Answer: The fraud that is committed by a company president
Explanation:
Because of the ability to override internal controls, it is difficult to prevent the fraud that is committed by a company president.
Overiding the existing rules and policies guiding the organization makes it hard for the president Frau to be prevented.
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2017 were as follows.
Budget Actual
Indirect materials $14,200 $13,700
Indirect labor 19,100 19,900
Utilities 11,400 12,100
Supervision 4,600 4,600
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.
Answer:
HANNON COMPANY
Assembly Department
Manufacturing Overhead Cost Responsibility Report
For the Month Ended April 30,2017
Controllable Cost Budget$ Actual$ Difference$ Remark
Indirect materials 14,200 13,700 500 Favourable
Indirect Labor 19,100 19,900 -800 Unfavourable
Utilities 11,400 12,100 -700 Unfavourable
Supervision 4,600 4,600 0 None
Total 49,300 50,300 -1,000 Unfavourable
When using capital rationing, unfunded proposals a.are discarded for purposes of decision making for all future plans. b.are always considered to be unacceptable. c.may be reconsidered if funds later become available. d.None of these choices are correct.
Answer:
Correct Answer:
a. are discarded for purposes of decision making for all future plans.
Explanation:
In business organization, there will be situations where there will be need to ration the capital used in the business for effective running of the business. When there is an ongoing project, the project expenses would be rationed in such a way that, relevant ones would receive attention from the megre capital fund while unfunded proposal would be discarded.
LLP Company had the following stockholders’ equity as ofJanuary 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock833,000
Retained earnings408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8200 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 82,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Complete Question:
Clemenson LLP Company had the following stockholders’ equity as of January 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16: LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8: 2,000 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11: 800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 8: 2,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Answer:
Clemson LLP Company
a. Journal Entries
Feb. 16:
Debit Treasury Stock account $75,000
Credit Cash Account $75,000
To record the repurchase of 5,000 shares of treasury stock at a price of $15 per share.
March 8:
Debit Cash Account $32,000
Credit Treasury Stock account $32,000
To record the resale of 2,000 shares of treasury stock at $16 per share.
April 11:
Debit Cash Account $9,600
Credit Treasury Stock account $9,600
To record the resale of 800 shares of treasury stock at $12 per share.
May 8:
Debit Cash Account $36,000
Credit Treasury Stock account $36,000
To record the resale of 2,000 shares of treasury stock at $18 per share.
b. Stockholders' Equity Section as of April 30, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Treasury Stock, 200 shares 2,600
Paid-in capital in excess of par—common stock 833,000
Retained earnings 538,000
Total stockholders’ equity $1,493,600
Explanation:
a) Data and Calculations:
Stockholders’ equity as of January 1, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity $1,361,000
b) Retained Earnings:
Jan. 1, 2017 balance $408,000
Net Income $130,000
April 30, 2017 bal. $538,000
c) Since Clemenson accounts for the Treasury Stock transactions using the cost method, it means that all treasury transactions are recorded directly in the Treasury Stock account based on their cost and not the par value. This method of using the cost is one of the two methods for accounting for treasury stock transactions. The other method, which Clemenson can use is the par value method. Under this second method, Clemenson will record the above and below par value differences in the Paid-in Capital in excess of par account instead of the Treasury Stock account. While the treasury stock account is a contra account to the Common Stock account, in Clemenson's case, the Treasury Stock balance is not a debit but a credit balance.
The price of a stock call option is __________ correlated with the stock price and __________ correlated with the strike price. Group of answer choices negatively; positively not; not negatively; negatively positively; positively positively; negatively
Answer:
The answer is positively correlated with stock price and negatively correlated with strike price
Explanation:
The holder of a call option expects the price of the underlying asset(the stock) to increase for him to exercise the right while he also hopes the price of the strike price(exercise price) will be lower than the stock price. If this happens the holder (long) of the call option gains. So because of this, the price of stock call option is positively correlated with the price of the underlying (stock price) while it is negatively correlated with the strike price(exercise price).
Sheffield Corp. budgeted costs for 45000 linear feet of block are: Fixed manufacturing costs$24000 per month Variable manufacturing costs$16 per linear foot Sheffield installed 30000 linear feet of block during March. How much is budgeted total manufacturing costs in March
Answer:
Manufacturing cost =$744,000
Explanation:
The total manufacturing cost is the sum of the variable manufacturing cost and the fixed manufacturing cost.
Manufacturing cost = variable cost + Fixed cost
This can be represent using the formula below
Y = bx + a
Y -Manufacturing cost
b- Variable cost per unit
a- Fixed cost
X- number of units
Y = (45,000× 16) + 24,000 = $744000
Budgeted Manufacturing cost =$744,000
Answer:
The answer is $504,000
Explanation:
Budgeted total manufacturing cost is the total variable cost and fixed cost the company had calculated for the production of a particular product.
Budgeted total manufacturing costs in March is:
(Variable manufacturing cost x Linear feet installed) + Fixed manufacturing cost
($16 x 30,000 linear feet) + $24,000
= $480,000 + $24,000
=$504,000
Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting
Answer:
i d k
Explanation:
The cities of Tampa Bay and St. Petersburg, located on opposite sides of the Tampa Bay, are associated with what manufacturing industry
Answer:
The cities of Tampa Bay and St. Petersburg, are associated with the electronics and stationary manufacturing industry. For example office equipment, electronics, and optical products are manufactured in great quantities in both cities.
Explanation:
Hannah is the owner of a party store. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000, and her overhead expenses were $15,000. If she could earn $53,000 working for another party store nearby, we know that her economic profit was
Answer:
$433,900
Explanation:
The computation of the capitalized cost of the land is shown below:-
Capitalized cost of the land = Purchase price + Demolition of building + Title insurance + Attorney fee + Property taxes covered during the period - Scrap value from the building
= $420,000 + $12,000 + $900 + ($3,000 - $500) - $1,500
= $420,000 + $12,000 + $900 + $2,500 - $1,500
= $435,400 - $1,500
= $433,900
Blossom Street Inc. makes unfinished bookcases that it sells for $57. Production costs are $37 variable and $10 fixed. Because it has unused capacity, Blossom Street is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Blossom Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer and Explanation:
The Preparation of an analysis on a per unit basis is shown below:-
Particulars Sell unfinished Sell finished Increase/Decrease
bookcases bookcases in income
Sale price per
unit $57 $70 $13
Less: variable cost
per unit $37 $43 $6
($37 + $6)
Les: fixed cost per
unit $10 $10 $0
Total cost per
unit $47 $53 $6
Net income per
unit $10 $17 $7
Therefore, Unfinished bookcases are further processed, as net profit per unit increases further by processing by $7
The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are
Answer:
uncertainty, complexity, and intra-organizational conflicts.
Explanation:
Managerial decisions define that any decision that can be taken for the benefit of the organization also these types of decision set targets for the income of the company moreover it decides what type of product should be sell and the hiring of employees who should be into the organization or who should not be in the organization etc.
According to the given situation, Management decisions on capital, expertise, and core competencies are disputes of uncertainty, complexity, and intra-organizational existence.
Interviews are designed to determine if the employer feels a candidate is a good fit for the job. What benefit does an interview offer the job candidate
Explanation:
The job interview is a form of selection used by companies to select candidates for a job more effectively, because through it, the recruiter will meet the candidate in person, ask questions about issues related to his resume and his professional experiences , as well as the opportunity to analyze the way you communicate, your interests and your personality.
The advantage of the interview for the job candidate is to demonstrate your good intentions when occupying the job through an ethical, cordial posture and to have the opportunity to talk about some professional experiences that may be of interest to the employer and the company. It is also an opportunity for the candidate to clarify doubts about the responsibilities of the position and any other doubts related to the company or job function.
Xion Co. budgets a selling price of $85 per unit, variable costs of $34 per unit, and total fixed costs of $285,000. During June, the company produced and sold 12,300 units and incurred actual variable costs of $366,000 and actual fixed costs of $300,000. Actual sales for June were $1,090,000.
Required:
Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately.
Answer:
XION CO.
Flexible budget report
For month ended June 30
Flexible Actual Variances Fav/Unf
budget results
Sales 1,045,500 1,090,000 44,500 Favorable
(-) Variable cost 418,200 366,000 52200 Favorable
Contribution 627,300 724,000 96,700 Favorable
(-) Fixed cost 285,000 300,000 15,000 Unfavorable
Net income 342,300 424,000 81,700 Favorable
Workings
Sales= 12,300 units * $85 = $1,045,500
Variable cost = 12,300 units * $34 =$418,200
Eakins Inc.'s common stock currently sells for $15.00 per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings
Answer:
1.12%
Explanation:
By how much would the cost of new stock exceed the cost of retained earnings = Cost of new equity - Cost of retained earnings
Cost of retained earnings = ((2.75 * 70%) / 15) + 6.00%
Cost of retained earnings = ((2.75 * 0.7) / 15) + 0.06
Cost of retained earnings = 0.1283 + 0.06
Cost of retained earnings =0.1883
Cost of retained earnings = 18.83%
Cost of new equity= ((2.75 * 70%) / (15 * (1 - 8%) ) + 6.00%
Cost of new equity= 19.95%
Hence, Cost of new equity - Cost of retained earnings
= 19.95% - 18.83%
= 1.12%
Martin Shkreli, former CEO of pharmaceutical company Retrophin,, has many traits of a leader. He is very intelligent, brash, extroverted, and driven to succeed. But he lacks the key trait to keep the confidence of others, which eventually led to a fraud conviction. He lacks
Answer:
Integrity.
Explanation:
In this scenario, Martin Shkreli, former CEO of pharmaceutical company Retrophin, has many traits of a leader. He is very intelligent, brash, extroverted, and driven to succeed. But he lacks the key trait to keep the confidence of others, which eventually led to a fraud conviction. Hence, he lacks integrity.
Integrity can be defined as an attribute which involves being honest, sincere, upright, adherence to strong moral and ethical principles or morally based values.
In this context, Martin Shkreli was eventually convicted for fraud because he lacked the quality of being trustworthy, truthful, honest and keeping the confidence of others.
Sam has contracted with Dave to purchase Dave's racing bike, with payment and delivery of the bicycle to be made 10 days after the contract was made. Three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price. If Sam really wants the bike, what should he do? Multiple Choice Immediately seek injunctive relief. Immediately sue for specific performance. Immediately sue for compensatory damages. Immediately sue for consequential damages.
Answer: Immediately seek injunctive relief.
Explanation:
An injunctive relief is an order by the court stopping an action from taking place. From the question, we are told that Sam has contracted with Dave to buy Dave's racing bike, with payment and delivery of the bicycle to be made 10 days after the contract was made.
We are further told that three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price. If Sam really wants the bike, he should seek injunctive relief. By doing so, the court will stop Dave from selling the bike to Gene.
TB MC Qu. 5-49 Walbin Corporation uses the weighted-average method... Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 20,500 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $26,200. A total of 58,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.10 for materials and $3.80 for conversion costs. The total cost of the units completed and transferred out of the department was:
Answer:
The total cost of the units completed and transferred out of the department was: $342,200.
Explanation:
First calculate the Total Cost per Equivalent unit.
Total Cost per Equivalent unit :
Materials $2.10
Conversion $3.80
Total $5.90
Total cost of the units completed and transferred out = Units completed and transferred out × Total Cost per Equivalent unit
= 58,000 units × $5.90
= $342,200
Sand Key Development Company estimates that it will generate an operating income of $7.25 million. Which financing option should Sand Key use?
Answer: debt financing option
Explanation:
Debt financing is a way by which an economic agent such as the individual, firm or the government gets enough money in order to meet a particular need.
Debt financing can be through loans from family and friends, personal loans, bank loans, credit cards etc. Since Sand Key Development Company estimates that it will generate an operating income of $7.25 million, the company can use debt financing.
A midyear burst of minimum-wage increases starts on July 1
On July 1, 2016, the minimum wage will increase in 14 U.S. cities, states and counties, and in the District of Columbia. In SanFrancisco, the minimum wage will rise to $13.00 by 2018.
Source: The Wall Street Journal, July 1, 2016
The rise in the minimum wage _______.
A. increases aggregate supply because when workers receive a higher wage rate, they work harder
B. decreases aggregate supply because firms' costs increase
C. creates a movement up along the aggregate supply curve because the price level rises
D. does not change aggregate supply because most people earn more than the minimum wage
Answer: B. decreases aggregate supply because firms' costs increase
Explanation:
The rise in the the minimum wage rate raise the production cost .
This tends to shift the aggregate supply curve leftwards because the profit margins of firm will decrease and that tends to decrease the production.( at each unite of production.)
Hence, the rise in the minimum wage decreases aggregate supply because firms' costs increase .
Therefore , the correct option is 'B'.
Improvements in labor productivity: A. affect the level of wages, but do not affect the rate of economic growth. B. affect the level of profit, but do not affect the rate of economic growth. C. contribute to economic growth. D. hinder economic growth, because they cause unemployment.
Answer:
C. contribute to economic growth
Explanation:
Economic growth is an increase in the the production of goods and services produced in an economy.
Improvements in labor productivity increases the output of labour and as a result contributes to economic growth.
Which of the following is not a good example of a marketing-related key success factor?
A. a well-known and well-respected brand name
B. breadth of product line and product selection
C. proven ability to improve production processes
D. clever advertising
E. courteous, personalized customer service
Answer: A. a well-known and well-respected brand name
Explanation:
Good examples of a marketing-related key success factor include breadth of product line and product selection, proven ability to improve production processes, clever advertising and courteous, personalized customer service.
Therefore, a well-known and well-respected brand name is not among the options for Marketing related success factors.
Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent. What is the internal rate of return that Turnbull can earn on this project? (Do not round intermediate computations. Round final answer to the nearest percent.)
Answer:
44%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
Internal rate of return can be determined using a financial calculator
Cash flow in year 0 = $-30 million
Cash flow in year 1 = $13 million
Cash flow in year 2 = $23 million
Cash flow in year 3 = $29 million
IRR = 44%
To find the IRR using a financial calculator:
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.
Division A had ROI of 15% last year. The manager of Division A is considering an additional investment for the coming year. What step will the manager likely choose to take
Answer: c.Reject the investment if it returns less than 15% ROI.
Explanation:
Additional investments should yield incremental returns if they are to be accepted. In the previous year, Division A had an Return on Investment of 15%, when an additional investment is being considered, it must bring in more than that 15% if it is to be accepted.
Therefore, if an investment is to give a less than 15% ROI, it should be rejected as it is not bringing additional returns for the Division.
After the initial offering, the bonds are trading in the secondary market at 105, while the stock is trading at $10. Which statements are TRUE?
Answer:
B I and IV
Explanation:
Each bond could be transformed into common stock at $10.50 par value. So the bond should be equivalent to the 95 shares that comes from
= $1,000 ÷ $10.50 per share
= 95 shares
Currently price of the bond is $1,050
Now each share price is
= $1,050 ÷ 95 shares
= $11.05
As the common stock is traded at $10 that represents the stock is less than parity and therefore there is no means to transform the shares
hence, B option is correct
data related to the inventories of alpine ski equipment and supplis is presented below 180000 the inventory of skis would be valued at
Answer:
$128,000
Explanation:
The computation of inventory of skis is shown below:-
NRV = Selling price - Sales commission
= $180,000 - ($180,000 × 10%)
= $180,000 - $18,000
= $162,000
Cost = $128,000
The cost which is $128,000 lower than $162,000 NRV
So, Inventory of Skis will be $128,000 which is Lower of cost or NRV
Therefore the correct answer is $128,000
You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65. The option expires today when the value of ABC stock is $34.60. Ignoring trading costs and taxes, what is the net profit or loss on this investment
Answer:
$270
Explanation:
Calculation to determine the net profit or loss on this investment
Using this formula
Total profit/Loss =Stock value -Strike price-Option quoted)×100×Call option
Let plug in the formula
Total profit = ($34.60 - $32.50 - $1.65) × 100 × 6
Total profit =$0.45×100×6
Total profit= $270
Therefore the net profit on this investment is $270
Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the cost per equivalent unit of conversion.
Answer:
$2.90 per equivalent unit of conversion
Explanation:
equivalent units of conversion (under FIFO) = [units in beginning inventory x ( 1 - previous conversion rate)] + units started and completed + (units in ending inventory x conversion rate) = [80,000 x (1 - 20%)] + 250,000 + (30,000 x 10%) = 64,000 + 250,000 + 3,000 = 317,000 units
cost per equivalent unit of conversion = total conversion costs / total equivalent units of conversion = $919,300 / 317,000 units = $2.90 per equivalent unit
The _____focuses on bringing different talents and perspectives together to make the best organizational decisions and to produce innovative, competitive products and services..
Answer:
Paradigm
Explanation:
Definition: a typical example or pattern of something; a model.
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $4.3 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $11.8 million to build, and the site requires $700,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Enter your answer as a positive value in dollars, not millions of dollars, e.g., 1,234,567.)
Answer:
$17.1 million
Explanation:
The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project can be calculated as follows
DATA
Fair value of land = 4.6 million
Cost to build a plant = 11.8 million
Grading cost = 0.7 million
Solution
Initial investment = Fair value of land + Cost to build a plant + Grading cost
Initial investment = $4.6 million + $11.8 million + $0.7 million
Initial investment = $17.1 million
You, as the team leader, were not aware of the concerns of the Marketing Department, although certain members of your team have known about the concerns for some time. Which symptom of Groupthink (Irving Janis) may your team be displaying
Answer:
Self-Appointed Mindguards
Explanation:
This is an incomplete information
Irving Janis identified eight symptoms of Groupthink: Illusion of Invulnerability, Belief of Inherent Morality of the Group, Collective Rationalization, Out-group Stereotypes, Self-Censorship, Illusion of Unanimity, Direct Pressure on Dissenters, and Self-Appointed Mindguards. You are leading a Decision Making Team and suspect that your team may be suffering from Groupthink. Identify which symptom your team may be displaying.Group of answer choices Self-Appointed Mindguards. Belief in Inherent Morality of the Group. Illusion of Unanimity. Self-Censorship.
The self-appointed mind guards refer to the actions where the company or community members or both secure their group that contains the contradicting views and decisions
here, in the given situation, as a team leader, you dont know the concerns but your team is known about the concerns
So this symptom reflects the self-appointed mind guards
Which of the following is true of website content?
A. It should be refreshed periodically to keep customers coming back.
B. Once the content has been written and proofread it shouldn't be changed.
C. Grammatical errors are not a problem because the customer visits the site to purchase a product, not check the site's grammar.
D. It should be limited to text and shouldn't include multimedia.
Answer:
The Answer: A
Explanation:
Because if you are going to put up a business website you need to keep refreshing it and putting new things onto the website in order for you to have customers because if you dont have anything new in stock people arent gonna wanna keep coming back and using the same product they are going to go to a different website where there is a wider variety of things to purchase.
Hope this helps!