U.S. Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000. West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000. U.S. Products' total fixed expenses during July was $200,000. The East Division’s segment margin for July is:a. $36.000b.$40.000c.$80.000d.$84.000

Answers

Answer 1

Answer:

Explanation:

East division segment margin = Contribution margin - Direct fixed expense

Contribution margin = $240,000*35% = $84,000

Direct fixed expenses = $48,000

So segment margin is  84,000 - 48000   = $36000

Answer is option A

Answer 2
Final answer:

To calculate the East Division’s segment margin for July, the total contribution margin for the East Division needs to be calculated. The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. The East Division’s segment margin for July is $84,000.

Explanation:

To calculate the East Division’s segment margin for July, we first need to calculate the total contribution margin for the East Division. The contribution margin is calculated by subtracting the direct fixed expenses from the sales revenue, and then multiplying it by the contribution margin ratio. For the East Division, the total contribution margin would be ($240,000 - $48,000) * 35% = $84,000.

The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. For U.S. Products, the total fixed expenses during July was $200,000. Therefore, the East Division’s segment margin for July would be $84,000 - $200,000 = $-116,000.

Since the segment margin is negative, it indicates that the East Division has a loss for the month of July. Therefore, the correct answer is: d. $84,000.


Related Questions

Your division has been asked to compile a recommendation for the price point for an innovative software application. You need to know how much customers will be willing to pay and under what circumstances. Conduct a scientific experiment. Access traditional sources and electronic sources. Conduct primary research for firsthand information.

Answers

Answer:Conduct a Scientific experiment.

Explanation:Product pricing is a process through which the price of a particular product is determined, this can be done through conducting a Scientific experiment involving the target customers to know how much they will be willing to pay for that product and under what circumstances.

Scientific experiment ensures that stepwise or procedural approach is followed in order to specifically get proper and reliable Information from the audience or Customers, it gives a unique Information regarding what you are looking for.

Final answer:

To determine the price point for a software application, you need to conduct primary research to get firsthand information from potential customers, and analyze secondary data from traditional and electronic sources. Conjoint Analysis and Price Sensitivity Meter can be valuable in understanding customers' willingness to pay and perceived value.

Explanation:

To conduct a scientific experiment to determine an appropriate price point for an innovative software application, you would primarily need to perform a market analysis. It would involve primary research such as surveys, interviews or focus groups to gather firsthand information about how much potential customers might be willing to pay.

Next, you'd also want to analyze secondary data, meaning pre-existing data in your field. Traditional sources might include business reports, while electronic sources could be online databases or articles. This would also help you understand under what circumstances customers may be willing to pay different price points.

In your actual experiment, you could consider methods such as Conjoint Analysis or Price Sensitivity Meter (PSM) to understand customers' preferences and their perception of value in relation to the price.

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The journal entry to record the prior year’s deferred Inflows: property taxes (those expected to be collected more than 60 days beyond year-end) as revenue in the current year would include:

a. A credit to Revenues Control.
b. A debit to Deferred Inflows: Property Taxes; and a credit to Revenues Control.
c A debit to Deferred Inflows: Property Taxes.
d. A debit to Revenues Control.

Answers

Answer:

b. A debit to Deferred Inflows: Property Taxes; and a credit to Revenues Control.

Explanation:

In accrual accounting revenues and expenses are not recognised till they are earned or incurred.

Deferred revenue is the income for goods that have not been delivered yet. For example if a business made sales of books worth $500 but have not delivered the goods to the buyer, the income realised is credited to deferred income. When the books have been delivered the income can now be recognised and moved to revenue account.

So in the scenario given the property taxes have not been collected yet and Soni's recorded as Deferred inflow from the previous year. When the taxes are collected we debit Deferred Inflow- Property taxes and credit Revenue Control.

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

2021 2022 2023
Cost incurred during the year $2,400,000 $3,600,000 $2,200,000
Estimated costs to complete- 5,600,000 2,000,000 0
as of year-end
Billings during the year 2,000,000 4,000,000 4,000,000
Cash collections during the year 1,800,000 3,600,000 4,600,000

Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract.

Answers

Final answer:

The revenue and gross profit are recognized at the completion of the construction contract in 2023, being $10,000,000 and $1,800,000 respectively. The journal entries post debits to Construction in Progress for each year until the job's completion in 2023. The partial balance sheets for 2021 and 2022 show Construction in Progress, Billings on Construction Contract, and Deferred Revenue.

Explanation:

The construction contract between Westgate Construction Company and Santa Clara County is recognized as a point in time recognition contract, meaning that revenue and gross profit are recognized upon the completion of the contract - not gradually during the construction.

For the revenue and gross profit recognition in each of the three years:2021, 2022, no revenue or gross profit is recognized as the project is ongoing.2023, revenue is recognized at $10,000,000 (the contract value), and gross profit is recognized at the revenue value subtracts the total costs of $8,200,000 (=$2,400,000+$3,600,000+$2,200,000), which equals $1,800,000.

For the journal entries:2021: Debit Construction in Progress $2,400,000, Credit Various accounts $2,400,000.2022: Debit Construction in Progress $3,600,000, Credit Various accounts $3,600,000.2023: Debit Cost of Goods Sold $2,200,000 and Accounts Receivable $4,000,000, Credit Construction in Progress $8,200,000, Revenue $10,000,000 and Various accounts $2,200,000.

For the partial balance sheet related to the contract:2021: Current assets include Construction in Progress of $2,400,000 and Billings on Construction Contract of $2,000,000, and current liabilities include Deferred Revenue of $2,000,000.2022: Current assets include Construction in Progress of $6,000,000 and Billings on Construction Contract of $6,000,000, and current liabilities include Deferred Revenue of $6,000,000.

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Westgate Construction Company recognizes all revenue and costs at the point of completion (2023), resulting in a gross profit of $1,800,000. All necessary journal entries and partial balance sheets for 2021 and 2022 have been provided. The computations are based on contract-determined parameters.

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

Revenue and Gross Profit/Loss Calculation:
Since the contract does not qualify for revenue recognition over time, all revenue and costs are recognized at the point of completion (2023).

2021: Revenue = $0, Gross Profit/Loss = $02022: Revenue = $0, Gross Profit/Loss = $02023: Revenue = $10,000,000, Total Cost Incurred = $2,400,000 + $3,600,000 + $2,200,000 = $8,200,000, Gross Profit = $10,000,000 - $8,200,000 = $1,800,000

2-a. Journal entries for the year 2021

Construction in Progress (CIP) $2,400,000
Various Accounts $2,400,000Accounts Receivable $2,000,000
Billings on Construction Contract $2,000,000Cash $1,800,000
Accounts Receivable $1,800,000

2-b. Journal entries for the year 2022

Construction in Progress (CIP) $3,600,000
Various Accounts $3,600,000Accounts Receivable $4,000,000
Billings on Construction Contract $4,000,000Cash $3,600,000
Accounts Receivable $3,600,000

2-c. Journal entries for the year 2023

Construction in Progress (CIP) $2,200,000
Various Accounts $2,200,000Accounts Receivable $4,000,000
Billings on Construction Contract $4,000,000Cash $4,600,000
Accounts Receivable $4,600,000Billings on Construction Contract $10,000,000
Revenue $10,000,000Expense $8,200,000
CIP $8,200,000

3. Partial Balance Sheets for 2021 and 2022

2021:
Construction in Progress = $2,400,000
Billings on Construction Contract = $2,000,000
Costs in Excess of Billings = $400,0002022:
Construction in Progress = $6,000,000
Billings on Construction Contract = $6,000,000
Costs in Excess of Billings = $0

Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $ 15,000 $ 15,000 Land* 120,000 440,000 Totals $ 135,000 $ 455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) b. What is Kevan’s tax basis in his LLC interest?

Answers

Answer:

$55,000

Explanation:

Kevan tax basis is calculated as:

$120,000 + $15,000 + $90,000 + $40,000 - $210,00

Kevin tax basis = $55,000

Using the following illustration

Kevan contributed $120,000 to land

Jerry and Dave both contributed $0

Kevan contributed 15,000 in cash

Jerry and Dave both contributed $245,000 in cash

Kevan Nonrecourse mortgage in excess of the contributed amount to land is $90,000.

Jerry and Dave: $0

This is so because all nonrecourse debt greater than the amount is allocated to Kevan only.

Kevan, Jerry and Dave Remaining Nonrecourse mortgage is $40,000

This is calculated by 33.3% of ($210,000 - $90,000)

Kevan Relief from mortgage debt is $210,000

Jerry and Dave Relief from mortgage debt is $0

Final answer:

Kevan's tax basis in his LLC interest will be $205,000, which is the sum of his cash contribution, the adjusted basis of the land contributed, and his share of the nonrecourse debt.

Explanation:

Under IRS regulations, Kevan's tax basis in his LLC interest will be calculated according to his contribution plus any liabilities he is assuming. Kevan contributed cash and land, which carry different tax implications.

For the cash contribution, Kevan's tax basis is simply the amount of cash contributed which is $15,000. For the land contribution, the tax basis is the amount of adjusted basis (the original cost plus improvements minus depreciation) at the time of contribution plus his share of the nonrecourse debt. The adjusted basis of the land is given as $120,000 and his share of the nonrecourse debt (since each member received 33.33 percent) would be $70,000 (1/3 of $210,000).

Adding these components together, Kevan’s tax basis in the LLC is $15,000 (cash) + $120,000 (adjusted basis of the land) + $70,000 (his share of nonrecourse debt) = $205,000.

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On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity.

1. Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization. If required, round your answers to the nearest cent. For compound entries, if an amount box does not require an entry, leave it blank.

June 30 entry

Answers

Answer:

Debt Securities Investment 493,841.79 debit

Discount on D-S Investment    6,158.21 debit

                       Cash                           500,000 credit

--to record bonds purchase--

Cash       22,500 debit

Discount on D-S Investment   769.78 credit

Interest revenue                  21,730.22‬ credit

--to record first interest collection--

Interest receivables  22,500 debit

Discount on D-S Investment   769.78 credit

Interest revenue                  21,730.22‬ credit

--to record second interest collection--

Explanation:

cost                493,841.79

face value    500,000.00  

discount:            6,158.21‬

We divide this over the total payment left:

6,158.21 /  8  =  769,78

interest proceeds

500,000 x 9% / 2 = 22,500.00

amorization                  (769.78)  

Interest revenue       21,730.22‬

Answer:

Explanation:

Face value   =                   500000

Discount      =                    -16158.21

Fair Value    =                    483841.79

Amortization Schedule

year           Amount            Interest              repay                   Closing

6 months    483841.79         0                     22500            461341.79

6 months     461341.79     48384.2         22500            487225.96

investment in bond     483841.79

            Cash                      483841.79

To record the investment at amortized cost.

Cash        22500

    Investment    22500

to record the semi annual interest payment

Cash                22500

Investment      25884.2  

                 Interest Income   48384.2

The Lancaster State Bank is thinking about purchasing a corporate bond that pays a coupon of 8.5%. The bank has a marginal tax rate of 25%. What is the after-tax yield on this bond?

Answers

Answer: 6.375%

Explanation:

The Lancaster State Bank is thinking about purchasing a corporate bond that has a yield of 8.5%. This bank has a marginal tax rate of 25%.

The after-tax yield on this bond would be 6.375%

Answer:

The after tax yield is 6.375%

Explanation:

The after tax yield is the amount of coupon rate after the tax deduction which will be calculated by this formula:

ATY= i(1- tax Rate)

ATY is the after tax yield

i is the coupon interest rate which is 8.5%

tax rate is the marginal tax which will be adjusted on the rate given to give us the after tax yield so we substitute on the above formula:

ATY = 8.5%(1 - 25%) then we compute on calculator

ATY= 6.375% which is the after tax yield of this bond.

thereafter you get the percentage yield which is the yield of a coupon adjusted for tax.

Terri works at Timmy's Toy Factory on the assembly line. She has been designated as "Assistant Manager." The majority of her time is spent demonstrating how to assemble the toys to the new employees on the line. In addition, she spends about 5% of her time processing paperwork for the Manager of the line. Terri often works more than 40 hours a week to keep up with all her duties, but because she is an assistant manager, she is not paid overtime. Which of the following statements is true? Select one: a. Terri's pay is not consistent with the FLSA because she is a non-exempt employee. b. Terri should be paid overtime according to the FLSA because she is an exempt employee. c. Terri's pay is consistent with the FLSA because she is a salaried worker. d. Terri should be given compensatory time off but not overtime because she is a salaried worker.

Answers

Final answer:

Terri's classification as an exempt or non-exempt employee under the FLSA will determine her eligibility for overtime pay. Since her job involves training and managerial paperwork, she could potentially meet the criteria for exempt status but more details about her role would be needed to make a clear determination.

Explanation:

The question concerns whether Terri should be paid overtime according to the Fair Labor Standards Act (FLSA). If Terri is classified as an exempt employee, she may not be eligible for overtime pay. The FLSA defines exempt status based on job duties, salary level, and salary basis. Given that Terri spends most of her time demonstrating to new employees which is a form of training and a small portion of her time completing managerial paperwork, it could argue for her exempt status. This would include duties such as supervising other employees, having input in the hiring process, and having managerial responsibilities. Since the information provided does not specify Terri's full range of duties or her level of decision-making authority, it's not clear whether she meets the criteria for exempt status under the FLSA. If she is non-exempt, she should be paid for any hours worked over 40 in a workweek. The most accurate answer based on the given information, though subject to further specification of Terri's role, might be that her pay could potentially be consistent with the FLSA if she meets the criteria for an exempt employee.

Which of the following statements is true? Group of answer choices A perfectly competitive firm that seeks to maximize profits will not be resource-allocative efficient. If the demand curve and the marginal revenue curve weren't the same curve for a perfectly competitive firm, then the firm would not be resource-allocative efficient. Resource allocative efficiency exists when a firm produces its output at the lowest possible per unit cost (lowest ATC). Productive efficiency exists when firms produce the quantity of output at which price equals marginal cost.

Answers

Answer:If the demand curve and the marginal revenue curve weren't the same curve for a perfectly competitive firm, then the firm would not be resource-allocative efficient.

Explanation: Demand curve is a graphical representation of the rate of change of demand as the price of a product changes.

Marginal revenue curve is a graphical representation of the rate of change of marginal revenueas the production and the quantity of output produced changes.

For a perfectly competitive firm with no market control, the marginal revenue curve is a horizontal line.

FOR A PERFECTLY COMPETITIVE FIRM THE MARGINAL REVENUE CURVE AND THE DEMAND CURVE SHOULD BE THE SAME IF THE FIRM ALLOCATES ITS RESOURCES EFFICIENTLY.

In the theory of perfect competition, the assumption of easy entry into and exit from the market implies Group of answer choices positive economic profits in the long run. losses in the long-run equilibrium. zero economic profits in the long run. zero economic profits in both the short run and the long run. positive economic profits in both the short run and the long run.

Answers

Answer:

Zero economic profits in the long run.

Explanation:

In a perfect competition, firms are able to freely enter into, or exit a market.

As more and more firms enter the market, it causes an increase in supply in the long run, which leads to a fall in prices and therefore profits, such that firms will start to earn normal profits or zero economic profits.

Final answer:

In perfect competition, the assumption of easy entry and exit into the market implies zero economic profits in the long run.

Explanation:

In the theory of perfect competition, the assumption of easy entry into and exit from the market implies zero economic profits in the long run. In perfectly competitive markets, when economic profits are positive, new firms will be attracted to enter the market. This increases competition and drives down profits until they reach zero in the long run. Similarly, when economic losses occur, firms exit the market, reducing competition and allowing remaining firms to eventually reach zero economic profits.

A chemical manufacturer is setting up capacity in Europe and North America for the next three years. Annual demand in each market is 2 million kilograms (kg) and is likely to stay at that level. The two choices under consideration are building 4 million units of capacity in North America or building 2 million units of capacity in each of the two loca-tions. Building two plants will incur an additional one-time cost of $2 million. The variable cost of production in North America (for either a large or a small plant) is currently $10/kg, whereas the cost in Europe is 9 euro/kg. The cur-rent exchange rate is 1 euro for U.S. $1.33. Over each of the next three years, the dollar is expected to strengthen by 10 percent, with a probability of 0.5, or weaken by 5 per-cent, with a probability of 0.5. Assume a discount factor of 10 percent. What should the chemical manufacturer do? At what initial cost differential from building the two plants will the chemical manufacturer be indifferent between the two options?

Answers

Answer:

Explanation:

The two choices under consideration are building 4 million units of capacity in North America

YEAR                         1                    2                           3  

Production and Sales 4,000,000.00   4,000,000.00   4,000,000.00  

Variable cost @ 10  40,000,000.00   40,000,000.00   40,000,000.00  

Divide by:

Conversion Factor  1.33                         1.33                     1.33  

Multiply by:

Growth(.1*.5)+(-.05*.5) 1.025                        1.025^2                  1.025^3  

NET CASHFLOWS  30,827,068.00   31,597,744.00   32,387,688.00  

DCF @ 10%     0.909090909           0.83                  0.75  

Present Values  28,024,607.27   26,113,838.02   24,333,349.36  

NET TOTAL COST 78,471,794.65  

or building 2 million units of capacity in each of the two loca-tions. Building two plants will incur an additional one-time cost of $2 million.

YEAR                  0            1                      2                              3  

Production and Sales       4,000,000.00      4,000,000.00   4,000,000.00  

Variable cost @ [(10+9)/2] 38,000,000.00  38,000,000.00   38,000,000.00  

Additional cost  2,000,000.00      

Conversion Factor     1.33     1.33                   1.33                       1.33  

Growth(.1*.5)+(-.05*.5)    1.025               1.025^2              1.025^3  

CASHFLOWS  1,503,759.40  29,285,714.29  30,017,857.00  30,768,304.00  

DCF @ 10%       1           0.909090909    0.826446281 0.751314801  

Present Value 1,503,759.40  26,623,376.62   24,808,146.28   23,116,682.19  

NET TOTAL COST = 76,051,964.50  

DECISION: The manufacturer should build 2 plants in 2 different locations because it gives a lower net present cost

At what initial cost differential from building the two plants will the chemical manufacturer be indifferent between the two options?

The difference in both options came from the fact that variable cost is lower in Europe and building the plant is more expensive. If there is no increase in cost and variable cost is same everywhere, then both options will be same.

The decision for the chemical manufacturer's capacity setup requires analyzing long-run costs, economies of scale, and variable costs against the backdrop of possible currency exchange fluctuations, to determine which option yields the best financial outcome over three years.

The chemical manufacturer is considering two options for capacity setup: building 4 million kg capacity in North America only or splitting the capacity with 2 million kg in each location of North America and Europe. To tackle this, it is essential to evaluate the long-run costs and economies of scale to determine the most cost-efficient option. Given the difference in variable costs between North America and Europe (after converting euros to USD), and the potential changes in exchange rates, a detailed financial analysis should consider the expected net present value (NPV) of both setups using the provided discount factor and exchange rate forecasts.

Furthermore, since the chemical firm is a constant cost industry and production costs are consistent regardless of quantity, the decision primarily revolves around considering the one-time additional cost, differences in variable costs, and the implications of exchange rate fluctuations. An indifference analysis should find the initial cost differential that makes the NPVs of both options equal, by integrating the additional fixed cost and variable costs over the three-year period using the provided probabilities and the discount rate.

Summary operating data for Loma Company during the current year ended April 30, 20Y6, are as follows: cost of goods sold, $7,500,000; Expenses incurred in the administration or general operations of the business, sometimes called general expenses.administrative expenses, $750,000; interest expense, $100,000; rent revenue, $120,000; sales, $13,580,000 and Expenses that are incurred directly in the selling of merchandise.selling expenses, $1,250,000.

Prepare a single-step income statement.

Loma Company
Income Statement
For the Year Ended April 30, 20Y6

Revenues:

Sales

Rent revenue

Total revenues

Expenses:

Cost of goods sold

Selling expenses

Administrative expenses

Interest expense

Total expenses

Net income

Answers

Answer:

Loma Company's Income Statement for the year ended is $4,100,000

Explanation:

                                             Loma Company  

                    Income Statement  for the Year Ended April 30, 20Y6  

 

Revenues:  

Sales                                                        $13,580,000  

Rent revenue                                                $120,000  

Total revenues                                        $13,700,000  

 

Less Expenses:  

Cost of goods sold                               $7,500,000  

Selling expenses                                       $1,250,000  

Administrative expenses                       $750,000  

Interest expense                                       $100,000  

 

Total expenses                                       $9,600,000  

 

Net income                                               $4,100,000  

(Net Income = Total Revenue - Total Expenses)

​Alex, Brad, and Carl are partners. The profit sharing rule between them is 3​:2​:3 in alphabetical order. The partnership incurs a net loss of $ 110 comma 000. The journal entry to close Income Summary will include a​ _______. (Do not round any intermediate​ calculations.)

Answers

Answer:

Alex, Capital account will have a debit balance of $41,250

Explanation:

Partnerships are formed between individuals that come together and pool their resources together to achieve a common goal. They agree to share profits and losses of a business enterprise.

In this case profit sharing is done in a 3:2:3 order.

So for Alex his share of the $110,000 loss will be

Alex's share= (3/3+2+3)*110,000

Alex's share= (3/8)*110,000

Alex's share= $41,250

So this amount will be submitted from Alex's capital account

Final answer:

Alex, Brad, and Carl's capital accounts will be debited for their share of the partnership's $110,000 loss based on the profit-sharing ratio of 3:2:3. The journal entry will include a debit to Income Summary for the full loss and credits to each partner's capital account for their calculated share.

Explanation:

When a partnership incurs a net loss, such as the $110,000 loss described, each partner's capital account must be debited with their share of the loss according to the agreed-upon profit-sharing ratio. In the case of Alex, Brad, and Carl, the profit-sharing ratio is 3:2:3, respectively. To calculate each partner's share of the loss, you would allocate the total loss proportionally.

For Alex and Carl (3/8 of the loss each):

(3/8 of $110,000) = $41,250

For Brad (2/8 of the loss):

(2/8 of $110,000) = $27,500

The journal entry to close Income Summary will include a debit to the Income Summary account for the full amount of the loss, $110,000, and credits to Alex's, Brad's, and Carl's capital accounts for their respective shares of the loss. Thus, the journal entry will look like this:

Debit Income Summary $110,000Credit Alex's Capital $41,250Credit Brad's Capital $27,500Credit Carl's Capital $41,250

On March 2, Kingbird, Inc. sold $954,000 of merchandise on account to Ayayai Company, terms 4/10, n/30. The cost of the merchandise sold was $590,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answers

Answer:

Following Journal Entries are recorded for Kingbird, Inc

Explanation:

March 02

Debit: Account Receivable = $954,000

Credit: Sale = $954,000

(Credit Sale is Recorded)

Debit: Cost of Good Sold = $590,000

Credit: Inventory = $590,000

(To Record Cost of merchandise Sold)

Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $6,100. On September 9, the customer unexpectedly pays the $6,100 balance. Record the cash collection on September 9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

Record the cash collection on September 9

Bank $6,100 (debit)

Bad Debt $6,100 (credit)

Explanation:

When Barnes writes off a customer account on May 7

Bad Debts $6,100 (debit)

Account Receivable $6,100 (credit)

When the customer unexpectedly pays the $6,100 balance on September 9

Bank $6,100 (debit)

Bad Debt $6,100 (credit)

Recognise the Assets of Cash Flowing in the entity and De-recognise the Bad Debts expense account.

Prime cost is Group of answer choices direct labor cost and indirect labor cost. indirect materials cost and direct labor cost. direct materials cost and indirect labor cost. direct materials cost and direct labor cost.

Answers

Answer: Direct material cost and direct labor cost.

Explanation:

Prime costs are the expenses incurred while creating finished goods. Prime cost is calculated by adding the direct material cost and direct labor cost.

Direct materials are the raw materials that are vital to produce a finished good while direct labor costs are wages and salaries or benefits that are paid to a worker who worked on the manufacturing of the good.

The prime costs in organizations are usually checked by the operations manager to know if there's efficiency in the production process of the company.

Which of the following methods seeks to effect positive change in processes and organizations by using a set of practical tools to address business issues and process problems? Select one: a. BPR (Business Process Reengineering) b. TOM (Total Quality Management) c. Rummler-Brache d. Six Sigma Methodologies e. Lean han one of the f. This statement can above.

Answers

Answer: D. Six Sigma Methodologies

Explanation:

Six sigma methodologies are a set of tools and techniques used to effect continuous improvements of a process,this improvements is aimed at reducing wastages or variations.

Six sigma uses tools such as DMAIC(DEFINE, MEASURE,ANALYSE ,IMPLEMENT,CONTROL) etc guide the process improvement process.

There are several other tools and techniques used they include FISHBONE DIAGRAM, MEASUREMENT SYSTEM ANALYSIS(MSA), 5S etc all these are implemented in different stages of the process.

Six Sigma Methodologies option d. is the method that effects positive change in processes and organizations by utilizing practical tools for business improvements and reducing process variations, as developed by Bill Smith of Motorola.

The method that seeks to effect positive change in processes and organizations by using a set of practical tools to address business issues and process problems is Six Sigma Methodologies.

Developed in the 1990s by Bill Smith of Motorola Corporation, Six Sigma is an approach designed to improve profitability by reducing process and product variation.

It involves a rigorous process improvement methodology that includes the Define, Measure, Analyze, Improve, Control (DMAIC) procedure and encourages the use of statistical methods to validate improvements. Motorola itself attributed significant savings to the implementation of this system.

Six Sigma practitioners utilize various tools, including the development of process maps, Plan, Do, Check, Act (PDCA) cycle for smaller projects, and holding expertise in Six Sigma projects.

These tools and the focused methodology aim to reduce variation and inefficiency in business processes, leading to higher-quality products and services.

Culver Corporation earned $262,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 13,500 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised.(a) Are the warrants dilutive?
(b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
(c) Compute diluted earnings per share.

Answers

Answer:

a) The warrant are Dilutive

b) Basic EPS $2.62

c) Diluteed EPS = $2.31

Explanation:

a) The warrants are dilute because the cost of exercising the rights is lover than the market price

b) Basic Eps = Total Earning/Share Outstanding = $262,000/100,000 = $2.62

c) Diluted Eps = Earnings/(Shares outstanding+potential shares)

= $262,000/(100,000+13,500) = $2.31    

The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Charles purchases a certificate of deposit at his bank. Gilberto takes out a loan and uses it to build a new cabin in Montana. Dina borrows money to build a new lab for her engineering firm. Juanita purchases stock in Goohoo, an information technology company.

Answers

Answer:

All the options given are examples of investment.

Explanation:

Savings are what an individual has left after their spending has been deducted from their disposable income. Savings can increase income by investing the money saved. Investment is an item or asset gotten with aim of generating income. An investment simply means buying goods that are not for immediate consumption but generation of income.

All the options provided are investment examples. A certificate of deposit is given by the bank to an individual after a certain amount of money has been deposited and it generates interest. Also building a cabin , a laboratory and buying stock are investments.

You recently conducted a series of interviews for an accounting position at your law firm. You’ve decided on a candidate but need to inform the other applicants that they were not selected for the position.How can you reduce the rejected applicants’ disappointment? Check all that apply.A. Reveal specific reasons for not hiring the applicant.B. Compare the applicant to the candidate hired for the position.C. Use vague explanations.D. Use an indirect pattern.

Answers

Final answer:

In rejecting job applicants, provide specific constructive feedback and use an indirect pattern of communication, while avoiding vague explanations and direct comparisons with the hired candidate.

Explanation:

When informing rejected applicants that they were not selected for the accounting position, it is important to be professional and empathetic. Offering specific reasons for not selecting the applicant, without making direct comparisons to the candidate who was hired, can provide closure and opportunities for personal development. Using an indirect pattern of communication can be less harsh, soften the rejection, and maintain a positive image of your law firm. Avoid using vague explanations, as they do not contribute to the candidate’s understanding of the decision and can be frustrating.

Positive feedback and an invitation to apply for future openings can also help mitigate disappointment and preserve a good relationship with potential future employees.

Annual demand for the notebook binders at​ Duncan's Stationery Shop is 9 comma 700 units. Dana Duncan operates her business 300 days per year and finds that deliveries from her supplier generally take 5 working days. Calculate the reorder point for the notebook binders that she stocks.

Answers

Answer:

Annual demand (D) is 9700 units.

Number of Working days = 300 days per year

Lead time = 5 working days.

Calculate the Re-Order Point (ROP) using the following formula:  

ROP = (Demand per day) x (lead time for a new order in days)  

ROP = d x L

Where,

d = D / Number of working days

Substitute the values in equation (1)

ROP = (D / Number of working days) x Lead time

ROP = (9700 / 300) x 5  

ROP = 161.67

ROP = 162 units

Thus, the Re-Order Point (ROP) is 162 units.

Free rider problems are everywhere. For example, some restaurants let each food server keep his or her own tips. Other restaurants require all of the food servers to put their tips into a tip pool, which then gets divided up equally among all of the servers. Let’s think about how the tip pool changes the server’s incentive to be nice to the customer.

a. Let’s assume that a server can be "nice" and earn $100 in tips per shift, or be "mean" and earn $40 in tips per shift. If an individual server goes from being mean to being nice, how much more will he or she earn in a non-tip-pooling world?

Gains from being "nice": $ -----------------------

b. Now let’s look at incentives in a tip pool. If all the servers are mean, how much will the average server earn? If all the servers are nice, how much will the average server earn?

Average mean server earnings:$ ----------------

Average nice server earnings: $ ----------------

What’s the change in tips per server if all of them switch from being mean to being nice?

Change in tips per server: $ --------------

c. But in the real world, of course, each server makes his or her own decision to be mean or nice. Suppose that you are on a shift with 9 other servers, and some servers are being nice and others are being mean. You’re trying to decide whether to be nice or mean. What’s the payoff to you if you switch your behavior from mean to nice?

Individual payout of becoming nice: $ ---------------

d. So when are you most likely to be nice: When you’re in a tip pool or when you keep your own tips?

1-You are more likely to be nice when you keep your own tips.

2-You are equally likely to be nice in either tip arrangement.

3-You are more likely to be nice in a tip pool.

If the restaurant cares a lot about keeping its customers happy, which policy will it follow?

1-The restaurant will use a tip pool.

2-The restaurant will let servers keep their own tips.

3-The restaurant is indifferent between the two tip arrangements because it generates the same likelihood of servers being friendly.

Answers

Answer:

Check the explanation

Explanation:

a. Gains from being nice = $60

reason: outcome for being nice = $100; outcome for being mean = $40 So the gains from being nice = 100 - 40 = 60

b. Average mean server earnings = $40 (given)

Average nice server earnings = $ 100 (given)

  Change in tips per server if all of the servers switch from being mean to being nice = $60 (100 - 40)

c. Individual payoff of my becoming nice = $6

reason: Total number of servers = 10

Change to the tip pool with my change in behavior from mean to nice = $60

My share in this change = 60/ 10 =6

d.  1-I am more likely to be nice when I keep my own tips.

reason: I can keep $100 if I am nice. But in a tip pool, some of the others may be mean. This will bring the pool amount lower, thereby my share may be less than $100. So I prefer to keep my own tips.

Final answer:

In a non-tip-pooling scenario, a server will gain $60 from being 'nice'. In a tip pooling scenario, a server is likely to earn less from being 'nice' unless all servers adopt friendly behavior. As a server, you are more likely to be nice when you keep your own tips, a policy a customer-centric restaurant is likely to adopt.

Explanation:

For the first part of the question, if a server can be 'nice' and earn $100 in tips per shift, or be 'mean' and earn $40 in tips per shift, then the gain from being 'nice' in a non-tip-pooling world will be $60 ($100 - $40).

In a tip pool scenario, if all the servers are mean and earn $40, this is the amount the average server will earn. If all the servers are nice, they will collectively earn $1000 (10 servers x $100) which is then divided equally among all servers, leading to an average earning of $100 per server. The change in tips per server if all of them switch from being mean to being nice will therefore be $60. However, if you're deciding whether to be 'nice' or 'mean', in a shared scenario, your behavior gain from being 'nice' will depend on the collective behavior of the other servers, since earnings are divided equally. The payoff could be less than $60 if not all servers opt to be 'nice'.

As for the question of when you are most likely to be nice, you are more likely to be nice when you keep your own tips. This is because the incentives for being nice in a pooled-tip scenario are less if not all servers demonstrate nice behavior. If a restaurant values customer satisfaction highly, it's likely to let servers keep their own tips to incentivize friendly service.

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Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $67,697. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $14,215 before adjustment on August 31.Journalize the adjusting entry for uncollectible accounts as of August 31.

Answers

Answer:

The journal entry is as follows:

On August 31,

Bad expense A/c Dr. $53,482

      To Allowance for doubtful accounts    $53,482

(To record the adjustment entry to increase allowance for doubtful accounts)

Working notes:

Allowance for doubtful accounts:

= Allowance for Doubtful Accounts at August 31 - Allowance for doubtful accounts before adjustment on August 31

= $67,697 - $14,215

= $53,482

You must pick one of two​ wagers, for an outcome based on flipping a fair coin. 1. You win ​$440 if it comes up heads and lose ​$110 if it comes up tails. 2. You win ​$770 if it comes up heads and lose ​$220 if it comes up tails. Find the expected outcome for each wager. Which wager is better in this​ sense?

Answers

Answer:

See Below

Explanation:

Expected value is the sum of the products of the probability and payoff of each.

Wager 1:

probability of heads and tails, both is 0.5

Win = 440

Loose = 110

So,

Expected Value = 440(0.5) + (-110)(0.5) = 220 - 55 = $165

Wager 2:

Similar to wager 1

Win = 770

Loose = 220

So,

Expected value = 770(0.5) + (-220)(0.5) = 385 - 110 = $275

2nd wager is better, in this sense.

The expected outcome for wager 1 is $165, while for wager 2, it is $275. Therefore, wager 2 is better in terms of expected value.

To determine which wager is better, let's calculate the expected outcome for each wager.

Wager 1

If you choose the first wager, you win $440 if it comes up heads and you lose $110 if it comes up tails.

Probability of heads (P(H)) = 0.5Probability of tails (P(T)) = 0.5Expected outcome for heads = $440 * 0.5 = $220Expected outcome for tails = -$110 * 0.5 = -$55Total expected outcome for wager 1 = $220 - $55 = $165Wager 2

If you choose the second wager, you win $770 if it comes up heads and you lose $220 if it comes up tails.

Probability of heads (P(H)) = 0.5Probability of tails (P(T)) = 0.5Expected outcome for heads = $770 * 0.5 = $385Expected outcome for tails = -$220 * 0.5 = -$110Total expected outcome for wager 2 = $385 - $110 = $275

Conclusion: The expected outcome for wager 2 is higher at $275 compared to $165 for wager 1. Therefore, in terms of expected value, wager 2 is the better choice.

Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which it sells to Hamburger Heaven for $11,000. Hamburger Heaven also buys $20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers, which are sold for $5 each. How much do these transactions add to GDP?

Answers

Answer:

$50,000

Explanation:

Data given in the question

Number of wheat sold to Big Ben Bakery = $5,000

Number of hamburger buns sold to Hamburger heaven = $11,000

Buys of beef = $20,000

Number of hamburgers used = 10,000

Selling price for each hamburger = $5

So by considering the above information, the GDP amounted to

= Number of hamburgers used × Selling price for each hamburger

= 10,000 × $

= $50,000

As GDP refers to the value of final goods and services that are to be produced.

A computer equipment was acquired at the beginning of the year at a cost of $56,000 with an estimated residual value of $5,000, and an estimated useful life of 5 years. Determine the second year's depreciation expense using the straight-line method.

Answers

Answer:

The second year's depreciation expense using the straight-line method is $10,200

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement based on the estimated useful life of the asset.

Depreciation = (cost - salvage value)/estimated useful life

where the salvage value is the estimate of the amount that will be received from the disposal of the asset after its useful life.

Annual depreciation

= ($56,000 - $5,000)/5

= $10,200

Answer:

$10,200

Explanation:

Deprecation is way of expensing the cost of an asset.

Deprecation expense using the straight line depreciation method =( Cost of asset - residual value) / useful life

($56,000 - $5,000) / 5 = $10,200

The depreciation expense each year is $10,200.

I hope my answer helps you

Using the information given below for the fictitious country "Alpha," find national saving, private saving, public saving, and the national saving rate.
Household saving = 200, Business saving = 300, Government purchases of goods and services = 80, Government transfers and interest payments = 100, Tax collections = 220, and GDP = 1,800.

Answers

Answer:

Answer in explanation

Explanation:

We calculate each of the metrics for the country Alpha using the appropriate formula;

National saving

Mathematically, National saving = Public saving + Private saving

Private saving = Total income - Tax Revenue - Consumption or Y - T - C or household + Business savings = 200 + 300 = 500

Public saving

Mathematically, Public saving = Tax revenue - expenditures = T - G = 220 - (80 + 100) = 40

National saving is thus: 500 + 40 = 540

National saving rate

Mathematically, National saving rate = (National saving * 100)/GDP = (540 * 100)/1800 = 30%

The calculation is as follows:

We know that

National saving = Public saving + Private saving

Here

Private saving =  household + Business savings

= 200 + 300

= 500

And,  

Public saving = Tax revenue - expenditures

= 220 - (80 + 100)

= 40

Now  

National saving is

= 500 + 40

= 540

And,  

National saving rate

 = National saving ÷ GDP

= (540 × 100) ÷ 1800

= 30%

In this way, it should be calculated.

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ABC Insurance retains the first $1 million of each property damage loss and purchases insurance 22) for that part of any property loss that exceeds $1 million. The insurance for property losses above $1 million is called

A) coinsurance
B) excess insurance
C) liability insurance.
D) primary insurance.

Answers

Answer:

B) excess insurance

Explanation:

Excess insurance is also known as excess waiver insurance and is amount that will be paid in case of an accident that exceeds normal insurance cover. The amount covered by excess insurance is agreed between the beneficiary and the insurance company.

It protects one against excess charges in cases where a car is stolen or damaged.

For example of you hire a car that has standard insurance, and it is involved in an accident. If the damage is above the limit of insurance cover you will have to pay the rental company the excess for the repairs. Excess insurance covers costs that are high, with some covering up to $6,000.

So if ABC purchases insurance for part of property loss that exceeds $1 million, they are purchasing excess insurance to protect themselves from loss.

Bill consumes two goods: iced tea and spaghetti. The price of iced tea is $2 per bottle, and the price of spaghetti is $8 per serving. His income is $1,000 per month. He spends all of his income each month. He purchases 200 bottles of iced tea. How many servings of spaghetti does he purchase

Answers

Answer;

No of spaghetti he purchase [tex]y=100[/tex]

Explanation:

Given,

Price of iced tea is[tex]=\$ 2[/tex] per bottle

Price of spaghetti is [tex]=\$ 8[/tex] per serving

Let no iced tea is [tex]=x[/tex]

Let no of spaghetti =[tex]=y[/tex]

[tex]x+y=200[/tex]  

multiply by 2

[tex]2x+2y=400[/tex]               (i)

[tex]2x+8y=1000[/tex]              (ii)

    (ii)-(i)  

[tex]2x+8y-2x-2y=1000-400[/tex]

[tex]6y=600[/tex]

[tex]y=100[/tex]

[tex]x+y=200[/tex]

[tex]x=200-100[/tex]

[tex]x=100[/tex]

No of spaghetti is 100

No of iced tea is 100

           

Final answer:

Bill spends $400 on 200 bottles of iced tea and uses the remaining $600 from his monthly income to buy 75 servings of spaghetti at $8 per serving.

Explanation:

Bill is facing a typical consumer's budget problem, where he must allocate his income between two goods: iced tea and spaghetti. If Bill spends his entire monthly income of $1,000, we need to calculate how much he spends on iced tea and how many servings of spaghetti he can purchase with the remaining money.

First, let's calculate the amount Bill spends on iced tea. Since he buys 200 bottles of iced tea at $2 per bottle, the calculation is:

200 bottles × $2 per bottle = $400

Bill spends $400 on iced tea, so the remaining budget for spaghetti is $1000 - $400 = $600. Since spaghetti costs $8 per serving, we can find out the number of servings by dividing the remaining budget by the price per serving:

$600 ÷ $8 per serving = 75 servings

Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage. Discuss whether you agree or disagree with this statement. Explain your answer in a well-constructed and cogent response.

Answers

Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement

Explanation:

when a licensing arrangement is structured in such a way that ir  reduces the risks of a firm's technological know-how being expropriated by licensees, then licensing may be said to be appropiate.

For example : when a firm perceives its technological advantage can be intimated by its competitor ,in such case the company gets its technology licensed before the imitation of its technology occur.By doing so the firm may deter its competitors  from developing their own, possibly superior, technology. And by licensing its technology the firm may be able to establish its technology as the dominant design in the industry. In turn, this may ensure a steady stream of royalty payments.

so we can say that Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement

It is necessary to weigh the advantages and disadvantages of licensing proprietary technology to foreign competitors in order to form a consistent opinion.

What are the disadvantages of technology licensing?

For an organization that owns the rights to a certain technology, licensing to other companies may not be a good strategy to gain competitive advantage, as innovation is an essential characteristic for organizational success.

Therefore, technology licensing can be advantageous if an organization has its structure and objectives aligned with providing know-how to other companies, such as a franchise network for example.

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As technology grows, so does its uses. Companies are finding ways to let their employees manage various parts of their job without needing a full-time employee. One way this is done is with web-based self-service applications. Discuss new ways for employees to use Web-based self-service applications in their companies that will help save time and money. Describe not only the applications and how they work, but how they can save the company money and time. Be sure to include disadvantages to the process from the point of view of the employee.

Answers

Web-based self-service applications are types of applications that allow employees to access certain tasks of a company online, without having to interact with a representative of this company. Most of these websites offer support and immediate access to information.

This saves time and money, because the representative who would normally have to facilitate this work is no longer necessary. Moreover, because this is found online, it is likely that these applications can be accessed 24/7, which means that they also save time.

However, there are some disadvantages for employees too. For example, employees usually need to provide a lot of personal information in order to gain access to such application. Moreover, if they are confused about a particular aspect of it, it can be difficult to get personal help or support.

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