Final answer:
The most effective closing is option a, which includes an inviting tone, important logistical details, and a clear call to action.
Explanation:
The most effective closing from the provided options would be: a. Bring your lunch and join the group! Because the room is limited to 30, please make your reservation with me before March 12. This closing provides a clear and polite invitation along with critical logistical information, including the capacity limit and the reservation deadline, which are essential for planning. The direct call to action encourages the reader to engage promptly, and the inclusion of a specific reservation process ensures that potential attendees understand how to secure their spot. As evidenced by the campus restaurant scenario, students are concerned with coordinating their time effectively and sharing meals. Communicating the relevant details upfront respects their time and facilitates group participation.
Artery disease. An article in the New England Journal of Medicine describes a randomized controlled trial that compared the effects of using a balloon with a special coating in angioplasty (the repair of blood vessels) compared with a standard balloon. According to the article, the study was designed to have power 90%, with a two-sided Type I error of 0.05, to detect a clinically important difference of approximately 17 percentage points in the presence of certain lesions 12 months after surgery.13 What fixed significance level was used in calculating the power? Explain to someone who knows no statistics why power 90% means that the experiment would probably have been significant if there was a difference between the use of the balloon with a special coating compared to the use of the standard balloon.
Answer:
See the attached picture for answer.
Explanation:
See the attached picture for explanation.
William plans to attend college for 3 years. His first day of college will be one year from today. He expects tuition to cost $15,000 in the first year. He also estimates that the college will increase his tuition by 4% each year for the next two years. William would like to exactly match these liabilities using the following assets: I. a one-year coupon bond with annual coupon of 3% and a yield to maturity of 4% II. a two-year zero coupon bond with a yield to maturity of 4.5% III. a three-year coupon bond with annual coupons of 7% and a yield to maturity of 5% What is the total cost of the asset portfolio that will exactly match the liabilities? a. 41,900 b. 42,300 c. 42,700 d. 43,100 e. 43,500
Answer:
The correct option is c.
Explanation:
See the picture attached
The following information pertains to Guillotine Corporation: Beginning inventory 1,000 units Ending inventory 6,000 units Direct labor per unit $40 Direct materials per unit $20 Variable overhead per unit $10 Fixed overhead per unit $30 Variable selling and admin. costs per unit $6 Fixed selling and admin. costs per unit $14
A) What is the value of the ending inventory using the absorption costing method?a) $600,000b) $100,000c) $120,000d) $70,000
Answer:
Value of the ending inventory=$600,000
Option A is correct ($600,000)
Explanation:
Given Data:
Ending inventory=6,000 units
Direct labor per unit =$40
Direct materials per unit=$20
Variable overhead per unit =$10
Fixed overhead per unit=$30
Required:
Value of the ending inventory=?
Solution:
Value of the ending inventory=(Direct labor per unit+Direct materials per unit+Variable overhead per unit + Fixed overhead per unit)*Ending inventory
Value of the ending inventory=($40+$20+$10+$30)*6000
Value of the ending inventory=$100*6000
Value of the ending inventory=$600,000
Option A is correct ($600,000)
The value of the ending inventory using the absorption costing method for Guillotine Corporation is $600,000. This is calculated by adding the relevant per unit costs, which total $100 per unit, and then multiplying by the number of units in the ending inventory.
Explanation:The absorption costing method includes both variable and fixed manufacturing costs, such as direct labor, direct materials, and both variable and fixed overhead, in the valuation of inventory.
In Guillotine Corporation's case, the costs per unit would be added together: $40 (direct labor) + $20 (direct materials) + $10 (variable overhead) + $30 (fixed overhead), which equals $100 per unit. Notice that the selling and administrative costs are not included in the valuation because absorption costing only includes manufacturing costs.
To find the value of the ending inventory, we then multiply the cost per unit ($100) with the number of units in the ending inventory (6,000 units). Therefore, 6,000 units * $100/unit = $600,000. Therefore, answer a) $600,000 is correct.
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Robin Company has $100,000 of income before payment of $100,000 of reasonable salaries to its owners employees (who are in the 32% bracket). Which form of business results in the least amount of combined income tax being paid by the company and its owners? 2. a. Partnership b. C corporation. c. S corporation. d. a., b, and c. all result in the same amount of tax. e. a. and c. result in the least amount of tax. t.
Answer:
d. a., b, and c. all result in the same amount of tax.
Explanation:
The question is to determine the form of business
First we need to understand some terms
A C Corporation refers to a standard corporation as far as the IRS is concerned while the S Coproration is a corporation with a special tax status giving it some tax privileges with the IRS. We however, group organisations as either C or S based on the taxation code with the Internal Revenue Service
It should be noted that C corporation, S corporation and partnership all aply the same rate of tax. The only place of advantage or difference is in the area of how the tax is treated and the difference in their liability.
As such, the owner in the question is being taxed based on the 32% bracket and as such it affects all the forms of business structures. Therefore, Partnership. C corporation and S corporation will asll result in the same amount of tax.
"Quasimodo was on the stand when he testified that he believed he saw Esmeralda steal the necklace. Another witness testified that Esmeralda could not have stolen the necklace because she was performing on stage at the time of the robbery. Quasimodo was later tried for perjury. He will most likely found"
(A) guilty because he intentionally gave false testimony
(B) guilty because he lied at trial
(C) guilty because he mistakenly thought he saw her steal the necklace.
(D) not guilty because he mistakenly thought he saw her steal the necklace.
(E) not guilty because he intentionally gave false testimony
(F) not guilty because he lied at trial.
Based on the given description, He will most likely be found guilty because he lied at trial. Thus the correct option is B.
What is a Context clue?Any kind of hint or idea reflected from the statements which helps the reader to understand the clear context in which the word is used is refers to context clues. This clue helps the reader to determine the appropriate meaning.
The novel "The Hunchback of Notre Dame" written by Victor Hugo features the imaginary character Quasimodo. Quasimodo, the bell ringer at Notre- Dame Cathedral in Paris, is famed for his physical appearance and infirmities throughout the story.
The passage asserts that Quasimodo is charged with perjury after falsely testifying in court about seeing Esmeralda, a gypsy woman, steal jewelry. A jeweler testified that Esmeralda couldn't have taken the necklace because she was on stage at the time of the robbery.
Therefore, option B is appropriate.
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Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries. CHECK ALL THAT APPLY!
A. Protect property rights and enforce contracts.
B.Pursue inward-oriented policies.
C. Increase taxes on income from savings.
D. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
Answer:
A. Protect property rights and enforce contracts.
D. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
Explanation:Productivity is a term used in macroeconomics as the ratio of Gross domestic product (GDP) to the hours worked, it can also be described as the ratio of output to input.
For a developing country that wants to promote increasing productivity and growth it will need to adopt policies that will encourage investments both from within and outside.
SOME OF THE POLICIES THAT CAN BE IMPLEMENTED INCLUDES THE PROTECTION OF PROPERTY RIGHTS AND ENFORCE CONTRACTS AND TO PROVIDE TAX BREAKS AND PARENTS FOR FIRMS THAT PURSUE RESEARCH AND DEVELOPMENT IN HEALTH AND SCIENCES ARE THE POSSIBLE OPTIONS BASED ON THE OPTIONS AVAILABLE.
Manufacturing overhead consists of three different costs; (1) machine supplies (variable), (2) property taxes (fixed), and (3) plant maintenance (semivariable). July's overhead costs were $179,000 for machine supplies, $25,700 for property taxes, and $1,250,000 for plant maintenance.
Answer:
(A) machine supplies $720,000 property taxes $25,700 since it is a fixed cost (B) plant maintenance cost $1,136,000, fixed cost high level of activity $114,600, low level of activity $114,700, variable cost per machine hour $17.05 per hour (C) 25.98 per hour
Explanation:
The question is not complete here is the missing part of the questions
The following selected data were taken from the accounting records of Colorado Enterprise
Month. Machine Hours. Manufacturing overhead
May. 46,000. $899,000
June. 60,000. $1,130,000
July. 68,000. $1,274,000
August. 52,000. $980,000
Here is the solution
(A) To determine the machine supplies and property for may
899,000 - 179,000
=720,000
To calculate the property taxes, since property taxes is a fixed cost, it is not affected by increases or decreases in the volume of output. It is $25,700
(B) To determine the Maintenance cost
We calculate maintenance cost, we use the level of activity at high level
1,250,000 - ( 68,000 + 46,000)
= 1,250,000 - 114,000
= $1,136,000
To calculate the monthly fixed cost and the variable cost per machine hour
Hour. Total cost
High output. 68,000. 1,274,000
Low output. 46,000. 899,000
--------------- -----------------
22,000. 375,000
------------------- -----------------
Variable cost per machine hour
=375,000/22,000
=$17.05 Per hour
Substituting in either the high or low volume cost
High. Low
Total cost. 1,274,000. 899,000
Variable cost. 1,159,400. 784,300
----------------- ----------------
Fixed cost. 114,600. 114,700
---------------- -----------------
(C) Estimated cost of 56,000 machine hours of output
Total overhead / Total machine hour
Total overhead = machine supplies + property taxes + plant maintenance
= 179,000 + 25,700 + 1,250,000
= 1,454,700
= 1,454,700/ 56,000
= 25.976
= $25.98 per hour
Working of variable cost
68,000 × 17.05 = 1,159,400
46,000 × 17.05 = 784,300
Manufacturing overhead consists of three different costs: machine supplies, property taxes, and plant maintenance.
Explanation:Manufacturing overhead refers to the indirect costs incurred in the production process, apart from direct materials and direct labor. It consists of three different costs: machine supplies, property taxes, and plant maintenance. Machine supplies are variable costs that change based on the level of production, property taxes are fixed costs that remain constant regardless of production volume, and plant maintenance costs are semi-variable, meaning they have both fixed and variable components.
In July, the machine supplies cost $179,000, property taxes amounted to $25,700, and plant maintenance expenses were $1,250,000.
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You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20% p.a. compounded annually. The IRR for this project is closest to:a 20.00%b 25.85%c 15.60%d 18.95%
Answer:
b.The IRR is equal to 25.85%
Explanation:
Firstly we are given that i consider investing $100000 which will in this problem be our Cinitial which is the initial investment for the project.
Then now given the risk of this project, my cost of capital is 20% so then we will compare this to the IRR and see if i can accept the project or not if the cost of capital is greater than the IRR than its not good to invest on the project but if the cost of capital is less than the IRR then the this will be a good investment as the cost of capital also checks the opportunity cost.
The future payment cash flows which is $500000 so we will use the following formula:
NPV = (cash flow)/(1+IRR)^n - initial investment
so we find the present value of the cash flow of the investment and subract the initial investment which will give us a zero cause the present value of the cash flow is equal to the initial investment therefore( n is the period of cash flows):
0= $500000/(1+IRR)^7 - $100000 transpose the initial investment and solve for IRR.
$100000(1+IRR)^7= $500000 then divide both sides by $100000
(1+IRR)^7 = 5 then find the 7nth root of both sides to eliminate the exponent of 7
1+ IRR = [tex]\sqrt[7]{5}[/tex]
1+IRR = 1.258498951 then subtract 1 both sides to solve for IRR
IRR = 0.258498... then multiply by 100 as IRR is a percentage
IRR= 25.85 % rounded off to two decimal places which is the answer b
The IRR for a $100,000 investment returning $500,000 after seven years, with a cost of capital of 20%, is calculated using the formula for net present value of cash flows set to zero. After solving for IRR, the rate closest to the options provided is 25.85%.
Explanation:The Internal Rate of Return (IRR) is a financial metric used to assess the profitability of an investment. The IRR is the rate at which the net present value of the project's cash flows (both inflows and outflows) equals zero. In the scenario you've provided, we need to calculate the IRR for a $100,000 investment that returns $500,000 after seven years. To calculate the IRR, we use the formula for the net present value (NPV) of future cash flows and set it equal to zero:
0 = -Investment + Return / (1 + IRR)^Time
0 = -$100,000 + $500,000 / (1 + IRR)^7
We then solve for the IRR, which requires iterative methods or a financial calculator, as there is no explicit algebraic solution for IRR in this cash.
Considering the options provided, and knowing that the IRR is the rate that makes the NPV zero, we can rule out 20% because that is the cost of capital, and if the IRR just meets the cost of capital, the NPV would not be zero but rather break-even. This leads us to evaluate the other options utilizing IRR financial tables, calculators, or software for preciseness.
Compound interest is a concept that can illustrate the power of growth over time, as seen in your example of a $3,000 investment growing at 7% annually over 40 years to $44,923. The same principle can be used to understand the growth of the startup project's value over seven years.
After performing calculations with a financial calculator or appropriate financial software, we find that the IRR closest to the given options is (b) 25.85%.
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Blair Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Blair will receive a payment of $10,000,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Blair determines it is 90% likely that the drug will gain approval and a 10% chance of denial. Determine the transaction price of the arrangement for Blair Biotech.
Answer:
$10,000,000
Explanation:
Data provided in the question
Amount received = $10,000,000
Gain approval percentage = 90%
Denial chance of percentage = 10%
So, the transaction price of the arrangement is $10,000,000 that reflects the received amount for providing the services to the customer.
So, only the $10,000,000 is come under the transaction price
Colter Company prepares monthly cash budgets. Relevant data fromoperating budgets for 2017 are as follows:
January February
Sales 360,000 $400,000
Direct materials purchases 120,000 125,000
Direct labor 90,000 100,000
Manufacturing overhead 70,000 75,000
Selling and administrative expenses 79,000 85,000
All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,000 of depreciation per month. Other data:
(1) Credit sales: November 2019, $250,000; December 2019, $320,000.
(2) Purchases of direct materials: December 2019, $100,000.
(3) Other receipts: January—Collection of December 31, 2019, notes receivable $15,000; February—Proceeds from sale of securities $6,000.
(4) Other disbursements: February—Payment of $6,000 cash dividend.
The companyâs cash balance on January 1, 2017, is expected to be$60,000. The company wants to maintain a minimum cash balance of$50,000.
Prepare schedules for (1) expected collections from customersand (2) expected payments for direct materials purchases forJanuary and February.
Answer:
1. Collections from customers for January $ 326,000
Collections from customers for February $ 372,000
2. Payments for purchases of Direct Materials - January $ 112,000
Payments for purchases of Direct materials - February $ 123,000
Explanation:
Computations for collections from customers
Collections for January
Collections from November sales
- 20 % ( second month of sales) $ 250,000 November sales
Collections from November sales 20 % * $ 250,000 $ 50,000
Collections from December sales
- 30 % ( first month after sales) $ 320,000
Collections from December sales 30 % * $ 320,000 $ 96,000
Collections from January sales
- 50 % ( month of sales) * $ 360,000 January sales
Collections from January sales 50 % * $ 360,000 $ 180,000
Total Collections for January $ 326,000
Collections for February
Collections from December sales
- 20 % ( second month after sales) $ 320,000
Collections from December sales 20 % * $ 320,000 $ 64,000
Collections from January sales
- 30 % ( first month of sales) * $ 360,000 January sales
Collections from January sales 30 % * $ 360,000 $ 108,000
Collections from February sales
- 50 % ( month of sales) * $ 400,000 ( February sales)
Collections from February sales 50 % * $ 400,000 $ 200,000
Total collections for February $ 372,000
Computations for payments for Direct material purchases
Payments for January
Payments for December purchases
- 40 % ( month after purchase) $ 100,000 (December purchase)
Payments for December purchases 40 % * $ 100,000 $ 40,000
Payments for January purchases
- 60 % ( month of purchase) $120,000
Payments for January purchases 60 % * $ 120,000 $ 72,000
Payments for January $ 112,000
Payments for February
Payments for January purchases
- 40 % ( month after purchase) $ 120,000 (January purchase)
Payments for January purchases 40 % * $ 120,000 $ 48,000
Payments for February purchases
- 60 % ( month of purchase) $125,000
Payments for February purchases 60 % * $ 125,000 $ 75,000
Payments for February $ 123,000
The cash budget is the method under budgetary control that determines the cash balances that are expected to occur or happen based upon the previous period's financial data and experience. The cash budget shows the expected amounts of cash collection and payments for a particular period.
1. The expected collection from customers is:
January month=$326,000
February month=$372,000
2. The expected payments for direct materials purchases are:
January month= $112,000
February month= $123,000
The cash budget schedules for the collection and payment of January and February month are attached in the images below.
The 1st image shows the schedule, while the 2nd image shows the formulas used in the excel sheet to determine the values.
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Weekly demand for a product is 250 units with a standard deviation of 60 units (assume 52 weeks per year). Lead-time is 3 weeks. Calculate the safety stock and the reorder point for 98 percent service level.
Explanation:
Data provided in the question
Weekly demand for a product = 250 units
Standard deviation = 60 units
Lead time = 3 weeks
Service level = 98%
And, the service factor from the normal distribution is 2.05
Now the
Safety stock = Service factor × standard deviation × √lead time
= 2.05 × 60 × 1.73
= 212.79
Now the reorder point is
= Weekly demand × lead time + safety stock
= 250 units × 3 weeks + 212.79
= 962.79
Final answer:
To ensure a 98 percent service level, the safety stock should be approximately 243 units, and the reorder point should be 993 units, calculated using the product's weekly demand, lead time, and the associated z-score from the standard normal distribution.
Explanation:
Calculating Safety Stock and Reorder Point
To calculate the safety stock and the reorder point for a product with given weekly demand and variability, and to ensure a certain service level, we use inventory management techniques.
The weekly demand for the product is 250 units, with a standard deviation of 60 units, and lead time is 3 weeks. To determine the safety stock for a 98 percent service level, we need to look up the z-value associated with 98% in a standard normal distribution table, which is typically 2.33. The safety stock is calculated as:
Safety Stock = Z-Score * Standard Deviation of Lead Time Demand
Assuming demand is normally distributed, the standard deviation of lead time demand is the weekly standard deviation multiplied by the square root of lead time, which in this case is:
Standard Deviation of Lead Time Demand = 60 units * sqrt(3) = 60 units * 1.732 = 103.92 units
Therefore:
Safety Stock = 2.33 * 103.92 = 242.14 units, rounded up to 243 units.
The reorder point is calculated as follows:
Reorder Point = (Average Demand During Lead Time) + Safety Stock
Average Demand During Lead Time = 250 units * 3 weeks = 750 units
Reorder Point = 750 units + 243 units = 993 units
Peters Manufacturing Company has the following data at June 30, 2019:
Raw materials inventory, June 1 $13,800
Work in process inventory, June 1 18,100
Finished goods inventory, June 1 43,500
Total manufacturing costs 430,000
Sales 580,000
Work in process inventory, June 30 30,400
Finished goods inventory, June 30 55,200
Raw materials inventory, June 30 18,000
Required:
Prepare an income statement through gross profit for the month of June.
Answer:
Gross Profit $ 74,000
Cost of Goods sold $ 506,000
Explanation:
Peters Manufacturing Company
Income Statement
June 30, 2019
Sales $580,000
Total manufacturing costs 430,000
Add Work in process inventory, June 1 18,100
Cost of Goods Available for Manufacturing 548,100
Less Work in process inventory, June 30 30,400
Cost Of Goods Manufactured 517,700
Add Finished goods inventory, June 1 43,500
Cost Of Goods Available for Sale 561,200
Less Finished goods inventory, June 30 55,200
Cost of Goods sold $ 506,000
Gross Profit $ 74,000
The gross profit for Peters Manufacturing Company for the month of June 2019 is $98,600. This is calculated by starting with sales, subtracting the costs of goods sold (the opening inventory plus total manufacturing costs minus the closing inventory), which provides the gross profit.
Explanation:To prepare an income statement through gross profit for Peters Manufacturing Company for the month of June, we start with sales, then subtract the cost of goods sold (COGS). The COGS is calculated by adding the beginning inventory to the total manufacturing costs and then subtracting the ending inventory. In this case:
Sales : $580,000COGS = (Opening Inventory + Total Manufacturing Costs – Closing Inventory) = (($13,800 + $18,100 + $43,500) + $430,000) - ($18,000 + $30,400 + $55,200) = $481,400Gross Profit (Sales - COGS) = $580,000 - $481,400 = $98,600A final income statement for the month of June would then display sales of $580,000, COGS of $481,400, and a resulting gross profit of $98,600.
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Assume the following facts are true for 2016: 318 million people lived in the United States. A total of 2,468,435 of these people died during 2016. Diabetes was a leading cause of illness and death with 29 million people living with diabetes at the beginning of 2016. During 2016 1.4 million people were newly diagnosed with diabetes.In 2016 how many people were at risk for diabetes?
Answer:
The number of people that were at risk for diabetes in 2016 is 289 million people
Explanation:
The number of persons at risk of a health outcome in a population is the difference between the total population and the number of persons that already have the health outcome in the population.
The number at risk of an outcome is calculated at the beginning of the year, before changes occur throughout the progression of the year, to accurately state the number at risk for that research year.
In our example, we will be concerned only about the data gotten at the beginning of the year, and these include;
The total population = 318,000,000 people
Number of persons with diabetes at the beginning of 2016 = 29,000,000 people.
Therefore, number of persons at risk for diabetes in 2016 = The total population - Number of persons with diabetes at the beginning of 2016
= 318,000,000 - 29,000,000 = 289,000,000 (289 million) people).
Note do not confuse this with the risk ratio for diabetes in 2016, which is the ratio of the number with diabetes and the total population.
The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determining whether
conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment. the potential diversification move will boost the company's competitive advantage in its existing business.
shareholders will view the contemplated diversification move as attractive.
key success factors in the target industry are attractive.
there are attractive strategic fits between the value chains of the company's present businesses and the value chain of the new business it is considering entering.
Answer:
The correct answer is letter "A": conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment.
Explanation:
Investors are in constant search of companies they can put their money in to obtain profits and increase their wealth. Ratios such as the Debt-to-Equity ratio, Price-Earnings ratio, Return-on-Equity, or Operating profit margin are reviewed to decide in what company to invest and in which one not to.
Besides, the overall performance of the industry of the target company is analyzed by investors to find out if there are opportunities for growth which may make the firm more attractive.
Andrew Industries purchased $173,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $23,600, and the materials used to complete jobs during the month were $148,200 of direct materials and $13,800 of indirect materials. What is the ending Raw Materials Inventory balance for March
Answer:
The ending Raw Materials Inventory balance for March is $34,600
Explanation:
Raw material inventory is the inventory of those material which will be used in the processing of the production of a product. It includes direct material and indirect material as well.
The ending raw material will be calculated as follow
Ending Raw Material = Beginning raw material + Purchases for the period - material used in the period
Ending Raw Material = $23,600 + $173,000 - ( $148,200 + $13,800 )
Ending Raw Material = $23,600 + $173,000 - $162,000
Ending Raw Material = $196,600 - $162,000
Ending Raw Material = $34,600
Listed are eight transactions the Foster Corporation made during November.
A. Issued stock in exchange for cash.
B. Purchased land. Made partial payment with cash and issued a note payable for the remaining balance.
C. Recorded utilities expense for November. Payment is due in mid-December.
D. Purchased office supplies with cash.
E. Paid outstanding salaries payable owed to employees for wages earned in October.
F. Declared a cash dividend that will not be paid until late December.
G. Sold land for cash at an amount equal to the land’s historical cost.
H. Collected cash on account from customers Williams, Jan.
The Foster Corporation in November conducted various business activities ranging from raising capital, acquiring assets, tracking expenses, addressing operating expenses and liabilities, sharing profits with shareholders, and managing accounts receivables.
Explanation:The eight transactions made by Foster Corporation during November are common business activities. For instance:
Issuing stock for cash underlies the need to raise capital for the corporation.Purchasing land and making payments using cash as well as a note payable represents an acquisition of assets.Recording utilities expense for November, due in December, indicates how corporations track their pending expenses.Purchasing supplies with cash is an operating expense.Paying outstanding salaries payable is an embodiment of settling of liabilities.Declaring cash dividends payable in the future equates to sharing profits with shareholders.Selling land for cash at cost value constitutes disposal of assets.Collecting cash from customers is part of accounts receivables process of the corporation.Learn more about Business Transactions here:https://brainly.com/question/32522185
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The question assesses the cash flow impact of various transactions in business finance, focusing on cash flows from investing activities and financing activities. Transactions involve purchasing assets, accruing expenses, and declaring dividends, pertinent to understanding the respective cash inflows and outflows.
The question provided outlines various transactions of the Foster Corporation during the month of November, which relate to different types of cash flows in a business, specifically cash flows from investing activities and cash flows from financing activities. These transactions need to be analyzed to determine their impacts on the corporation's cash flow statement, which is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down into operating, investing, and financing activities.
Analysis of Selected Transactions
Transaction B: This involves purchasing land, where partial payment is made in cash and the remainder is settled with a note payable. This transaction would show a cash outflow under cash flows from investing activities for the cash portion, while the note payable reflects financing activities.Transaction C: Recording a utility expense for November, with payment due in December, shows a change in operating assets and liabilities but does not immediately affect cash flow since the payment is postponed.Transaction F: The declaration of a cash dividend that will be paid later results in a future cash outflow under financing activities, but it does not affect current cash flows until the actual payment occurs.It is crucial to consider the timing of these transactions, as they can affect the financial reporting based on the fiscal year-end. For example, expenses recorded now but paid later (like in transaction C) may not affect the cash basis financial statements until the payment is made, potentially carrying over into a new fiscal year.
On December 31, the company estimates future sales refunds to be $900. As of that date, the company has an unadjusted debit balance in Accounts Receivable of $25,000 and an unadjusted credit balance of $300 in Sales Refunds Payable. Complete the necessary adjusting entry by selecting the account names from the drop-down menus and the amounts in the Debit and Credit columns.
Answer:
Dr Allowances for sales returns $600
Cr Sales refund payable $600
Being increase sales refund estimate
Explanation:
The sales refund account is liability account that should naturally have a credit balance.
In the current period the balance in the sales refund payable account should be $900 in total,but there is a balancing credit amount already in the account,intuitively, the amount needed to raise the balance in the account to $900 is $600.
The necessary entries required for the sales refund payable is shown below:
Dr Allowances for sales returns $600
Cr Sales refund payable $600
Being increase sales refund estimate
There is no adjusting entry to accounts receivable as that deals with receipt of cash from sales transactions and not the actual sales transactions.
When the refund is eventually settled with cash, a debit is posted to sales refund payable and a credit to cash account
To complete the necessary adjusting entry, the company should debit the Allowance for Sales Refunds by $600 and credit Sales Refunds Payable by $600 to account for the estimated future sales refunds of $900, adding to the existing $300 credit balance.
Explanation:The student is asking about adjusting entries for estimated future sales refunds in accounting. To record the estimated sales refunds at the end of the year, the company needs to adjust the Sales Refunds Payable account and the Allowance for Sales Refunds (or similar account) which acts as a contra account to Accounts Receivable. Since the estimated refunds are $900 and there is already a $300 credit balance in Sales Refunds Payable, the adjusting entry will increase this account by $600 to reflect the total estimated refunds ($900), and an Allowance for Sales Refunds account will be debited by the same amount to acknowledge potential future returns or refunds associated with current sales.
The adjusting journal entry would be:
Debit Allowance for Sales Refunds: $600Credit Sales Refunds Payable: $600After this entry, the Sales Refunds Payable will have a balance of $900 (the estimated refunds), and the Accounts Receivable net balance will consider the estimated refunds by showing the allowance as a deduction from the total receivables.
Suppose that severe floods destroyed farms, homes and businesses in the Midwest. Use the aggregate demand /aggregate supply model, to explain the changes you would expect to take place and the effects you would expect these floods to have on both output and prices. (Include both short-run and long-run effects.)
Answer:
Severe floods affecting aggregate demand and aggregate supply can be equated with bad weather destroying crops. In this regard, the supply of goods and services will be slower or harder to keep up with depending on the demand given. The losses suffered as a result of the sever floods will result in the demand for goods and services to increase but the measured supply thereof might not be sufficient given the extreme backlog and circumstances created by the sever floods.
In this scenario, the effects on the output (goods and services) supplied will be slower in the short-run until businesses and farms are restored to stable working conditions. The demand thereof (for output) will increase and has inverse relationship with the supply of goods and services, until there is an equilibrium point reached when the supply of goods and services meet the demand required. Prices in the short term will increase until conditions have become stable. This will affect the GDP of the businesses negatively.
In the long-run, the demand for goods and services will decrease as conditions stabilise and the supply of goods and services will even out to meet the demand required. Depending on the far reaching effects of the severe floods, equilibrium and stable demand and supply may take a while to become normal again. In the long-run the price of goods and services should decrease as the demand required is met through the supply of goods and services. This will affect the GDP of the businesses positively.
Explanation:
To understand the answer given above, you have to understand the inverse relationship there is between the aggregate demand and aggregate supply.
Aggregate supply is the complete number of units (goods and services) supplied to the market (i.e. produced and sold in the market) which is also the gross domestic profit (GDP). In the short-run for this question, the GDP will decrease initially until conditions become stable.
Aggregate demand is the total domestic spending consumers have on goods and services in the economy. The GDP will increase in the long-run as the demand and supply is met and becomes steady.
Final answer:
Severe floods in the Midwest would initially decrease aggregate supply, leading to a decrease in output and an increase in prices in the short run. However, in the long run, the economy would recover, leading to an increase in both aggregate supply and output.
Explanation:
In the short run, severe floods in the Midwest would lead to a decrease in aggregate supply due to the destruction of farms, homes, and businesses. This would cause a decrease in output and an increase in prices. In the long run, however, the economy would recover as damaged infrastructure is repaired, leading to an increase in both aggregate supply and output. Prices would eventually stabilize.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price$164 Units in beginning inventory 0 Units produced 9,900 Units sold 8,800 Units in ending inventory 1,100 Variable costs per unit: Direct materials$49 Direct labor$48 Variable manufacturing overhead$10 Variable selling and administrative expense$7 Fixed costs: Fixed manufacturing overhead$297,000 Fixed selling and administrative expense$140,800 What is the total period cost for the month under variable costing
Answer:
$499,400
Explanation:
Given that
Units sold = 8,800
Administrative expense = $7
Fixed manufacturing overhead = $297,000
Fixed selling and administrative expense = $140,800
The computation of total period cost using the variable costing is given below:-
Variable selling and administrative
= 8,800 × $7
= $61,600
So,
Total period cost using the variable costing
= Variable selling and administrative + Fixed manufacturing overhead + Fixed selling and administrative expense
= $61,600 + $297,000 + $140,800
= $499,400
During its first year of operation Mazer Manufacturing Company produced 4,500 units of inventory and sold 2,050 units. Mazer incurred variable product cost of $3.5 per unit and $5,850 of fixed manufacturing overhead costs. The sales price of the products was $8.5 per unit. Determine the amount of gross margin Mazer would report if the company uses absorption costing. (Do not round intermediate calculations.)
Answer:
Gross profit= $7,585
Explanation:
Giving the following information:
Units produced= 4,500 units
Units sold= 2,050 units.
Unitary variable cost= $3.5 per unit
Fixed manufacturing overhead= $5,850
The sales price of the products was $8.5 per unit.
Under the absorption costing method, the fixed manufacturing overhead is part of the product cost. Therefore, the units remaining in inventory have fixed costs incorporated.
Unitary cost= 3.5 + 5,850/4,500= $4.8
Sales= 2,050*8.5= 17,425
Cost of goods sold= 2,050*4.8= (9,840)
Gross profit= $7,585
Fiduciary activities are reported only in the fiduciary fund financial statements; they have no effect on the governmental or business-type activities of the primary government reported in the government-wide financial statements.
True or False?
Answer:
The correct answer is True.
Explanation:
Fiduciary assignments that have as their object the realization of investments, the administration of goods or the execution of activities related to the granting of guarantees by third parties to ensure the fulfillment of obligations, the administration or surveillance of the goods on which the guarantees fall and the carrying them out, subject to the restrictions established by law; act as transfer agent and register of securities; act as a representative of bondholders; act as trustee, curator of property or as depositary of sums recorded in any court, by order of judicial authority or by determination of persons who have legal power to designate them for such purpose.
Fiduciary companies may carry out investment trust operations through commercial fiduciary contracts, concluded in accordance with legal formalities, or through fiduciary orders.
Fiduciary activities are not reported in the government-wide financial statements
They may form ordinary common investment funds integrated with monies received from various constituents or adherents for this purpose.
Phelps Gold manufactures award medals. In August, Phelps produced 5,000 medals, 100 more than expected. During the month, the company purchased 1, 100 ounces of gold for $875,000. The standard price for the gold is $800 per ounce. The company actually used 1,000 ounces of gold for production. Calculate Phelps's direct materials price variance for the month.
Given:
Metals produced = 5000
Standard price for gold = $800 per ounce
Cost of 1100 ounces of gold = $875000
Gold used for production = 1000 ounces
To find:
Direct material price variance
Solution:
To calculate the direct material price variance we have to use the following formula,
[tex]\text{Direct material price variance = (SP - AP )}\times \text{AQ purchased }[/tex]
On plugging-in the values we get,
[tex]\Rightarrow( 800 - [ \frac{875000}{1100} ] )\times1100[/tex]
On solving we get,
[tex]\text{Direct material price variance}=\$5000[/tex]
Therefore, Phelps's direct materials price variance for the month is $5000.
The direct materials price variance for the month is -$80,000.
Explanation:The direct materials price variance is calculated by subtracting the actual cost of the materials from the standard cost of the materials and multiplying the result by the actual quantity of materials used. In this case, the standard price for the gold is $800 per ounce and the actual price paid is $875,000 for 1,100 ounces. The actual quantity of gold used is 1,000 ounces. So, the direct materials price variance can be calculated as follows:
Standard price per ounce * (Actual quantity - Standard quantity)
=$800 * (1,000 - 1,100)
= $800 * (-100)
= -$80,000
The direct materials price variance for the month is -$80,000.
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You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $28,000, $32,000, $66,000, and $99,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 3.6 percent, what is the value of the settlement offer today
Answer:
$202,137.90
Explanation:
Year Annual payment Discount factor Present value
1 $28,000 0.965250965 $27,027.03
2 $32,000 0.931709426 $29,814.70
3 $66,000 0.899333423 $59,356.01
4 $99,000 0.868082454 $85,940.16
Total present value $202,137.90
The discount factor should be computed by
= 1 ÷ (1 + interest rate)^years
where,
rate is 3.6%
Year = 0,1,2,3,4 and so on
Final answer:
To find the present value of the settlement offer, discount each future payment to its present value using the formula PV = Future Payment / [tex](1 + r)^n[/tex] for each year and add them together.
Explanation:
To calculate the present value of the settlement offer with the given future payments and an interest rate of 3.6 percent, we need to discount each payment back to its present value using the formula for present value of a future payment:
Present Value (PV) = Future Payment / [tex](1 + r)^n[/tex]Where:
r is the interest rate per periodn is the number of periods until the paymentWe'll calculate the present value of each payment separately and then sum them up to get the total present value of the settlement:
PV of $28,000 after 1 year = $28,000 / [tex](1 + 0.036)^1[/tex]PV of $32,000 after 2 years = $32,000 / [tex](1 + 0.036)^2[/tex]PV of $66,000 after 3 years = $66,000 / [tex](1 + 0.036)^3[/tex]PV of $99,000 after 4 years = $99,000 / [tex](1 + 0.036)^4[/tex]After calculating each of these present values, add them together to find the total present value of the offer.
1. Dominic Joseph deposits $5,000 in a new savings account at his local bank. The account pays 5.5 percent interest compounded annually. At the end of 6 years, how much will Dominic’s account be worth?
Answer:
The future value is $6,894.21
Explanation:
Giving the following information:
Dominic Joseph deposits $5,000 in a new savings account. The account pays 5.5 percent interest compounded annually.
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
PV= 5,000
i= 0.055
n=6
FV= 5,000*(1.055)^6= $6,894.21
Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as $233,400 instead of the correct amount of $238,600. a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply. b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2. c. If uncorrected, what would be the effect of the error on the 20Y3 income statement
Answer:
a. Inventory will be understated by $5,200.
b. Cost of Goods Sold will be overstated by $5,200. It will affect your Gross Profit and will reduce your profit.
c. Cost of Goods Sold will be understated by $5,200 and as a result overstatement of Gross Profit will arise.
Explanation:
Simply keep the formula of Cost of Goods Sold in your mind and do your calculations.
Cost of Goods Sold = Beginning Inventory + Purchases - Closing Inventory
Thanks!
In the case of a team, when each member's contribution is not clearly visible, ________. team cohesiveness tends to decrease mutual accountability of the team members tends to decrease team members tend to decrease their efforts motivation of the team members tends to increase team efficacy tends to increase
Answer: team members tend to decrease their efforts
Explanation: Individuals of a team tend to decrease their efforts when the contribution of each member of the team is not clearly visible. This describes the likelihood of individuals in putting forth less effort because they are part of a team. This reduction in effort illustrates a process loss (actions, operations etc. that prevents teams, groups from achieving their maximum potential) from using teams. Process loss can also result from ineffective leadership, poor communication etc.
In the case of a team, when each member's contribution is not clearly visible, team cohesiveness tends to decrease, mutual accountability of the team members tends to decrease, and team efficacy tends to increase.
Explanation:In the case of a team, when each member's contribution is not clearly visible, team cohesiveness tends to decrease. When team members are unable to see and understand the efforts of their peers, it can lead to a lack of trust and a decrease in overall teamwork. Without a clear understanding of individual contributions, team members may also decrease their efforts, as they may feel their work is not valued or acknowledged.
This can also lead to a decrease in mutual accountability among team members. When contributions are not visible, it becomes easier for individuals to avoid taking responsibility for their actions or lack thereof. Without the sense of collective responsibility, team members may not feel the need to uphold their commitments to the team.
On the other hand, when each member's contribution is visible and acknowledged, it can increase team efficacy. When team members can see how their work contributes to the overall goals and success of the team, it can motivate them to continue putting in effort and striving towards success.
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A Coase solution to a problem of externality ensures that a socially efficient outcome is to internalize the externality through taxes. internalize the externality through subsidies. maximize the joint welfare, irrespective of the right of ownership. stop production if there is any externality. invite other private partners to share the burden of externality.
Answer: Maximize joint welfare in respective or the right owner.
Explanation: A coase solution to a problem of externality insures that a socially efficient outcome is to maximize the joint welfare, irrespective of the right of ownership.
The Coase theorem states that when transaction cost are low, two parties will be able to bargain and reach an efficient outcome in the presence of an externality.
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 36 units of food per year or 18 units of clothing. Which of the following is true?
Georgeland has an absolute but not a comparative advantage in producing clothing.
Georgeland has both an absolute and a comparative advantage in producing clothing.
Alland has an absolute but not a comparative advantage in producing food.
Alland has both an absolute and a comparative advantage in producing food.
Answer:
Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Absolute advantage is defined as the ability of a firm to produce higher amounts of a product as a result of use of the same resources with other competitors. It is usually bad a result of more efficient production process.
Comparative advantage is the ability of a firm to produce goods at a lower opportunity cost. Therefore they are able to sell at lower price compared to competitors.
Georgeland can produce 18 units of clothe per year while Alland can produce 16 units per year, so Georgeland has absolute advantage.
In producing clothes Georgeland has opportunity cost of 36 units of food which is higher than that of Alland which is 32 units of food. So Georgeland does not have comparative advantage in producing clothes.
Answer:
Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Suppose that Japan can produce 5 cars in 8 hours and 15 HD TVs in 10 hours. The US can produce 5 cars in 6 hours and 15 TVs in 5 hours. Explain which country has a comparative advantage in producing cars and which country has a comparative advantage in producing TVs. In your answer, be sure to be very specific as to how you identified the comparative advantage in each country and define how one goes about identifying comparative advantage.
Answer:
If there is 1 hour of production:
Cars produced by Japan = 5/8 = .625 cars
HD TV produced by Japan = 15/10 = 1.5 HD TVs
Further,
Cars produced by US = 5/6 = .83 cars
HD TV produced by US = 15/5 = 3 HD TVs
So,
Opportunity cost of a car for Japan = 1.5/.625 = 2.4 units of HD TVs
Opportunity cost of car for US = 3/.83 = 3.61 units of HD TV
Since, Japan has lower opportunity cost of producing cars, so Japan has comparative advantage in producing cars.
Opportunity cost of a HD TV for Japan = .625/1.5 = .42 units of car
Opportunity cost of a HD TV for US = .83/3 = .28 units of car
Since US has lower opportunity cost of producing HD TVs, so US has comparative advantage in producing HD TVs.
A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. 14- Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below Click the answer you think is right.
a.Prepaid insurance would be credited for $3,600.
b.Cash would be credited for $3,600.
c.Insurance expense would be debited for $300.
d.Insurance expense would be debited for $3,600.
Answer:
c.Insurance expense would be debited for $300.
Explanation:
Provided that
12 month insurance policy purchased on Dec 1 = $3,600
So, the adjusting entry on Dec 31 would be
Insurance expense A/c Dr $300
To Prepaid Insurance $300
(Being insurance expense is recorded)
The computation is
= $3,600 ÷ 12 months
= 300
As we have to compute for 1 month so we recorded $300 insurance expense
The adjusting entry would be that c.Insurance expense would be debited for $300.
As the insurance was purchased for the year, we can only charge the insurance expense for December to the Insurance expense account.
Insurance Amount for December= Total amount x 1 / 12 months
= 3,600 x 1/12
= $300
This amount will be debited to the insurance expense account as expenses increase when debited.
In conclusion, option C is correct.
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