Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2013, is shown here (millions of dollars):

Cash $3.5 Accounts payable $9.0
Receivables 26.0 Notes payable 18.0
Inventories 58.0 Line of credit 0
Total current assets $87.5 Accruals 8.5
Net fixed assets 35.0 Total current liabilities $35.5
Mortgage loan 6.0
Common stock 15.0
Retained earnings 66.0
Total assets $122.5 Total liabilities and equity $122.5

Sales for 2013 were $375 million and net income for the year was $11.25 million, so the firm's profit margin was 3.0%. Upton paid dividends of $4.5 million to common stockholders, so its payout ratio was 40%. Its tax rate is 40%, and it operated at full capacity. Assume that all assets/sales ratios, spontaneous liabilities/sales ratios, the profit margin, and the payout ratio remain constant in 2014. Do not round intermediate calculations.
If sales are projected to increase by $70 million, or 18.67%, during 2014, use the AFN equation to determine Upton's projected external capital requirements. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.
Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places.
Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2014. Assume that all additional external capital is raised as a line of credit at the end of the year and is reflected (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt).
Assume Upton's profit margin and dividend payout ratio will be the same in 2014 as they were in 2013. What is the amount of the line of credit reported on the 2014 forecasted balance sheets? (Hint: You don't need to forecast the income statements because you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2014 addition to retained earnings for the balance sheet.) Round your answers to the nearest cent.

Upton Computers
Pro Forma Balance Sheet
December 31, 2014
(Millions of Dollars)
Cash $
Receivables $
Inventories $
Total current assets $
Net fixed assets $
Total assets $
Accounts payable $
Notes payable $
Accruals $
Total current liabilities $
Mortgage loan $
Common stock $
Retained earnings $
Total liabilities and equity $

Answers

Answer 1

Answer:

AFN (Additional Funds needed) is $ 11.59 Million, Growth rate is 6.87 %.

Explanation:

1) Additional Funds Needed or AFN can be calculated as below=

AFN = (Total Assets / Previous year sales) x Change in Sale -( Liabilities affected by sales / Previous year sales) x Change in Sale - (Projected net income x Retention ratio ) ----- (a)

According to given data in question

Total Assets= 122.5 million

Change in Sales = 70  

Liabilities affected by sales = 17.5

Previous year sales = 375

Projected net income = 445

Putting the above values in equation (a)

AFN = (122.5 / 375) x 70 -( 17.5 / 375) x 70 - 445 x 0.030 x 0.60

AFN = 11.59 million

2) Growth rate : Growth rate formula is given below,

Growth rate = (Total Assets x g) - (Liabilities affected by sales x g ) - Previous year sales ( 1 +g) x 0.3 x 0.60

Growth rate = 6.87 %

3) Proforma Balance Sheet for Upton Computer  is :

Cash                               4.15 Million

Accounts Receivable    30.85 Million

Inventories                      68.83 Million

Total Current Assets      103.84 Million

Net Fixed Assets             41.53 Million

Total Assets                      145.37 Million

Line of Credit-AFN           11.59 Million

Accounts Payable             18 Million

Accruals                              10.09 Million

Total Current Liabilities     50.36

Mortgage Loan                   6 Million

Common Stock                   15 Million

Retained Earning               74.01 Million

Total Current Liabilities & Equity --- 145.37 Million          

Answer 2

The Pro-forma balance sheet is a table of forecasting that can assist your company in managing working capital now for better future performance.

It can guarantee that there will be no surprises in the future when it comes to paying your expenses, receiving investment returns, and maintaining your products in stock.

AFN (Additional Funds needed) is $ 11.59 Million, the Growth rate is 6.87 %.

1) Calculation of the additional funds are:

AFN = [tex]\frac{\text{Total Assets}}{\text{Previous year sales}} \times \text{Change in Sale}[/tex] ---[tex]\frac{\text{Liabilities affected by sales}}{\text{Previous year sales}} \times\text{Change in Sale}[/tex] ---[tex](\text{Projected net income} \times \text{Retention ratio} )[/tex]

According to the given data in question

Total Assets= 122.5 million

Change in Sales = 70  

Liabilities affected by sales = 17.5

Previous year sales = 375

Projected net income = 445

AFN = [tex]\frac{122.5}{375} \times 70 -\frac{17.5}{375} \times 70 - 445 \times 0.030 \times 0.60[/tex]

AFN = 11.59 million

2)  Growth rate = [tex](\text{Total Assets} \times g) - (\text{Liabilities affected by sales} \times g ) - \text{Previous year sales} ( 1 +g) \times 0.3 \times 0.60[/tex]

Growth rate = 6.87 %

The pro-forma balance sheet has been attached below.

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Upton Computers Makes Bulk Purchases Of Small Computers, Stocks Them In Conveniently Located Warehouses,

Related Questions

Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will________ . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will_______ . The temporary unemployment resulting from such sectoral shifts in the economy is best described as________ unemployment.

Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.

a. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks.
b. Establishing government-run employment agencies to connect unemployed workers to job vacancies.
c. Taxing the price of placing a resume or posting a job opening on a job-search website

Answers

Answer

1) decrease

increase

frictional

2) options a and b

Explanation: 1)Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will_____decrease___ . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will____increase___ . The temporary unemployment resulting from such sectoral shifts in the economy is best described as__Frictional__ unemployment.

This is because

Frictional unemployment occurs because job seekers are constantly seeking for employment and employees seeking job seekers.

2) Government can reduce Frictional unemployment by -Establishing government-run employment agencies to connect unemployed workers to job vacancies and

Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks will greatly reduce Frictional unemployment.

An employee stock ownership plan denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange. True False

Answers

Answer:False

Explanation:

Employee stock ownership plan is a plan aimed at benefiting Employees of a company by giving them the power to own certain parts of the company thorough the purchase of stocks. Employee stock ownership has been promoted by many corporations in order to ensure that the workers are motivated and encouraged to to see themselves as part owners of the company.

EMPLOYEE STOCK OWNERSHIP PLAN DOES NOT PREVENT EMPLOYEE WHO OWN STOCKS FROM PARTICIPATING IN THE VOTING PROCESS DURING ELECTIONS TO CHANGE BOARD MEMBERS.

What is the price of a $1,000 par 9 year, annual bond with a 8.1% coupon rate and a yield to maturity of 6.3%? (Show your answer to nearest cent with no comma. For example $1,378.565 is entered as 1378.57)

Answers

Answer:

Price of the Bond is $1,120.85

Explanation:

Coupon payment = 1000 x 8.1% = $81

Number of years = n = 9 years

Yield to maturity = 6.3%

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$81 x [ ( 1 - ( 1 + 6.3% )^-9 ) / 6.3% ] + [ $1,000 / ( 1 + 6.3% )^9 ]

Price of the Bond = $81 x [ ( 1 - ( 1.063 )^-9 ) / 0.063 ] + [ $1,000 / ( 1.063 )^9 ]

Price of the Bond = $543.82 + $577.03

Price of the Bond = $1,120.85

Peter's Pizzeria sells both pizzas and soda. It wants to increase the sales of its pizzas. Assuming that the pizza and the sodas are complements, which of these strategies can it employ?

a. Increase the price of the soda.
b. Decrease the price of the soda.
c. Increase the quality of the pizza
d. Both B and C

Answers

Answer:

b. Decrease the price of the soda.

c. Increase the quality of the pizza

Explanation:

There are two goods under the demand's cross-price elasticity, i.e. substitute goods and complementary products.  

The substitute goods demonstrate the positive relationship between good price B and good demand A. That means if good B prices go down. The demand for good A then decreases

Whereas it indicates a negative relation between the price of good B and the demand of good A in the case of complimentary products. That means if good B prices go down. The demand for good A then increases

The Chart Company has a process costing system. All materials are added when the process is first begun. At the beginning of September, there were no units of product in process. During September 65,000 units were started; 6,500 of these were still in process at the end of September and were 3/5 finished. The equivalent units for the conversion costs in September were____________________.

Answers

Answer:

62,400 units

Explanation:

The computation of the equivalent units for conversion cost is shown below:

= Started and completed units ×  completion percentage + closing inventory units × completion percentage

where,

Started and completed units is

= 65,000 units - 6,500 units

= 58,500 units

So the equivalent units is

= 58,500 units × 100 + 6,500 units × 60%

= 58,500 units + 3,900 units

= 62,400 units

The 3/5 finished means 60% is finished

Your country just overthrew its dictator, and you are the newly elected President. Unfortunately, due to the divisions in the country and the years of war, economic, military, and political structures are non-existent. A group of loyalists to the old dictator have been detonating bombs, murdering civilians, assassinating leaders, and terrorizing towns with help from a neighboring country's dictator. Create a comprehensive plan for your new government. While creating this government identify the governing style, functions of various branches of government, principles that govern leaders, the maintaining of public good, which economic structure is most beneficial to your citizens, at least two domestic programs, ways to create national unity, ways to combat terrorism and violence, and international organizations to join. (See rubric for specific ways to meet the requirements of the paper.)

Answers

Answer and Explanation:

The country is obviously in chaos because of law and order situation. The loyalist of old dictators are creating havoc and that needs to be stopped first. As a newly elected president, the first duty is to ensure that this must be stopped.

A newly elected government needs to call for international agencies such as the UN or regional alliance to put pressure on the neighboring country to refrain from interfering in internal matters of the country while strengthening armed forces and police to maintain internal security as well as external threats. Initially, the police and army will have to be quick because the sooner it creates order the better it will be but they should also take care that no gross human rights violation takes place. This is necessary to instill the faith in the mind of the public.

The second stage is establishing the administration through transparent government policies and that also without being bias to anyone. The chaos of transition will make it difficult but the new government will have to take financial and other help from the organization like World Bank to create infrastructure such as transportation and power generation along with a robust financial system to kick off economic growth. Infrastructure development needs heavy investment but that pays off in the long run and so that government should take initiative in that with public-private partnership. The government also needs to decentralize the powers with an effective control mechanism to stave off corruption because centralized decision making often tends to be counterproductive.

The government also needs to understand that people respond to incentives and so it will be a must to create an economic environment where people will be incentivized to work, to innovate and to create wealth. Abnormally high tax rate or too much strong government interference in the market will dissuade people and economic growth. It also involves developing law and judicial system where there will be a robust system of business laws, labor laws, property rights, and human rights in accordance with international standards.

There is no easy or quick solution but the government needs to be persuasive to carry out those tasks which will be beneficial in building a nation in the long run and for the welfare of the citizens.

A random sample of 900 individuals has been selected from a large population. It was found that 180 are regular users of vitamins. Thus, the proportion of the regular users of vitamins in the population is estimated to be 0.20. The standard error of this estimate is approximately: a) 0.1600 b) 0.0002 c) 0.4000 d) 0.0133 e) 0.0267 E A traffic consultant wants to estimate the proportion of cars on a certain street that have more than two occupants. She stands at the side of the road for two hours on a weekday afternoon and flips a coin each time a car approaches. If the coin comes up heads, she counts the number of occupants in the car. After two hours, she has counted 103 cars, 15 of which had more than two occupants. Which condition for constructing a confidence interval for a proportion has she failed to satisfy

Answers

Answer:

Question 1: The most correct option is option D, which is 0.0133

Question 2: Her data is a random sample from the population of interest.

Explanation: For the first question;

Standard error I the error in the standard deviation. To calculate standard error the formula is used.

S.E = Sd/√n

S.E = standard error

Sd= standard deviation = 0.2

n = number of occurrence = 180

The proportion of the regular users of vitamin among the 180 people is the standard deviation between them.

Using equation above.

S.E = 0.20 ÷ √180 =

0.20 ÷ 13.42 = 0.0149

S.E is 0.0149, when compared to the options, the most correct option is 0.0133, because the question states the answer to be approximately to which of the option.

QUESTION2:

Her research will have much error, because she chooses the car to count. Therefore the research procedure has not satisfied the process that will produce an accurate result. Since she has choosed the street to be her population of interest, all the cars in the street should be counted.

This is not a randomized controlled research, so selection of cars to count is not necessary.

Answer:

0.0133

Explanation:

It was correct

Alchemy Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had no beginning inventory. During January, 56,000 fl. oz. of chemicals were started in production. Of these, 30,000 fl. oz. were completed and 26,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process. The weighted-average method is used. At the end of the month, Alchemy calculated equivalent units. The ending inventory in the Mixing Department was 75% complete with respect to conversion costs. With respect to direct materials, what is the number of equivalent units in the ending inventory?

Answers

Answer:

Explanation:

Opening units  0

Started               56000

                        56000

Transffered        30000

Closing                26000

                             Production Table

Using Weighted Average Method

Cost Element   Complete   Closing WIP   Equivellant production units  

Material                30,000        26,000                      56,000  

Labour Cost             30,000        19,500                       49,500  

Final answer:

In process costing, equivalent units for direct materials correspond to actual units in the ending inventory. For Alchemy Manufacturing, the equivalent units in ending inventory for direct materials are 26,000. For conversion costs, which are 75% applied, equivalent units are 19,500.

Explanation:

In the context of process costing, equivalent units are a measure of the work done during a period, expressed in terms of fully completed units. Given that all direct materials are added at the beginning of the process at Alchemy Manufacturing, the number of equivalent units for direct materials in the ending inventory is equal to the number of physical units in that inventory. That means, for the Mixing department's ending inventory, there are 26,000 equivalent units for direct materials, because that's how many fluid ounces of chemicals remained in process at the end of January.

In terms of conversion costs (which are applied evenly throughout the production process), the number of equivalent units would be less. Since the ending inventory is 75% complete with regard to conversion costs, the equivalent units for conversion costs would be 0.75 times the physical units, or 19,500 equivalent units.

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NatureMade Snacks just received an order to produce 12,000 single-serving bags of gourmet, fancy-cut, sweet potato chips. The order will require 21 preparation hours and 36 cooking and draining hours. Use the activity rates you calculated in S4-4 to compute the following: What is the total amount of manufacturing overhead that should be allocated to this order? How much manufacturing overhead should be assigned to each bag? What other costs will the company need to consider to determine the total manufacturing costs of this order?

Answers

Answer:

Instructions are lsited below.

Explanation:

Giving the following information:

Production= 12,000 single-serving bags of gourmet, fancy-cut, sweet potato chips.

The order will require 21 preparation hours and 36 cooking and draining hours.

We were not provided with enough information to solve the requirements. But, I will leave the formulas and an example to guide you.

First, we need to calculate the estimated manufacturing overhead rate for each department:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

For example:

Preparation:

Estimated overhead= 100,000

Estimated preparation hours= 2,000

Estimated manufacturing overhead rate= 100,000/2,000= $50 per preparation hour

Cooking:

Estimated overhead= 175,000

Estimated cooking hours= 10,000

Estimated manufacturing overhead rate= 175,000/10,000= $17.5 per direct cooking hour.

Now, we can allocate overhead to the special order:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Preparation= 50*21= $1,050

Cooking= 17.5*36= $630

Unitary overhead= (1,050 + 630)/12,000= $0.14 per bag

The total manufacturing costs include direct labor, direct materials and allocated overhead:

Total manufacturing cost= direct material + direct labor + allocated overhead

For example:

DM= 300,000

DL= 200,000

Overhead= 1,680

Total manufacturing cost= 300,000 + 200,000 + 1,680= $501,680

Final answer:

The allocation of manufacturing overhead for NatureMade Snacks cannot be precisely calculated without the specific activity rates. In general, the overhead is determined based on preparation and cooking hours, and additional costs like direct materials, direct labor, and other overheads are essential for calculating total manufacturing costs.

Explanation:

The question relates to the allocation of manufacturing overhead for a specific order of gourmet, fancy-cut, sweet potato chips at NatureMade Snacks and necessitates a computation based on provided activity rates and production hours. Unfortunately, since the original activity rates from S4-4 are not supplied within the query, a specific numerical answer cannot be accurately calculated here. However, generally, the total manufacturing overhead could be determined by assigning overhead costs based on the rates associated with the preparation and cooking activities for the 12,000 single-serving bags.

In addition to manufacturing overhead, the company must consider other costs to determine the total manufacturing costs of this order. These include direct materials (the cost of sweet potatoes and any seasonings or oils), direct labor (wages for workers preparing and cooking the chips), and possibly other overheads related to equipment depreciation, utilities, and rent for the manufacturing space.

The manufacturing overhead per bag can be ascertained by dividing the total overhead costs by the number of bags (12,000 in this case). However, without the specific activity rates and overhead costs, a precise per-bag cost calculation remains elusive in this response.

Assume an economy where the consumption function is defined as C = CC + cY, and the investment function is defined as I = mr, where Y is total income, and r is the interest rate. What does the slope of the IS curve depend on?

Answers

Answer:

c and m

Explanation:

Given that,

Consumption function: C = CC + cY

Investment function: I = mr

where,

Y = Total income

r = Interest rate

The equation for IS curve is as follows:

Y = C + I

Y = CC + cY + mr

Y - cY = CC + mr

(1 - c)Y = CC + mr

(1 - c)Y - CC = mr

[tex]\frac{(1 - c)Y - CC}{m}=r[/tex]

[tex]\frac{(1-c)Y}{m} -\frac{CC}{m}=r[/tex]

Slope of the IS curve is determined by differentiating 'r' w.r.t 'Y',

[tex]\frac{dr}{dY}=\frac{(1-c)}{m}[/tex]

Hence, the slope of the IS curve depends on the value of c and m.

On July​ 5,GuntherGunther Company recorded sales of merchandise inventory on​ account,$65,000. The sales were subject to sales tax of 4%. On August​ 15, Gunther Company paid $2,350 of sales tax to the state.

Requirements

1 .Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.
2. Journalize the transaction to record the payment of sales tax to the state

Answers

Answer:

1 .Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.

Account                              Debit              Credit

Accounts Receivable        $65,000

Sales Revenue                                           $65,000

Sales Tax Payable                                      $2,600 (65,000 x 4%)

2. Journalize the transaction to record the payment of sales tax to the state

Account                              Debit              Credit

Cash                                                           $2,350

Sales Tax Payable             $2,350

The ending balance on the sales tax payable account is $250

Jill is a student at Vanderbilt University who recently got her first F. Now she has to make a decision about how to get her grades back up. Having recently taken a class on decision making, Jill decides to follow the six-step process for deciding what to do. What problem is Jill most likely to face during the development of alternatives step in the decision-making process?

A. Satisficing, or choosing the first solution that works, not the best solution
B. Neglecting to gather information on whether or not the plan was successful
C. Not having the time to take all of the steps outlined in her plan
D. Considering only "tried and true" solutions without creating new possibilities

Answers

Answer:

A

Explanation:

Satisficing, or choosing the first solution that works, not the best solution

There is a tendency when you see the solution that works maybe almost imstantly you go with it without understanding the long term consequences on that decision or whether there is yet a better solution than the one you opted fo. Following a process will be adequate

Answer: Considering only " tried and true" solutons without creating new possibilites.

Explanation:

Analyze fraternal polyandry in Himalayan south-central Asia with respect to material conditions. What specific problems are posed by what specific material conditions, and how are they solved? Is this a simple causal relationship?

Answers

Answer:

Analyze fraternal polyandry in Himalayan south-central Asia with respect to material conditions.

Since the population of the region is high and there is no farmable land therefore they want to keep it as one unit and practice fraternal polyandry in a way that a woman will be married to many brothers and therefore they wont have to fragment the land. They have to keep the population of their family low and this system works for them.

What specific problems are posed by what specific material conditions, and how are they solved?

Major condition of material is land and they dont want to split it between the brothers. If they all will have a separate wife, there are chances of fighting and asking for their fragment of the land. Therefore fraternal polyandry works for them

Is this a simple causal relationship?

No it is not. It is more like of an organization / corporation relationship where land must be retained as a collective unit.

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: automation. standardization. tight quality control. removing some services. customization.

Answers

Answer:

The correct answer is customization.

Explanation:

Personalization refers to the fact that the products produced are able to be modified according to what the client requires, satisfying their needs.

Delivers outstanding products with superior characteristics.

Final answer:

In the mass service and service factory quadrants of the service process matrix, the operations manager typically focuses on standardization, automation, and quality control rather than on removing some services or customization, which tend to decrease the range or personalization of services provided.

Explanation:

In the service process matrix, the operations manager particularly focuses on improving efficiency in service delivery. This may involve standardization, automation, and tight quality control to ensure the uniformity and dependability of service provision. Thus, in both the mass service and service factory quadrants, the manager wouldn't typically focus on removing some services. This approach would tend to decrease the range of services available, potentially diminishing the value to the user. Likewise, customization, while important in certain service sectors, is not a primary focus in the mass service or service factory quadrants, where standardization and efficiency take precedence.

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Excey Corp. has 10 percent coupon bonds making annual payments with a YTM of 9.5 percent. The current yield on these bonds is 9.85 percent. How many years do these bonds have left until they mature?

Answers

Answer:

The number of years would be 4 years to maturity

Explanation:

Let the Face value (FV) be $1,000

So, the PMT will be 10% of Fv

PMT = 10% × $1,000

PMT =$100

Computing the Present Value (PV) of the bond as:

PV = PMT / Current Yield

where

PMT is payment monthly, which the 10% of coupon bond, that is $10

Current Yield will be 9.85% or 0.0985

Putting the values above:

PV = $100/ 0.0985

PV = $1,015.22

Now, computing the number of years using the Excel formula , which is as:

=Nper(rate,pmt,pv,fv,type)

where

Nper is number of years

rate is 9.5%

pmt is $100

pv is -$1,015.22

fv is $1,000

Putting the values above:

=Nper(9.5%,100,-1015.22,1000,0)

= 3.76 or 4 years

Missing Amounts from Balance Sheet and Income Statement Data:
One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different corporations:
Freeman Heyward Jones Ramirez
Beginning of the year:
Assets $900,000 $490,000 $115,000 ?
Liabilities 360,000 260,000 81,000 $120,000
End of the year:
Assets 1,260,000 675,000 100,000 270,000
Liabilities 330,000 220,000 80,000 136,000
During the year:
Additional common-
stock issued ? 150,000 10,000 55,000
Dividends 75,000 ? 16,500 39,000
Revenue 570,000 235,000 ? 115,000
Expenses 240,000 128,000 122,500 128,000

Determine the missing amounts. Hint: First determine the amount of increase or decrease in stockholders' equity during the year.

Answers

Answer:

Owner’s Equity (beginning) + Investments – Withdrawals + Revenues – Expenses = Owner’s Equity (ending).

Explanation:

In each case, we will solve for a single unknown, using the following equation:

Owner’s Equity (beginning) + Investments – Withdrawals + Revenues – Expenses = Owner’s Equity (ending).

The missing amounts are calculated and imaged is attached.

Answer:

Ramirez beginning Assets:  81,000

Freeman Additional common stock:  135,000

Heyward dividends  32,000

Jones Revenue  115,000

Explanation:

In all cases we first solve for how much the equity changed duriing the period

Assets = Liabilities + Equity

ΔAssets = ΔLiabilities + ΔEquity

Last the equity increase is explained by the formula:

ΔEquity = stock issued - dividends + revenues - expenses

Ramirez beginning Assets:

ΔAssets = ΔLiabilities + ΔEquity

ΔAssets = 16,000 + 55,000 - 39,000 + 115,000 - 128,000

ΔAssets = 19,000

Ending Assets 100,000

Less change during the year of 19,000

Beginning assets = 81,000

Freeman Additional common stock:

ΔAssets = ΔLiabilities + ΔEquity

360,000 = -30,000 + ΔEquity

ΔEquity = 390,000

390,000 = stock issued - 75,000 + 570,000 - 240,000

stock issued = 135,000

Heyward dividends

ΔAssets = ΔLiabilities + ΔEquity

185,000 = -40,000 + ΔEquity

ΔEquity = 225,000

225,000 = 150,000 - dividends + 235,000 - 128,000

dividends = 32,000

Jones Revenue

ΔAssets = ΔLiabilities + ΔEquity

-15,000 =   -1,000  + ΔEquity

ΔEquity = -14,000 (in this case equity decreased)

-14,000 = 10,000 - 16,500 + revenue - 122,500

revenue = 115,000

The Sterling Company applies manufacturing overhead. At the end of the year the following data were available: Actual Manufacturing Overhead $115,000 Estimated Manufacturing Overhead $110,000 Applied Manufacturing Overhead $100,000 The following accounts had the unadjusted balances: Raw Materials Inventory $100,000 Work-in-Process Inventory $100,000 Finished Goods Inventory $100,000 Cost of Goods Sold $300,000 What is the journal entry if the amount is considered material?

Answers

Answer:

Explanation:

Adjusting entry for under applied manufacturing overhead

Dr Work in process $3000

Dr Finished goods $3000

Dr Cost of goods sold $9000

    Cr Manufacturing overhead $15,000

Explanation:

Under applied manufacturing overhead = Manufacturing overhead - Applied manufacturing overhead = 115,000 - 100,000 = $15,000

Under applied manufacturing overhead should be applied in proportion to unadjusted balances of Work in process, Finished goods, Cost of goods sold, which is $100,000, $100,000, $300,000 or 1:1:3 ⇒ $3000, $3000, $9000

Answer:

Work-in-process: $3,000

Finished Goods: $3,000

Cost of Goods Sold: $9,000

Manufacturing Overhead: $15,000

Explanation:

Under applied Manufacturing Overheads = Actual Manufacturing Overheads - Applied Manufacturing Overheads

= $115,000 - $100,000

= $15,000

This Under applied overheads will be allocated in proportion to un-adjusted balances of Work In Process ; Finished Goods; Cost of Goods Sold

The proportion will be $100,000:$100,000:$300,000 = 1:1:3

Therefore,

Amount Applied to Work In Process Inventory = [tex]15,000*\frac{1}{5} =[/tex] $3,000

Amount Applied to Finished Goods Inventory = [tex]15,000*\frac{1}{5} =[/tex] $3,000

Amount Applied to Cost of Goods Sold = [tex]15,000*\frac{3}{5} =[/tex] $9,000

Total = 3,000 + 3,000 + 9,000 = $15,000

Perfect Pad manufacturers floor mats for trailers that are used to transport horses. The mats provide for a firm footing surface that quickly sheds water. Mats are made to customer specifications via orders submitted over an internet site. The mats are completed and shipped in about one day. As a result, Perfect Pad does not maintain any work in process or finished goods inventory.


The following costs were incurred in producing and selling mats during August:

Synthetic rubber used in the mat $134,300

Lubricant used in the molding machine 14,000

Factory rent 9,600

Electricity to run the molding machine 2,600

Labor cost of machine operators 34,100

Internet sales site 1,500

Administrative salaries 12,500

Depreciation of molding machine 7,400

Salary of factory safety inspector 3,500

Office rent 13,500

Evaluate these costs, and determine the amount of direct material, direct labor, factory overhead, and selling/general/administrative costs. Next, identify how much is considered to be a "prime cost" and how much is considered to be a "conversion cost."

Answers

Final answer:

The costs incurred in producing and selling mats for Perfect Pad are classified as direct material, direct labor, factory overhead, and selling/general/administrative costs. The prime cost is the sum of direct material and direct labor costs, while conversion cost is the sum of direct labor and factory overhead costs.

Explanation:

The costs incurred in producing and selling mats during August can be categorized as follows:

Direct material: Synthetic rubber used in the mat ($134,300) and lubricant used in the molding machine ($14,000).Direct labor: Labor cost of machine operators ($34,100).Factory overhead: Factory rent ($9,600), electricity to run the molding machine ($2,600), depreciation of molding machine ($7,400), and salary of factory safety inspector ($3,500).Selling/General/Administrative costs: Internet sales site ($1,500), administrative salaries ($12,500), and office rent ($13,500).

The direct material and direct labor costs together make up the prime cost ($148,300), while the direct labor and factory overhead costs make up the conversion cost ($54,800).

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Tyrion and Alchemist make a contract where Tyrion will pay $20,000 for 5.000 gallons of wild fire. Alchemist promises to deliver the deadly chemical by August 29. On August 27. Alchemist informs Tyrion that he cannot perform on the contract. Tyrion then contacts Varys for the wild fire. Varys supplies him with 5,000 gallons for $17,000. Tyrion later sues Alchemist for breach of contract What may Tyrion recover from Alchemist? o a. $7000 b. $15,000 c. $27,000 d. $20,000 e. $5,000

Answers

Answer:

The answer is: c. $ 27,000.

Explanation:

A breach of contract is the breach of either party to comply with the terms of a contract without a legal excuse.

One of the forms of breach of contract is the Material.

This describes the breach of any of the parties to fulfill the duties established in the contract and is considered one of the most serious. If a serious clause has been violated, it allows the claimant to seek damages.

Because in this case there has been a contract with disbursement of money that has not been fulfilled by the other party, it is possible to claim in addition to what was paid at the time, damages, so that Tyrion would be entitled to recover $ 27,000 from Alchemist.

The answer is: c. $ 27,000.

Answer: $0

(This should be one of the options)

Explanation: Tyrion will not be able to receive any monetary compensation from Alchemist as Tyrion did not suffer any monetary loss.

Although there is a breach of contract when Alchemist does not deliver on the agreed terms, Tyrion was able to make a profit due to this reason.

Also, note that Tyrion had not paid anything before the contract was breached.

Let us assume that Tyrion eventually paid Varys a higher amount for the wild fire, say $25,000 he could claim damages from the Alchemist up to the amount that he lost as a result of the breach of contract, that is, $5,000.

Calculator Motorcycle Manufacturers, Inc., projected sales of 54,600 machines for the year. The estimated January 1 inventory is 6,610 units, and the desired December 31 inventory is 7,360 units. The budgeted production for the year is a.54,600 b.55,350 c.40,630 d.53,850

Answers

Answer:

b.55,350

Explanation:

The movement in number of finished goods between the beginning and end of a period is due to the number of goods sold and number of goods produced.

While the number sold reduces the account balance, while the number produced increases it. This may be expressed mathematically as;

Opening balance + number of goods produced - number of goods sold= closing balance

let the budgeted production be J

6610 + J - 54,600 = 7,360

J = 7,360 + 54,600 - 6610

= 55,350

At Patio Products International, each supervisor receives direction and information from the managers above them and passes that information down to their immediate employees they supervise. This describes which of Fayol’s principles?

Answers

Answer:Unity of command

Explanation:Henri Fayol principle of management is one of the most widely accepted standard for effective management of Organisations. This principles highlights fourteen(14) points that highlights how management can carry out their responsibilities.

UNITY OF COMMAND IS ONE OF THE PRINCIPLES OF MANAGEMENT BY HENRI FAYOL WHICH INVOLVES A TOP-DOWN(MANAGERS TO SUPERVISORS TO THE JUNIOR PERSONNEL) APPROACH TO GIVING INSTRUCTIONS.

Final answer:

The situation at Patio Products International exemplifies Henri Fayol's hierarchy of authority principle, which promotes a clear chain of command within an organization for efficient communication and organizational structure.

Explanation:

The scenario described at Patio Products International aligns with Henri Fayol's principle of the hierarchy of authority, which is part of his classical management theory. In Fayol's view, the chain of command is a fundamental aspect of organizational structure, where every employee has a clear idea of whom to report to and who reports to them. This ensures efficient communication and authority distribution within an organization.

For example, in the hierarchy at Walmart, a shift manager assigns tasks to employees, reports to the store manager, who reports to the regional manager, and so on up the hierarchy. The essence of this principle is that the organizational structure should be established in such a way that each managerial and employee position has its defined responsibilities, and each individual should report to a superior .

All International Monetary Fund (IMF) loan packages come with conditions attached which limits Group of answer choices

excessive government spending and debt.
elimination of restrictive import licensing.
privatization of state-owned assets.
deregulation of the economy to increase competition.
trade liberalization.]

Answers

Answer:

The correct answer is excessive government spending and debt

Explanation:

The justification for this answer is that International Monetary Fund(IMF) as a credit-granting organization would want the nation that loan is granted to ,to strengthen its liquidity position by cutting down on excessive government spending so as to be able to use such reserved liquidity to service IMF loans.

Also, by cutting down on international indebtedness the country is able to repay IMF loans as at when due,compared to a situation of multiple debts which brings about default in servicing and repaying IMF loans

Privatization of state-owned assets is not a requirement as well as deregulation of the economy.

The same applies to elimination of restrictive import licensing.

Consider an economy described as follows: Y = C + I + G. Y = 5,000. G = 1,000. T = 1,000. C = 250 + 0.75(Y – T). I = 1,000 – 50 r. In this economy, compute private saving, public saving, and national saving.

Answers

Answer:

Private saving= 750

Public saving= 0

National saving= 750

Explanation:

From the question,

Y = C +I +G

Y = 5000

G = 1000

T = 1000

C = 250 + 0.75(Y - T)

I = 1000 - 50r

a. Private saving is the addition of the total of the savings of households and firms. It is total income minus consumption and taxes.

Private Savings = Y - T - C

= 5000 - 1000 - [250 + 0.75(5000 - 1000)]

= 5000 - 1000 - [250 + 0.75(4000)]

= 5000 - 1000 - [250 + 3000]

= 5000 - 1000 - 3250

= 750

b. Public saving is sometimes called budget surplus. It is the amount that remains after government expenditure and transfers have been deducted from the revenue government got through taxes.

Public saving = T - G

= 1000 - 1000

= 0

c. National saving is the addition of the private saving and public saving.

National saving= 750 + 0

= 750.

True or False:A transfer warranty, made by a person who transfers an instrument for consideration to all subsequent transferees, impliedly makes five warranties relating to good title, authentic signatures, no alterations, no defenses, and no insolvencies.

Answers

Answer:True

Explanation: A transfer warranty is an implied promise made by one party known as the transferor to another party known as the transferee with regards to the title and credibility of an instrument.

Transfer warranty is achieved through indorsement(a financial term used to signify the signing of a signature at the back of a contract documents) by the transferor to the transferee.

A good transfer warranty is expected to have the following, it must be of a good title,no insolvency,must be authentically signed,must have no alterations etc

A. Analyze three decisions you made over the past six months. Which of these were programmed and which were nonprogrammed?
B. Which model-the classical, adminstrative, or political- best describes the approach you took to make each decision?

Answers

Explanation:

Programmed decisions— Lower supervisors make planned, organized problems-related decisions.  

Non-programmed decisions — used both for internal and external organizations in uniquely structured situations.  

The rational approach in decision-making is the traditional one, when the goals are good, the problems are dear, the parameters and weight are settled on, and the problems are not tendentious.

The decision-making of the managerial model requires performance. Rationality argues for an awareness of possible intervention strategies to achieve the goals. The user should all have full information and the ability to properly evaluate various alternatives according to the aims. The desire should be to choose the best solution by choosing the alternative that can achieve the goal.  

The three decisions I have faced over the course of these six months include:

a. Given the option of two companies, Apple and Samsung, I had to choose a mobile phone.  

b. I ordered a meal that I never tried before in a restaurant.  

c. Should choose the airline I had to travel abroad with my aunts.  

1. It's a programmed decision in fact because we all have less chance of making mistakes. Even though I have an apple branded phone, I know the specifications and the pricing of both already, it is therefore a routine decision-making process.

2. Is an unprogrammed choice because I don't know how to eat it.

The effects of ____ are not sufficiently strong to manipulate consumers, alter their preferences, or make the ad more memorable, but their content may be capable of eliciting more primitive feeling responses.

Answers

Answer:

Subliminal stimuli

Explanation:

Subliminal stimuli is defined as a stimulus that is below the sensory capacity of an individual. It is below the threshold where the individual can perceive that there is a change in something. For example if a company is producing potato chips and they want to increase salt content.

The point at which the consumer starts to notice a change in salt content of the potatoe chips is above the subliminal stimuli.

Although subliminal stimuli is not readily perceived it can unconciously influence consumer behaviour.

Answer:

The correct answer is letter "B": subliminal stimuli.

Explanation:

Subliminal stimuli are hidden messages portrayed in advertisements to cause an impression regarding a certain feature of the product being promoted. In some other cases, the subliminal stimuli look for making comparisons with competitors without directly mentioning them to avoid lawsuits.

Subliminal stimuli itself is not enough to attract consumers or to consider the product promoted as impactful but basic, irrelevant emotions can arise as the result of watching such advertisement.

Christine recently earned a promotion at work, raising her income by 40%. As a result, she now attends twice as many concerts as before. What is Christine's income elasticity of demand for concerts?

Answers

Answer:

2.5

Explanation:

If Christine now attends twice as many concerts, her percent increase in demand for concerts was 100%. Christine's income elasticity of demand for concerts is given by the percentage change in demand divided by the percentage change in income:

[tex]E = \frac{\%D}{\%I}=\frac{100\%}{40\%}\\ E=2.5[/tex]

Christine's income elasticity of demand for concerts is 2.5.

Culver Corporation has retained earnings of $718,500 at January 1, 2017. Net income during 2017 was $1,596,000, and cash dividends declared and paid during 2017 totaled $80,500. Prepare a retained earnings statement for the year ended December 31, 2017. Assume an error was discovered: land costing $86,470 (net of tax) was charged to maintenance and repairs expense in 2014. (List items that increase retained earnings first.)

Answers

Explanation:

The preparation of the retained earnings statement for the year ended December is presented below:

                                         Culver Corporation

                             Retained Earning statement

                        For the year ended December 31, 2017

Beginning balance of retained earning $718,500

Add: Correction recorded $86,470

Add: Net income $1,596,000

Less: Cash Dividend paid -$80,500

Ending balance of retained earning                        $2,320,470

Eastlake Furniture Company, a maker of Victorian furniture reproductions, uses only Trenton adhesives for its finely crafted products. The adhesive can bond wood just as well as hot-melt adhesives without damaging heat-sensitive areas, so it satisfies the needs of the company's craftspeople. Even though the Trenton adhesive is slightly more expensive than the hot melt glues offered by competitors, Trenton retains its clientele as it guarantees delivery just two days after an order is placed. This scenario illustrates that Eastlake Company is using ________ for its supply of adhesives.

Answers

Options:

A. Sole sourcing

B. Licensing

C. Franchising

D. Data mining.

Answer:

A. Sole sourcing

Explanation: Sole sourcing is a term used in procurement to describe a situation where only one supply exists for the supply of a particular material required for the production of a given product or service.

Sole sourcing can also be used to describe a situation where a company chooses to procure or source its materials from one particular supplier even at a higher cost.

Final answer:

Eastlake Furniture Company prefers Trenton adhesives for their Victorian furniture reproductions due to the quality of the bond without heat damage and a two-day delivery guarantee, despite the higher cost.

Explanation:

The scenario illustrates that Eastlake Furniture Company is using Trenton adhesives for its supply of adhesives. Despite the higher cost compared to hot-melt adhesives, Trenton adhesives offer a stronger bonding solution without the damaging effects of heat, making them ideal for the delicate Victorian furniture reproductions made by Eastlake. The two-day delivery guarantee from Trenton further adds value, ensuring that Eastlake Company craftsmen have the necessary materials in a timely manner, which likely contributes to their continued patronage despite the higher cost.

Suppose that Michael’s Bowling Alley offers 50% off bowling on Mondays, and as a result, drink sales increase by 40%. What is the cross elasticity of demand between bowling and drinks?

Answers

Final answer:

The cross elasticity of demand between bowling and drinks is -0.8, indicating that they are complementary goods. This means that a decrease in the price of bowling leads to an increase in the demand for drinks.

Explanation:

The cross elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good. It's calculated as the percentage change in quantity demanded of Good 1 divided by the percentage change in price of Good 2.

In this case, the offer by Michael’s Bowling Alley can be considered as a decrease in price of bowling i.e. -50%, which results in an increase in the sales of drinks i.e. 40%. Therefore, we can calculate the cross elasticity of demand as: Cross Elasticity of Demand = % Change in Quantity Demanded of Drinks / % Change in Price of Bowling = 40% / -50% = -0.8.

This negative value indicates that bowling and drinks are complementary goods, i.e., when the 'price' of bowling drops, the demand for its complement, drinks, increases.

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