Answer: $2692.8
Explanation:
From the question, we are told that grandmother deposited $1,000 in an account that pays 6% per year compounded annually when her granddaughter was born. The value of the account be when the granddaughter reaches her 17th birthday goes thus:
Future value = PV(1 +i)^n
where
PV = present value = $1000
I = interest rate = 6% = 0.06
n = number of years = 17
Future value = PV(1 +i)^n
= 1000(1 + 0.06)^17
= 1000(1.06)^17
= 1000 × 2.6928
= $2692.8
The value of the account will be $2692.8 when the granddaughter reaches her 17th birthday.
9 Wheeling Company produces and sells bikes. It expects to sell 22,000 bikes in the month of April. It had 1,200 bikes in Finished Goods Inventory at the end of March. Wheeling Company would like to complete operations in the month of April with at least 1,500 completed bikes in inventory. The bikes sell for $100 each. How many bikes would Wheeling need to produce in April? a. 19,700 bikes c. 18,800 bikes b. 22,300 bikes d. 20,300 bikes
13) The _________ system is an integrated system capable of providing access to real-time data from the various funcitonal areas of a company. a. lean accounting management b. operational control information c. enterprise resource planning d. financial management information
14)In a company that supplies muffins to bakeries, which of the following would be considered an input? a. cashier c. delivered muffins b. flour d. None of the above
Answer: 9. b. 22,300 bikes
13. c. enterprise resource planning
14. Flour
Explanation:
1. 22,000 bikes need to be sold in April.
Let x be the number of bikes required
The equation then should be;
22,000 = Opening stock + x - Closing stock
x = 22,000 - opening stock + closing stock
x = 22,000 - 1,200 + 1,500
x = 22,300 bikes.
2. Entreprise Resource Planning allows for the integration of the various functions of a company to enable faster information processing and dissemination. It therefore allows for the provision of access to real-time data from the various funcitonal areas of a company.
14. The company supplies Muffins that they bake and an input refers to the goods or services required to produce the final good. Flour is used in the banking of the muffin which is the final good hence flour must be an input.
firm uses both labor and machines in production. Explain why an increase in the average wage rate causes both a movement along the demand curve and a shift of the demand curve. An increase in the average wage causes a movement
Answer:
The answer is explained below
Explanation:
When a firm increases the average wage rate, the firm would employ fewer workers causing a movement up along the demand curve and a shift to the left of the labor demand curve. As wage increase, the firm production will reduce because of a decrease in number of staffs, the causes the number of machines needed for production to reduce causing the marginal product of labor to shift to the left. The labor demand is further reduced, the firm then employ less labor at a higher wage.
A machine is purchased on January 1, 2018, for $102,000. It is expected to have a useful life of eight years and a residual value of $11,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2019
Answer:
Depreciation expense 2019= $17,062.5
Explanation:
Giving the following information:
Purchase price= 102,000
Useful life= 8
Salvage value= 11,000
To calculate the depreciation expense under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2018= 2*[(102,000 - 11,000)/8]= $22,750
2019= 2*[(91,000 - 22,750)/8]= $17,062.5
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $412,184 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $50,000. Negotiations led to Maywood guaranteeing a $70,000 residual value. Equal payments under the lease are $100,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 5% interest rate when calculating lease payments.
Required:
1. Prepare the appropriate entry for Maywood on January 1, 2021, to record the lease.
2. Prepare all appropriate entries for Maywood on December 31, 2021, related to the lease.
Answer:
1/1/2021
Dr Right of use Asset 371,049
Dr Lease Payable 371,049
12/31/2021
Dr Interest Expense 18,552
Dr Lease Payable 81,448
Cr Cash 100,000
12/31/2021
Dr Amortization Expense 92,762
Cr Right of use Asset 92,762
Explanation:
Maywood Hydraulics
First step is to Calculate for PMT, FV and PV
N= 4, I= 5, PMT=100,000, FV=20,000, PV= 371,049
1/1/2021
Dr Right of use Asset 371,049
Dr Lease Payable 371,049
12/31/2021
Dr Interest Expense 18,552
(371,049*.05)
Dr Lease Payable 81,448
(100,000-18,552)
Cr Cash 100,000
12/31/2021
Dr Amortization Expense 92,762
Cr Right of use Asset 92,762
[ (371,049-0)/4 years]
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 55%, which will result in annual interest charges of $152,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $452,000 on sales of $4,000,000, and it expects to have a total assets turnover ratio of 3.6. Under these conditions, the tax rate will be 40%. If the changes are made, what will be the company's return on equity
Answer:
36%
Explanation:
For the computation of the company's return on equity first we need to follow some steps which is shown below:-
Step 1
Earnings before tax = EBIT - Interest
= $452,000 - $152,000
= $300,000
Step 2
Earnings after interest and taxes = Earnings before tax - Tax
= $300,000 - ($300,000 × 40%)
= $300,000 - $120,000
= $180,000
Step 3
Asset turnover ratio = Total revenue ÷ Total assets
3.6 = $4,000,000 ÷ Total assets
Total assets = $1,111,111.11
Step 4
Equity ratio = 1 - Debt ratio
= 1 - 0.55
= 0.45
Step 5
Total Equity = Equity ratio × Total assets
= 0.45 × $1,111,111.11
= $500,000
and finally
Return on Equity = Net income ÷ Equity
= $180,000 ÷ $500,000
= 0.36
or
= 36%
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2017, when it was acquired at a cost of $10.8 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2021.Required:
Prepare the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate.
Answer:
The appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate would be as follows:
Amortization Expense Dr. 3 million
Patent Cr. 3 million
Explanation:
In order to Prepare the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate we would have to make the following calculations:
Calculation after the Change:
Original Cost =$10.8 million
Annual Amortization (Old) =$10.8 million/9 = $1.2 million
Amortization till Date (2017 - 2021) = 1.2*4 = 4.8 million
Unamortized Value = 10.8 - 4.8 = 6 million
Remaining Life = 6 - 4 = 2 Years
New Amortization = Unamortized Value/Remaining Life = 6/2 = 3 million
Therefore, the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate would be as follows:
Amortization Expense Dr. 3 million
Patent Cr. 3 million
Sub Sandwiches of America made the following expenditures related to its restaurant.
1. Replaced the heating equipment at a cost of $250,000.
2. Covered the patio area with a clear plastic dome and enclosed it with glass for use during the winter months. The total cost of the project was $750,000.
3. Performed annual building maintenance at a cost of $24,000.
4. Paid for annual insurance for the facility at $8,800.
5. Built a new sign above the restaurant, putting the company name in bright neon lights, for 9,900.
6. Paved a gravel parking lot at a cost of $65,000.
Required:
Sub Sandwiches of America credits cash for each of these expenditures. Select the account it debits for each.
Answer:
1. Heating Equipment
2. Premises
3. Maintenance Expense
4. Prepaid Insurance
5. Intangible Asset ; Logo
6. Premises
Explanation:
1. Replacement of heating equipment is substantial hence it is capitalized to the Heating Equipment Account.
2. The project is capitalized to the Premises Account as it form part of premises.
3. Annual Building maintenance is a revenue expenditure not capitalized.
4. An Asset Insurance Prepaid for future economic benefits to be realized is recognized.
5. The new sign would result in inflow of economic benefit and is non-tangible hence Intangible Asset is recognized.
6. Work done is capitalized in the Premises Account
Melissa recently paid $870 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $400 fee to register for the conference, $260 per night for three nights’ lodging, $120 for meals, and $425 for cab fare. (Leave no answers blank. Enter zero if applicable. Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,010 for transportation, $1,055 for lodging, and $495 for meals during this part of her trip, which she considers personal in nature. What amount of the total costs can Melissa deduct as business expenses?
Answer:
$2,535
Explanation:
you can deduct only business related costs:
50% of the money spent on meals = $120 x 50% = $60100% of transportation expenses = $870 + $425 = $1,295100% lodging expenses = $780100% of the registration fee = $400total deductions = $2,535Expenses that are not considered business related, e.g. sightseeing, cannot be deducted as business expenses.
Athena Company provides employee health insurance that costs $15,400 per month. In addition, the company contributes an amount equal to 4% of the employees' $154,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
Answer:
The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560
Explanation:
In order to calculate The entry to record the accrued benefits for the month we would have to calculate the following formula:
Accrued Benefits= Health Insurance Cost+ (Gross Salary × Percentage Contributable)
Accrued Benefits=$15,400+($154,000×4%)
Accrued Benefits=$15,400+$6,160
Accrued Benefits=$21,560
The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560
A company will pay a $2 per share dividend in 1 year. The dividend in 2 years will be $4 per share, and it is expected that dividends will grow at 5% per year thereafter. The expected rate of return on the stock is 12%.
Required:
a. What is the current price of the stock?
b. What is the expected price of the stock in a year?
c. Show that the expected return, 12%, equals dividend yield plus capital appreciation.
Answer:
current price P = $ 52.81
The expected price of the stock after one year = $57.16
The Total expected return for any investor after one year = 12%
Explanation:
Given that:
Dividend paid in 1 year = $2/ share
Dividend paid in 2 years = $4/share
Expect growth rate of the dividends g = 5% = 0.05
Expected rate of return on the stock r =12% = 0.12
Required:
a. What is the current price of the stock?
To calculate the current price of the stock ; we need to first determine the terminal value of the stock which can be done by using the formula:
[tex]Terminal \ Value = \dfrac{Dividend \ for \ the \ second \ year*(1+g)}{r-g}[/tex]
[tex]Terminal \ Value = \dfrac{4*(1+0.05)}{0.12-0.05}[/tex]
[tex]Terminal \ Value = \dfrac{4*(1.05)}{0.07}[/tex]
[tex]Terminal \ Value = \dfrac{4.2}{0.07}[/tex]
Terminal value = $60
Now; the current price of the stock is calculate as follows:
[tex]current \ price \ P = \dfrac{\$ 2}{(1+0.12)^1} + \dfrac{\$ 4 }{(1+0.12)^2} + \dfrac{\$ 60}{(1+0.12)^2}[/tex]
[tex]current \ price \ P = \dfrac{\$ 2}{1.12} + \dfrac{\$ 4 }{1.2544} + \dfrac{\$ 60}{1.2544}[/tex]
current price P = $1.79 + $3.19 + $47.83
current price P = $ 52.81
b) What is the expected price of the stock in a year?
The expected price of the stock after one year = [tex]\dfrac{\$ 4}{(1+0.12)^1}+ \dfrac{\$60}{(1+0.12)^1}[/tex]
The expected price of the stock after one year = $3.58 + $53.58
The expected price of the stock after one year = $57.16
c. Show that the expected return, 12%, equals dividend yield plus capital appreciation.
We understand now that the current price of the sock = $52.81
and the expected price of the stock after one year = $57.16 ; so any investor who purchased the stock at the current price will receive a dividend of $2 after one year.
Hence;
The Total expected return for any investor after one year =( (price after one year - current price ) + Dividend received) /current price
The Total expected return for any investor after one year =( ($57.16 - $52.81)+ $2 )/$52.81
The Total expected return for any investor after one year = ($4.35+$2)/$52.81
The Total expected return for any investor after one year = 0.12
The Total expected return for any investor after one year = 12%
Information related to Tamarisk, Inc. is presented below. 1. On April 5, purchased merchandise on account from Culver Company for $38,900, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $800 on merchandise purchased from Culver.3. On April 7, purchased equipment on account for $39,900.4. On April 8, returned damaged merchandise to Culver Company and was granted a $5,000 credit for returned merchandise.5. On April 15, paid the amount due to Culver Company in full.Required:a. Prepare the journal entries to record these transactions on the books of Tamarisk, Inc. under a perpetual inventory system. b. Assume that Tamarisk, Inc. paid the balance due to Culver Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Answer:
Required a
April 5,
Merchandise $38,900 (debit)
Accounts Payable ; Culver Company $38,900 (credit)
April 6
Freight Cost $800 (debit)
Cash $800 (credit)
April 7
Equipment $39,900 (debit)
Accounts Payable $39,900 (credit)
April 8
Accounts Payable ; Culver Company $5,000 (debit)
Merchandise $5,000 (credit)
April 15
Accounts Payable ; Culver Company $33,900 (debit)
Discount Received $678 (credit)
Cash $33,222 (credit)
Required b.
Accounts Payable ; Culver Company $33,900 (debit)
Cash $33,900 (credit)
Explanation:
When Tamarisk, Inc. paid the balance due to Culver Company on April 15, the payment is made within the discount period. Thus Tamarisk, Inc is granted a discount of 2% and pays the Account at $33,222 (net of credit granted on merchandise previously returned) .
However, when Tamarisk, Inc. paid the balance due to Culver Company on May 4 instead, the payment is made outside the discount period. Thus Tamarisk, Inc is not granted a discount pays the Account in full at $33,900 (net of credit granted on merchandise previously returned) .
How do changing prices affect supply and demand
Answer:
If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. ... However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa.
Explanation:
Answer:
As price decreases, supply decreases, but demand increases.
Explanation:
Edge
Similar to stock prices, bond values are derived as the discounted value of all cash flows received from bond ownership in exchange for the bond's price. The two main cash flows an investor receives in exchange for purchasing a bond are:
Answer: b. Interest or Coupon Payments (PMT) throughout the bond's life expand and the repayment of the principal or Face Value at the bond's maturity (FV).
Explanation:
For most bonds, a bond holder receives interest payments from the bond issuer in terms of coupon payments for the duration of the life of the bond. The coupon payment is a steady payment based on the par value of the bond.
When the bond matures, the bond holder receives the Principal/Face Value of the bond back. This value of usually the Par value of the bond regardless of how much the bond holder bought the bond for.
GPR, Inc., has an inventory turnover of 18.42 times, a payables turnover of 10.93 times, and a receivables turnover of 8.24 times. What is the length of the company's cash cycle
Answer: 30.73 days
Explanation:
From the question, we are told that GPR, Inc., has an inventory turnover of 18.42 times, a payables turnover of 10.93 times, and a receivables turnover of 8.24 times. The length of the company's cash cycle for thus:
Let's assume that there are 365 days in a year.
The cash cycle will be:
= (365/18.42) + (365/8.24) − (365/10.93)
= 19.82 + 44.3 - 33.39
= 30.73
The length of the company's cash cycle is 30.73 days
Porche, Inc., manufactures and sells two products: Product D4 and Product N0. 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 D4 100 5.0 500
Product N0 700 2.0 1,400
Total direct labor-hours 1,900
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 D4 Product N0 Total
Labor-related DLHs $ 32,414 500 1,400 1,900
Machine setups setups 13,445 300 200 500
Order size MHs 415,905 4,200 4,300 8,500
$ 461,764
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:___________
a. $17.06 per DLH
b. $44.82 per DLH
c. $67.23 per DLH
d. $923.53 per DLH
Answer:
Predetermined manufacturing overhead rate= $17.06 per direct labor hour
Explanation:
Giving the following information:
Activity Cost Pools Activity Total
Labor-related DLHs $32,414 1,900
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 32,414/1,900
Predetermined manufacturing overhead rate= $17.06 per direct labor hour
The president has all of the following expressed powers under the constitution EXCEPT:_________
a. to grant reprieves and pardons for federal offences.
b. to convene Congress in special sessions.
c. to commission officers in the armed forces.
d. to exercise the line-item veto.
e. to appoint ambassadors, subject to Senate confirmation.
Answer:
d. to exercise the line-item veto.
Explanation:
Unlike the other powers in option a, b, c, and e, the power to exercise the line-item veto is not expressly stated in the US Constitution. This power, which would allow the President to nullify or reject specific provisions of a bill (instead of vetoing the whole bill), has been widely debated in Congress and is not a power that the US President has nowadays. However, most American States have given their governors line-item veto powers to a certain extend.
A constitution is a compilation of core concepts or precedents that function as the legal justification for a polity, institution, or another form of institution and, in most cases, specify how that organization is to be governed.
The correct option is d. to exercise the line-item veto.
The ability to wield the line-item veto is not clearly defined in the US Constitutional, unlike some of the other authorities under choices a, b, c, and e.
This ability, which would allow the President to veto certain portions of a measure rather than the entire package, has been hotly disputed in Congress and is not currently available to the US President. Most American states, on the other hand, have given their governors line-item veto powers to some extent.
To know more about the constitutional powers, refer to the link below:
https://brainly.com/question/11616771
1. If you are a major shareholder or an owner of a company, what could you do to make sure that your hired top managers are working in your interest? 2. If a firm is growing at its internal growth rate forever, what will happen to its capital structure or debt equity ratio? And why? 3. If you want to start a business, what long-term investments do you plan to choose and what assumptions and methods do you use to estimate your sales growth rates?
Answer:
1) As a shareholder, I have no direct control over what happens in the business. I'd influence the HR situation via the CEO. As the owner, I'd have a site down with the Head of HR to design a compensation plan that ties the performance of the Managers to the profitability of the company. One of such HR strategies are:
Profit-Sharing Incentives: This can be designed to be enforced on an enterprise-level or at the Business Unit Level or both. A profit-sharing compensation system ensures that a percentage (which is usually decided by the Remuneration Committee) is distributed according to points accrued based on the company's performance assessment for each unit/individual Sales/New Business Commission/Bonuses: This is a bonus/commission given for every sale/new business brought in to the company This encourages everyone in the company to become a salesperson. How much commission to give will depend on the advice fo the Chief Financial officer and the HR department.2) Internal Growth Rate is the maximum level of expansion attainable for a company using only self-financing or profits reinvested.
When this is the case, the company's capital structure will comprise mostly of ploughed back profits.
The Debt to Equity ratio will tend towards zero. This is because the company is funded more from Equity than from debt.
3) A long-term investment refers to an asset remains in the company's holding/books for a year and above. Its value is usually recorded on the assets part of a company's balance sheet. Investments which can be held for the long term are stocks, bonds, real estate, and interest earning savings.
Prior to igniting a startup, best practice requires that one holds a combination of various kinds of long-term investments. This portfolio will depend on a host of various factors such as:
Risk Affinity andEconomic PulseGovernment Bonds, Rent earning Real Estate and Interest-Earning Savings are relatively safe options. A ratio of 20:20:40 respectively will make for a great combination. The ratio for cash reserves is highest because, the higher the cash, the higher the interest. Besides, it's safe to keep maintain longterm investment that can be quickly converted when the need arises.
Sales Forecasting
As a startup, I'd go for the Intuitive Forecasting Method.
This method has a lot of demerits as it is not based on historical evidence or data. However, it's the best way to start off. If combined with market intelligence, (that is, data of businesses in a similar industry) this method can prove to be more effective.
Cheers!
Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 monthly payment that will continue for his life. On the basis of his age, he can expect to receive $312,000. How much of each monthly payment is taxable income to Mr. Fairhold
Answer: $1091.61
Explanation:
From the question, we are told that fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract and that this year, he began receiving a $1,300 monthly payment that will continue for his life and based on his age, he can expect to receive $312,000. The amount of each monthly payment is taxable income to Mr. Fairhold goes thus:
Based on the question, Mr Fairhold will have a tax free return of the $50,000 paid. The exclusion ratio will be the investment divided by the expected return. This will be:
= $50,000/$312,000
= 0.1603
Since he received monthly payment of $1,300 and exclusion ratio is 0.1603, the tax free return on investment will be:
= $1,300 × 0.1603
= $208.39
Taxable annuity payment will now be:
= $1300 - $208.39
= $1091.61
Identify and explain the main objectives of government financial business.
Revenue Objectives
Driving revenue and proving consistent profitability is a major goal for any business. Without profits, the business simply is not viable. Creating revenue consistently is a great sign for the life of a business.
Operational Objectives
Operations are critical to keep everything running. Important objectives include human resources processes, accounting objectives to make payroll and billing statements on-time and daily tasks for each job role. Without sound operational objectives being met, achieving revenue goals is difficult.
Productivity and Performance
Maximizing employee productivity and performance drives revenue. Setting goals for the year, each quarter and even the month or week is a good start. Adding incentive for meeting objectives will also increase performance and productivity.
Customer Satisfaction
The customer is top priority and delivering satisfaction is a major objective. Survey the customers and make an objective to always look for ways to improve. Happy customers leave positive reviews, spread positive word of mouth and are more likely to repeat business.
Employee Health
While production and performance are important, employee health is a major objective for many businesses. Fair compensation and benefits are goals every business should strive to meet. Happy and healthy employees are often more productive as well.
Contingency Objectives
Unexpected events can break a business without contingency plans. A contingency is something a business cannot prevent. A key employee does not show up for work, a natural disaster strikes and halts production, the economy crashes. How will your business survive? Create a series of contingency objectives to prepare for the worst case scenarios.
Growth Objectives
Growing a business requires a series of objectives to scale effectively. Objectives to replicate processes and manage hiring, after meeting sales goals and revenue benchmarks, is a necessary objective.
Management and Leadership
Hiring and developing effective managers and business leaders is a key objective. Leadership upholds the core values and drives the business to success. Businesses focused on developing the best possible leadership as a primary objective are on a positive track.
Minimizing Turnover
Employee turnover slows business by making ongoing hiring and training a necessity. Make it an objective to retain employees. Investing more upfront in each employee saves the time required to train and hire new employees.
Automate When Possible
Automation and delegation are both great objectives. Simple tasks that can be completed efficiently will ultimately save time and direct high level focus to more important tasks.
A company must decide on the type on equipment to buy in order to manufacture a new product line. The company can purchase an all-purpose machine, with fixed costs amounting to $20,000 per year, and it will cost $40 / unit to produce the new line on this machine. It can also buy a special-purpose machine, with fixed costs of $50,000 per year, and the per unit cost on this machine is $30. What is the break-even quantity between the two machines
Answer:
The indifference point is 3,000 units
Explanation:
Giving the following information:
All-purpose machine:
Fixed costs= $20,000 per year
Unitary variable cost= $40
Special-purpose machine:
Fixed costs= $50,000 per year
UNitary variable cost= $30
We need to determine the unit's production point where the two machines are indifferent. First, we need to structure the total cost formulas:
All-purpose= 20,000 + 40x
Special-purpose= 50,000 + 30x
x= number of units
Now, we equal them:
20,000 + 40x = 50,000 + 30x
10x = 30,000
x= 3,000
The indifference point is 3,000 units
Prove:
All-purpose= 20,000 + 40*3,000= $140,000
Special-purpose= 50,000 + 30*3,000= $140,000
Montgomery wants to get the overall staff reduction taken care of before he tackles the HR reduction; he will need his staff to help manage the reduction process. He wants to make this as smooth as possible with consideration for the employees and for the future of Thompson. He has asked for input from all of his managers. He has scheduled a meeting with your team this afternoon, and he asked you to report on the following: What should Montgomery do to prepare the organization for downsizing and the best long-term results for both JID and the employees
Answer:
To prepare the organization for downsizing, Montgomery should:
Develop a well-thought-out transition planWork closely with human resources team to consider options: early retirements, voluntary layoffs, ... Maintain open and clear communications to dismissals and who are untouchedProvide outplacement servicesThe best long-term results for both JID and the employees:
Maintain the group's reputationKeep the morale of remaining employees from sinking to dangerous lows during a workforce reductionPosition employer brand for a future workforce expansionExplanation:
Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for the InstaCup coffee maker ___ and the number of competitors ____. a. are increasing; is growing b. are declining; is growing c. are negative; is growing d. are declining; is declining e. have peaked; is declining
Answer:
A. Is the correct answer
Explanation:
The profits of Marissa's InstaCup coffee maker are increasing as well as the number of competitors.
This stage is known as the maturity stage. It is one of the stages of a product life cycle. In this stage, the growth of the sales reaches its peak while the product goes towards its maximum. At this stage, while the product approaches it's maximum, then competition would also start to increase
Alfonso prefers only to hire Latino workers his auto body shop because they "fit in" easier with his 12 employees. During a busy season, Alfonso hires three extra workers to help keep up with business, then lets them go when the busy season is over. Which true statement best suits this situation? ("Discriminate" in this context means to make an employment decision about employees based on the characteristics described in the text.)
Answer: d. May not discriminate, subject to time lapse
Explanation:
Alphonso in this scenario may not discriminate by hiring a Latino because his worry is that they will be unable to fit in with his permanent workers. The extra workers are temporary workers who will be soon gone so there is no need for them to fit in that with the permanent workers so Alphonso may not discriminate based on this.
Coronado Company had the following department information for the month: Total materials costs $55000 Equivalent units of materials 10000 Total conversion costs $81000 Equivalent units of conversion costs 15000 What is the total manufacturing cost per unit
Answer:
10.9 per unit
Explanation:
Total manufacturing cost per unit= Material cost per unit + Conversion cost per unit
Material Cost per Unit= Total materials cos / Equivalent units of materials
Material cost per unit = 55000 / 10000 = 5.5
Conversion cost per unit = Total conversion costs / Equivalent units of conversion costs
Conversion cost per unit = 81,000 / 15000 = 5.4
Hence, Total manufacturing cost per unit = 5.5 +5.4 = 10.9 per unit
Pelicans Ice is a snow cone stand near the local park. To plan for the future, it wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served. Month Number of snow cones Total operating costsJanuary 6400 5980 February 7000 6400March 4000 4000April 6900 6330May 9000 8000June 7250 6575Using the high-low method, the monthly operating costs if Pelicans sells 12,000 snow cones in a month are:__________. A. $9,600 B. $21,000 C. $800 D. $10,400
Answer:
Total cost= $10,400
Explanation:
Giving the following information:
Month Number of snow cones Total operating costs
January 6400 5980
February 7000 6400
March 4000 4000
April 6900 6330
May 9000 8000
June 7250 6575
UNits= 12,000
First, we need to calculate the unitary variable cost and total fixed cost:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (8,000 - 4,000) / (9,000 - 4,000)
Variable cost per unit= $0.8
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 8,000 - (0.8*9,000)
Fixed costs= $800
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 4,000 - (0.8*4,000)
Fixed costs= $800
Now, for 12,000 units:
Total cost= 800 + 12,000*0.8
Total cost= $10,400
Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesa’s total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead applied to a job which used $20,000 of direct labor.
Answer:
Allocated MOH= $50,000
Explanation:
Giving the following information:
Mesa’s total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead applied to a job which used $20,000 of direct labor
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 450,000/180,000
Predetermined manufacturing overhead rate= $2.5 per direct labor dollar
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.5*20,000
Allocated MOH= $50,000
Chris has been offered a seven-year bond (face value $1,000) issued by Bayley Ltd at a price of $943.22. The bond has a coupon rate of 9 percent and pays the coupon semiannually. Similar bonds in the market will yield 10 percent today. Should he buy the bonds at the offered price? (Round to the nearest dollar.)
Answer:
As the actual price of such bonds should be $950.51 and the bonds are offered at a lower price, the bonds should be bought at the offered price.
Explanation:
To determine whether the bonds should be bought at the given price or not, we first need to calculate the price of the bond. The formula for the price of the bond is attached.
The interest payed by the bonds can be treated as an annuity.
The semiannual rate will be = 9% / 2 = 4.5%
The number of semi annual payments will be = 7 * 2 = 14
The YTM expressed semi annually will be (r) = 10% / 2 = 5%
Semi annual coupon payment or C = 1000 * 0.045 = 45
Bond Price = 45 * [(1 - (1+0.05)^-14) / 0.05] + 1000 / (1+0.05)^14
Bond Price = 950.5068 rounded off to $950.51
As the actual price of such bonds should be $950.51 and they are offered at a lower price, the bonds should be bought at the offered price.
Tony saved enough money to place $125,500 in an investment generating 10% compounded monthly. He wants to collect a monthly income of $1,350, at the beginning of each month, for as long as the money lasts. How many months will Tony have this income coming to him?
A.165.
B.145.
C.192.
D.162.
Answer:
The answer is 162 months, option (D)
Explanation:
Solution
Given that:
Tony saved an amount of money =$125,500
Investment generates a =10% compounded monthly
A monthly income of =$1350
Now, we have to find How many months will Tony have this income coming to him
Thus
The current income value will be equal to = $125,500.
So,
125,500 = 1350 + 1350/1.0077 + 1350/1.0077^2 + 1350/1.0077^3 + ... + 1350/1.0077^n
125,500 = 1350 * 1.0077 / 0.0077 * ( 1 - (1/1.0077)^n )
Therefore n= 162 months
An example of an inventory accounting policy that should be disclosed in Summary of Significant Accounting Policies is the:_________ . a. amount of income resulting from the involuntary liquidation of LIFO b. major backlogs of inventory orders. c. method used for pricing inventory. d. division of inventory by raw materials, work-in-process, finished goods.
Answer:
Option C
Explanation:
The overview of important accounting rules is a portion of the end notes that accompanies the financial statements of an company, outlining the key policies that the finance department is following. The policy overview is prescribed by the accounting system in force (like the GAAP or IFRS).
The approach a corporation uses to assess the inventory expense (inventory valuation) affects the financial reports explicitly. Thus, it should be depicted in summary of accounting policies.
The one that exemplifies an inventory accounting policy would be:
C). method used for pricing inventory.
Inventory PolicyThe financial statement at the end of the accounting books exemplifies one of the significant rules of accounting.
This highlights the major policies to be followed by the company and its finance team.
The outline of policies acting are provided through this and hence, they will help in offering the method for pricing of inventory in the firm.
Thus, option C is the correct answer.
Learn more about "Inventory" here:
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On December 31 the Income Summary account of Cook Company has a debit balance of $18,000 after revenue of $49,000 and expenses of $67,000 were closed to the account. Maria Cook, Drawing has a debit balance of $23,000 and Maria Cook, Capital has a credit balance of $84,000. Record the journal entries necessary to complete closing the accounts. Post the closing entries to the Maria Cook, Capital account.
Answer: The answer is given below
Explanation:
The journal gives a detailed account of the financial activities that has taken place in an organization or a business.
The journal entries necessary to complete closing the above accounts has been recorded and attached. It should also be noted that the capital balance will be:
= $84000 - $18000 - $23000
= $43000
Check the attached file for further analysis.