Fill in the blanks to complete the sentence.
A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, __________units will need to be produced in the second quarter.
Answer:
509 Units
Explanation:
At second quarter,
safety stock = 10%
With 550 units, for target of the next quarter
Then, safety stock = [(550 ×( 10/100) ]
= 55 units.
Buy the remaining unit is 46, and the expected unit to be sold is 500
Then, units that will be neededto be produced in the second quarter. Is
= (55 + 500) -46
=509 units
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $3,500 under each of the following situations:
a. The first payment is received at the end of the first year, and interest is compounded annually.
b. The first payment is received at the beginning of the first year, and interest is compounded annually.
c. The first payment is received at the end of the first year, and interest is compounded quarterly.
Answer:
a. The first payment is received at the end of the first year, and interest is compounded annually.
present value = annual payment x PVIFA
annual payment = $3,500
PVIFA, 12%, 5 periods = 3.6048
present value = $12,616.80
b. The first payment is received at the beginning of the first year, and interest is compounded annually.
annual payment = $3,500
PVIF annuity due, 12%, 5 periods = 4.0373
present value = $14,130.55
c. The first payment is received at the end of the first year, and interest is compounded quarterly.
present value = annual payment x PVIFA
annual payment = $3,500
effective interest rate = 1.03⁴ - 1 = 12.55%
PVIFA, 12.55%, 5 periods = 3.5562
present value = $12,446.70
Jack Thomas, who live in Minnesota, and Sandy Silver, who live in Oklahoma, each purchased $92,000 worth of securities at the local offices in their home states from Comprehensive Financial Stockbrokers, Inc. Comprehensive is incorporated in Maryland with its principal place of business in Minnesota. Jack and Sandy feel they were a victim of fraud perpetrated by Comprehensive and would like to sue. These two cases deal only with state issues. Discuss the accuracy of the following statements:
a. Thomas is able to sue Comprehensive in a Minnesota state trial court. Please explain.
b. Thomas can sue Comprehensive in a federal district court in Minnesota. Please explain.
c. Silver can sue Comprehensive in an Oklahoma federal district court. Please explain.
Answer:
Follows are the responses to the given points:
Explanation:
In point a:
Yeah, throughout the state court they will ever sue against fraud. As base with the that State is appropriate so because the main place of work is specific budget inventory representatives Inc.
In point b:
Thomas couldn't sue for cheating at the federal court successfully, because equality in nationality would be the only conceivable way. Because as a federal problem also isn't involved, Thomas and both are comprehensive residents of Michigan weren’t diverse for this situation. The business is a resident of all its corporate headquarters and the State of formation.
In point c:
Throughout this situation, silver can claim nationality plurality, as Oklahoma's comprehensive would not be a citizen. It simple company does company in such a state doesn't render that business a citizen. However, if silver has been damaged in terms of $75,000, this failure combined with citizenship diversity would allow it to sue extensively in a federal court. This event does not tell everyone how slowly he lost, however, the facts weren't enough to make a correct judgment.
You are a financial advisor helping a young family create a college fund to provide for their daughter Mary’s education. Mary just turned 5. Her parents expect that she will go to Harvard University, starting school on her 18th birthday. She will only take four years to complete her degree. Currently, tuition and housing costs total $65,000 per year, which are paid at the beginning of each school year. These expenses are expected to increase at the rate of inflation which will run 4% annually for the next 25 years. In each year until Mary enters Harvard University, Mary’s parents will make a deposit into the college fund to exactly provide for all of the costs of her education when she enters college (the first deposit will be made one year from today). Since her parents expect their income to grow at the rate of 2% annually, they would like the amount that they put each year into the fund to increase in nominal terms at the rate of 2% annually. Mary’s parents can earn a rate of 10% annually on their investments and they face a 30% tax rate.
A. What do you expect tuition and housing to cost during Mary’s first year at Harvard University?
B. How much must be in the savings account on Mary’s 18th birthday after the last deposit has been made but before the first payment to Harvard University?
C. What should be the amount of the first payment?
D. Alternatively, Mary’s parents could open a 529 account that allows college savings to grow tax-free. If they saved in this account rather than in a normal investment fund, and still earned the same pre-tax return, how much should be their first deposit?
Answer:
a. Tuition and housing costs today = $65,000 per year
Inflation rate = 4%
Tuition and housing costs in 13 years = 65,000 * (1 + 0.04)^13
Tuition and housing costs in 13 years = $108,229.78
b. Amount to be in the savings account can be calculated using the present value of a growing annuity due formula
After tax rate of return = 10 * (1 - 0.3) = 7%, Growth rate = 4%, Number of year = 4
PV = P x (1 + r) * [1 - (1 + g)^n * (1 + r)^-n] / (r - g)
PV = 108,229.78 * (1 + 0.07) * [1 - (1 + 0.04)^4 * (1 + 0.07)^-4] / (0.07 - 0.04)
PV = $415,050.16
c. Amount of the first payment can be calculated using FV of a growing annuity
FV = $415,050.16, Number of years = 13, Growth rate = 2%, Rate of return = 10%
FV = P * [(1 + r)^n - (1 + g)^n] / (r - g)
415,050.16 = P * [(1 + 0.07)^13 - (1 + 0.02)^13] / (0.07 - 0.02)
P = $18,591.47
d. If the investments are tax free, the rate of return = 10%
Amount to be in the savings account = PV = P * (1 + r) * [1 - (1 + g)^n * (1 + r)^-n] / (r - g)
= 108,229.78 * (1 + 0.1) * [1 - (1 + 0.04)^4 * (1 + 0.1)^-4] / (0.1 - 0.04)
= $398,768.92
FV = P * [(1 + r)^n - (1 + g)^n] / (r - g)
398,768.92 = P * [(1 + 0.1)^13 - (1 + 0.02)^13] / (0.1 - 0.02)
P = $14,778.36
Consider a competitive market for a consumer product. Suppose this product goes out of fashion with consumers. How will this sudden drop in popularity affect the profit of an individual firm in this market in the long run?
A The profnt of an individual firm increases from a smaller positive value to a larger positive value in the long run.
B. The profht of an individual firm increases from zero to a positive value in the long run.
C. The profit of an individual firm decreases from zero, and the firm will incur a loss in the long run.
D. The profit of an individual firm stays at zero in the long run.
Answer:
The profit of an individual firm stays at zero in the long run.
If a product goes out of fashion in a competitive market, the result would be that D. The profit of an individual firm stays at zero in the long run.
A competitive market is characterized by:
No barriers to entry which means sellers can come in and leave at will Prices are the same for all sellersIf a product went out of fashion, companies would start making losses and less people would be buying the product. This would lead to some suppliers leaving the market till only a few are left.
This will lead to the price rising. If profits become more than zero, companies will come back into the market to make that profit. The increased supply would reduce the price again. The profit will then go to zero. This will keep happening thereby leaving the profit at zero in the long run.
We can therefore conclude that when a product goes out of fashion, profits will be zero for an individual firm in the long run.
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20) Movie production companies sometimes re-release classic films to theaters to give people who enjoyed them the first time a chance to see the movies again. This is an example of a market penetration strategy.
TRUE FALSE
Halbur Company reported the following for its recent year of operation: From the income statement: Depreciation expense $ 1,200 Loss on sale of equipment 2,800 From the comparative balance sheet: Beginning balance, equipment $ 12,900 Ending balance, equipment 8,200 Beginning balance, accumulated depreciation 2,200 Ending balance, accumulated depreciation 2,700 No new equipment was purchased during the year. What was the selling price of the equipment
Answer:
$300
Explanation:
From Equipment Account we get :
Cost of Equipment Sold = $12,000 - $8,200 = $3,800
From Accumulated Depreciation Account we get :
Accumulated Depreciation = $2,200 + $1,200 - $2,700 = $700
Using Amounts above to prepare a Disposal Account - Equipment we get :
Cash Proceeds = $3,800 - $700 - $2,800 = $300
Conclusion
The selling price of the equipment $300
Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby estimated that the total overhead costs would be $72,000 and that the total labour hours would be 2,400. At the end of the year, Bibby obtained the actual overhead costs from the ledger and found that the shop had incurred $65,800 and had worked 2,350 labour hours.
Predetermined (budgeted) overhead rate.
Overhead Rate $30
overhead amount that was applied for the year.
Overhead amount $4700 over applied
Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Answer and Explanation:
The journal entry is shown below:
Overhead $4,700
Cost of goods sold $4,700
(Being overapplied overhead is closed)
Here the overhead is debited as it increased the expenses and credited the cost of goods sold as it decreased the expense
In 2009 the Ford Motor Company announced plans to spend $490 million on
building a third car assembly plant in China
Briefly explain two likely reasons why the Ford Motor Company plans to build
a third car assembly plant in China
Answer:
Cheaper labor. Cheaper auto parts.Explanation:
China has cheaper labor rates than the United States in comparative industries including in the motor vehicle producing industry. Ford may want to take advantage of this to make cars at a smaller cost in China and therefore make more profit in sales.
Car parts are also easier and cheaper to acquire in China. Steel for instance, is a very valuable commodity in motor vehicle manufacturing and China happens to be the largest producer in the world. Having access to cheaper materials would increase Ford's profitability as well.
2) Consider the taxi market, a constant cost competitive industry. To operate a taxi an entrepreneur needs a license. Show graphically the impact of this regulation on the market supply and the efficiency of this market (as measured by the deadweight loss). A taxi medallion used to sell for up to 1.3 million dollars in NYC. After the entry of UBER the cost dropped these days to approximately 200,000. Discuss the impact of this change on the performance of this market.
Answer:
The new entrant of UBER has led the taxi fares to drop by significant amount. The competition has increased and customers have now choice available to choose from lowest fares.
Explanation:
The taxi market is competitive industry but since there was no specific organization behind the taxi union which governs the taxi fares, the taxi drivers were free to charge the fare they want. The entry of UBER in the industry has enables the customers to switch from normal taxi to UBER as it provides ease of online booking with lowest possible standard fares.
The transactions carried out by BTS Corporation during the year caused an increase in total assets of $150,000 and a decrease in total liabilities of $60,000. If no additional investment was made by the investors during the year and dividends of $42,000 were paid, what was the net income for the year?
Answer:
21
Explanation:69
First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) As a potential borrower, which bank would you go to for a new loan
Answer:
14.59%
14.49%
Explanation:
Effective annual interest (EAR) = (1 + periodic interest)^m - 1
where m = number of compounding
periodic interest = APR / m
(1 + 0.137/12)^12 - 1 = 14.59%
(1 + 0.14/2)^2 - 1 = 14.49%
People from urban areas often travel to cheese-producing regions to see how cheese is made; this type of ______allows people to visit working farms and ranches to see how agricultural products are made.
Answer:
Tourism
Explanation:
Tourism can be regarded as activities that people engaged in when they
travel for pleasure as well business purposes, it can be regarded as theory and practice of touring arround the world, it is the business that involves attracting as well as accommodating and entertaining of tourists. It should be noted that People from urban areas often travel to cheese-producing regions to see how cheese is made; this type of tourism allows people to visit working farms and ranches to see how agricultural products are made.
Answer:
Agritourism
Explanation:
It states this in the notes that were given on Edg
Owens Corning has total assets of $800,000, long-term debt of $240,000, stockholders' equity of $350,000, and current liabilities of $210,000. The dividend payout ratio is 30 percent and the profit margin is 8 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need (EFN) if the current sales of $1,000,000 are projected to increase by 20 percent
Answer:
$50,800
Explanation:
Increase in assets = Current Assets * Percentage change in sales = $800,000 * 20% = $160,000
Increase in current liabilities = Current liabilities * Percentage change in sales = $210,000 * 20% = $42,000
Increase in retaned earning = Increased sales*Profit Margin*Retention ratio = $1,000,000*120%*8%*(1-0.30) = $67,200
External financing need = Increase in Assets - Increase in liabilities - Increase in retained earning
External financing need = $160,000 - $42,000 - $67,200
External financing need = $50,800
White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour.
The balance in the account Work in Process-Sifting Department was as follows on July 1:
Work in Process-Sifting Department
(900 units, 3/5 completed):
Direct materials (900 × $2.05) $1,845
Conversion (900 × 3/5 × $0.40) 216
$2,061
The following costs were charged to Work in Process-Sifting Department during July:
Direct materials transferred from Milling Department:
15,700 units at $2.15 a unit $33,755
Direct labor 4,420
Factory overhead 2,708
During July, 15,500 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.
Required:
1. Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent.
2. Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Use the date July 31 for all journal entries.
3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Round your answers to the nearest cent.
4. Discuss the uses of the cost of production report and the results of part (3)
Answer:
White Diamond Flour Company
Sifting Department
1. Cost of Production Report for July
Direct Materials Conversion Total
Beginning WIP 900 $1,845 $216 (3/5) $2,061
Transferred from Milling 15,700 33,755 7,128 40,883
Total costs of production $35,600 $7,344 $42,944
Equivalent units of production:
Completed 15,500 15,500 15,500
Ending WIP 1,100 1,100 880 (4/5)
Total equivalent units 16,600 16,380
Cost per equivalent unit:
Total costs of production $35,600 $7,344
Total equivalent units 16,600 16,380
Cost per equivalent unit $2.14 $0.45
Cost Assigned To:
Units transferred to packaging $33,170 (15,500*$2.14) $6,975 (15,500*$0.45) Total amount = $40,145
Ending WIP $2,354 (1,100*$2,14) + $396 (880*$0.45) = $2,750
2. Journal Entries:
Debit Work-in-Process - Sifting $40,833
Credit Finished Units- Milling $40,833
Debit Work-in-Process - Packaging $40,145
Credit Work-in-Process - Sifting $40,145
3. The increase or decrease in the cost per equivalent unit:
Direct Materials Conversion
July Cost per equivalent unit $2.14 $0.45
June Cost per equivalent unit $2.05 $0.40
Difference between July and June $0.09 $0.05
4. The Cost of Production Report helps management to know, for any period, the actual cost of production in each department and to identify the costs of units transferred to the Packaging Department and the costs of units under process in the Sifting Department at the end of the period. Determining the increase or decrease in cost per equivalent unit also enables management to know whether cost has increased or decreased per unit of production in order to institute appropriate controls for the acquisition of materials, labor, and other production expenses.
Explanation:
a) Data and Calculations:
Work in Process-Sifting Department
(900 units, 3/5 completed):
Direct materials (900 at $2.05) $1,845
Conversion (900 at 3/5 at $0.40) 216
Total balance $2,061
Why do people have different belief systems? What are some of the different belief systems held in different countries? How do belief systems affect a country’s political system and culture?
Answer:
.
Explanation:
I don’t know either I’m also in this class.
Karen and Andy own a beach house. They have an agreement with a rental agent to rent it up to 200 days per year. For the past three years, the agent has been successful in renting it for 200 days. Karen and Andy use the beach house for one week during the summer and one week during Thanksgiving. Their daughter, Sarah, a college Student, has asked if she and some friends can use the beach house for the week of spring break. Advise Karen and Andy on how they should respond, and identify any relevant tax issues.
Answer:
The total number of days that Karen and Andy can use the beach house for personal use = 200 rental days x 10% = 20 days. If they exceed this limit, then they will not be able to deduct any rental losses from their income.
It is important to determine if Karen And Andy expect a rental loss or not. If they expect to lose money, then they should tell their daughter to use the beach house only for 6 days, not 7. Or they could use it only 13 days during the rest of the year. The important issue is that the total number of days for personal use doesn't exceed 10% of the rental days.
Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1? (b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased? (c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2019? (d) If $1,600 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2019?
Answer:
A. $800
B. $4,800
August 1, 2019
C.$3,300
$1,500
Explanation:
(a) Calculation for what was the balance in Supplies on January 1
Balance in Supplies on January 1=$950 + $700 - $850
Balance in Supplies on January 1=$800
(b) Calculation for what was the total premium and when was the policy purchased
Total premium=($400 x 12 months)
Total premium= $4,800
Calculation for when was the policy purchased
Prepaid Insurance, 1/31 $2,400
Monthly premium $400
Number of months remaining 6
($2,400/$400)
Hence, The Policy was purchase on August 1, 2019
(c) Salary and Wages Payable at Decemeber 31, 2019 $1,500
Cash Paid $2,500
Salaries and wages payable, 1/31 $800
$3,300
Less: Salaries and wages expense $1,800
Salaries and wages payable, 12/31/19 $1,500
A company is offering 5,000,000 new shares to the public. The shares are being sold to a syndicate for $12 and are being reoffered to the public at $13. The compensation to the underwriters for each share sold is $0.75. The selling group receives $0.30 a share for each share it sells, and the managing underwriter retains $0.25 in fees for each share sold by anybody. The selling group will assist in selling 1,000,000 out of the 5,000,000 shares offered. If the selling group sells its entire allotment how much does it make in profits
Answer:
The selling group makes $300,000 in profit if it sells its entire allotment.
Explanation:
The amount of profit makes by the selling group can be calculated using the following formula:
Selling group profit = Number of shares expected to be sold by the selling group * Amount to receive per share by the selling group ............... (1)
Where:
Number of shares expected to be sold by the selling group = 1,000,000
Amount to receive per share by the selling group = $0.30
Substituting the relevant values into equation (1), we have:
Selling group profit = 1,000,000 * $0.30 = $300,000
Therefore, the selling group makes $300,000 in profit if it sells its entire allotment.
Online retailers lose approximately 25% of their customers every year. Unfortunately, due to the highly competitive camping gear marketplace, Camp Plus loses approximately 35% of its customers every year to its competition, giving it a retention rate of only 65%. Using a discount rate of 10%, you calculate a CLV for each of the 10,000 customers in Camp Plus's database.
Answer:
CLV = [(GC * r) / (1 + i - r)] - AC]
Explanation:
CLV is the customer lifetime value which is the calculation of net profit during the tenure of relationship with the clients and customers.
The formula for CLV calculation is :
CLV = [(GC * r) / (1 + i - r)] - AC]
Where,
GC is annual gross contribution,
r is retention rate of customers
i is discount rate
AC is Acquisition cost
The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $7,000 Expected selling Price $9,000 Expected selling cost $500 Normal profit margin 50% of price Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event
Answer:
Inventory should be increased by $3,500
Explanation:
Calculation for What adjustment to inventory should be made under IAS 2 after this event
Adjustment to inventory under IAS 2= 13,000 - 9,000- 500
Adjustment to inventory under IAS 2 = $3,500 Increased
Based on the above calculation the adjustment to inventory that should be made under IAS 2 after this event is that Inventory should be increased by $3,500.
Suppose consumers buy 50 million packs of cigarettes per month at a price of $5 per pack. If a $1 tax is added to that
price, By what percentage does the price change
Answer:
Percentage change= 20%
Explanation:
Giving the following information:
Selling price before tax= $5
Tax= $1
Selling price after tax= $6
To calculate the percentage increase, we need to use the following formula:
Percentage change= [(Selling price after tax - Selling price before tax)/Selling price before tax]*100
Percentage change= [(6 - 5)/5]*100
Percentage change= 20%
You borrow $6,230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interest of 6 percent. What is the amount of each payment?a. $115.26b. $88.74c. $113.78d. $120.44e. $89.29
Answer:
orrow $6230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interes… ... of interest of 6 percent.
Explanation:
Sawyer Industries began business at the start of the current year. The company planned to produce 25,000 units, and actual production conformed to expectations. Sales totaled 22,000 units at $30 each. Costs incurred were: Variable manufacturing overhead per unit $ 8 Fixed manufacturing overhead 150,000 Variable selling and administrative cost per unit 2 Fixed selling and administrative cost 100,000 If there were no variances, the company's absorption-costing income would be:
Answer:
$208,000
Explanation:
The computation of the absorption-costing income is shown below:
As we know that
Net income = Gross profit - variable expense - fixed expense
where,
Gross profit is
= Sales - cost of goods sold
= (22000 units at $30) - (22,000 units at $14)
= $660,000 - $308,000
= $352,000
The $14 come from
= 8 + 150,000 ÷ 25,000
= 8 + 6
= 14
Now the variable expense is
= 22000 at $2
= $44,000
And, the fixed expense is $100,000
So, the net income is
= $352,000 - $44,000 - $100,000
= $208,000
"If our company achieves a high level of relational coordination, what can we expect in terms of employee behavior?" Check all that apply. Employees will be empowered to collaborate directly with each other across organizational boundaries. Employees in different departments or divisions will share information easily. Project managers, cross-functional teams, and task forces will play a vital role in sharing information between departments or divisions. Information will flow across a network of informal relationships rather than primarily through a formal chain of command.
Answer:
- Employees will be empowered to collaborate directly with each other across organizational boundaries.
- Employees in different departments or divisions will share information easily.
- Information will flow across a network of informal relationships rather than primarily through a formal chain of command.
Explanation:
Relational coordination focuses on shared goals and knowledge between people that work on common tasks.
As such it will result in more communication between surbodinates. There will be increased interaction and communication between boundaries in the organisation.
People with common tasks will easily communicate with each other with less focus on the hierarchy of the organisation.
Project managers will play less role in sharing of information as most communication will be done between surbordinates.
Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $151,000, its total variable expenses were $79,700, and its total fixed expenses were $56,600. Required: a. Construct the company's contribution format income statement for April. (Do not round intermediate calculations.) b. Redo the company's contribution format income statement assuming that the company sells 1,900 units. (Do not round intermediate calculations.)
Answer:
See below
Explanation:
Sales
$151,000
Less:
Variable cost
($79,700)
Contribution margin
$71,300
Less:
Fixed cost
($56,600)
Ney profit
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
a. Cash used for purchase of office supplies, $1,450.
b. Cash provided from consulting to customers, $41,100.
c. Cash used for purchase of mining equipment, $64,000.
d. Cash provided from long-term borrowing, $51,000.
e. Cash used for payment of employee salaries, $23,100.
f. Cash used for payment of office rent, $11,100.
g. Cash provided from sale of equipment purchased in c. above, $21,600.
h. Cash used to repay a portion of the long-term borrowing in d. above, $35,500.
i. Cash used to pay office utilities, $3,400.
j. Purchase of company vehicle, paying $9,100 cash and borrowing $14,100
Required:
Calculate cash flows from investing activities.
Answer:
-$51,500
Explanation:
Calculation for cash flows from investing activities
Cash used for purchasing mining equipment -64,000
Cash provided from sale of equipment $21,600
Purchase of company vehicle -$9,100
Cash used by investing activities -$51,500
Therefore the cash flows from investing activities will be -$51,500
Partial balance sheet data for Diesel Additives Company at August 31 are as follows:Finished goods inventory................$ 89,400Supplies.............................................$ 13,800Prepaid insurance..................................9,000Materials inventory..............................26,800Accounts receivable...........................348,200Cash.....................................................167,500Work in process inventory..................61,100Prepare the Current Assets section of Diesel Additives Company's balance sheet at August 31.
Answer:
Diesel Additives Company
Current Assets section
Materials inventory 26,800
Work in process inventory 61,100
Finished goods inventory 89,400
Supplies 13,800
Prepaid insurance 9,000
Accounts receivable 348,200
Cash 167,500
Total Current Assets 715,800
Explanation:
Current Assets section of Diesel Additives Company's balance sheet at August 31 is shown above.
16) When Amazon acquired Whole Foods, the brick-and-mortar supermarket, the company was pursuing a ________ strategy.
A) market development
B) product penetration
C) market penetration
D) diversification
Answer:
D
Explanation:
The acquisition of Whole Foods supermarket by Amazon Company is describing the company's diversification strategy.
Option D is the correct answer.
What is marketing?Marketing is the process of making the promotion of goods or services made by a company. it can be an online promotion or offline promotion.
Diversification is a marketing strategy where a company wants to expand its operations or launch a new product line. The main focus is to enhance and expand its business so that it can increase its business growth.
Therefore, Amazon uses a diversification strategy by acquiring the Wholefoods.
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On January 1, 20X1, Beard Company purchased a machine for $620,000. The machine is expected to have a 10-year life, with no salvage value, and will be depreciated by the straight-line method. On January 1, 20x1, it leased the machine to Child Company for a three-year period at an annual rental of $128,000 to be paid at the end of each year. Beard could have sold the machine for $817,298 instead of leasing it. Child does not know the implicit rate in the lease, but it has an incremental rate of 9%. Child Company has a December 31 reporting year. Use tables (PV of 1, PVAD of 1, and PVOA of 1 (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount.)
Required:
1. Why is this an operating lease for Child Company?
2. What are the amounts of the right-of-use asset and lease liab that Child Company should report on its balance sheet at December 31, 20X1?
3. How much lease expense should Child Company recognize in 20X1?
Answer:
1. Why is this an operating lease for Child Company?
The life of the asset is 10 years while the lease is only 3 years long, so it cannot be classified as a financial lease.
2. What are the amounts of the right-of-use asset and lease liability that Child Company should report on its balance sheet at December 31, 20X1?
annual lease payment = $128,000 (ordinary annuity)
PVIFA, 9%, 3 periods = 2.5313
present value = $128,000 x 2.5313 = $324,006.40
3. How much lease expense should Child Company recognize in 20X1?
lease expense = PV of lease x interest rate = $324,006.40 x 9% = $29,160.58