Answer: a form of government expense that is not made in exchange for a currently produced good or service.
Explanation:
Transfer payment are the goods or services that are supplied to the residents of a country. They're the form of government expense that is given to people in the society and such payments are not made due to the exchange of goods or services.
Examples of transfer payments include unemployment benefits, Social Security, etc. The reason behind transfer payments is to help in the redistribution of income and to help the less privileged in the society.
A start-up company decides salespeople should visit college campuses to
persuade students to try a new party game. The company realizes that selling
time is short and the salespeople are relatively inexperienced. Which
presentation method is likely to be most effective?
A. Formula selling
B. A prepared sales presentation
C. Telemarketing
D. Consultative selling
Answer prepared sales presentation
Explanation:
The presentation method is likely to be most effective a prepared sales presentation. Thus, option (b) is correct.
What is presentation?A presentation should have a solid theme, match the aim, best fit the audience, and be properly arranged. A speech communicates from a person to a listener. They offer a formal speech, often to sell something or gain support for a proposition.
According to the case was the based on the start-up company are the experienced sales people are the salespeople should visit college are the persuade students to try a new party game. There was the prepared the sales presentation are the sales people are the presentation method was the more to the effective.
As a result, the presentation method is likely to be most effective a prepared sales presentation. Therefore, option (b) is correct.
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As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 18 million shares for $66 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $28 million and distributed cash dividends of $2.00 per share. At the end of the year, the fair value of the shares is $62 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year.
Answer:
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
Dr Investment in Nursery supplies $7 million
Cr Investment Revenue $7 million
Dr Cash $9 million
Cr Investment in Nursery supplies $9 million
No Entry
Explanation:
Preparation of the appropriate journal entries from the purchase through the end of the year.
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
(To record purchase of 25% shares for $66 million)
Dr Investment in Nursery supplies ($28 million x 25%) $7 million
Cr Investment Revenue $7 million
(To record investor share of investee's net income)
Dr Cash (18 million shares x 25% share x $2 per share) $9 million
Cr Investment in Nursery supplies $9 million
(To record receipt of dividend)
No Entry
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands):
Sales revenue $25,000 Cost of goods sold $14,000
Interest revenue 240 Selling and administrative expense 3,200
Interest expense 440 Restructuring costs 1,500
In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $3.2 million and a gain on disposal of the component’s assets of $5.2 million. 600,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss).
Required:
Prepare a multiple-step income statement for 2021, including EPS disclosures.
Answer:
Net income = $4,860,000
Earning Per Share
Income From Continuing Operations ($3660/600) 6.10
Income From Discontinued Operations )$1,200/600) 2.0
Net Income 8.10
Explanation:
The multiple-step income statement can be described as an income statement that differentiate a company's operating revenues and operating expenses from its nonoperating revenues, nonoperating expenses, gains, and losses. It also shows gross profit separately as net sales revenue minus the cost of goods sold.
The required multiple-step income statement can be prepared as follows:
Rembrandt Paint Company
Income Statement
For the Year Ended December 31, 2021
Particulars $'000 $'000
Sales revenue 25,000
Cost of goods sold 14,000
Gross profit 11,000
Operating expenses
Selling and administrative expense (3,200)
Restructuring costs (1,500)
Total operating expenses (4,700)
Operating income 6,300
Other income (expense)
Interest revenue 240
Interest expense (440)
Net interest revenue (expense) (200)
Income from continuing op. b4 tax 6,100
Taxes (40% * $6,100) (2,440)
Income From Continuing Operations 3,660
Discontinued operation
Loss from op. (3,200 * (1-Tax rate)) (1,920)
Gain on disposal (5,200 * (1-Tax rate)) 3,120
Income from discontinued op. 1,200
Net income 4,860
Number of common shares outstanding 600
Earning Per Share
Income From Continuing Operations ($3660/600) 6.10
Income From Discontinued Operations )$1,200/600 2.00
Net Income 8.10
NuEditions Book Company uses a final average salary formula to calculate an employee’s pension benefits. The amount used in the calculations is the salary average of the final 3 years of employment. The retiree will receive an annual benefit that is equivalent to 1.75% of the final average for each year of employment. Mike and Rob are both retiring at the end of this year. Calculate their annual retirement pension given the following information:
Mike: Years of employment: 25;
Final three annual salaries: $84,780, $84,900, $85,000
Kristy: Years of employment: 27;
Final three annual salaries: $71,600, $73,400, $78,000
Answer:
Mike : $37140.83
Kristy : $35,122.50
Explanation:
Given the data:
Mike:
Years of employment: 25;
Final three annual salaries: $84,780, $84,900, $85,000
Average :
$(84,780 + 84,900 + 85,000) /3
$254680 ÷ 3
= $84893.333
1.75% of average
0.0175 * $84893.333
= $1485.6333
$1485.6333 * number of years
$1485.6333 * 25
= $37140.833
Kristy:
Years of employment: 27;
Final three annual salaries: $71,600, $73,400, $78,000
Average = $(71,600 + 73,400 + 78,000) / 3
Average = $223,000 / 3
= $74,333.333
1.75% * $74333.333
= $1300.8333
$1300.8333 * 27
= $35,122.5
Anna owns the Sweet Alps Chocolate store. She charges $10 per pound for her hand made chocolate. You, the economist, have calculated the elasticity of demand for chocolate in her town to be 2.5. If she wants to increase her total revenue, what advice will you give her and why? Use diagrams and economic terms to explain your answer.
Answer: Decrease her prices.
Explanation:
The elasticity of demand shows the change in quantity demanded as a result of a change in price.
In this case, if price decreases by 1%, quantity demanded for chocolate would increase by 2.5%.
If she wants to increase her revenue therefore, she should decrease the price.
For example:
If the demand was 10 chocolate bars a day, she would earn:
= 10 * 10
= $100 a day
If she decreased the price by 10%, price would be:
= 10 * ( 1 -10%)
= $9.00
Quantity demanded would be:
= 10 * (1 + 25%)
= 12.5 bars
Revenue would become:
= 12.5 * 9
= $112.50 which is more than the previous $100 she was making.
A manufacturer of cedar shingles has supplied the following data: Bundles of cedar shakes produced and sold 360,000 Sales revenue $ 2,412,000 Variable manufacturing expense $ 1,170,000 Fixed manufacturing expense $ 714,000 Variable selling and administrative expense $ 414,000 Fixed selling and administrative expense $ 82,000 Net operating income $ 32,000 The company's break-even in unit sales is closest to:
Answer:
Break-even point in units= 346,087
Explanation:
First, we need to calculate the unitary selling price and unitary variable cost:
Selling price= 2,412,000 / 360,000= $6.7
Unitary variable cost= (1,170,000 + 414,000) / 360,000= $4.4
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= (714,000 + 82,000) / (6.7 - 4.4)
Break-even point in units= 346,087
Before year-end adjusting entries, Vaughn Manufacturing's account balances at December 31, 2020, for accounts receivable and the related allowance for uncollectible accounts were $1570000 and $87300, respectively. An aging of accounts receivable indicated that $129000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment is
Answer: $1,441,000
Explanation:
The accounts receivable amount expected to be collected after adjustment will be calculated as the difference between the accounts receivable at December 31st and the expected uncollectibles. This will be:
= $1570000 - $12900
= $1,441,000
Therefore, the answer is $1,441,000
Compute the weight of common equity that should be used in the firm's WACC calculation if the market value of the firm's debt is $62 million, the market value of the firm's preferred stock is $7 million and the market value of the firm's common equity is $111 million. Enter your answer as a decimal (i.e. 0.54)
Answer:
0.62 or 62 %
Explanation:
Weight of common equity = Market Value of Equity ÷ Total Market Value of Sources of Finance
where,
Market Value of Equity = $111 million
Total Market Value of Sources of Finance = $62 million + $7 million + $111 million = $180 million
therefore,
Weight of common equity = $111 million ÷ $180 million
= 0.62 or 62 %
Conclusion
the weight of common equity that should be 0.62 or 62 %
On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1.
How much of the first payment made on December 31, Year 1, represents interest expense?
a 2400
b 400
c 2304
d 2000
Answer:
d 2000
Explanation:
The computation of the interest payment made is shown below:
Interest expense is
= Mortgage liability × rate of interest × given months ÷ total months
= ($200,000 × 12%) × 1 ÷ 12
= $24,000 × 1 ÷ 12
= $2,000
Hence, the correct option is d.
To get customers to try a new kind of sausage, marketers visit stores and set
up tables where customers can taste the sausage being cooked and pick up a
flier offering them 50 cents off the regular price. Which sales promotion
techniques are being used?
A. Display, samples, and coupons
B. Display only
C. Display, premiums, and samples
D. Samples and premiums
Answer:
A. Display,Samples, and coupons
Explanation: I just took this and this was the answer
To get customers to try a new kind of sausage, marketers visit stores and set up tables where customers can taste the sausage being cooked and pick up a flier offering them 50 cents off the regular price of samples and premiums. Hence, option D is appropriate.
What are the customers?
A client is someone who purchases goods, services, products, or ideas from a seller, vendor, or supplier in exchange for money or another useful consideration. Sales, business, as well as economics are all covered by this term.
An individual or company that purchases products or services from another company is known as a "customer." Customers are important since they bring in money. Businesses would cease to exist without them.
An individual, or rather, a business, that purchases goods or services from another company are known as a "customer." Customers are crucial to businesses because they generate income; without them, they would cease to exist.
Customers not only spend more money, but they also attract new customers. Your clients act as your sales representatives. In actuality, 56% of consumers said they would tell their neighbors and relatives about a business that provided great service. You can keep customers that are willing to endorse your firm by giving them exceptional customer service.
Hence, option D is correct.
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Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014.
Cash $50,000
Administrative expenses $100,000
Selling expenses $80,000
Net sales $540,000
Cost of goods sold $210,000
Cash dividends declared (2014) $20,000
Cash dividends paid (2014) $15,000
Discontinued operations (loss before income taxes) $40,000
Depreciation expense, not recorded in 2013 $30,000
Retained earnings, December 31, 2013 $90,000
Effective tax rate 30%
Required:
a. Compute net income for 2014.
b. Prepare a partial income statement beginning with income from continuing operations before income tax and including appropriate earnings per share
Answer:
Income from continuing operations:
= Net sales - COGS - Selling expense - Admin expenses
= 540,000 - 210,000 - 80,000 - 100,000
= $150,000
Discontinued operations net of tax:
= 40,000 * ( 1 - 30%)
= $28,000
Net income and Partial income statement
Income from continuing operations before tax $150,000
Income tax expense (150,000 * 30%) ($45,000)
Income from continuing operations $105,000
Discontinued operations net of taxes loss ($28,000)
Net income $77,000
Earnings per share
Income from continuing operations(105,000/10,000) $10.50
Discontinued operations(28,000 / 10,000) $2.80
Net income (77,000 / 10,000) $7.70
Earnings per share calculated assuming 10,000 shares.
Sunland Company uses a perpetual inventory system. Its beginning inventory consists of 83 units that cost $56 each. During June, (1) the company purchased 248 units at $56 each on account, (2) returned 10 units for credit, and (3) sold 206 units at $83 each on account. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Item 1
Debit : Merchandise $13,888
Credit : Accounts Payable $13,888
Item 2
Debit : Merchandise $560
Credit : Accounts Payable $560
Item 3
Debit : Accounts Receivable $17,098
Debit : Cost of Sales $11,536
Credit : Sales Revenue $17,098
Credit : Merchandise $11,536
Explanation:
See the journal entries prepared above.
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May JuneManufacturing costs (1) $155,800 $190,300 $203,900Insurance expense (2) 1,080 1,080 1,080Depreciation expense 2,110 2,110 2,110Property tax expense (3) 540 540 540(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 $1,070 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 area. $38,950b. $181,675c. $220,625d. $142,725
Answer:
Total cash expense= $181,675
Explanation:
Giving the following information:
Manufacturing cost:
April= $155,800
May= $190,300
Insurance is not paid in May.
Property tax is paid in November.
Depreciation is not a cash expense.
Total cash payment May:
Manufacturing cost May= 190,300*0.75= 142,725
Manufacturing cost April= 155,800*0.25= 38,950
Total cash expense= $181,675
The financial statement columns of the worksheet for Booer Company as of December 31, 2021 are as follows:
BOOER COMPANY Worksheet For the Year Ended December 31, 2021
Income Statement Balance Sheet
Accounts Dr. Cr. Dr. Cr.
Cash 8,000
Accounts Receivable 26,000
Supplies 4,500
Prepaid Insurance 7,000
Equipment 41,000
Accumulated Depreciation—Equipment 4,800
Patents 7,500
Accounts Payable 22,200
Notes Payable (due 2023) 20,000
Common Stock 30,000
Retained Earnings 13,300
Dividends 4,200
Service Revenue 26,400
Salaries and Wages Expense 5,200
Depreciation Expense 4,800
Insurance Expense 5,000
Interest Expense 3,500
Totals 18,500 26,400 98,200 90,300
Net Income 7,900
7,900 26,400 26,400 98,200
Required:
Prepare a classified balance sheet for Booer Company.
Answer:
See below
Explanation:
Classified balance sheet for Booer Company as of 31, December 2021
Fixed assets
Equipment
$41,000
Less:
Accumulated depreciation
($4,800)
NBV
$26,200
Current assets
Cash
$8,000
Accounts receivables
$26,000
Supplies
$4,500
Prepaid insurance
$7,000
Patents
$7,500
Total assets $26,200 + $53,000 = $79,200
Current liabilities
Accounts payable
$22,200
Notes payable
$20,000
Financed by;
Common stock
$30,000
Net income
$7,900
Total liabilities $42,200 + $37,900 = $80,100
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither Even though I was willing to pay up to $69 for a used textbook and even though the seller was willing to go as low as $60 in order to sell it, we couldn't reach a deal because the government imposed a price floor of $74 on the sale of textbooks. I sold a watch for $60, even though I was willing to go as low as $55 in order to sell it. Even though I was willing to pay up to $114 for a used laptop, I bought a used laptop for only $107.
Answer:
neither
producer surplus
consumer surplus
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The first scenario is neither a producer or consumer surplus because a transaction did not take place
The second scenario is a producer surplus.
the producer surplus = 60 - 55 = 5
The third scenario is a consumer surplus
consumer surplus = $114 - $107 = $7
Perion Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was:
Answer:
$4,280 under applied
Explanation:
Given that;
Estimated direct labor hours = 11,200
Estimated manufacturing overhead = $259,840
Estimated rate per hour = $259,840 ÷ 11,200 = $23.2
Actual labor hours = 10,800
Estimated overhead for actual hours
= 10,800 × $23.2
= $250,560
Actual overheads incurred = $254,840
Hence, actual overheads are under absorbed by
= $254,840 - $250,560
= $4,280
Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following:
Manufacturing overhead costs. . . . . . . . $640,000
Direct labor cost. . . . . . . . . . . . . . . . . . . $1,600,000
Machine hours. . . . . . . . . . . . . . . . . . . . . 80,000
At the end of the year, the company had actually incurred the following:
Direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,190,000
Depreciation on manufacturing plant and
equipment. . . . . . . . . . . . . . . . . . . . . . . . $490,000
Property taxes on plant. . . . . . . . . . . . . . . . . . . . . . $19,500
Sales salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000
Delivery drivers' wages. . . . . . . . . . . . . . . . . . . . . . $16,500
Plant janitors' wages. . . . . . . . . . . . . . . . . . . . . . . . $8,500
Machine hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,000 hours
Floral's accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually$400,000 not the $490,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was$570,000 The manufacturing overhead allocated to jobs was$448,000
Requirement:
Prepare the journal entry (entries) to record manufacturing overhead costs incurred
Explanation:
Metal Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following: EE (Click the icon to view the costs.) Metal’s accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $405,000, not the $490,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was $640,000. The manufacturing overhead allocated to jobs was $452,000 Read the requirements. Requirement 1. Prepare the journal entry to record manufacturing overhead costs incurred (Record debits first, then credits. Exclude explanations from any journal entries.)
Other than culture, what other organizational factors should be used to determine which project structure should be used?
Answer:
The two major considerations are the percentage of core work that involves projects and resource availability.
Marketing managers from two companies agree that competing to offer the lowest prices has been hurting their profit margins, so they agree on the prices they will charge for some of their key products. What illegal pricing behavior is this? O A. Price discrimination O B. Deceptive pricing C. Price fixing O D. Price gouging
Price fixing is the illegal pricing behaviour is this. Hence, option C is correct.
A written, verbal, or conduct-based agreement to raise, lower, maintain, or stabilize prices or price levels is known as price fixing. Antitrust laws typically mandate that each business establish prices and other competitive terms independently, without consulting a rival.
Competitors who agree to raise, cut, or stable prices are said to have engaged in horizontal price fixing. For instance, a horizontal agreement between two rival fast-food establishments selling hamburgers on the sale pricing of cheeseburgers is prohibited by antitrust rules.
Price fixing is an anticompetitive agreement between players on the same side of a market to buy or sell a good, service, or commodity solely at a set price, or to keep the market's dynamics in such a way that the price is kept at a fixed level.
Thus, option C is correct.
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Answer:
price fixing
Explanation:
Wilbert's Clothing Stores just paid a $1.25 annual dividend. The company has a policy whereby the dividend increases by 2% annually. You would like to purchase 100 shares of stock in this firm but realize that you will not have the funds to do so for another three years. If you desire a 12% rate of return, how much should you expect to pay for 100 shares when you can afford to buy this stock
Answer:
Expected cost =$1,275
Explanation:
The value of a stock using the dividend valuation model, is the present value of the expected future dividends discounted at the required rate of return. The required rate of return is the cost of equity .
The model is represented below:
P = D× (1+g)/ ke- g
Ke- cost of equity, g - growth rate, p - price of the stock
Ke- 12%, g= 2%, D=1.25
Applying this model, we have
Price = 1.25× (1.02)/(0.12-0.02)=$12.75
The total cost of 100 units = unit price × 100
=12.75× 100 = $1,275
Expected cost =$1,275
Kingston anticipates total sales for June and July of $370,000 and $318,000, respectively. Cash sales are normally 60% of total sales. Of the credit sales, 25% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31.
Answer:
$117,600
Explanation:
Given that the company has Cash sales that are normally 60% of total sales and Of the credit sales, 25% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale
In June, total sales $370,000
Amount that would not have been collected from this sale at the end of July
= 40% * 15% * $370,000
= $22,200
In July, total sales is $318,000,
Amount that would not have been collected from this sale at the end of July
= 40% *75% * $318,000
= $95,400
Hence the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31
= $22,200 + $95,400
= $117,600
Marlin Corporation reported pretax book income of $1,005,000. During the current year, the net reserve for warranties increased by $26,000. In addition, book depreciation exceeded tax depreciation by $100,500. Finally, Marlin subtracted a dividends received deduction of $15,500 in computing its current year taxable income. Marlin's current income tax expense or benefit would be:
Answer: $234360
Explanation:
Marlin's current income tax expense or benefit would be calculated thus:
Pre-tax book income = $1,005,000
Add: net reserve for warranties = $26,000
Add: Increase in Book depreciation over tax depreciation = $100,500.
Less: Dividend deduction = ($15500)
Taxable income = $1,116,000
Since tax rate = 21%, then the income expense will be:
= 21% × $1,116,000
= 0.21 × $1,116,000
= $234360
Which of the following methods would be most appropriate for attracting
attention to an endcap display?
O A. Creating a realistic scene to tell a story
B. Grouping together items of the same color
O C. Using awnings to brighten the display's appearance
D. Setting up a small stand-alone structure
Answer:
B. Grouping together items of the same color
Explanation:
Grouping together items of the same color. of the following methods would be most appropriate for attracting attention to an endcap display.
What is attention?The behavioral and cognitive process of selectively focusing on a specific piece of information—whether it be regarded as subjective or objective—while disregarding other information that can be perceived. The action of paying attention helps to focus all of the senses, including sight, hearing, and smell. It might concentrate on pertinent data on the radio network,
With grouping, you may move, rotate, flip, and resize all shapes and objects simultaneously as if they were a single shape or object. Additionally, you can modify all of the features of a set of forms at once, such as adding an image effect or shape fill.
It is called categorization to group things based on shared characteristics. The study of classification is known as taxonomy. Scientists classify creatures into groups using a variety of forms of data. Levels are used to arrange the groups.
Therefore, Thus, option (B) is correct.
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The Fantastic Ice Cream Shoppe sold 8,800 servings of ice cream during June for Dollar 5 per serving. The shop purchases the ice cream in large tubs from the Deluxe Ice Cream Company. Each tub costs the shop $14 and has enough ice cream to fill 28 ice cream cones. The shop purchases the ice cream cones for $0.15 each from a local warehouse club. The Fantastic Ice Cream Shoppe is located in a strip mall, and rent for space is $2,050 per month. The shop expenses $220 a month for the depreciation of the shop's furniture and equipment. During June, the shop incurred an additional $2,800 of other operating expenses (75% of these were fixed costs).
Required:
a. Prepare the Fantastic Ice Cream Shoppe's June income statement using a traditional format.
b. Prepare the Fantastic Ice Cream Shoppe's June income statement using a contribution margin format
Answer:
The Fantastic Ice Cream Shoppe
a) Fantastic Ice Cream Shoppe
June Income Statement, using traditional format
Sales Revenue $44,000
Cost of goods sold 5,720
Gross profit $38,280
Expenses:
Rent expense 2,050
Depreciation exp. 220
Other operating exp. 2,800
Total expenses $5,070
Net Income $33,210
b) Fantastic Ice Cream Shoppe
June Income Statement, using contribution margin format
Sales Revenue $44,000
Direct materials 5,720
Operating expense 700
Total variable expense 6,420
Contribution margin $37,580
Fixed expenses:
Rent expense 2,050
Depreciation exp. 220
Other operating exp. 2,100
Total expenses $4,370
Net income $33,210
Explanation:
a) Data and Calculations:
Sales of ice cream during June = 8,800 servings
Price per serving = $5
Sales revenue = $44,000 ($5 * 8,800)
Purchase cost of ice cream in large tubs = $14 * 8,800/28 = $4,400
Purchase cost of ice cream cones = $0.15 * 8,800 = $1,320
Total cost of direct materials = $5,720
Fixed costs:
Rent = $2,050 per month
Depreciation = $220
Other operating expenses:
Fixed operating expense = $2,100 ($2,800 * 75%)
Variable operating expense = $700 ($2,800 * 25%)
Under absorption costing, a company had the following unit costs when 8,000 units were produced. Compute the total production cost per unit under variable costing if 20,000 units had been produced. Direct labor $8.50 per unit Direct material $9.00 per unit Variable overhead $6.75 per unit Fixed overhead ($60,000/8,000 units) $7.50 per unitCompute the total production cost per unit under variable costing if 20,000 units had been produced. a. $26.25 b. $27.25 c. $24.25 d. $31.75 e. $17.50
Answer:
d. $31.75
Explanation:
Computation for the total production cost per unit
Direct labor $8.50 per unit
Direct material $9.00 per unit
Variable overhead $6.75 per unit
Fixed overhead ($60,000/8,000 units) $7.50 per unit
Total production cost per unit $31.75
($8.50 + $6.75 + $9.00 + $7.50)
Therefore the total production cost per unit under variable costing if 20,000 units had been produced will be $31.75
During 2016 Green Thumb Company introduced a new line of garden shears that carry a two-year warranty against defects. Experience indicates that warranty costs should be 2% of net sales in the year of sale and 3% in the year after sale. Net sales and actual warranty expenditures were as follows: Net sales Actual warranty expenditures 2016 $ 45,000 $ 1,000 2017 120,000 3,500 At December 31, 2017, Green Thumb should report as a warranty liability of:
Answer:
See below
Explanation:
Given the above information, the computation of warranty liability is shown below;
Warranty liability = (Net sales of 2016 × After sale percentage) + (Net sales of 2017 × Year of sale percentage)
= ($45,000 × 3%) + ($120,000 × 2%)
= $1,350 + $2,400
= $3,750
Therefore, Green Thumb should report as a warranty liability of $3,750
You are the Accounting Director for SpaceX based in New York. Your department is implementing new accounting software (called First Launch) that will affect all 300 locations across the United States. The purpose of the changeover is to improve efficiency, increase security, and provide more transparency. Each accountant will need to install the software within 48 hours of receiving the new product. Failure to do so will result in the product password expiring and require resending of the product. Once installed, accountants will have to restart all computers on the premises. Technical issues may arise during the two-day software rollout starting at 9:00 a.m. on March 1, 2021.
Required:
Write one email addressing all 300 location accountants to inform them of the changeover (you decide the order of information)
Answer:
The change will impact all 300 locations. The letter should be written to entire staff of the SpaceX.
Explanation:
To: All Staff SpaceX Team
Subject: Change over details (First Launch)
As you all are already aware about the implementation of new software named First Launch . The software installation run will start from March 1, 2021 at 9:00 a.m. Every accountant receiving the new product will require to install the software within 48 hours. Failure to do will result in expiry of the password which will require resending the software. After installation all accountants must restart the computer.
This change will affect all 300 locations across the United States. The changeover will result in improved efficiency, increase in security and there will be more transparency.
If there is any concern or query regarding this change feel free to write the team implementing the change.
Regards,
Director Accounts.
A marketer of automobiles wants to introduce a new model using a message
that combines visuals, music, words, and action. Which category of
advertising media will best meet this marketer's goals?
A. Magazines
B. Television
C. Radio
D. Outdoor
Answer: Television!
Explanation:
Radio, Magazine, and Outdoor don't all have the combined visuals, music, words, and action that television has.
Television as the advertising media will best meet the automobile marketer's goals. Thus, the correct answer is option B.
What is advertising media?The term "advertising media" describes a range of mainstream or alternative media platforms via which companies can market their goods, services, or brand. Knowing which advertising media channels are advantageous for your business can be vital in staying ahead of the competition because it is hard for every customer to be aware of every brand's offerings. Marketers can interact with various audiences in unique ways by utilizing the correct kind of advertising media.
Audio and visual are combined in television. This produces a multi-sensory advertising experience that demonstrates to consumers the worth of your goods. The touchpoint occurs in the viewer's house when an advertisement is shown on television. It becomes a more intimate medium as a result. A excellent technique to build a personal relationship with a viewer is through television.
Therefore, Radio, Magazine, and Outdoor as the media for advertising don't have the combined visuals, music, words, and action that television has.
To learn more about advertising media, click here:
https://brainly.com/question/29559464
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Pharoah Inc. loans money to John Kruk Corporation in the amount of $976,000. Pharoah accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Pharoah needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Pharoah will receive on the sale of the note
Answer: $900,635
Explanation:
Amount Pharaoh will receive is:
= Present value of the interest payments + Present value of the note
2 years have gone by which leaves 5 years.
Period = 5 * 2 = 10 semi annual periods
Periodic interest = 8% / 2 = 4%
Periodic discount = 10% / 2 = 5% per period
Interest payment = 976,000 * 4%
= $39,040
Amount to be received:
= (39,040 * Present value interest factor of annuity, 5%, 10 periods) + 976,000/(1 + 5%)¹⁰
= (39,040 * 7.7217) + 599,179.34
= $900,635
Match each of the following phrases with the term that it most closely describes it. Each term will be used only once.
a. Prepared when materials that have been ordered are received and inspected
b. Serve as the basis for recording direct labor on a job cost sheet
c. These make up the work in process subsidiary ledger
d. The process by which factory overhead is assigned to a cost object
e. Serve as the basis for recording materials used
1. Cost allocation
2. Job Cost sheet
3. Receiving Sheet
4. Time tickets
5. Materials requisitions
Answer:
a. Receiving Sheet.
b. Time tickets.
c. Job Cost sheet.
d. Cost allocation.
e. Material requisitions.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities. All the net income or cash from all operational business activities of a company is recorded as operating activities.
Basically, the financial statements are the formally written records of the business and financial activities of a business entity or organization which includes;
a. Receiving Sheet: prepared when materials that have been ordered are received and inspected.
b. Time tickets: serve as the basis for recording direct labor on a job cost sheet.
c. Job Cost sheet: these make up the work in process subsidiary ledger.
d. Cost allocation: the process by which factory overhead is assigned to a cost object.
e. Material requisitions: serve as the basis for recording materials used.