Answer:
b. dynamic capability
Explanation:
The competence described in the question is a company's dynamic capability because it represents the company's ability to change its internal functions according to the dynamics of external enviroment.
A company with a high dynamic capability is able to assess the changes that the market is going through, and adpat itself to those changes. A company that lacks dynamic capability can easily be swayed by market changes, and lose market share, or even, disappear completely.
Compute the number of units available for sale in March. 1(b). Compute the number of units in ending inventory on March 31. 2. Compute the cost assigned to ending inventory using specific identification. Note: The March 9 sale consists of 80 units from March 1 purchase and 340 units from the March 5 purchase; the March 29 sale consists of 40 units from the March 18 purchase and 120 units from the March 25 purchase.
Final answer:
To compute the number of units available for sale in March, we add up the units in the beginning inventory and the units purchased during the month. The exact number of units available for sale in March is not provided. However, we can calculate the ending inventory on March 31 using the sales information provided. The cost assigned to ending inventory using specific identification cannot be determined without the exact ending inventory.
Explanation:
To compute the number of units available for sale in March, we need to add up the units in the beginning inventory and the units purchased during the month. In this case, the beginning inventory is not given, so we cannot compute the exact number of units available for sale in March. However, we can calculate the number of units in ending inventory on March 31 using the sales information provided. The March 9 sale consists of 80 units from the March 1 purchase and 340 units from the March 5 purchase.
Therefore, the total number of units sold from March 1 to March 9 is 80 + 340 = 420 units. Similarly, the March 29 sale consists of 40 units from the March 18 purchase and 120 units from the March 25 purchase. So, the total number of units sold from March 1 to March 29 is 420 + 40 + 120 = 580 units. To calculate the ending inventory on March 31, we subtract the total units sold from the units available for sale. However, the total units available for sale is not given, so we cannot compute the exact ending inventory for March.
Regarding the cost assigned to ending inventory using specific identification, we assign the costs of the specific units that are still in the inventory. Since the exact ending inventory is not provided, we cannot determine the cost assigned to it using specific identification.
The Winter Wear Company has expected earnings before interest and taxes of $3,800, an unlevered cost of capital of 15.4 percent and a tax rate of 35 percent. The company also has $2,600 of debt with a coupon rate of 5.7 percent. The debt is selling at par value. What is the value of this firm
Answer:
The value of the firm is $16,949
Explanation:
Value of the firm is the firm's economic value at a particular time. Winter Wear Company's value will be calculated by:
= [tex]\frac{EBIT(1-tax rate)}{Unlevered Cost of Capital}[/tex] + (Tax rate * Debt) =
Here given are,
EBIT = $3,800
Tax Rate = 35%
Unlevered Cost of Capital = 15.4%
Debt = $2,600
= [tex]\frac{3,800(0.65)}{0.154}[/tex] + (0.35 x $2,600)
= $16,039 + $ 910
= $16,949
Final answer:
The value of the Winter Wear Company is approximately $24,726.77, which is calculated by adding the value of the unlevered firm to the value of the tax shield from the debt.
Explanation:
To calculate the value of the Winter Wear Company, we need to consider both the value of the company without any leverage (unlevered) and the effects of the debt on the value of the company (levered).
Firstly, let's calculate the value of the unlevered firm. This is done by dividing the expected earnings before interest and taxes (EBIT) by the unlevered cost of capital. This will give us the value of the firm if it had no debt.
Unlevered Firm Value = EBIT / Unlevered Cost of Capital
Unlevered Firm Value = $3,800 / 0.154 = $24,675.32 approximately
Next, we can calculate the value of the tax shield that debt provides. This is the amount by which the tax deductible interest payments on the debt reduce the company's tax liability.
Tax Shield Value = Tax Rate x Debt x Coupon Rate
Tax Shield Value = 0.35 x $2,600 x 0.057 = $51.45
Finally, we add the value of the unlevered firm and the tax shield to get the total value of the levered firm.
Levered Firm Value = Unlevered Firm Value + Tax Shield Value
Levered Firm Value = $24,675.32 + $51.45 = $24,726.77 approximately
Thus, the value of the Winter Wear Company, considering debt and taxes, is approximately $24,726.77.
One disadvantage of relational contracting is that it may cause firms to abandon established relationships. a. True b. False
Answer:True
Explanation:
Adverse approaches to contracting in some companies have led to reduced efficient industry with lower productivity levels. However, the relational contracting approach has evidently increased the efficiency by developing partnering agreements and joints team goals and reviews that enhanced financial returns.
Bayside Health Systems is in a community that is changing. It had been an industrial city, but many of the industries have closed. The local college is growing and is now the number one employer. Other major business include healthcare, a local amusement park, and a large outlet retail mall. The population is also changing with a greater number of young people because of the college and work available at the amusement park and mall.
The only currently existing hospital competing against you has the trauma center for the area and is opening an OB service. There is no children’s hospital or orthopedic services in the area. Both existing hospital treat some pediatric and orthopedic patient but most are sent to other hospitals located several hours away.
Bayside Health Systems will be opening a new high-tech hospital next year (this will be a second hospital in the system).
Bayside Health Systems recently added physician offices, home health, and occupational health to their network. However, they have not networked and implemented existing systems to these organizations.
Administration developed the following business objectives.
Improve quality of care provided to patient
Use hospital resources effectively and efficiently
Increase market share of healthcare services provided.
Bayside Health Systems have the following systems implemented
Lab information system implemented 5 years ago
Radiology information system implemented last year
Nursing information system implemented 3 years ago
Hospital information system implemented 10 years ago
Decision support system – ready for implementation but not implemented
Financial information system was implemented 2 years ago
Electronic Health Record
The following systems are not developed/implemented
Knowledge based system
Order entry/results reporting
Intensive care unit
Data Repository
Based on the information above, create a strategic plan. Address at minimum the following four questions:
How well are systems in place to meet the objectives?
Determine possible projects to ensure that the objective are met?
How can you use technology to prepare for the changes in the community?
How will HIM be affected by your proposed projects?
NOTE: Do not just answer the questions, create a plan which includes the responses to the questions.- do more then the bare minimum, orginal work and references
The bayside health system has been in operation for over 60 years. Its mission is to be committed to identifying and serving the health care needs of the community and its vision is to improve the quality of life through meeting the health care needs of the community they are committed to. Over the years it has managed to be committed to providing quality health care to its customers.it has been able to implement the following systems to help in its operation:
Lab information system Radiology information system Nursing information system Hospital information system Financial information system Electronic health record
Each of these systems plays a role towards the achieving of Bayside health system’s objectives which are:
to improve the quality of care they provide to their customers to utilize the resources of the hospital effectively and efficiently to increase their market share
The electronic health record for instance saves the system time when searching for data on their patients. The lab information systems on the other hand improves the quality of services that the system offers to its customers by helping in processing, storage and managing of data from all the stages involved in medical processes and tests. The implemented systems work together to ensure that the System meets its objectives.
In order to meet all its objectives, Bayside Health Systems can implement the following projects:
· Create a community health advisory board. This can act as channel for continued support in the community. The board main role would be to gather feedback or complains from the community and then present them to the System so it can act on them.
· Develop an intensive care unit to accommodate the patients with severe injuries or life threatening illnesses and need close monitoring and support from machines to gain normal body functioning. This will make it the only health care with an intensive care unit hence increase its market share.
· Opening a hospital specifically for children. Most of the children in the area are send to far away hospitals once they get sick therefore, by opening this it will have increased its market share.
· Starting to offer orthopedic services. These are services connected with treatment of the bones, joints and muscles.
Bayside Health Systems can change its payment methods to cope with the changing community due to the growth of a college. The youth prefer a fast payment method and the use of technology therefore the hospital can use a digitized payment method for its customers to use. Technology can also be used to come up with applications that can help in work with specific features designed to suit the productivity of the Systems. Bayside health systems can also use technology to introduce online booking of appointments or consultations to cope with the changes in the community which is now occupied with more youth due to the college.
The Health Information Management will now be tasked with storing of health information of all the patients of the health care including the children and the intensive care unit patients and orthopedic patients once the health care implements the suggested projects.
If the Federal Reserve lowers the discount rate, ceteris paribus (all else being equal), the equilibrium levels of funds lent will __________ and the equilibrium level of real interest rates will ___________.
Answer:
If the Federal Reserve lowers the discount rate, ceteris paribus (all else being equal), the equilibrium levels of funds lent will _____increase_____ and the equilibrium level of real interest rates will _____decrease______.
Explanation:
The Federal Reserve discount rate is how much the U.S. central bank charges its member banks to borrow from its discount window to maintain the reserve it requires. In the U.S., the money supply is influenced by supply and demand—and the actions of the Federal Reserve and commercial banks.
The Federal Reserve sets interest rates, which determine what banks charge each other to borrow money, what the Federal government charges banks to borrow money and what the consumer has to pay to borrow money. All else being equal, a larger money supply lowers market interest rates, making it less expensive for consumers to borrow. Conversely, smaller money supplies tend to raise market interest rates, making it pricier for consumers to take out a loan. The current level of liquid money (supply) coordinates with the total demand for liquid money (demand) to help determine interest rates.
Carrie enjoyed observing wildlife in natural habitats. She wanted to be able to hide at a distance but observe wildlife close up in a variety of circumstances. She visited five different outdoors shops and tried using several different pairs of binoculars. She liked the feel and features of the Nikon 7576 MONARCH 5 and decided to purchase it. What two levels of the product levels model did Carrie experience in this process?
Answer: 1. The core benefit
2. Expected product
Explanation:
Product Levels model indicates the degree to which certain products and services meet the expectations of customers. There are basically five product levels models which include; Core benefit, Generic product, Expected product, Augmented product, and Potential product.
The two product levels model Carrie experienced in her purchase of the Nikon 7576, and Monarch 5 are;
a. The core benefit: A product meets the core benefit when it meets the needs of the customer. The two products purchased by Carrie satisfy her basic need of binoculars that would enable her to observe wildlife from a distance.
b. Expected Product: This is factored when the product features meets the expectation of the customer. In Carrie's case, she liked the feel and features of these devices and this implies that they met her expectations.
The two levels of the product levels model that Carrie experimented with in this buying process were the core benefit and the expected product.
What is the core benefit of the product?Corresponds to the satisfaction of the basic needs of the customer through the characteristics of a product.
The Product Levels model is able to describe how customer expectations are met through products and services. The expected product is a level that corresponds to the positive perception of the product.
Therefore, by purchasing the binoculars, Carrie satisfied her need for remote viewing of wildlife with a favorable perception of the product's features and functionality.
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A company would repurchase its own stock for all of the following reasons except a. it needs the stock for employee bonuses. b. it wishes to make an investment in its own stock. c. it wishes to prevent unwanted takeover attempts. d. it wishes to improve the company's financial ratios.
Stock repurchase involves various reasons, but it is not done if the stock is needed for employee bonuses. The correct answer is A.
Stock repurchase, also known as stock buyback, is a strategy used by companies to buy back their own shares from the marketplace. Companies may repurchase stock for various reasons, including improving financial ratios, preventing unwanted takeover attempts, and making investments in their own stock. However, a company would not repurchase its stock if it needs the stock specifically for employee bonuses.
Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 23 comma 500 nursing hours are predicted for the month. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver.
Answer: Total cost (23500 hours predicted ) = $ 484625
Explanation:
The question is incomplete the high and low methods requires us to use high and low level of activity together with the corresponding total costs at each level to determine the variable cost per unit. we will provide assumed total costs and nursing hours in order to show how high and low method is used to predict total costs for the next period.
Assume the following were total costs and corresponding nursing hours for the previous 3 months
Total cost Hours
$560000 30000 hours
$400000 220000 hours
$225000 10000 hours
calculating Variable cost using high and low method
Variable cost per unit = (high cost - low cost)/high hour - low hours)
Variable Cost Per unit = (840000 - 225000)/ (30000 - 10000) = 16.75
Variable cost per unit = $ 16.75
Fixed costs = 560000 - (28000 x 16.75) = 560000 - 469000
Fixed costs = $91000
Total cost (23500 hours predicted ) =Total Fixed cost + Total Variable costs
Total cost (23500 hours predicted ) = $91000 + (23500 x $16.75)
Total cost (23500 hours predicted ) == $91000 + $393625
Total cost (23500 hours predicted ) = $ 484625
The hospital's cost equation using nursing hours as the cost driver is: Cost = $4.80 per nursing hour + $10,000. Predicted total overhead costs when 23,500 nursing hours are predicted for the month is $120,600.
Explanation:The high-low method involves selecting the highest and lowest levels of activity and their respective costs to estimate the cost equation. Using the provided data points, we determine the cost equation for the hospital's overhead costs as follows:
1. Identify the highest and lowest levels of activity and their corresponding costs.
2. Calculate the variable cost per unit of activity (nursing hour).
3. Determine the fixed cost component of the equation.
4. Formulate the cost equation using the variable and fixed cost components.
5. Predict total overhead costs by substituting the predicted level of activity (23,500 nursing hours) into the cost equation.
In this case, the cost equation is Cost = $4.80 per nursing hour + $10,000. Substituting 23,500 nursing hours into the equation gives a predicted total overhead cost of $120,600.
Based on your understanding of help desk operations a job stress, make a list of ten or more different factors in a help desk environment that can increase or decrease the job stress experienced by agents.
Explanation:
Monotonous work: Sometimes monotonous work irritates the help desk.
Seeking for same information: When providing the same information again and again to a different customer.
Lack of work recognition: At times failing to appreciate the effort create stress.
Talking without rest: Continuously answering without taking a break might cause stress.
Work pressure: When the work pressure increases there is a possibility of stress being more.
Inflexible working hours: Change in life style due to change in work hours might create stress.
Work-life imbalance: This also act as a source for stress.
Taking regular medications, family pressure, undervalued pay scale everything counts for stress.
At the beginning of the period, the Fabricating Department budgeted direct labor of $51,000 and equipment depreciation of $59,000 for 3,400 hours of production. The department actually completed 4,100 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. $
Answer:
= $120,500.00
Explanation:
Flexible budget is that which is that which recognizes the cost behavior and is used for control purpose. It is prepared based on the actual level of activity achieved.
Kindly note that the $59,000 depreciation is a fixed cost which do not vary with the hours of production.
The flexible budget for the department will be
Direct Labour budget = ( 51000/3400) × 4,100
= $61,500.00
Equipment depreciation= $59,000
Total flexible budget = $61,500.00 + $59,000
= $120,500.00
Sunland Industries collected $105,000 from customers in 2019. Of the amount collected, $24,400 was for services performed in 2018. In addition, Sunland performed services worth $38,100 in 2019, which will not be collected until 2020. Sunland Industries also paid $73,200 for expenses in 2019. Of the amount paid, $31,000 was for expenses incurred on account in 2018. In addition, Sunland incurred $41,100 of expenses in 2019, which will not be paid until 2020. Compute 2019 cash-basis net income. Cash-basis net income s 3X Compute 2019 accrual-basis net income. Accrual-basis net income
Cash Basis Income:
1. Cash 105000
Sales revenue 105000
2. Cash 24400
Sales revenue 24400
3.No entry
4.Expense 73200
Cash 73200
5.Expense 31000
Cash 31000
6.No entry
Sunland industries
Cash basis net Income
Sales (105000+24400) =129400
less: expenses (73200+31000) =(104200)
Income 25200
Accrual Basis Income
. 1.a.) Account receivable 105000
Sales revenue 105000
b.) Cash 105000
Account receivable 105000
2. a)Account receivable 24400
Sales revenue 24400
b) Cash 24400
Account receivable 24400
3. Account Receivable 38100
Sales revenue 38100
4.a) Expense 73200
Payable 73200
b) Payable 73200
Cash 73200
5.Payable 31000
Cash 31000
6. Expenses 41100
Payable 41100
Sunland industries
Accrual basis net Income
Sales (105000+24400+38100) =167500
less: expenses (73200+41100) =(114300)
Income 53200
A regression line is the line that best fits the data, but this does not mean that the fit is good. In other words, there can still be a lot of variability about the regression line. Which combination describes a regression line that is a good fit for the data?
Answer:
Larger-sq and small Se.
Explanation:
Regression line is a line that clearly describes the behavior of a given set of data.
Regression lines are very essential for forecasting processes. The importance of the line is to describe the interrelation of a dependent variable (Y variable) with one or many independent variables (X variable).
An analyst can forecast future behaviors of the dependent variable by making use of the equation gotten the regression line. This is done by inputting different values for the independent ones. Regression lines are frequently employed in the financial sector.
Financial analysts make use of linear regressions to forecast stock prices, commodity prices and also to carry out valuations for many different securities. Companies use regressions for the purpose of forecasting sales, inventories and a lot of other variables that are needed for strategy and planning. The regression line formula is represented below:
(Y = a + bX + u)
A good fit for a regression line is indicated by a small sum of squared errors, a high correlation coefficient, and the absence of significant outliers. This suggests that the line closely captures the data trend and has minimal residual variance.
Explanation:A regression line that is a good fit for the data is characterized by several key indicators. First, the line should closely follow the trend of the data points represented in a scatter plot. This means there should be a minimal amount of residual variance, which is the variance of the actual y-values from the predicted ones on the line. The strength and appropriateness of this fit can also be evaluated by looking at the correlation coefficient, commonly represented by r. A high value of r, near 1 or -1, suggests a strong linear relationship between the x and y variables and by extension a good fit by the regression line. Additionally, a small sum of squared errors (SSE) indicates that the line closely captures the pattern in the data. Lastly, if a regression line is to be considered a good fit, it should not have significant outliers, as these can distort the regression analysis and give a false representation of the data. In conclusion, a combination of a high correlation coefficient, a small SSE, and the absence of significant outliers would describe a regression line that is a good fit for the data.
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1. Select two categories of records that are exempt from public disclosure under the Freedom of Information Act.
a. Environmental impact statements
b. National security documents
c. Documents with confidential information
d. Documents written by past presidents
e. Bills that were rejected in congressional committees
2. The Government in the Sunshine Act ______ all agency meetings to be ______ to the public unless they meet certain criteria. If a person is going to be ______, if ______ agency action would be frustrated, or if the meeting involves ______ litigation or rulemaking, then the meeting may be ______.
3. Which law requires the government to reassess the impact on business and continue to look for less burdensome means of achieving a governmental goal?
a. Government in the Sunshine Act
b. Freedom of Information Act
c. Regulatory Flexibility Act
d. Small Business Regulatory Enforcement Fairness Act
4. The Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes.
True or False?
5. The Small Business Regulatory Enforcement Fairness Act gives Congress days to review new federal regulations to be sure that they do not unduly burden small businesses.
True or False?
Answer:
1) b. National security documents
c. Documents with confidential information
2) i - requires
ii - open
iii - accused of a crime
iv - future
v - future
vi - closed
3) c. Regulatory Flexibility Act
4) True
5) True, 60days
Explanation:
1) Two categories of records that are exempt from public disclosure under the Freedom of Information Act are; "National security documents & Documents with confidential information".
2) The Government in the Sunshine Act requires all agency meetings to be open to the public unless they meet certain criteria. If a person is going to be accused of a crime, if future agency action would be frustrated, or if the meeting involves future litigation or rule making, then the meeting may be closed.
3) The law which requires the government to reassess the impact on business and continue to look for less burdensome means of achieving a governmental goal is Regulatory Flexibility Act.
4) It is true that the Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes.
5) The Small Business Regulatory Enforcement Fairness Act gives Congress 60 days to review new federal regulations to be sure that they do not unduly burden small businesses.
Answer:
Explanation:
1. Categories of records that are exempt from public disclosure under the Freedom of Information Act are:
1. National security documents
2. Documents with confidential information
The above stated are exempted from the freedom of information act.
2. The Government in the Sunshine Act requires all agency meetings to be open to the public unless they meet certain criteria. If a person is going to be accused of a crime , if national defence agency action would be frustrated, or if the meeting involves legal litigation or rule making, then the meeting may be kept private.
3. C. Regulation Flexibility Act: This act is used to balance the social goals of federal regulations with the needs and capabilities of small businesses and other small entities in the American society.
It was enacted in September 1980 which requires agencies to consider the impact of their regulatory proposals on small entities and analyze effective alternatives that minimize small entity impacts, and make their analyses available for public comment.
4. The Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes. True or False?
False- this is because the regulatory flexibility act requires agencies to examine public policy issues using an analytical process that identifies barriers to small business competitiveness and seeks a level playing field for small entities, not an unfair advantage.
5. The Small Business Regulatory Enforcement Fairness Act gives Congress days to review new federal regulations to be sure that they do not unduly burden small businesses. True or False?
False
If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?
Answer:
6,000
Explanation:
This question is incomplete. I have given the complete question in addition to my solution below.
If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?
Morganton Company makes one product and it provided the following information to help prepare the master budget:
The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,700, 28,000, 30,000, and 31,000 units, respectively. All sales are on credit.
Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
The ending finished goods inventory equals 20% of the following month’s unit sales.
The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.
Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.
The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $67,000.
Variable manufacturing overhead = $10 per direct labor hour
Amount of time required to finish one unit of goods = 2 hours
Direct labor wage rate = $15 per hour
Amount of raw materials required to finish one unit of goods = 4 pounds
Cost of raw materials = $2.50 per pound
Budgeted selling price per unit = $70
Budgeted unit sales for August = 30,000
Therefore, Unit costs = (4*2.50)+(15*2)+(10*2) = $60 per unit
And cost of goods sold = 28,000 * 60 = $1,680,000
(Gross margin) = (70-60)*28,000
= $280,000
The ending finished goods inventory balance for July = 20% of the following month's (August’s) unit sales.
= 0.20 * 30,000 = 6,000
The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years and produce cash flows of $44,503 per year. What is the project's IRR?
Answer:
IRR of the project is 18%
Explanation:
The first table showing the cash flows for the 10 years and the formula for computing the IRR.
The second table showing the IRR of the project, which is 18%.
Computing the IRR by using the excel formula, which as:
=IRR(values,guess)
where
values are from year 0 to year 10
guess will be 0
So,
=18%
NOTE: The cash flow of year 0 is negative because it is costs of the project, which is paid.
One year ago, Deltona Motor Parts deposited $16,500 in an investment account for the purpose of buying new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today.
How much will be available when it is ready to buy the equipment, assuming the account pays 5.5% interest?
Answer:
At the end of the fourth year period, the total amount will be of: $56,792.01
Explanation:
Giving the following information:
One year ago, Deltona Motor Parts deposited $16,500 in an investment account to buy new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today.
To calculate the ending amount of money, we need to use the following formula dor each deposit:
FV= PV*(1+i)^n
Therefore:
FV= 16,500*(1.055)^4= $20,440.61
FV= 12,000*(1.055)^3= $14,090.90
FV= 20,000*(1.055)^2= $22,260.5
Total= $56,792.01
In 2019, Aurora received a $25,000 bonus computed as a percentage of profits. In 2020, Aurora’s employer determined that the 2019 profits had been incor-rectly computed, and Aurora had to refund the $8,000 in 2020. Assume that Aurora was in the 35% tax bracket in 2019 but in the 12% bracket in 2020.
a. In 2019, how much is Aurora required to include in income?
b. In 2020, what is the amount of the deduction Aurora can claim? What is the reduction in taxes for 2020 as a result of the deduction?
Answer:
Answers are explained below in the explanation part.
Explanation:
(a) In 2019, Aurora is required to add $25000 income because this was the amount that was transferred initially to employee from the employer.
(b) In 2020, Aurora can claim a deduction of $2800 (8000*35% = 2800). Now in 2020, Aurora will not be given reduction in taxes as she has claim amount due from taxes which she claimed of the extra taxes charged in year 2019.
launching a new product: hard ginger ale, with expected sales of $10 million this year. They do expect there will be loss of sales of $1 million this year and next year in their other products as customers switch to drinking the new ginger ale. The gross profit margin for the new ginger ale is 40%, the gross profit margin of all of the brewer's other products is 30%, and the brewer's marginal corporate tax rate is 35%. Assume all other expenses remain the same. What are the incremental cash flows from operations arising from the new product in year 1
Answer:
$1.95 million
Explanation:
Incremental cash flow is defined as the extra operating cash flow gained by an organization from launching a new product or service. Additional cash flow implies that the cash flow of the company will be increased with the introduction of the new product or service.
$10 million - (40% *$10 million) - $1 million = $5 million
$5 million × 0.6 = $3 million
$3 million × 0.65 = $1.95 million`
Once the patent for a drug in the pharmaceutical industry expires, the market for the generic equivalents a. Has no effect on the profits earned by the original producer b. Is usually considered competitive c. Would not exist d. Is a monopolistic market
Answer:
The correct answer is letter "C": Is usually considered competitive.
Explanation:
Patents are grants of property given to creators on their inventions. Most patents are valid for 20 years counted from the filing date with the United States Patent and Trademark Office (USPTO). After the patent expires, other individuals can make use and exploit the creation. In such circumstances, the invention becomes competitive since it can be replicated by other entities, which was forbidden while the patent was valid.
For divorces after 1984 but before 2019, which of the following statements about alimony payments is not correct? a. Divorced or legally separated parties can be members of the same household at the time the payments are made. b. The payor must have no liability to make payments for any period following the death of the spouse receiving the payments. c. The payments must not be designated in the written agreement as anything other than alimony. d. The payments must be in cash and must be received by the spouse (or former spouse).
Answer:
d. The payments must be in cash and must be received by the spouse (or former spouse).
Explanation:
There was not an obligation that alimony should be paid only in cash, It could be made by check, bank transfer, deposit, or another financial transaction mean. However, it is noted that it could be paid in cash, but preferably, if the couple does not have an amicable relationship post-marriage, some kind of receipt should be received to prove that transaction.
One difference between nancial and managerial accounting is that the external users that use nancial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.
a. true
b. false
Answer:FALSE
Explanation:Financial statements includes income statements, expenditure statement etc they are prepared following specified guidelines and are prepared to monitor and regulate the flow of funds within an organisation.
Managerial accounting is an accounting system designed to help managers take effective and efficient managerial decisions. THE EXTERNAL USERS OF FINANCIAL STATEMENTS ARE NOT MANDATED TO USE IT TO plan for the future THE INTERNAL USERS OF MANAGERIAL ACCOUNTING MUST NOT USE IT TO DECIDE TO
INVEST IN OR LEND TO A COMPANY.
If the lender holding the nonrecourse debt secured by Kevan’s land required Kevan to guarantee 33.33 percent of the debt and Jerry to guarantee the remaining 66.67 percent of the debt when Albee LLC was formed, how much gain or loss will Kevan recognize?
Answer:
Kevin will recognised loss of $45,003
Explanation:
The question is not completed. The following data for Kevan are missing.
Kevan:
Cash contributed = $15,000
Land = $120,000
Nonrecourse debt relief = $210,000
Debt secured forming Albee LLC = $90,000
Note that Kevin is required to guarantee 33.33% of the debt
Therefore, the debt is ( 33.33/100) x 90,000 = $29,997
Therefore, Kevin gain or loss = (210,000 - 120,000 - 15,000 - 29,997) in $ = $45,003
This $45,003 will be a loss because the nonrecourse debt of $210,000 is more than Kevin's total money from land, contributed cash and share of guarantee loan.
Final answer:
Kevan will recognize gain or loss based on his 33.33 percent guarantee of the nonrecourse debt secured by land for Albee LLC. Kevin will recognised loss of $45,003
Explanation:
The question asks about the recognition of gain or loss by Kevan based on his part of the guarantee on nonrecourse debt for the land secured when forming Albee LLC. The extent of liability assumed by Kevan dictates the potential financial impact on him. Thus,
Cash contributed = $15,000
Land = $120,000
Nonrecourse debt relief = $210,000
Debt secured forming Albee LLC = $90,000
As, Kevin is required to guarantee 33.33% of the debt
Therefore, the debt is ( 33.33/100) x 90,000 = $29,997
Therefore, Kevin gain or loss = (210,000 - 120,000 - 15,000 - 29,997) in $ = $45,003
This $45,003 will be a loss because the nonrecourse debt of $210,000 is more than Kevin's total money from land, contributed cash and share of guarantee loan.
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials $15,000
Indirect labor 130,000
Property taxes, factory 8,000
Utilities, factory 70,000
Depreciation, factory 240,000
Insurance, factory 10,000
Total actual manufacturing overhead
costs incurred $473,000
Other costs incurred:
Purchases of raw materials(both
direct and indirect) $400,0000
Direct labor cost $60,0000
Inventories:
Raw materials, beginning. $20,0000
Raw materials, ending $30,0000
Work in process, beginning $40,0000
Work in process, ending $70,0000
The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The total estimated manufacturing overhead for the period is $376,000. The total estimated machine hours are 23,500. A total of 23,000 actual machine-hours was recorded for the year.
Required:
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Prepare a schedule of cost of goods manufactured for the year.
Answer:
Amount of underapplied or overapplied overhead cost for the year
$97000 - Underapplied
Schedule of cost of goods manufactured for the year
Direct Material 3885000
Direct Labor 60000
Overheads 376000
Total Manufacturing Costs 4321000
Add Opening Inventory WIP 400000
Less Closing Inventory WIP (700000)
Cost of Goods Manufactured 4021000
Explanation:
Amount of underapplied or overapplied overhead cost for the year
Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead
$473000-$376000= $ 97000
Schedule of cost of goods manufactured for the year
Direct Materials Calculation
Opening 200000
Add Purchases 4000000
Available 4200000
Less Closing Material 300000
Materials Consumed 3900000
Less Indirect Materials 15000
Direct Materials Consumed 3885000
Answer:
1. The overhead is under applied - $ 105,000
2. Schedule of cost of goods manufactured
Raw materials consumed $ 390,000
Direct Labor $ 60,000
Applied manufacturing overhead $ 368,000
Total manufacturing input $ 818,000
Add: Opening work in process $ 40,000
Less: Closing work in process $ ( 70,000)
Cost of goods manufactured $ 788,000
Explanation:
Calculation of predetermined overhead
Estimated manufacturing overhead $ 376,000
Estimated machine hours 23,500
Predetermined overhead rate $ 16 per machine hour
Calculation of over - under application of overhead
Actual machine hours 23,000
Predetermined overhead rate $ 16 per machine hour
Total Overhead applied 23,000 * $ 16 = $ 368,000
Actual overhead $ 473,000
Underapplication of overhead $ 105,000
Calculation of materials consumed
Raw materials beginning $ 20,000
Purchases $ 400,000
Less: Raw materials ending $ ( 30,000)
Raw materials consumed $ 390,000
Direct Labor $ 60,000
Applied manufacturing overhead $ 368,000
Total manufacturing input $ 818,000
Add: Opening work in process $ 40,000
Less: Closing work in process $ ( 70,000)
Cost of goods manufactured $ 788,000
"In about 100 words, describe how an n-tier architecture might be used by an online business. Include in your answer an outline of the functions that would likely be performed by computers configured in this way."
Answer:
The three main reasons that might make n-tire architectures used in online businesses are Their intuitive system structure for administrators, their layering organization of processes, and the ability to maintain data separated in two different pools.
Explanation:
Three main reasons make n-tire architecture could be used in an online business.
The first one is that its structure allows administrators to identify the problems of the webpage and focus on the matter instead of having to review all of the structure to find out what is going on.
The second reason is that its layering organization provides the best setup to reuse applications. Which in other words says that the structure itself can make it possible to apply this structure to different purposes.
The third one is that the data access and data storage pools are separated and can be reviewed as well as provide maintenance to them in different times, to keep some functionality available in the process to test it and review if it works properly instead of doing it all together and testing after the process is done.
An n-tier architecture is used by online businesses to build scalable and robust systems. It includes layers for presentation, business logic, and data storage. This architecture enables separation of concerns, maintainability, and scalability.
Explanation:An n-tier architecture is often used by online businesses to build scalable and robust systems. In this architecture, the system is divided into multiple layers or tiers, each responsible for a specific set of functions. The typical n-tier architecture includes a presentation layer, business logic layer, and data storage layer.
The presentation layer is responsible for displaying the user interface and handling user interactions. It may consist of web servers, mobile apps, or desktop applications. The business logic layer contains the core functionality of the application and handles the processing of user requests. It interacts with the presentation layer and other layers to perform tasks such as data validation, business rules implementation, and communication with external systems. The data storage layer consists of a database or data storage system where information is stored and retrieved.
By using an n-tier architecture, an online business can achieve separation of concerns, maintainability, and scalability. Each layer can be developed, tested, and maintained independently, making it easier to update or modify specific components without affecting the entire system. Additionally, the modular nature of the architecture allows for scalability by adding additional servers or resources to handle increasing user and data demands.
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Suppose that a 5-year Treasury bond pays an annual rate of return of 2.9%, and a 5-year bond of the fictional company Risky Investment Inc. pays an annual rate of return of 7.3%. The risk premium on the Risky Investment bond is ___ percentage points.
Answer:
The risk premium is 4.4%
Explanation:
The risk premium on any given investment is the difference between the risky investment and the risk free investment and in this case we know treasury bonds are risk free and offer a certain return of coupons because they come from governments rather than the fictional ones like the one from risky investment inc so to find the risk premium we say :
Risk Premium = Risky investment rate - Risk free investment Rate
= 7.3% - 2.9%
= 4.4%
Answer: The risk premium on the risky investment bond is 4.4%
Explanation: Risk premium is the rate of return by which a risky asset must exceed a risk free asset. The aim of this is to induce an individual to hold the risky asset rather than the risk-free asset.
Risk premium (Rm) is calculated by subtracting the risk free rate (Rf) from the risky investment rate (Ri).
That is Rm= Ri - Rf
= 7.6% - 2.9%
=4.4%
William is a single writer (age 35) who recently decided that he needs to save more for retirement. His 2019 AGI is $68,000 (all earned income). (Leave no answer blank. Enter zero if applicable.)If he does participate in an employer-sponsored plan, what is the maximum deductible IRA contribution William can make in 2019?
Answer:
The maximum IRA contribution William can make is $6000 a year.
Explanation:
There are limits in the IRA contribution plans to make sure that there are no people benefiting more than others because of their high pay instead limits are per age. if younger than 50 years then Maximum contribution per year is $6000 and if older then it is $7000 it is increasing with age not salary.
Chose the best plan for each of the following statement:(1) We are known for our operating efficiency and for reducing insurance costs for our customers.(2) The Human Resource Division will reduce the overall cost of fulfilling employment requisitions by eliminating the use of outside recruiting agencies.(3) We will eliminate redundancies throughout the corporation to decrease our overall expenses by 20%.(4) Each human resource employee will use advertisements and personal networking to attract at least 10 qualified applicants per open position.(A) Tactical(B) Mission statement(C) Operational(D) Strategic
Answer & Explanation:
(1) We are known for our operating efficiency and for reducing insurance costs for our customers - Mission statement
(2) The Human Resource Division will reduce the overall cost of fulfilling employment requisitions by eliminating the use of outside recruiting agencies - Tactical
(3) We will eliminate redundancies throughout the corporation to decrease our overall expenses by 20% - Strategic
(4) Each human resource employee will use advertisements and personal networking to attract at least 10 qualified applicants per open position - Operation
Sam Seller was worried that Barney would not perform under the contract and demanded an assurance. How many days does Barney have from Sam's demand to give assurance?
Final answer:
In business law, a party concerned about another's contract performance can request assurance in writing. Under the UCC Section 2-609, the party must provide assurance within 30 days, or the concerned party may treat the failure as an anticipatory breach of contract.
Explanation:
The scenario described involves contractual obligations and the need for assurance of performance. Legally, when one party to a contract expresses concern about the other party's ability to perform, they can request a written assurance of performance. Although the specifics can vary based on jurisdiction and the terms of the contract itself, the Uniform Commercial Code (UCC), which is often adopted in the United States, generally provides a guideline for such situations. Under UCC Section 2-609, when reasonable grounds for insecurity arise with respect to the performance of either party, the other may in writing demand adequate assurance of due performance and until he receives such assurance may if commercially reasonable suspend any performance for which he has not already received the agreed return. The party receiving the demand must provide assurance within a reasonable time, which is considered to be not to exceed 30 days. If assurance is not provided within this timeframe, the party demanding assurance may treat the failure as an anticipatory breach of contract.
Barrymore Costume Company, located in New York City, sews costumes for plays and musicals. Barrymore considers itself primarily a service firm, as it never produces costumes without a preexisting order and only purchases materials to the specifications of the particular job. Any finished goods ending inventory is temporary and is zeroed out as soon as the show producer pays for the order. Overhead is applied on the basis of direct labor cost. During the first quarter of the year, the following activity took place in each of the accounts listed:
Work In Process
Bal. 17,000 Complete 245,000
DL 80,000
OH 140,000
DM 40,000
Bal. 32,000
Finished Goods
Bal. 40,000 Sold 210,000
Complete 245,000
Bal. 75,000
Overhead
138,500 140,000
Bal. 1,500
Cost of Goods Sold
210,000
Job 32 was the only job in process at the end of the first quarter. A total of 1,000 direct labor hours at $10 per hour were charged to Job 32.
Required:
1. Assuming that overhead is applied on the basis of direct labor cost, what was the overhead rate used during the first quarter of the year?
2. What was the applied overhead for the first quarter? The actual overhead? The under- or overapplied overhead?
3. What was the cost of the goods manufactured for the quarter?
4. Assume that the overhead variance is closed to the cost of goods sold account. Prepare the journal entry to close out the overhead control account on March 31. Refer to the Chart of Accounts for account titles. What is the adjusted balance in Cost of Goods Sold?
5. For Job 32, identify the costs incurred for direct materials, direct labor, and overhead.
The overhead rate used during the first quarter was $1.75 per dollar of direct labor cost accounting. The applied overhead was $17,500, the actual overhead was $140,000, and the under-applied overhead was $122,500. The cost of goods manufactured for the quarter was $169,500. The adjusted balance in Cost of Goods Sold is $211,500. For Job 32, the costs incurred are: direct materials $40,000, direct labor $10,000, and overhead $17,500.
1. To calculate the overhead rate, divide the total overhead by the total direct labor cost. In this case, the total overhead is $140,000 and the total direct labor cost is $80,000. So the overhead rate is $140,000 / $80,000 = $1.75 per dollar of direct labor cost.
2. The applied overhead can be calculated by multiplying the direct labor cost of Job 32 by the overhead rate. In this case, the direct labor cost of Job 32 is $10,000 (1,000 hours x $10 per hour) and the overhead rate is $1.75. So the applied overhead for the first quarter is $10,000 x $1.75 = $17,500. The actual overhead is $140,000, and the under-applied overhead is $140,000 - $17,500 = $122,500.
3. To calculate the cost of goods manufactured for the quarter, add the beginning work in process inventory, the direct materials used, the direct labor cost, and the applied overhead. In this case, the beginning work in process inventory is $32,000, the direct materials used is $40,000, the direct labor cost is $80,000, and the applied overhead is $17,500. So the cost of goods manufactured is $32,000 + $40,000 + $80,000 + $17,500 = $169,500.
4. The journal entry to close out the overhead control account is as follows:
Debit: Overhead Control ($1,500)Credit: Cost of Goods Sold ($1,500)The adjusted balance in Cost of Goods Sold is $211,500 ($210,000 + $1,500).
5. For Job 32, the costs incurred are:
Direct materials: $40,000Direct labor: $10,000Overhead: $17,500For more questions on Cost Accounting
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Using the data below, determine the ending inventory amount assuming the weighted average method with a periodic inventory system. Beginning inventory, 10 units Purchases, 20 units Total cost of units available for sale, $3,000 Ending inventory, 12 units $3,000 $100 $1,200 None of these choices are correct. 2. Using the data below, calculate the cost of merchandise sold. Beginning inventory, $1,000 Inventory purchased, $3,000 Net Income, $40,000 Ending inventory, $2,000 Sales, $185,000 $2,000 $4,000 $185,000 $145,000
The ending inventory amount is $1200 using the weighted average method and the cost of merchandise sold is $2000.
Explanation:To determine the ending inventory amount using the weighted average method, you need to divide the total cost of units available for sale by the total units available. In this case, $3000(available cost) divided by 30 units(10 units of the beginning inventory and 20 units bought) makes $100 per unit as average cost. Multiplying this average cost by the number of units in the ending inventory(12 units), we have $1200 as the ending inventory amount.
To calculate the cost of merchandise sold or Cost of Goods Sold(COGS), you need to subtract the ending inventory from the total cost of goods available. Here, $1000(beginning inventory) added to $3000(inventory purchased) gives us a total of $4000. Subtracted by $2000(ending inventory), we'll have $2000 as the cost of merchandise sold.
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