Answer:
The amount included in Janette's gross estate is $1,800,000
Explanation:
We cannot include the gisft gven ti Lora by Jannette as a part of Jannette's estate. Therefore, The git is part of Lora's estate.
To calculate the amount included in Jaettes gross estate it will be:
60 percent of the new price $ 3,000,000
(60/100)*$ 3,000,000= $1,800,000
Present Value of an Annuity of 1 Periods 8% 9% 10% 1 .926 .917 .909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $97116 and is expected to generate cash inflows of $39000 each year for three years. The approximate internal rate of return on this project is
Answer:
9.92%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-97116
Cash flow each year from year 1 to 3 = $39000
IRR = 9.92%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: May June April $159,700 890 Manufacturing costs (1) Insurance expense (2) Depreciation expense Property tax expense (3) $192,500 890 1,920 $214,400 890 1,920 1,920 440 440 440
(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one fourth is paid in the following month
(2) Insurance expense is $890 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).
(3) Property tax is paid once a year in November The cash payments expected for Finch Company in the month of May are
a. $224 225
b. $144,375
c. $184,300
d. $39,925
Answer:
$184,300
Explanation:
1 There will be no cash payment for insurance expense because it has been already paid.
2 Depreciation is not a cash expense
3 Property tax will be paid in November
4 Only the manufacturing cost is to be paid in May
Manufacturing cost = May(75%) + April(25%)
Manufacturing cost = ($192,500 x 75%) + ($159,700 x 25%)
Manufacturing cost = $184,300
Suppose an American worker can make 100 chairs or catch 1,000 fish per day. A Chilean worker, on the other hand, can produce 40 chairs or catch 400 fish per day. Which of the following statements is true?
a. Chile has the comparative advantage in chair production.
b. Both the United States and Chile have a comparative advantage in chair production.
c. Neither the United States nor Chile has a comparative advantage in chair production.
d. The United States has the comparative advantage in chair production.
Answer:
Neither the United States nor Chile has a comparative advantage in chair production.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
A countrry has absolute advantage if it produces more quantities of a good when compared to another country.
America:
Opportunity cost in producing chairs = 1,000 / 100 = 10
Opportunity cost in fishing = 100 / 1000 = 0.1
For Chile:
Opportunity cost in producing chairs = 400 / 40 = 10
Opportunity cost in fishing = 40/ 400 = 0.1
Neither the United States nor Chile has a comparative advantage in chair production because they produce at the same opportunity cost.
I hope my answer helps you
Sarah and First Financial Corp. enter into an oral employment contract under which First Financial Corp. agrees to hire Sarah for five years. Before Sarah begins, First Financial Corp. backs out of the contract. If Sarah sues to enforce the contract,
she will be able to successfully sue to enforce the contract or receive damages for the full five year term.
she will be able to successfully sue to enforce the contract or receive damages for one year of the contract, but the remaining four years will be unenforceable because of the Statute of Frauds.
she will not be able to enforce it, because it is voidable by First Financial since it violates the Statute of Frauds.
she will not be able to enforce it because fixed term employment contracts are illegal.
Answer:
she will not be able to enforce it, because it is voidable by First Financial since it violates the Statute of Frauds.
Explanation:
All contracts that last for more than one year fall under the Statute of Frauds and therefore, must be in writing and signed by both parties. Even if the contract was for one year and one day, it must be in writing. The non-breaching party, Sarah, cannot even sue for damages corresponding to only the first year because the contract is considered to be one and cannot be divided into parts.
Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 3,800 lbs. $0.46 per lb. Vinegar 210 gal. 2.80 per gal. Corn syrup 18 gal. 10.20 per gal. Salt 84 lbs. 2.60 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: 4,000 lbs. of tomatoes 202 gal. of vinegar 19 gal. of corn syrup 83 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.
Answer:
Standard unit materials cost per pound=$1.11 per pound
Explanation:
The standard material cost for a standard batch = Total material cost / standard qty (in pounds)
Total material cost = (3,800× $0.46) + (210× 2.80) (84×2.60)=$2554.4
Total standard quantity = 2,300 pounds
Standard unit materials cost per pound =$2554.4/ 2,300 pounds=$1.11 per pounds
standard unit materials cost per pound=$1.11 per pound
There are many diet aids on the market. They promise immediate weight loss without exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user. If you pay close attention, you will notice that each ad also contains the statement, "Results may vary." Most likely this statement is included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor from having to:_______.
Answer:
run corrective advertising
Explanation:
This was likely included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor from having to run corrective advertising. This is a sort of punishment placed on an ad company that has made an ad with false or misleading information, in order to correct this they must add a message that is placed on their ads in order to right this wrong. This message can badly hurt the company as it advises the viewers that the company has spread false information.
A company issued 1,000 shares of $10 par value common stock due to a previously declared stock dividend; the market value at both the date of declaration and distribution was $12 per share. Which of the following correctly describes the reporting of this stock issue within the financing activities section of the cash flow statement?
a) A cash outflow of $10,000
b) A cash outflow of $2,000
c) A cash outflow of $12,000
d) There is no cash flow
Answer:
d) There is no cash flow
Explanation:
There is no cash flow because a stock dividend refers to a dividend that is paid by issuing additional shares to shareholders of a company instead of paying them a cash dividend.
Therefore, there is no cash flow since no cash is received nor paid.
Note: To record stock dividends, the amounts is moved from retained earnings to paid-in capital; and the evidence that no cash is received nor paid is that the journal entries for the issue of stock dividend will be as follows:
Debit Retained for $12,000 (i.e. 1,000 * $12 = $12,000)
Credit Common Stock for $10,000 (i.e. 1,000 - $10 = $10,000)
Credit Additional Paid-In Capital in Excess of Par - Common Stock for $2,000 ($12,000 - $10,000)
Denver Co. recently used 14,000 labor hours to produce 7,500 units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll costs were $158,200. If the standard labor cost per hour is $11, Denver's labor efficiency variance is: Question 18 options: $11,300 (U). $11,000 (U). $11,000 (F). $11,300 (F).
Answer:
Direct labor time (efficiency) variance= $11,000 favorable
Explanation:
Giving the following information:
Denver Co. recently used 14,000 labor hours to produce 7,500 units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The standard labor cost per hour is $11.
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (2*7,500 - 14,000)*11
Direct labor time (efficiency) variance= $11,000 favorable
Doug Pederson Corporation bases its predetermined overhead rate on machine-hours. Data for 2017 appear below: Estimated machine-hours 73,000 Estimated total manufacturing overhead $1,057,730 Actual machine-hours 74,900 Actual total manufacturing overhead $1,147,000 The predetermined overhead rate for 2017 was closest to:
Answer:
Predetermined overhead Absorption rate = $14.5 per machine hour
Explanation
Predetermined Overhead absorption rate(POAR) = Estimate overhead /Estimated machine hours
Estimated overhead = $1,057,730
Estimated machine hours =73,000 hours
Overhead absorption rate = $1,057,730/73,000 hours =$14.48 per machine hour
Predetermined overhead Absorption rate = $14.5 per machine hour
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash. At that date, Stamp reported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Stamp's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Stamp reported the following data for 20X8 and 20X9: Stamp Corporation Year Net Income Comprehensive Income Dividends Paid 20X8 $ 25,000 $ 30,000 $ 5,000 20X9 35,000 45,000 10,000 Package reported net income of $100,000 and paid dividends of $30,000 for both the years. Based on the preceding information, what is the amount of comprehensive income attributable to the controlling interest for 20X8?
Answer:
Comprehensive income attributable to the controlling interest for 20X8 is $119,000
Explanation:
Stamp Corporation
Year Net Income Comprehensive Income Dividends Paid 20X8 $ 25,000 $ 30,000 $ 5,000
20X9 $35,000 $45,000 $ 10,000
The amount of comprehensive income attributable to the controlling interest for 20X8 ;
Comprehensive income of Stamp Corporation = $30,000
Less: Annual amortization of intangible assets acquired on acquisition (50000/8) = $6,250
Comprehensive income of Stamp Corporation after adjustment = $23,750
Income attributable to controlling interest = 80% × $23,750 = $19,000
Net income of Package Company = $100,000
Comprehensive income attributable to the controlling interest = Income attributable to controlling interest + Net income of Package Company
= $19,000 + $100,000
= $119,000
A project with an initial investment of $451,700 will generate equal annual cash flows over its 8-year life. The project has a required return of 8.9 percent. What is the minimum annual cash flow required to accept the project
Answer:
$81,307.55
Explanation:
The minimum annual cash flow required to accept the project is the equal annual cash flow that makes net present value of the project to be at least equal to zero. In other words, it is the equal annual cash flow that equates the initial investment and the summation of the present values (PV) of all the 8-year equal annual cash flow.
This can be estimated as using the formula for calculating the ordinary annuity as follows:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)
Where;
PV = Present values of equal annual cash flow that is equal to Initial investment = $451,700
P = annual cash flow = ?
r = required return = 8.9% = 0.089
n = number of years = 8
Substitute the values into equation (1) to have:
$451,700 = P × [{1 - [1 ÷ (1 + 0.089)]^8} ÷ 0.089]
$451,700 = P × 5.55544994023063
P = $451,700 / 5.55544994023063
P = $81,307.5457181148
P = $81,307.55 when approximated to two decimal places.
Therefore, the minimum annual cash flow required to accept the project is $81,307.55.
george forgot to pay his monthly life insurance premium that was due march 1. the policy had a face value of $100,000. on march 21, george died. how much will the insurer pay george's beneficiary for this death claim
Answer: An amount equal to the face value of the policy, MINUS the overdue premiums and any interest or late penalties George owed them
Explanation:
Grace Periods are usually included in Life Insurance policies to safeguard the client in question in case they are late with their payment. This means that should they pay within the grace period they will not lose their coverage.
Normally in Life Insurance, a grace period of 30 days is standard. George died 20 days after his due date which meant that he was still under a grace period and so the Insurance company will still pay out to his beneficiaries but they will deduct all monies owed by George.
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 3,700 Variable costs per unit: Direct materials $ 132 Direct labor $ 93 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 12 Fixed costs: Fixed manufacturing overhead $148,000 Fixed selling and administrative expense $288,600 There were no beginning or ending inventories. The absorption costing unit product cost was:
Answer:
Absorption costing unit product cost = $270 per unit
Explanation:
Absorption costing values unit produced using the full cost per unit.
It categories cost as production and non-production cost
Full cost per unit =Direct labour cost + direct material cost + Variable production overhead + fixed production overhead
Fixed prod overhead per unit = Total fixed production overhead/Number of units
= $148,000/3,700 units=$40 per unit
Full cost per unit = 132+ 93+ 5 + 40 = $270 per unit
Absorption costing unit = $270 per unit
An investment will pay $200 at the end the year, $250 at the end of the next year, $400 at the end of the third year, and $500 at the end of the 4th year. Other investments of equal risk earn 6%. How much is this investment worth today
Answer:
PV= $1,143.03
Explanation:
Giving the following information:
An investment will pay $200 at the end of the year, $250 at the end of the next year, $400 at the end of the third year, and $500 at the end of the 4th year. Other investments of equal risk earn 6%.
To calculate the present value, we need to use the following formula on each cash flow:
PV= FV/(1+i)^n
Cf1= 200/1.06= 188.68
Cf2= 250/1.06^2= 222.50
Cf3= 400/1.06^3= 335.85
Cf4= 500/1.06^4= 396
PV= $1,143.03
Currently, the price of Mattco stock is $30 a share. You have $30,000 of your own funds to invest. Using the maximum margin allowed of 50%, what is your percentage profit or loss if you purchase the stock and it rises to $33 a share
Answer:
The percentage profit or loss if you purchase the stock and it rises to $33 a share is 20%
Explanation:
In order to calculate the percentage profit or loss if you purchase the stock and it rises to $33 a share we would have to make the following calculation:
percentage profit or loss=Total Gain/Amount invested
Amount invested=$30,000
According to the given data we have the following:
Share price=$30
Amount invested=$30000
Therefore, Number of shares purchased= ($30,000/50% *1/30)=$2,000
Gain per share ($33-$30)=$3
Therefore, Total Gain=$2,000*$3=$6,000
Therefore, percentage profit or loss= $6,000/$30,000
percentage profit or loss=20%
The percentage profit or loss if you purchase the stock and it rises to $33 a share is 20%
As part of the initial investment, Jackson contributes accounts receivable that had a balance of $35,017 in the accounts of a sole proprietorship. Of this amount, $1,229 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $740. The amount debited to Accounts Receivable for the new partnership is
Answer: $33788
Explanation:
From the question, we are told that as part of the initial investment, Jackson contributes accounts receivable that had a balance of $35,017 in the accounts of a sole proprietorship and of this amount, $1,229 is deemed completely worthless.
The amount that will be debited to the accounts receivable for the new partnership will be the difference between the balance of $35017 and the $1229 that is seen as been worthless.
= $35017 - $1229
= $33788
A one-year and two-year bonds currently pays 1.2% and 1.6%, respectively. What is the expected interest rate on a one-year bond next year according to the liquidity premium theory if the two-year term premium is 0.1%
Answer: 1.8%
Explanation:
Liquidity Premium theory posits that investors prefer more liquid securities to less liquid ones.
It can also be used to calculate expected interest by relating to other bond returns.
The formula is;
Interest Rate expected in nth year = (Sum of individual interest rates in n years)/n + Liquidity Premium in nth year
The premium provided is for the two - year bond and the return on the 2 year bond is also given.
Plugging the figures in gives;
1.6% = (1.2% + One year bond expected interest) / 2 + 0.1%
1.6% - 0.1% = (1.2% + interest) / 2
1.5% * 2 = 1.2% + interest
3% = 1.2% + interest
Interest = 3% - 1.2%
Interest = 1.8%
If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model?
A. 421
B. 234
C. 78
D. 26
E. 312
Answer:
240 units
Explanation:
We can find Optimal order quantity easily by Optimal order quantity formula using the fixed order quantity formula
Formula:: Optimal order quantity = [tex]\sqrt[2]{\frac{2CoD}{Ch} }[/tex]
Where
Co = Ordering cost per order
D = Annual demand
Ch = Holding cost per unit
Calculations
Lets put in the values
Optimal order quantity = [tex]\sqrt[2]{\frac{2CoD}{Ch} }[/tex]
Optimal order quantity = [tex]\sqrt[2]{\frac{2*6*12000}{2.5} }[/tex]
Optimal order quantity = 240 units
Note: There must have been a mistake in question options the answer is 240 and closest to 240 is option B
"Winston tells Lenita that he prefers to form an S corporation because he does not want to attach "LLC" to the name of the company. Lenita responds that the option of an S corporation is not available for their situation. Is she correct
Answer:
D. Yes, because all the owners are not U.S. citizens.
Explanation:
This question is not incomplete.
Please find the incomplete information below.
Winston and Noe patented a mechanism that will change open heart surgery forever. They are setting up a business to produce and sell their invention to hospitals and will take advantage of Noe's non-U.S. citizenship to help with sales in international markets. They hire Lenita, a corporate lawyer, to assist in setting up their business. Winston's largest concern is taxes. Noe, on the other hand, doesn't want to bother keeping corporate minutes and having board meetings as he is too busy. Both are concerned about being sued personally for products liability
As it is mentioned in the question that Winston and Noe wanted to set up a business for producing and selling an invention so that it would result in taking the advantage of non-U.S. citizenship so t it would help in an international market sales. For that, they hired Lenita, who is a corporate lawyer. At the same time, both the point of view is different. But they being sued for liability of products personally.
In the given scenario, Lanita is correct for the non-availability of the S corporation option as all the owners do not belong from U.S citizens.
The following lots of a particular commodity were available for sale during the year Beginning inventory 9 units at $47.00 First purchase 19 units at $55.00 Second purchase 51 units at $59.00 Third purchase 19 units at $59.00 The firm uses the periodic system, and there are 26 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method? Select the correct answer. $1,534.00 $5,598.00 $1,358.00 $1,222.00
Answer:
Ending inventory= $1,358
Explanation:
Giving the following information:
Beginning inventory 9 units at $47.00
First purchase 19 units at $55.00
Second purchase 51 units at $59.00
Third purchase 19 units at $59.00
Ending inventory in units= 26
Under the LIFO (last-in, first-out) method, the ending inventory cost is calculated using the cost of the firsts units incorporated into the inventory.
Ending inventory= 9*47 + 17*55= $1,358
The point factor method may appear to be a very objective approach to valuing jobs, but like other job evaluation methods, it relies heavily on _____________.
a. Projective values
b. Historical events
c. Standardized scoring
d. Subjective judgments
e. Compensable expert
Answer: Subjective judgments
Explanation:
Point factor method is an important method used during job evaluation. The responsibilities, requirements, and every other aspects of the job will be evaluated by using some set of standardised factors whereby points will be given to every job description.
It I based on subjective judgements because it is based on the personal judgement of the individual rating as no formal calculations will be made but just the opinion of the subject and also his or her past experience.
On January 1, 2019, Upward Company purchased a copy machine. The machine costs $320,000, its estimated useful life is 8 years, and its expected salvage value is $20,000. What is the depreciation expense for 2020 using double-declining-balance method
Answer:
$60,000
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2 / 8 = 0.25
Depreciation expense in 2019 = 0.25 x $320,000 = $80,000
Book value at the beginning of 2020 = $320,000 - $80,000 = $240,000
Depreciation expense in 2020 = 0.25 x $240,000 = $60,000
I hope my answer helps you
Given the following information, calculate the debt ratio percentage: Liabilities = $25,000Liquid assets = $5,000Monthly credit payments = $800Monthly savings = $760Net worth = $75,000Take-home pay = $2,300Gross income = $3,500Monthly expenses = $2,050
Answer:
33.33%
Explanation:
The debt ratio percentage is calculated as:
Liabilities / Net worth = Debt Ratio Percentage
$25,000 / $75,000 = 0.3333
0.3333 * 100 = 33.33%
The debt ratio is easy to calculate and is calculated by dividing the total liabilities of a person with the total net worth of the person. Dividing both gives a figure in decimal which is then multiplied by 100 to derive a percentage.
The management of L Corporation is considering a project that would require an investment of $260,000 and would last for 6 years. The annual net operating income from the project would be $110,000, which includes depreciation of $17,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):
Answer:
2.04 years
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
To derive cash flows from net income, add depreciation to net income.
$110,000 + $17,000 = $127,000
Payback period = $260,000 / $127,000 = 2.04 years
I hope my answer helps you
In December of 2021, XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2019. The asset had an expected life of 10 years with no residual value. XL would have recorded a half year of depreciation in 2019.
Required:
Prepare the necessary correcting entry that would be made in 2016 (ignore income taxes), and the entry to record depreciation for 2021.
Answer and Explanation:
The Journal entries are shown below:-
1. Office equipment Dr, $800,000
To Accumulated depreciation-equipment $120,000
To Retained earnings $680,000
(Being office equipment is recorded)
Here we debited the office equipment as assets is increasing and we credited the accumulated depreciation-equipment as assets is decreasing and retained earning as stockholder is increasing.
2. Depreciation expenses Dr, $80,000
To Accumulated depreciation-equipment $80,000
(Being depreciation expenses is recorded)
Here we debited the depreciation expenses as it increasing the expenses and we credited the accumulated depreciation-equipment as decreases the assets.
Working note
Depreciation
For 2019
= $800,000 ÷ 10 years
= $80,000 × 6 ÷ 12
= $40,000
For 2020
= $800,000 ÷ 10 years
= $80,000
Total = $40,000 + $80,000
= $120,000
If $1200 is borrowed at 9% interest, find the amounts due at the end of 4 years if the interest is compounded as follows. (Round your answers to the nearest cent.) (i) annually $ 1693.9 Correct: Your answer is correct. (ii) quarterly $ 1204.3 Incorrect: Your answer is incorrect. (iii) monthly $ (iv) weekly $ (v) daily $ (vi) hourly $ (vii) continuously $
Answer and Explanation:
(i) The computation of compound interest for annual is shown below:-
Compound interest = A = P × (1 + r ÷ n)^t
= $1,200 × (1 + 9% ÷ 1)^1 × 4
= $1,200 × (1.09)^4
= $1,693.897932
or
= $1,693.90
(ii) The computation of compound interest for quarterly is shown below:-
= $1,200 × (1 + 9% ÷ 4)^4 × 4
= $1,200 × (1.09)^16
= $1,713.145749
or
= $1,713.15
Since it is quarterly so we divide the interest rate by 4 and multiply the time period by 4
(iii) The computation of compound interest for monthly is shown below:-
= $1,200 × (1 + 9% ÷ 12)^4 × 12
= $1,200 × (1.0075)^48
= $1,717.6864
or
= $1,717.69
Since it is monthly so we divide the interest rate by 12 and multiply the time period by 12
(iv) The computation of compound interest for weekly is shown below:-
= $1,200 × (1 + 9% ÷ 52)^4 × 52
= $1,200 × (1.432883461 )^208
= $1719.460154
or
= $1,719.46
Since it is weekly so we divide the interest rate by 52 and multiply the time period by 52
(v) The computation of compound interest for daily is shown below:-
= $1,200 × (1 + 9% ÷ 365)^4 × 365
= $1,200 × (1.43326581 )^1460
= $1719.918972
or
= $1719.92
Since it is daily so we divide the interest rate by 365 and multiply the time period by 365
(vi) The computation of compound interest for hourly is shown below:-
= $1,200 × (1 + 9% ÷ 8760)^4 × 8760
= $1,200 × (1.433326764 )^35,040
= $1,719.992117
or
= $1719.99
(vii) The computation of compound interest for continuously is shown below:-
A = Pe^rt
= 1,200e^0.09 × 4
= 1,200e^0.36
= $1,720.00
If an organization tracks its strategy implementation, looks for problem areas, evaluates whether the problem areas indicate any weakness in the strategy, and makes any necessary changes, then it is using:
Question:
If an organization tracks its strategy implementation, looks for problem areas, evaluates whether the problem areas indicate any weakness in the strategy, and makes any necessary changes, then it is using:
A) Organizational controls
B) Tactical controls
C) Behavioral controls
D) Strategic controls
Answer:
The correct option is D) Strategic controls
Explanation:
Strategic controls refer to the process which helps one to easily and immediately change direction where if proposed strategies do not create anticipated results.
For example, if a company X, decides to reduce prices to drive sales and increase market share albeit, at a cost to its bottom line, where there is no increase in sales, an effective strategic control process would be to quickly reverse the situation to the status quo before implementation and thereafter go back to the drawing table to check why demand is low.
Demand could be weak because, quality of products, or services, do not meet consumer expectations, it could be that there is a violation of one of the 'P' of marketing such as Positioning.
The head of strategy thus reviews and plans the next move to ensure that changes are effected.
Cheers!
Suppose you are trying to decide whether to invest in a company that generates a high expected ROE, and you want to conduct further analysis on the company’s performance. If you wanted to conduct a comparative analysis for the current year, you would: Compare the firm’s financial ratios for the current year with its ratios in previous years Compare the firm’s financial ratios with other firms in the industry for the current year
Answer:
Compare the firm’s financial ratios with other firms in the industry for the current year
Explanation:
return on equity (ROE) = net income / stockholders' equity
it measures how profitable the company is according the amount of money that stockholders' invested in it.
Since you are trying to conduct a comparative analysis for the current year, it doesn't make sense to compare the current financial ratios with the financial ratios of previous years. If you want to compare the current year, you must compare the current financial ratios to the ratios of other companies in the same industry or the industry as a whole.
Flyer Company has provided the following information prior to any year-end bad debt adjustment:Cash sales, $167,000Credit sales, $467,000Selling and administrative expenses, $127,000Sales returns and allowances, $47,000Gross profit, $507,000Accounts receivable, $275,000Sales discounts, $31,000Allowance for doubtful accounts credit balance, $2,900Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?a) $12,240.b) $9,340.c) $9,780.d) $6,440.
Answer:
The balance in the allowance for doubtful accounts after bad debt expense is recorded is $12,240. Option A
Explanation:
Cash sales = $167,000
Credit sales = $467,000
Selling and administrative expenses = $127,000
Sales returns and allowances = $47,000
Gross profit = $507,000
Accounts receivable = $275,000
Sales discounts = $31,000
Allowance for doubtful accounts credit balance = $2,900
Balance needed in the 'Allowance for doubtful accounts' = $467,000 × 2%
= $9,240
Credit balance in the allowance account = $2,900
Bad debts expense = Balance needed in the 'Allowance for doubtful accounts' + Credit balance in the allowance account
= $9,340 + $2,900
= $12,240
Hamilton company uses a periodic inventory system, at the end of the annuanl accounting period, December 31,2015, the accounting records provided the following information for product 1:
Unit Unit Cost
Inventory, December 31, 2014 2000 $5
For the year 2015:
Purchase, March 21 6000 4
Purchase, August 1 4000 2
Inventory, December 31, 2015 3000
Required:
Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.
Answer:
FIFO : Ending Inventory = $6,000, Cost of Goods Sold = $36,000
LIFO : Ending Inventory = $36,000, Cost of Goods Sold = $28,000
Weighted Average Cost Method : Ending Inventory = $10,500, Cost of Goods Sold = $31,500
Explanation:
FIFO
Assumes that the first goods received by business will be the first ones to be delivered to the final customer.
Ending Inventory
Ending Inventory = Units left × Earliest Price
= 3000 units × $2
= $6,000
Cost of goods sold
Cost of goods sold : 2000 units × $5 = $10,000
6000 units × $4 = $24,000
1000 units × $2 = $2,000
Total = $36,000
LIFO
Assumes that the last goods purchased are the first ones to be issued to the final customer.
Ending Inventory
Ending Inventory 2000 units × $5 = $10,000
6000 units × $4 = $24,000
1000 units × $2 = $2,000
Total = $36,000
Cost of goods sold
Cost of goods sold : 4000 units × $2 = $8,000
5000 units × $4 = $20,000
Total = $28,000
Weighted Average Cost Method
The average cost of goods held is recalculated each time a new delivery of goods is received Issues are then priced out at this weighted average cost.
First Calculate the Average Cost
Average Cost = Total Cost / Total Units
= (2000 × $5 + 6000 × $4 + 4000 × $2) / 12,000
= $42,000 / 12,000
= $3.50
Ending Inventory
Ending Inventory = Units left × Average Price
= 3000 units × $3.50
= $10,500
Cost of goods sold
Ending Inventory = Units Sold × Average Price
= 9,000 units × $3.50
= $31,500