100 20 700 140
Equivalent Units 9400 8840
Costs Materials Conversion
Opening Inventory 99000 3960
Units Started 901,000 (33,920 + 50880) = $ 84800
Total Costs 1000,000 88760
Equivalent Units 9400 8840
Cost/ Unit $ 106.38 $10.04
Cost Of Ending Inventory $ 75,873.69
Materials = $ 106.38* 700= $ 74468.09
Conversion = $ 10.04 * 140= 1405.6
At the end of the current year, the accounts receivable account has a debit balance of $2,950,000 and sales for the year total $27,400,000. The allowance account before adjustment has a debit balance of $9,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a debit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $188,000. The allowance account before adjustment has a credit balance of $31,400. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $31,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above
Answer:
The treatments and adjusting entry balances are given for each case.
Explanation:
1) Sales $27,400,000
Accounts receivable account $2,950,000
The allowance account before adjustment has a debit balance of $9,500
Bad debt expense is estimated at 3/4 of 1% of sales= 274000 *3/4= $205500
Treatment for a :
Un adjusted Balance = $ 9500 debit
Bad Debts Expense- $ 205500 Cr
Required Adjustment = $ 215000
End of period adjustment entry
Bad Debts Expense $215000 Dr
Allowance for Doubtful Accounts $ 215000 Cr.
Treatment for b :
Un adjusted Balance = $ 9500 debit
Estimated Balance - $ 188,000 credit
Required Adjustment = $ 197,500
End of period adjustment entry
Bad Debts Expense $ 197500 Dr
Allowance for Doubtful Accounts $ 197500 Cr.
Treatment for c :
Un adjusted Balance = $ 31,400 Cr
Estimated Balance - $ 137000 (274000/2) Cr
Required Adjustment = $ 105600
End of period adjustment entry
Bad Debts Expense $ 105600 Dr
Allowance for Doubtful Accounts $ 105,600 Cr.
Treatment for d:
Un adjusted Balance = $ 31,400 Cr
Estimated Balance - $ 175000 Cr
Required Adjustment = $ 143,600
End of period adjustment entry
Bad Debts Expense $ 143,600 Dr
Allowance for Doubtful Accounts $ 143,600 Cr.
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.60 $ 10.50 $ 11.30 $ 10.90 Direct labor 19.70 27.70 33.90 40.70 Variable manufacturing overhead 4.60 3.00 2.90 3.50 Fixed manufacturing overhead 26.80 35.10 26.90 37.50 Unit product cost $ 65.70 $ 76.30 $ 75.00 $ 92.60 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 4.10 5.60 4.60 3.70 Selling price per unit $ 76.40 $ 93.80 $ 87.70 $ 104.50 Variable selling cost per unit $ 2.50 $ 1.50 $ 3.60 $ 1.90 Monthly demand in units 4,300 4,300 3,300 2,300 The grinding machines are potentially the constraint in the production facility. A total of 53,900 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products
Answer:
Bruce Corporation
Minutes of Grinding Machine Time required to satisfy demand for all four products:
Total Grinding Machine Time
Product A = 4.10 minutes * 4,300 demand units = 17,630 minutes
Product B = 5.60 minutes * 4,300 demand units = 24,080 minutes
Product C = 4.60 minutes * 3,300 demand units = 15,180 minutes
Product D = 3.70 minutes * 2,300 demand units = 8,500 minutes
Total = 65,400 minutes
Explanation:
The total minutes of Grinding Machine Time required to satisfy monthly demand for each product is calculated by multiplying the units demanded by the grinding minutes per unit.
This gives total minutes required for each product. Then, when they are summed, the total Grinding Machine Time is obtained.
This total can be compared to the total available minutes per month of 53,900 to obtain the additional minutes required above the minutes available in order to satisfy the products' demands.
The total grinding machine time required to satisfy demand for all four products is 65,500 minutes.
Explanation:The grinding machines are potentially the constraint in the production facility. To calculate the total grinding machine time required to satisfy demand for all four products, we need to find the grinding minutes per unit for each product and multiply it by the monthly demand in units for that product. Finally, we sum up the total grinding machine time for all four products.
Product A: 4.10 min/unit x 4,300 units = 17,730 minutes
Product B: 5.60 min/unit x 4,300 units = 24,080 minutes
Product C: 4.60 min/unit x 3,300 units = 15,180 minutes
Product D: 3.70 min/unit x 2,300 units = 8,510 minutes
Total grinding machine time required to satisfy demand for all four products: 17,730 minutes + 24,080 minutes + 15,180 minutes + 8,510 minutes = 65,500 minutes
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Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of machining, $3600000; and assembling $1500000. Information on the two products is: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000
Overhead applied to Regular using activity-based costing is
a. $3060000.
b. $3660000.
c. $1440000.
d. $2040000.
The overhead applied to the Regular product using activity-based costing is $1,440,000, calculated by distributing machining and assembling overheads based on machine hours and the number of parts respectively.
To calculate the overhead applied to the Regular product using activity-based costing (ABC), we need to allocate the total overhead costs based on the activity drivers for both machining and assembling activities.
First, let's distribute the machining overhead based on machine hours. The total machine hours are:
Regular: 10,000 hours
Supreme: 30,000 hours
Total: 40,000 hours
Machining overhead cost per machine hour:
$ [tex]\frac{3,600,000}{40,000}[/tex] hours = $90 per machine hour
Overhead for Regular from machining:
10,000 hours * $90 = $900,000
Next, let's distribute the assembling overhead based on the number of parts. The total number of parts is:
Regular: 90,000 parts
Supreme: 160,000 parts
Total: 250,000 parts
Assembling overhead cost per part:
$ [tex]\frac{1,500,000}{250,000}[/tex] parts = $6 per part
Overhead for Regular from assembling:
90,000 parts * $6 = $540,000
Total overhead applied to Regular:
$900,000 (machining) + $540,000 (assembling) = $1,440,000
On May 7, Carpet Barn Company offered to pay $75,190 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $85,970. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $127,000 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records
Answer:
$85,970
Explanation:
The cost of a fixed asset includes all cost incurred in making the asset available for use. These includes the cost of the item net all discounts, sales tax, freight cost etc. Fixed assets are carried at their historical cost.
Hence for Carpet Barn Company's records, the cost of the land will be at historical cost of $85,970.
The key consideration is that the asset is not carried at an amount higher than it's recoverable value.
Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a high speed modem priced at $370 per unit, the average weekly demand at each distribution center is 75 units. Average shipment size to each distribution center is 350 units, and the average lead time for delivery is 2 weeks. Each distribution center carries 2 weeks' supply as safety stock but holds no anticipation inventory.(a) On average, how many dollars of pipeline inventory will be in transit to each distribution center?(b) How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?
Answer:
(a) $55,500
(b) 2,375
Explanation:
As per the data given in the question,
a)
Cycle inventory = Average demand × lead time
= 75 × 2
= 150 units
Value of cycle inventory = 150 units × price
= 150 × $370
= $55,500
b)
Cycle inventory to each distribution center = 350 ÷ 2
= 175
Safety stock for each distribution center = Avg weekly demand × 2 weeks
= 75×2
= 150 units
Total inventory = Cycle inventory + pipeline inventory + safety stock
= 175+150+150
= 475 units
Total inventory for all 5 distribution center = 475×5
= 2,375
The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating income) $ 75,000 Interest expense 15,000 Income tax expense 20,000 Net income 40,000 Total assets at year-end 250,000 Total liabilities at year-end 140,000 Required: Calculate the debt ratio at December 31, 2019. (Round your answer to 1 decimal place.) Calculate the debt/equity ratio at December 31, 2019. (Round your answer to 2 decimal places.) Calculate the times interest earned for the year ended December 31, 2019. (Round your answer to 2 decimal places.)
Answer:
Debt ratio = 56%
Times Interest earned = 5 times
Explanation:
The debt ratio is the proportion of the total assets amount that is financed by debt . It is a measure of financial risk. A company with a high debt ratio (in excess of 50%) is considered financially risky. That is may not be able to meet its short term financial obligations
Debt ratio = Debt/Total assets × 100
= (140,000/250,000)× 100
= 56%
Times interest earned is the number of times the earning before interest and taxes (EBIT) can pay the interest obligation. It is a measure of financial risk. For example, a company with a ratio of less than 3 times might be considered as potentially unable to meets its loan obligation
Times interest earned = Earnings before interest and tax (EBIT)/Interest expense
= 75,000/15,000
= 5 times.
Final answer:
The debt ratio for the year ended December 31, 2019, is 56.0%, the debt/equity ratio is 1.27, and the times interest earned ratio is 5.00. These financial metrics help assess the company's financial leverage and ability to pay its interest expenses.
Explanation:
The debt ratio is calculated by dividing total liabilities by total assets and then multiplying by 100 to express it as a percentage. Using the following information provided:
Total Assets = $250,000
Total Liabilities = $140,000
The formula for debt ratio: (Total Liabilities / Total Assets) × 100.
Debt Ratio = ($140,000 / $250,000) × 100 = 56.0%
The debt/equity ratio is calculated by dividing total liabilities by total shareholders' equity. From the total assets and total liabilities, we can deduce total equity:
Total Equity = Total Assets - Total Liabilities = $250,000 - $140,000 = $110,000
The formula for debt/equity ratio: Total Liabilities / Total Equity.
Debt/Equity Ratio = $140,000 / $110,000 = 1.27
The times interest earned ratio, also known as the interest coverage ratio, is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. Using the following information provided:
Earnings Before Interest and Taxes (EBIT) = $75,000
Interest Expense = $15,000
The formula for times interest earned: EBIT / Interest Expense.
Times Interest Earned = $75,000 / $15,000 = 5.00
Consider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply. Instructions: Enter your responses as whole numbers. Deposits: $ Money supply: $ b. The money supply is $500 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. Instructions: Enter your responses as whole numbers. Currency held by the public: $ Bank reserves: $ c. The money supply is $1,250, of which $250 is currency held by the public. Bank reserves are $100. Find the desired reserve-deposit ratio.
Answer: Please refer to Explanation
Explanation:
a) The amount of Deposits are calculated as,
Deposits = Reserve / Reserve Deposit ratio
Deposits = $100 / 0.25
= $400
Deposits are $400
Using the Deposits, Money Supply is calculated by,
Money supply = Currency in circulation + Deposit
Money Supply = $200 + $400
= $600.
Money Supply is $600
b) The currency held by the Public which is equal to bank reserves can be calculated by,
Currency held by public = Money Supply - Deposits
The desired reserve-deposit ratio is 0.25 so we can denote the currency held with C.
That means that
C = 500 - C/0.25
0.25C = 500(0.25) - C
O.25C + C = 125
1.25C = 125
C = $100
Currency held by the public and bank reserves is $100
c. To find the reserve deposit ratio, we can use the Money Supply equation.
Money supply = Currency in circulation + Reserves / Reserve deposit ratio ( denoted Rd)
Which is,
1,250 = 250 + 100 / Rd
1,250 - 250 = 100/ Rd
1,000 = 100 / Rd
1,000Rd = 100
Rd = 100/1,000
Rd = 10%
Reserve Deposit Ratio = 10% or 0.10.
a. Deposits: $800 Money supply: $1,000 b. Currency held by the public: $125 Bank reserves: $375 c. Desired reserve-deposit ratio: 0.2857
Explanation:a. To find the deposits, we can use the formula: deposits = currency / reserve-deposit ratio. In this case, currency = $200 and reserve-deposit ratio = 0.25. Deposits = 200 / 0.25 = $800. To find the money supply, we can add the currency and deposits: money supply = currency + deposits = 200 + 800 = $1,000.
b. To find the currency held by the public, we can use the formula: currency held by the public = reserve-deposit ratio * deposits. In this case, the reserve-deposit ratio = 0.25 and deposits = $500. Currency held by the public = 0.25 * 500 = $125. To find the bank reserves, we can subtract the currency held by the public from the desired reserves: bank reserves = desired reserves - currency held by the public = 500 - 125 = $375.
c. To find the desired reserve-deposit ratio, we can use the formula: desired reserve-deposit ratio = bank reserves / (currency held by the public + bank reserves). In this case, the bank reserves = $100, and the currency held by the public = $250. Desired reserve-deposit ratio = 100 / (250 + 100) = 0.2857 (rounded to four decimal places).
2. QuickDraw performs drafting services for local builders. At the end of its first year of operations, QuickDraw had performed $10,000 in services (revenue under GAAP) for which cash had not been received (and is not taxable under IRS rules). Assuming a 35% tax rate, determine the amount of any deferred taxes and designate whether they are a deferred tax asset or deferred tax liability.
Answer:
$3,500 and deferred tax liability
Explanation:
The computation of the deferred tax is shown below:
= Service performed × tax rate
where,
Service performed is $10,000
And, the tax rate is 35%
Now placing the values
The amount of deferred tax is
= $10,000 × 35%
= $3,500
This amount reflect the deferred tax liability
We simply multiplied the service performed amount with the tax rate so that the deferred tax could come
Let us assume that ZEN PATH chose to offer meditation seminars as the main source of additional income. They will still try to get sponsors, but the seminars will be the main source of new funds. What is the image that the monastery should project to the diverse stakeholders given the new changes? Describe it in a short statement (20-word limit).
Answer:
Explanation:
Base on the scenario been described in the question
At ZEN PATH we are dedicated to preserving and educating about the ideals of Buddhism. Doors are open to all!
. Unique Games, a not-for-profit entity organized to provide athletic competition opportunities for high school students, utilizes a number of volunteers in carrying out its mission. At the 2018 Games 50 volunteers provided a total of 1000 hours of service performing tasks such as picking up litter and delivering water to the athletes. A local CPA firm donates its services to prepare the annual tax return and other federal and state required paperwork which must be filed to maintain its status as a tax-exempt organization. During 2018 the CPA firm provided 60 hours of service. If purchased, the CPA services would have cost $60 per hour and the game workers would have cost $6 per hour. How much contributed service revenue should Simplex Games recognize in 2018? A. $6,000. B. $3,600. C. $3,000. D. $0
Answer:
The answer is $0.
Explanation:
Contributed service revenue or contributed revenue can be defined as the service or goods received with no payment or any other kind of exchange.
So in this question, the work from the volunteers and the film from CPA can be all accounted for contributed service revenue.
If we calculate them;
The movie costs $60 per hour so at 60 hours, it would cost $3600.The 50 volunteers worked a total of 1000 hours, at $6 per hour, the total cost is $6000.But since Unique Games are a non-profit entity, the amount they should recognize as contributed service revenue is $0.
I hope this answer helps.
A subsidiary ledger:
Multiple Choice
Includes transactions not covered by special journals.
Is a listing of all of the accounts of a business.
Is a listing of individual accounts and amounts with a common characteristic.
Is also called a general ledger.
Is also called a special journal.
A subsidiary ledger contains a listing of individual accounts with a common characteristic, providing a detailed breakdown which contributes to the total balance of a specific general ledger account.
The correct answer to the question "A subsidiary ledger" is - Is a listing of individual accounts and amounts with a common characteristic. A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. The general ledger, or GL, is the main accounting record of a company which uses double-entry bookkeeping. Subsidiary ledgers serve as a detailed breakdown of the GL accounts, allowing for easier and more focused review for accountants and auditors. For example, an accounts receivable subsidiary ledger (customer ledger) would include information about individual sales to customers and payments received, with its total equating to the accounts receivable line on the balance sheet.
General ledgers typically include debits and credits for all transactions, which can also be recorded in subsidiary ledgers if needed. Subsidiary ledgers provide detailed information that feeds into the general ledger and eventually into the financial statements such as the balance sheet, the income statement, and the cash flow statement.
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per Unit Direct materials 5.8ounces$3.00per ounce$17.40 Direct labor 0.5hours$12.00per hour$6.00 Variable overhead 0.5hours$5.00per hour$2.50 The company reported the following results concerning this product in June. Originally budgeted output 3,800units Actual output 3,400units Raw materials used in production 20,800ounces Purchases of raw materials 21,900ounces Actual direct labor-hours 520hours Actual cost of raw materials purchases$42,500 Actual direct labor cost$13,800 Actual variable overhead cost$3,900 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is: Multiple Choice
$6,490 F
$5,900 U
$6,490 U
$5,900 F
Answer:
variable overhead efficiency variance= $5,900 favorable
Explanation:
Giving the following information:
Standard Variable overhead:
0.5 hours
$5.00 per hour
Actual output= 3,400 units
Actual direct labor-hours= 520 hours
To calculate the variable overhead efficiency variance, we need to use the following formula:
variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
variable overhead efficiency variance= (1,700 - 520)*5= $5,900 favorable