Answer: $58.7
Explanation:
The price of one share of this stock today will be calculated thus:
Dividend of year 1= $5.39(1 + 0.05) = $5.66
Dividend of Year 2 = $5.39(1 + 0.05)² = $5.94
Dividend of Year 3 = $5.39(1 + 0.05)³ = $6.24
Dividend of Year 4 = $5.39(1 + 0.05)^4 = $6.55
We then calculate the value at year 4 which will be:
= $7.13 / 0.115 = $62
The price will then be:
Price = $5.66 / (1 + 0.115) + $5.94 / (1 + 0.115)² + $6.24/ (1 + 0.115)³ + $6.56 / (1 + 0.115)^4 + $62 / (1 + 0.115)^4
= $58.7
etaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year: Beginning Work in Process (40% complete, $1,100) 200 units Ending inventory of Work in Process (80% complete) 400 units Total units started during the year 3,200 units
Answer:
Equivalent units of production= 3,520
Explanation:
Giving the following information:
Ending inventory of Work in Process (80% complete) 400 units
Total units started during the year 3,200 units
To calculate the equivalent units using the weighted-average method, we need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 3,200 + (400*0.8)
Equivalent units of production= 3,520
The management of Idaho Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year Income from Operations Net Cash Flow 1 $100,000 $180,000 2 40,000 120,000 3 20,000 100,000 4 10,000 90,000 5 10,000 90,000 The net present value for this investment is
Answer:
NPV $25,200
Explanation:
The computation of the net present value is shown below
Years Cash flow Discount PV
0 -$430,000 1 -$430,000
1 $180,000 0.909 $163,620
2 $120,000 0.826 $99,120
3 $100,000 0.751 $75,100
4 $90,000 0.683 $61,470
5 $90,000 0.621 $55,890
NPV $25,200
A callable bond:
A. Is generally call protected during the entire term of the bond issue,
B. generally will have a call protection period during the final three years prior to maturity.
C. may be structured to pay bondholders the current value of the bond on the date of call.
D. is prohibited from having a sinking fund also.
E. Is frequently called at a price that is less than par value
Answer:
C. may be structured to pay bondholders the current value of the bond on the date of call.
Explanation:
A callable bond is also called a redeemable bond. It a debt instrument that the issuer may decide to call or redeem before the maturity date.
This is used by bond issuers to have a cheaper cost of borrowing funds.
For example when interests are low the issuer can buy back his bonds at a lower cost this reducing his debt burden.
So callable bonds are structured to pay bondholders the current value of the bond on the date of call or redemption.
Assume that the entry closing total revenues of $284,900 and total expenses of $212,600 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $330,000 and Teresa Schafer, Drawing has a balance of $27,600.
A. Journalize the entry required to close the Teresa Schafer, Drawing account.
B. Determine the amount of Teresa Schafer, Capital at the end of period.
Answer and Explanation:
a. The journal entry to record the closing of drawing account is given below:
Teresa Schafer, Capital $27,600
Teresa Schafer, Drawing $27,600
(Being closing of drawing account is recorded)
b. The ending capital is
= Credit balance of capital - drawings
= $330,000 - $27,600
= $302,400
A truck was acquired on July 1, 2018, at a cost of $311,850. The truck had a six-year useful life and an estimated salvage value of $34,650. The straight-line method of depreciation was used. On January 1, 2021, the truck was overhauled at a cost of $28,875, which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $34,650). In computing depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned.
Answer:
Details Amount($)
Cost $311,850
Less: Salvage value ($34,650)
Depreciation base July 1, 2018 $277,200
Less: Depreciation to date ($277,200/6)*2.5 ($115,500)
Depreciation base Jan 1, 2021 (unadjusted) $161,700
Overhaul $28,875
Depreciation base Jan 1, 2021 (adjusted) $190,575
Date Particulars Debit($) Credit($)
2021, Jan 1 Depreciation accumulated A/c Dr $34,650
To cash A/c $34,650
2021, Dec 31 Expense for depreciation A/c Dr $19,922
($109,575/5.5)
To Depreciation accumulated A/c $19,922
Casey transfers property with a tax basis of $2,640 and a fair market value of $7,000 to a corporation in exchange for stock with a fair market value of $5,100 and $835 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,065 on the property transferred. Casey also incurred selling expenses of $547. What is the amount realized by Casey in the exchange
Answer: $6453
Explanation:
The amount realized by Casey in the exchange will be calculated thus:
Fair market value of stock received = $5100
Add: Deferral = $835
Add: Assumed mortgage = $1065
Less: Selling expense = $547
Amount realized = $6453
Therefore, the amount realized by Casey in the exchange is $6453
g Sunk costs are: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices extra costs associated with one more unit of something. financial costs any costs associated with making the decision to do something instead of doing the next best alternative. costs that have been incurred and cannot be reversed
Answer:
costs that have been incurred and cannot be reversed.
Explanation:
Sunk cost can be defined as a cost or an amount of money that has been spent on something in the past and as such cannot be recovered. Thus, because a sunk cost has been incurred by an individual or organization it can't be recovered and as such it is irrelevant in the decision-making process such as investments, projects etc.
Basically, sunk costs are referred to as fixed costs.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, sunk costs are costs that have been incurred and cannot be reversed.
For example, ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
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A four-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
A two-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
_____ is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
______ is an on-the-job training experience in which the learner works at a job under the direction of an expert.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
Answer:
A four-year college-level degree is called
A.) ✔ a bachelor’s degree.
A two-year college-level degree is called
B.) ✔ an associate degree.
_______is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
B.) ✔ A career college.
_______is an on-the-job training experience in which the learner works at a job under the direction of an expert.
C.) ✔ An apprenticeship
Explanation:
I hope this helps!!! :))
There are different kinds of program. The answers are below;
A four-year college-level degree is called a bachelor’s degree.
A two-year college-level degree is called an associate degree.
A career college is a program that is usually no longer than one or two years.
An apprenticeship is an on-the-job training experience in which the learner works at a job under the direction of an expert.
What is an apprenticeship?An apprenticeship is known to be a set up of
job training and classroom learning together that tends to help one to a trade credential.
Learn more about apprenticeship from
https://brainly.com/question/25689052
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital). If the airline operates with four crew members per plane, then we know that: A. the production process violates diminishing margin returns. B. production at this point is technically inefficient. C. the isoquants for this production process are upward sloping. D. the airline will have negative profits.
Answer:
production at this point is technically inefficient.
Explanation:
The Factors of Production are simply the inputs in the production process such as labor, capital, materials.
The production function shows the various materials or recipes for producing a given level of output. It shows the output that can be produced if the firm is technically efficient.
Production at point of technically inefficient are said to be points in the production set but not on the production function.
Fixed Proportion Production Function is simply a Production function with L-shaped isoquants that is only one combination of labor and capital can be used to produce each level of output. It describes situations in which methods of production are limited.
The Lincoln wheat penny was designed by Victor D. Brenner in 1909. Currently, the most valued penny is the 1909 S VDB penny. It was minted in San Francisco and only 484,000 were minted with the initials on the back. In 2015, the S VDB penny in uncirculated condition is worth $3,200. When will it be worth $15,000
Answer:
The answer is "1960.58"
Explanation:
Through the partnership, the importance of the penis is increased
[tex]w = 0.01 a^x[/tex]
In which an element is gradual and x the year is no.
For [tex]2015 x = 2015 - 1909 = 106[/tex], and at that time [tex]w = 3200[/tex]
thus
[tex]3200 = 0.01 a^{106}\\\\320000 = a^{106}\\\\\ln(320000) = 106 \ln(a)\\\\12.67 = 106 \ln(a)[/tex]
[tex]\ln (a) = 0.1196\\\\\to a = e^{0.1196} = 1.127[/tex]
[tex]15,000 = 0.01\times 1.127^x\\\\15,00,000 = 1.127^x[/tex]
[tex]\ln(15,00,000) = x \ln(1.127)\\\\[/tex]
[tex]6.17 = x\times 0.1196\\\\\to x = 51.58\\\\\to Year = 1909 + 51.58 = 1960.58[/tex]
SUNLAND COMPANY
Income Statements
For the Years Ended December 31
2020 2021
Net sales $2,178,400 $2,030,000
Cost of goods sold 1,207,000 1,187,080
Gross profit 971,400 842,920
Selling and administrative expenses 590,000 565,220
Income from operations 381,400 277,700
Other expenses and losses
Interest expense 25,960 23,600
Income before income taxes 355,440 254,100
Income tax expense 106,632 76,230
Net income $ 248,808 $ 177,870
SUNLAND COMPANY
Balance Sheets
December 31
Assets 2022 2021
Current assets
Cash $ 70,918 $ 75,756
Debt investments (short-term) 87,320 59,000
Accounts receivable 139,004 121,304
Inventory 148,680 136,290
Total current assets 445,922 392,350
Plant assets (net) 765,820 613,954
Total assets $1,211,742 $1,006,304
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 188,800 $171,572
Income taxes payable 51,330 49,560
Total current liabilities 240,130 221,132
Bonds payable 259,600 236,000
Total liabilities 499,730 457,132
Stockholders’ equity
Common stock ($5 par) 342,200 354,000
Retained earnings 369,812 195,172
Total stockholders’ equity 712,012 549,172
Total liabilities and stockholders’ equity$1,211,742 $1,006,304
All sales were on account. Net cash provided by operating activities for 2022 was $259,600. Capital expenditures were $160,480, and cash dividends were $74,168.
Compute the following ratios for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
(a) Earnings per share
$enter earnings per share in dollars
(b) Return on common stockholders’ equity
enter return on common stockholders’ equity in percentages %
(c) Return on assets
enter return on assets in percentages
%
(d) Current ratio
enter current ratio
(e) Accounts receivable turnover
enter accounts receivable turnover in times
(f) Average collection period
enter average collection period in days
(g) Inventory turnover
enter inventory turnover in times
(h) Days in inventory
enter days in inventory
(i) Times interest earned
enter times interest earned
(j) Asset turnover
enter asset turnover in times
(k) Debt to assets ratio
enter debt to assets ratio in percentages
(l) Free cash flow
$enter free cash flow in dollars
Answer:
a) $3.57
(b) Return on common stockholders’ equity = 39.46%
(c) Return On Assets = 22.43%
(d) Current Ratio = 1.86 times
(e) Account Receivables Turnover Ratio = 16.74 times
(f) Average collection period = 21.8 days
(g) Inventory Turnover = 8.47 times
(h) Days in inventory = 43.09 days
(i) Times interest earned = 14.69 times
(j) Asset turnover = 1.96 times
(k) Debt to assets ratio = 41.24%
(l) Free cash flow = $24,952
Explanation:
(a) Earnings per share
Net income = $248,808
Beginning number of shares = Beginning Common stock / Par value = $354,000 / $5 = 70,800
Ending number of shares = Ending Common stock / Par value = $342,200 / $5 = = 68,440
Average Number of Shares Outstanding = (Beginning number of shares + Ending number of shares) / 2 = (68,440 + 70,800) / 2 = 69,620
Earning Per Shares = Net Income/ Average Number of Shares Outstanding = $248,808 / 69,620 = $3.57
(b) Return on common stockholders’ equity
Average Stockholders Equity = (Beginning Stockholders Equity + Ending Stockholders Equity) / 2 = ($549,172 + $712,012) / 2 = $630,592
Return on Stockholders Equity = Net Income / Average Stockholders Equity = $248,808 / $630,592 = 0.3946, or 39.46%
(c) Return on assets
Average total assets = (Ending total assets + Beginning total assets) / 2 = ($1,211,742 + 1,006,304) / 2 = $1,109,023
Return On Assets = Net Income / Average total assets = $248,808 / $1,109,023 = 0.2243, or 22.43%
(d) Current ratio
Current Ratio = Current Assets / Current Liabilities = $445,922 / $240,130 = 1.86 times
(e) Accounts receivable turnover
Average Account Receivables = (Beginning Account Receivables + Ending Account Receivables) / 2 = ($139,004 + $121,304) / 2 = $130,154
Account Receivables Turnover Ratio = Sales / Average Account Receivables = $2,178,400 / $130,154 = 16.74 times
(f) Average collection period
Average collection period = 365 / Account Receivables turnover ratio = 365 days /16.74 = 21.8 days
(g) Inventory turnover
Average Inventory = (Beginning inventory + Ending inventory) / 2 = ($148,680 + $136,290) / 2 = $142,485
Inventory Turnover = Cost of goods sold / average inventory = $1,207,000 / $142,485 = 8.47 times
(h) Days in inventory
Days in inventory = 365/ inventory turnover ratio = 365 days / 8.47 = 43.09 days
(i) Times interest earned
Times Interest Earned = Earnings before interest, taxes, depreciation, and amortization / Interest expenses = Income from operations / Interest expenses = $381,400 / $25,960 = 14.69 times
(j) Asset turnover
Asset turnover = Net sales / Average total assets = 2,178,400 / $1,109,023 = 1.96 times
(k) Debt to assets ratio
Debt to Asset Ratio = Total Debt / Total Assets = $499,730 / $1,211,742 = 0.4124, or 41.24%
(l) Free cash flow
Free cash flow = Net cash provided by operating activities - Capital expenditures - Cash dividends = $259,600- $160,480 - $74,168 = $24,952
Aliya and Samuel, managers from different departments at Finger Lakes Financial, are discussing the troubling behavior of an employee. Aliya says that it is the responsibility of high-level managers to take steps to prevent legal wrongdoing by punishing offenders. However, Samuel believes that every individual should take personal responsibility for his or her own behavior and that everyone needs to understand how to do the right thing. Samuel prefers a(n) ________ ethics program.
Answer:
Ethics Program
Samuel prefers a(n) ________ ethics program.
personal (individual) ethics program.
Explanation:
But such a personal ethics program cannot work in an organization. An organization is made up of persons from different backgrounds and orientations with differing work and personal ethics. An organizational ethics program cannot succeed by being dependent on personal scruples, as being suggested by Samuel. Every organization requires a company-wide ethics program that is equally applicable to all persons in the organization. The tone of such ethics program should be set at the top of the organization's hierarchy.
Flint Corporation is subject to a corporate income tax only in State X. The starting point in computing X taxable income is Federal taxable income which is $750,000. This amount includes a $50,000 deduction for state income taxes. During the year, Flint received $10,000 interest on Federal obligations. X tax law does not allow a deduction for state income tax payments. Flint’s taxable income for X purposes is:_________
a. $800,000.
b. $790,000.
c. $810,000.
d. $750,000.
Answer:
b. $790,000.
Explanation:
The computation of the taxable income for X purpose is shown below:
Federal Taxable income $750,000
Add: Deduction for state income taxes non-deductible $50,000
Less: Interest on federal obligations i.e. deductible $10,000
Taxable income $790,000
Hence, option b is correct
List down three characteristic of project
Answer:
A single definable purpose, end-item or result. This is usually specified in terms of cost, schedule and performance requirements.
Every project is unique. It requires the doing of something different, something that was not done previously. Even in what are often called “routine” projects such as home construction, the variables such as terrain, access, zoning laws, labour market, public services and local utilities make each project different. A project is a one-time, once-off activity, never to be repeated exactly the same way again.
Projects are temporary activities. A project is an ad hoc organization of staff, material, equipment and facilities that is put together to accomplish a goal. This goal is within a specific time-frame. Once the goal is achieved, the organization created for it is disbanded or sometimes it is reconstituted to begin work on a new goal (project).
Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. On February 1, 2013, she incorporates her business as Dove Corporation and transfers the assets of the business to the corporation in return for all of the stock in addition to the corporation’s assumption of her proprietorship’s liabilities. All of the receivables and the unpaid trade payables are transferred to the newly formed corporation. The balance sheet of the corporation immediately after its formation is as follows:
Dove Corporation
Balance Sheet
February 1, 2013
Assets
Basis to Dove Fair Market Value
Cash $ 80,000 $ 80,000
Accounts receivable 0 240,000
Equipment (cost $180,000; 120,000 320,000
depreciation previously claimed $60,000)
Building (straight-line depreciation) 160,000 400,000
Land 40,000 160,000
Total $400,000 $1,200,000
Liabilities and Stockholder’s Equity
Liabilities:
Accounts payable—trade $ 120,000
Notes payable—bank 360,000
Stockholder’s equity:
Common stock 720,000
Total $1,200,000
Discuss the tax consequences of the incorporation of the business to Cynthia and to Dove Corporation.
Answer:
Cynthia and Dove CorporationAny profits generated by Dove Corporation will be taxed to the corporation and also taxed to Cynthia as a shareholder whenever Dove distributes the profits as dividends. Taxing Dove and Cynthia creates a double taxation burden for both Dove and Cynthia. Dove Corporation does not get a tax deduction when it distributes dividends to Cynthia. Furthermore, Cynthia cannot deduct any corporation loss when incurred. These are unlike when the business was only a sole proprietorship.
Explanation:
a) Data and Calculations:
Dove Corporation
Balance Sheet
February 1, 2013
Assets
Basis to Dove Fair Market Value
Cash $ 80,000 $ 80,000
Accounts receivable 0 240,000
Equipment (cost $180,000; 120,000 320,000
depreciation previously claimed $60,000)
Building (straight-line depreciation) 160,000 400,000
Land 40,000 160,000
Total $400,000 $1,200,000
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable—trade $ 120,000
Notes payable—bank 360,000
Stockholders' equity:
Common stock 720,000
Total $1,200,000
Multiplication. Phyllis, who is 30 years old, works for We Add for You Accounting. Phyllis has worked there for a number of years and is considering quitting in order to spend more time with her three active triplets, Sunny, Fussy, and Perky. She asks her boss, Bolivar, about the pension plan at We Add for You. Her boss tells her that she is not entitled to that information until she is at least 60 years old. Phyllis also asks about retaining her medical insurance protection if she quits and is told that she would have no right to do so. Bolivar also throws in that he has been monitoring her conversations and that he particularly enjoys the conversations between her and her single female friends involving failed dating experiences. He asks her to keep those up. Phyllis tells him that her personal phone calls are none of his business. Bolivar says that he can listen if he wants because the phones are his. Phyllis ends up starting her own company called We Multiply for You, and makes much, much more money. (In answering the following questions, assume all federal laws apply and that any pension and medical plan qualifies for regulation under federal law.) Which of the following addresses the retention of medical benefits upon leaving a job?
a. The Medical Benefits Retention Act (MBRA)
b. The Comprehensive Medical Benefits Retention Act (CMBRA)
c. The Consolidated Omnibus Budget Reconciliation Act (COBRA)
d. The Health and Maintenance Act (HMA)
e. The Americans with Disabilities Act (ADA)
Answer:
c. The Consolidated Omnibus Budget Reconciliation Act (COBRA)
Explanation:
The act was created and implemented in the year 1985 and that was passed by Congress. In this act it create and retains the medical benefits after leaving the job.
So according to the question the act that should be retained medical benefits upon leaving the job is COBRA
Hence, the correct option is c.
Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending. For each form of private spending, indicate whether it represents consumption or investment.
Private Spending Consumption Investment
People buying houses
People buying newspapers
People buying food
Firm buying trash cans
Firm buying computers
For each form of government spending, indicate whether it represents consumption or investment.
Government Spending Consumption Investment
Building tunnels
Buying medical equipment
Building public housing
Payment for public safety employees
Answer:
For each form of private spending, indicate whether it represents consumption or investment.
Private Spending
People buying houses Investment
People buying newspapers Consumption
People buying food Consumption
Firm buying trash cans Investment
Firm buying computers Consumption
For each form of government spending, indicate whether it represents consumption or investment.
Government Spending
Building tunnels Investment
Buying medical equipment Investment
Building public housing Investment
Payment for public safety employees Consumption
Explanation:
Your family business produces a secret recipe salsa and distributes it through both smaller specialty stores and chain supermarkets. The chains have been demanding sizable discounts but you do not want to drop your prices to the specialty stores. When can you legally accommodate the chains without losing profits from the specialty stores
Answer:
We can make the chain supermarkets buy goods in bulk.
Explanation:
In the given scenario the chain supermarkets have been demanding heavy discounts on goods that you are selling to them.
Also you do not want the eventual price to the speciality stores to drop.
The solution will be to sell products in bulk to the chain supermarkets. This will meet their demand for larger discounts as price per unit of product will be lower with bulk purchase.
Then the speciality stores can still buy in small quantities for higher price.
This will accommodate the requirements from both stores.
Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product U6 690 8.9 6,141 Product R5 1,060 5.9 6,254 Total direct labor-hours 12,395 The direct labor rate is $28.00 per DLH. The direct materials cost per unit for each product is given below:
Direct Materials
Cost per Unit
Product U6 $250.40
Product R5 $167.80
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product U6 Product R5 Total
Labor-related DLHs $ 201,638 7,125 7,280 14,405
Production orders orders 72,840 1,350 1,250 2,600
Order size MHs 1,020,608 6,500 6,800 13,300
$ 1,295,086
Which of the following statements concerning the unit product cost of Product U6 is true? (Round your intermediate calculations to 2 decimal places.)
a. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $340.31.
b. The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $5.63.
c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.
d. The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $340.31.
Answer:
Lillich, Inc.
c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.
Explanation:
a) Data and Calculations:
Direct labor rate = $28.00 per DLH
Product U6 Product R5 Total
Expected production 690 1,060
Direct materials cost/unit $250.40 $167.80
Direct Labor Hours/unit 8.9 5.9
Total direct labor hours 6,141 6,254 12,395
Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)
Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)
Total overhead $636,360 $658,752 $1,295,112
Total production cost $981,084 $1,011,732
Expected production 690 1,060
Cost per unit $1,421.86 $954.46
Traditional costing:
Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)
Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)
Total overhead $641,612 $653,418 $1,295,112
Total production cost $986,336 $1,006,398
Expected production 690 1,060
Cost per unit $1,429.47 $949.43
Allocation of overhead based on direct labor hours
= $ 1,295,086/12,395
= $104.48 per DLH
Product U6 = $641,612 ($104.48 * 6,141)
Product R5 = $653,418 ($104.48 * 6,254)
Estimated Expected Activity
Activity Cost Pools Activity Overhead Product Product Total
Measures Costs U6 R5
Labor-related DLHs $ 201,638 7,125 7,280 14,405
Production orders Orders 72,840 1,350 1,250 2,600
Order size MHs 1,020,608 6,500 6,800 13,300
Total $ 1,295,086
Overhead rates:
Labor-related = $201,638/14,405 = $14.00 per DLH
Production orders = $72,840/2,600 = $28.00 per order
Order size = $1,020,608/13,300 = $76.74 per machine hour
Overhead allocation:
Product U6 Product R5 Total
Labor-related $99,750 (7,125*$14) $101,920 (7,280*$14) $201,670
Production orders 37,800 (1,350*$28) 35,000 (1,250*$28) 72,800
Order size 498,810 (6,500*$76.74) 521,832 (6,800*$76.74) 1,020,642
Total overhead $636,360 $658,752 $1,295,112
What is an example for empathy and being able to recover quickly from emotional experience?
Answer:
The answer is below
Explanation:
Given that Empathy is a personal experience or ability shown by individuals to understand and share the actual feelings of other individuals.
Examples of Empathy are:
Emotional, Cognitive, and Compassionate
Emotional Regulation is the "ability to recover quickly from the emotional experience." This is a form of emotional intelligence exercised by humans.
The corporate charter of Maine Yacht Corporation allows the issuance of a maximum of 3,000,000 shares of $1 par value common stock. During its first three years of operation, Maine issued 2,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions:
a. How many shares were authorized?
b. How many shares were issued?
c. How many shares are outstanding?
d. What is the balance of the Common Stock account?
Answer:
a)3,000,000 shares
b)2,200,000 shares
c)2,170,000 shares
d)$2,200,000
Explanation::
a) Based on the information given 3,000,000 shares were authorized
b) Based on the information given 2,200,000 shares were issued
c) Calculation for many shares are outstanding
Outstanding shares= (2,200,000 issued-30,000 in treasury)
Outstanding shares=2,170,000 shares
d) Calculation for the balance of the Common Stock account
Balance of the Common Stock account = ($1 × 2,200,000 shares
Balance of the Common Stock account=$2,200,000
US Apparel (USA) manufactures plain white and solid-colored T-shirts. Budgeted inputs include the following
Price Quantity Cost per unit of output
fabric $8 per yard 0.75 yards per unit $6 per unit
labor $16 per DMLH 0.25 DMLH per unit $4 per unit
dye $0.50 per ounce 4 ounces per unit $2 per unit
For colored T-shirts only
Budgeted sales and selling price per unit is as follow:s:
Budgeted Sales Selling Price per Unit
White T-shirts 10,000 units $12 per T-shirt
Colored T-shirts 50,000 units $15 per T-shirt
The USA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.25 per ounce. The company would still need 4 ounces of dye per shirt. The USA is reluctant to change because of the increase in costs (and decrease in profit), but the Environmental Protection Agency has threatened to fine the company $130,000 if it continues to use the harmful but less expensive dye
a. Given the preceding information, would the USA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.)
b. Assume the USA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. If the USA can reduce fabric and labor costs each by 1% per month on all the shirts it manufactures, by how much will overall costs decrease at the end of 12 months? (Round to the nearest dollar for calculating cost reductions.)
c. Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan?.
Answer:
A) USA will not be better off switching to the new dye since the cost is greater than the Fine
B) $118076
C) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials
while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset
Explanation:
A) Determine If the USA be better off using the new dye
Units of clothes to be dyed = 50,000
Difference in cost = [ 4 ( 1.25 - 0.5 ) ] = 4 * 0.75 = $3
Total cost of using the new dye = 50000 * $3 = $150,000
Fine = $130,000
hence USA will not be better off switching to the new dye since the cost is greater than the Fine
B) Determine by how much overall cost will be reduced at the end of 12 months using Kaizen costing
condition : reduce fabric and labor cost by 1%
Original Monthly Costs without the use of Kaizen Costing =( Total Units/Number of Months)*(Fabric Cost per Unit + Labor Cost per Unit)*Number of Months
= [( 10000 + 50000 )/12 ) * ( 6 + 4 ) ] *12
= [ 5000 * 10 ] *12 = $600,000
Applying kaizen costing
Given: Fabric cost per unit = $6 , Labor cost per unit = $4
Total units of production = 10000 + 50000 = 60,000
Kaizen costing formula per month = [ (cost per unit * total units / 12 ) - ( 1% of cost per unit * total units / 12) ]
Total annual cost using Kaizen costing = $56807.61
difference in cost = $600,000 - $568076 = $31924
with the new dye and Kaizen costing the overall cost will be change by $118076 i.e. ($150,000 - $31924) = $118076
C ) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials
while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset
As long as a firm's net income is positive, then the firm can use the positive net income to pay dividends to its shareholders.
True
False
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $58,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 3 percent of your annual salary in an account that will earn 11 percent per year. Your salary will increase at 6 percent per year throughout your career.
Required: How much money will you have on the date of your retirement 40 years from today?
Answer:
The amount you will have on the date of your retirement 40 years from today is $1,904,087.20.
Explanation:
This can be determined using the formula for calculating the future value of growing annuity as follows:
FV = M * (((1 + r)^n - (1 + g)^n) / (r - g)) ...................................... (1)
Where
FV = Future value or the amount on the date of retirement = ?
M = First annual deposit = Annual salary * Deposit percentage = $58,000 * 3% = $1,740
r = annual interest rate = 11%, or 0.11
g = salary growth rate = 6%, or 0.06
n = number of years = 40 years
Substituting all the values into equation (1), we have:
FV = $1,740 * (((1 + 0.11)^40 - (1 + 0.06)^40) / (0.11 - 0.06))
FV = $1,740 * 1,094.30298736951
FV = $1,904,087.20
Therefore, the amount you will have on the date of your retirement 40 years from today is $1,904,087.20.
29. Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $22,500 cash and inventory with a fair value of $56,000 (inside basis of $28,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $53,625. What is the amount and character of Randolph's gain or loss on the distribution
Answer: $3125 capital loss
Explanation:
Based on the information given in the question, we should note that RD Partnership distributes $22500 cash and inventory with inside basis of $28000.
Since Randolph's basis in his RD Partnership interest is $53,625, the amount and character of Randolph's gain or loss on the distribution will be:
= ($22500 + $28000) - $53625
= $50500 - $53625
= -$3125
Therefore, there's a capital loss of $3125
A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to principal.
During the first month, customers owing $524,800 paid cash, less sales returns and allowances of $20,480, originally recorded as a refund liability. The finance charge at the end of the first month was $4,480. During the second month, the remaining receivables were collected in full, except for $5,120 off as uncollectible. Final settlement was effected with the finance company, including payment of an additional finance charge of $1,920.
Required:
a. Record the entry for Sterling to record the secured borrowing.
b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.
c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.
Answer:
See all the entries below.
Explanation:
a. Record the entry for Sterling to record the secured borrowing.
The entries will look as follows:
Account Name Debit ($) Credit ($)
Cash (768,000 * 85%) 652,800
Note Payable 652,800
(To record the secured borrowing.)
b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.
The entries will look as follows:
Account Name Debit ($) Credit ($)
Cash 504,320
Refund Liability 20,480
Accounts Receivable 524,800
(To record collection on receivables for first month.)
Interest Expense 4,480
Note Payable 499,840
Cash 504,320
(To record payment to Miami for the first month.)
c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.
The entries will look as follows:
Account Name Debit ($) Credit ($)
Cash 238,080
Allowance for Doubtful Debt 5,120
Accounts Receivable (w.1) 243,200
(To record collection on receivables for second month Interest.)
Expense 1,920
Note Payable 151,040
Cash (w.2) 152,960
(To record final payment to Miami.)
Workings:
w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200
w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960
The accountant for Eva's Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountant's adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry.
Eva's Laundry
Trial Balances
May 31, 2018
Unadjusted Adjusted
Debit Balances Credit Balances Debit Balances Credit Balances
Cash . 7,500 7,500
Accounts Receivable . 18,250 23,250
Laundry Supplies 3,750 6,750
Prepaid Insurance* 5,200 1,600
Laundry Equipment . . 190,000 177,000
Accumulated Depreciation—Laundry
48,000 48,000
Accounts Payable 9,600 9,600
Wages Payable 1,000
Capital Stock . . 35,000 35,000
Retained Earnings 75,300 75,300
Dividends 28,775
Laundry Revenue 182,100 182,100
Wages Expense 49,200 49,200
Rent Expense . . 25,575 25,575
Utilities Expense . 18,500 18,500
Depreciation Expense 13,000
Laundry Supplies Expense 3,000
Insurance Expense 600
Miscellaneous Expense .3,250 3,250
350,000 350,000 358,000 351,000
Answer:
See the errors identified below.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answer is now given as follows:
The following errors can be identified in the accountant's adjusting entries:
1.The accountant debited the account receivable for $5,000 (i.e. $23,250 - $18,250 = $5,000) without crediting laundry revenue.
Therefore, we should have:
Correct amount of laundry revenue = Laundry revenue in trial balance + (Adjusted account receivable - Unadjusted account receivable) = $182,100 + ($23,250 - $18,250) = $187100
2. The accountant debited laundry suppliers expense instead of crediting laundry suppliers for $3,000.
3. The the accountant credited Prepaid insurance for $3,600 (i.e. $5,200 - $1,600 = $3,600). However, the insurance expense was debited for $600.
4. Instead of crediting accumulated depreciation, the laundry equipment for depreciation expense was erroneously credited by the accountant for $13,000.
5. A debit of $1,000 to wages expense was not made by the accountant.
Additional Note:
After correcting the errors identified above, the correct adjusted trial balance will look as the one in the attached photo.
Below are several names of companies and their founders. Explain whether the business creates and sells innovative products or uses innovative methods or both
Answer:
my Answer is a products is notikdd
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8% with semiannual payments of $40, and a par value of $1,000. The price of each bond in the issue is $1,196.00. The bond issue is callable in 5 years at a call price of $1,080. What is the bond's current yield
Answer:
6.69%
Explanation:
Price of Ace products bond issue = $1,196
Annual coupon payment = $80
Current yield = Annual coupon payment / Bond price
Current yield = $80/$1,196
Current yield = 0.0668896
Current yield = 6.69%
Coronado Industries had 309000 shares of common stock issued and outstanding at December 31, 2020. No common stock was issued during 2021. On January 1, 2021, Coronado issued 195000 shares of nonconvertible preferred stock. During 2021, Coronado declared and paid $92000 cash dividends on the common stock and $80000 on the preferred stock. Net income for the year ended December 31, 2021 was $621000. What should be Coronado's 2021 earnings per common share
Answer: $1.75
Explanation:
Number of shares issued = 309000
Net income = $621,000
Cash dividend paid on preferred stock = $80000
Coronado's 2021 earnings per common share will then be:
= (Net income - Cash dividend) / Shares issued
= (621000 - 80000) / 309000
= 541000/309000
= $1.75