Answer:
a. 6.72 minutes
Explanation:
There is total weekly demand for 1000 boxes. The production is assumed to be same as the weekly demand. The factory workers have two shifts for 5 days. The total hours which factory workers work every week is :
5 days * 7.5 hours * 2 shifts = 75 hours per week
1000 / 75 hours = 13.33
13.33 / 2 = 6.72 minutes
what is the difference between quantity demand and quantity supply.
Answer:
The distinction between supply and quantity supplied is similar to the difference between demand and quantity demanded. If the market price of a product increases, then the quantity supplied increases, and vice versa.
Explanation:
.....
The following transactions occur for Cardinal Music Academy during the month of October:
a. Provide music lessons to students for $7,500 cash. Purchase prepaid insurance to protect musical equipment over the next year for $3,060 cash.
b. Purchase musical equipment for $10,500 cash. Obtain a loan from a bank by signing a note for $11,000.
d. Obtain a loan from a bank by signing a note for $20,000.
Required:
Record the transactions.
Answer and Explanation:
The journal entries are shown below;
a. cash Dr $7,500
To Service revenue $7,500
(To record the cash receipts )
Prepaid insurance $3,060
To cash $3,060
(To record the cash paid )
b. Musical equipment Dr $10,500
To cash $10,500
(To record the cash paid )
Cash Dr $11,000
To note payable $11,000
(To record the receipt of the loan )
d. Cash Dr $20,000
To note payable $20,000
(To record the receipt of the loan )
At the profit-maximizing level of output, this firm ___. rev: 05_15_2018 Multiple Choice generates an economic profit equal to the area of ABED faces a total fixed cost equal to the area of BEFC should shut down generates a loss per unit equal to DE
Answer:
gsgba.kba.
Explanation:
lsnwlnlwnlwns
The Heath Corporation reported net income for 20X1 of $177,500. Heath began the year with 100,000 shares of $5 par value common shares outstanding and 2,500 shares of $100 par value 8% preferred shares outstanding. On October 1, Heath sold 10,000 shares of common stock for $6 per share. Heath paid dividends to the common shareholders in December. The weighted average number of common shares used to compute earnings per share for 20X1 is:
Answer:
107,500 shares
Explanation:
weighted average number of common shares = 100,000 shares + 10,000 shares x 3/12
= 107,500 shares
The weighted average number of common shares used to compute earnings per share for 20X1 is: 107,500 shares
astore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $34 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $9.50 per option. What would be the total compensation indicated by these options
Answer:
$9,500,000
Explanation:
Calculation to determine What would be the total compensation indicated by these options
Using this formula
Total compensation=Options granted *Estimated fair value of the options
Let Plug in the formula
Total compensation=1,000,000 × $9.50
Total compensation= $9,500,000
Therefore What would be the total compensation indicated by these options is $9,500,000
The following labor standards have been established for a particular product:
Standard labor hours per unit of output 4.0 hours
Standard labor rate $17.70 per hour
The following data pertain to operations concerning the product for the last month: Actual hours worked 7,600 hours
Actual total labor cost $135,280
Actual output 1,800
Required:
a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?
Answer:
Results are below.
Explanation:
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (17.7 - 17.8)*7,600
Direct labor rate variance= $760 unfavorable
Actual rate= 135,280/7,600= $17.8
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4*1,800 - 7,600)*17.7
Direct labor time (efficiency) variance= $7,080 unfavorable
Choice Co. uses a discount rate of 8% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 8 years has thus far yielded a net present value of ($496,541) [a negative number]. This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (Ignore income taxes.) Use the attached (in the exam introduction) present value tables to determine the appropriate discount factor(s). Use it to the .000 decimal. Or, use your calculator or Excel present value function. Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive
Answer:
A. $86,400
B. $919,520
Explanation:
A. Calculation to determine how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive
Using this formula
Additional cash flows from the intangible benefits = Negative net present value to be offset / Present value factor
Let plug in the formula
Additional cash flows from the intangible benefits = $496,541 / 5.747
Additional cash flows from the intangible benefits = $86,400
Therefore how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive is $86,400
b. Calculation to determine how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive
Using this formula
Automated equipment Salvage value = Negative net present value to the offset /Present value factor
Let plug in the formula
Automated equipment Salvage value= $496,541 / 0.540
Automated equipment Salvage value= $919,520
Therefore how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive is $919,520
Apt Adapt Inc. is formed to coordinate the design and delivery of projects and products to help communities cope with the effects of climate change. The stated purpose is to have a material positive impact on society and the environment, and to make a profit. Apt Adapt is
Answer:
A benefit corporation.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries. It is considered to be one of the most complicated and expensive type of organization. Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.
In this scenario, Apt Adapt Inc. is a benefit corporation because it was established to coordinate the design and delivery of projects and products that would help communities cope with the effects of climate change.
Hence, Apt Adapt is considered to be a benefit corporation because it has material positive impact on society and the environment, while making a profit.
RV Company agrees to buy a certain quantity of vintage campers from Sales Inc. Their contract limits consequential damages for lost profits resulting from the use of the goods. This limit is not necessarily unconscionable because
Answer:
consequential damages cover only reasonable foreseeable losses.
Explanation:
The contract limits the resulting loss to lost profits from the use of the goods. The limit is not necessarily unconscious because lost profits are not necessarily significant and can be considered as direct or indirect losses. the contract may apply to both the lease and the sale and excluding some from the contract simply because it is a commercial loss makes no sense.so limit is not necessarily unconscionable because consequential damages cover only reasonable foreseeable losses.
The contract limits are not necessarily consequential as they cover only damages that are reasonably foreseeable losses in nature.
The foreseeable losses are either directly or indirectly are under the control of the contracting parties. Thus, the contract must be designed by properly estimating the losses of profits that could be excluded or included to cover the damage claims.
Hence, some of the contract terms give the benefit of limiting the liability through the incorporation of limited liability clauses.
Learn more about the contracts here:
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Marigold Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 96000 subscriptions in January at $20 each. What entry is made in January to record the sale of the subscriptions
Answer:
Dr Cash $1,920,000
Cr Unearned Subscription Revenue $1,920,000
Explanation:
Since The magazine sells 96,000 subscriptions in January at the amount of $20 each which means that the appropriate journal entry that made in January to record the sale of the subscriptions will be
Dr Cash $1,920,000
Cr Unearned Subscription Revenue $1,920,000
(96000*$20)
(To record the sale of the subscriptions)
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 $73 for a watch, I bought a watch for only $65. I paid $53 for a jersey sweater last week. This week, the same store is selling sweaters for $43. I sold a used textbook for $45, even though I was willing to go as low as $36 in order to sell it.
Answer:
I was willing to pay up to $73 for a watch, I bought a watch for only $65. consumer surplus
Neither - I paid $53 for a jersey sweater last week. This week, the same store is selling sweaters for $43.
I sold a used textbook for $45, even though I was willing to go as low as $36 in order to sell it. producer 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
the consumer surplus for the individual buying the watch = $73 - $65 = $8
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
the producer surplus for the textbook seller = $45 - $36 = $9
the jersey purchase statement represent neither consumer or producer surplus because the willingness to pay and the highest amount the seller would be willing to sell was not indicated
Producer surplus = price – least price the seller is willing to accept
. An analyst has determined that the intrinsic value of Coca Cola stock is $80 per share using the capitalized earnings model. If the typical P/E ratio in the computer industry is 22, then it would be reasonable to assume the expected EPS of Coca Cola in the coming year is
Answer:
$3.64
Explanation:
We know that :
Price / Earning ratio (P/E ratio) = Price per Share ÷ Earnings per Share
thus :
Earnings per Share = Price per Share ÷ Price / Earning ratio
= $80 ÷ 22
= $3.636 or $3.64
therefore,
the expected EPS of Coca Cola in the coming year is $3.64
Discuss the basic features of Management as a profession.
Answer:
well defined body of knowledge
Explanation:
Management has well defined body of knowledge as in profession
Terrace Salad issued a 25-year, annual bond with 8 percent coupon rate 15 years ago. The bond currently sells for 105 percent of its face value. What is the pretax cost of debt
Answer:
7.28%
Explanation:
Coupon rate = 8%
Nper = 10 (25-15)
PMT = 80 (1000*8%)
FV = 1000
PV = 1050
Yield to maturity = Rate(Nper, pmt, -pv, fv)
Yield to maturity = Rate(10. 80, -1050, 1000)
Yield to maturity = 0.072789069
Yield to maturity = 7.28%
Thus, the pretax cost of debt is 7.28%.
Taylor Company neglected to amortize the discount on outstanding ten-year bonds payable. What is the effect of the failure to record discount amortization on interest expense and bond carrying value, respectively
Answer:
Taylor Company
The negligence to amortize the discount on outstanding ten-year bonds payable is the understatement of interest expense for each year. This means that the interest expense will be the same for each year instead of increasing by the amortized discount amount. The same applies to the bond carrying value, which will remain the same throughout the period.
Explanation:
The discount on bonds payable is an additional interest expense, which is written off yearly over the bonds' maturity period through amortization. It increases the amount of the periodic interest payment by the amortized discount.
In each of the following cases, find the unknown variable. Ignore taxes. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
a. Accounting Break-Even 25,000
Unit Price $24
Unit Variable Cost $10
Fixed Costs $225,000
Depreciation $?
b. Accounting Break-Even 120,000
Unit Price $?
Unit Variable Cost $14
Fixed Costs $2,400,000
Depreciation $1,200,000
c. Accounting Break-Even 12,000
Unit Price $25
Unit Variable Cost $?
Fixed Costs $140,000
Depreciation $40,000
Answer:
a. Accounting Break-Even 25,000
Depreciation = $125,000
b. Accounting Break-even 120,000
Unit price = $44
c. Accounting Break-Even 12,000
Unit variable cost = $10
Explanation:
a) Data and Calculations:
a. Accounting Break-Even 25,000
Unit Price $24
Unit Variable Cost $10
Fixed Costs $225,000
Depreciation $?
Sales Revenue = $600,000 ($24 * 25,000)
Variable cost = 250,000 ($10 * 25,000)
Contribution = $350,000
Fixed costs = 225,000
Depreciation = 125,000 ($350,000 - $225,000)
b. Accounting Break-Even 120,000
Unit Price $?
Unit Variable Cost $14
Fixed Costs $2,400,000
Depreciation $1,200,000
Unit Price $44
Unit Variable Cost $14
Fixed Costs $2,400,000
Depreciation $1,200,000
Contribution $3,600,000
Contribution per unit = $30 ($3,600,000/120,000)
Unit price = $44 ($30 + $14)
c. Accounting Break-Even 12,000
Unit Price $25
Unit Variable Cost $?
Fixed Costs $140,000
Depreciation $40,000
Contribution = $180,000
Contribution per unit = $15
Unit variable cost = $10 ($25 = $10)
Answer:
$125,000
$44
$10
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = (depreciation + fixed cost) / price – variable cost per unit
a 25,000 = (d + $225,000) / ($24 - $10)
25,000 = (d + $225,000) / $14
d = 350,000 - $225,000
d = $125,000
b. 120,000 = ( $2,400,000 + 1,200,000) / (p - $14)
120,000 x (p - $14) = $3,600,000
p = ( $3,600,000 / 120,000) + 14
p = $44
12,000 = (140,000 + 40,000) / (25 - v)
12,000(25 - v) = 180,000
v = 25 - (180,000/ 12,000)
v = $10
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 15% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $100,000 to Ski Outfit. By the end of the year, $76,000 of the merchandise has been sold to customers for a total of $105,800. What amount of inventory will Mogul report at year end
Answer:
$24,000
Explanation:
According to the consignment accounting, it States that any inventory sent on consignment by the consignor to the consignee, belongs to the consignor until the inventory is sold by the consignee.
Regarding the above, Mogu company sent inventory costing $100,000 and out of this, only $76,000 has been sold. The remaining inventory still belongs to the consignor and the amount of this inventory is;
$100,000 - $76,000 = $24,000
Therefore, Mogul would report $24,000 worth of inventories at year end.
The single most important output in preparing financial budgets is the Group of answer choices sales forecast. determination of the unit cost of the product. cash budget. budgeted income statement.
Answer:
cash budget
Explanation:
financial budget can be regarded as a budget that gives strategy of a firm in managing its income, and expenses as well as assets and cash flow. It is used in establishing the picture of financial health of a particular Company and gives comprehensive overview of how the company spends relative to revenues. It should be noted that the single most important output in preparing financial budgets is the cash budget. Cash budget can be regarded as estimation of cash inflows as well as outflows of a company over a particular period of time. This can be weekly basis as well as monthly and quarterly, or annually. Through cash budget company can know if there is cash for continue operation within a time frame.
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Answer:
cool I guess.
Explanation:
. . . . . . . . . . .
Suppose the return on the market is expected to be 7%, a stock has a beta of 1.5, and T-bill rate is 3%. The SML would predict an expected return on the stocks of 9%. If you believe the stock will provide instead a return 11%. Its implied alpha is
Answer:
2%.
Explanation:
Calculation of the alpha of the stock
Implied Alpha Formula = Actual return - Expected return as per CAPM
Implied Alpha = 11% - 9%
Implied Alpha = 2%
Since you believe the stock will provide instead a return 11%, its implied alpha will be 2%.
Terps Company reported total assets of $2,400,000 and net income of $320,000 for the current year. The company determined that inventory was overstated by $24,000 at the beginning of the year (this was not corrected). What is the corrected amount for total assets and net income for the year
Answer:
$2,400,000 and $344,000
Explanation:
Given the above information,
the corrected amount for total assets at the end of the year would still remain $2,400,000. Reason being that the overstatement of inventory has no effect whatsoever on the asset of the company.
Also, the corrected net income for the year would be ;
= Net income for the year + Over stated inventory
= $320,000 + $24,000
= $344,000
Therefore,
The corrected amount for total assets and net income for the year are $2,400,000 and $344,000 respectively
Exercise 24-08 a The following direct materials and direct labor data pertain to the operations of Skysong Company for the month of August. Costs Actual labor rate $15 per hour Actual materials price $190 per ton Standard labor rate $14.50 per hour Standard materials price $193 per ton Quantities Actual hours incurred and used 4,600 hours Actual quantity of materials purchased and used 1,700 tons Standard hours used 4,650 hours Standard quantity of materials used 1,680 tons (a) Compute the total, price, and quantity variances for materials and labor
Answer:
Total materials variance = $1,240 favorable
Materials price variance = $5,100 favorable
Materials quantity variance = $3,860 unfavorable
Total labor variance = $1,575 unfavorable
Labor price variance = $2,300 unfavorable
labor quantity variance = $725 favorable
Explanation:
Materials Variances
Total materials variance = Standard Cost - Actual Cost
= ($193 x 1,680) - ($190 x 1,700)
= $324,240 - $323,000
= $1,240 favorable
Materials price variance = (Standard Price - Actual Price) x Actual Quantity
= ($193 - $190) x 1,700
= $5,100 favorable
Materials quantity variance = (Standard Quantity - Actual Quantity) x Standard Price
= (1,680 - 1,700) x $193
= $3,860 unfavorable
Labor Variances
Total labor variance = Standard Cost - Actual Cost
= ($14.50 x 4,650) - ($15 x 4,600)
= $67,425 - $69,000
= $1,575 unfavorable
Labor price variance = (Standard rate- Actual rate) x Actual hours
= ($14.50 x $15) x 4,600
= $2,300 unfavorable
labor quantity variance = (Standard hours - Actual hours ) x Standard rate
= (4,650 - 4,600) x $14.50
= $725 favorable
Splish Brothers Inc. reported net income of $194,800 for 2022. Splish Brothers also reported depreciation expense of $47,700 and a loss of $5,900 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $16,700 for the year, a $18,700 increase in accounts payable, and a $3,000 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2022. Use the indirect method.
Answer:
Operating activities section of the statement of cash flows for 2022
Net Income $194,800
Adjustment for non cash items :
Depreciation $47,700
Loss on disposal $5,900
Adjustments for changes in working capital :
Increase in accounts receivable ($16,700)
Increase in accounts payable $3,000
Net Cash Provided by Operating Activities $234,700
Explanation:
Operating activities section of the statement of cash flows reconciles the Net Income to Operating Cashflow when the indirect method is used as shown above.
Headland Construction Company, which began operations in 2020, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2021. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. The appropriate information related to this change is as follows.
Pretax Income from
Percentage-of-Completion Completed-Contract Difference
2020 $875,000 $590,000 $285,000
2021 913,000 476,000 437,000
Required:
a. Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2020?
b. What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?
Answer:
A.$262,500
B. Dr Construction in Process $285,000
Cr Deferred Tax $85,500
Cr Retained Earnings $199,500
Explanation:
A. Calculation to determine the amount of net income that would be reported in 2020
Using this formula
2020 Net income=Income before tax*Tax rate
Let plug in the formula
2020 Net income=$875,000*30%
2020 Net income=$262,500
Therefore the amount of net income that would be reported in 2020 is $262,500
B. Preparation of the entry(ies) that are necessary to adjust the accounting records for the change in accounting principle
Dr Construction in Process $285,000
Cr Deferred Tax $85,500
(30%*$285,000)
Cr Retained Earnings $199,500
($285,000-$85,500)
(To adjust the accounting records)
A product has a demand of 4000 units per year. Ordering cost is $20 per order, and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and ordering) costs. $1200 $800 $400 Cannot be determined because the unit price is not known. Zero; this is a class C item
Answer:
the Annual inventory cost is $800.
Explanation:
The computation of the total annual inventory cost is given below:
Demand, D = 4000
Order cost, S = $ 20
Holding cost, H = $ 4
So,
EOQ = sqrt(2 ×D × S ÷ H)
= sqrt(2 × 4000 × 20 ÷ 4)
= 200
Now
Annual inventory cost = Annual setup cost + Annual holding cost
= (D ÷ Q × S) + (Q ÷ 2 × H)
= (4000 ÷ 200 × 20) + (200 ÷ 2 × 4)
= 400 + 400
= $800
hence, the Annual inventory cost is $800.
The Buck Store is considering a project that will require additional inventory of $185,000 and will increase accounts payable by $153,000. Accounts receivable are currently $525,000 and are expected to increase by 15 percent if this project is accepted. What is the project's initial cash flow for net working capital
Answer:
$635,750
Explanation:
Net working capital = Current Asset - Current Liabilities
= $603,750 + $185,000 - $153,000
the project's initial cash flow for net working capital
GJ Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net income, $480,000 Accounts payable decreased $40,000 Prepaid assets increased $29,000 Depreciation expense was $51,000 Accounts receivable decreased $39,000 Loss on sale of a depreciable asset was $29,000 Wages payable increased $25,000 Unearned revenue decreased $29,000 Patent amortization expense was $11,000 Using the indirect method, how much was GJ's net cash provided by operating activities
Answer:
GJ Company
Cash Flow From Operating Activity
Net Income $480,000
Add: Depreciation Expenses $51,000
Add: Patent Amortization Expenses $11,000
Increase in Current Liability and
decrease in current asset
Accounts receivable decreased $40,000
Wages Payable Increased $25,000
Unearned Revenue decreased $29,000
Decrease in Current Liability
and Increase in current asset
Prepaid asset increased ($29,000)
Accounts Payable Decreased ($40,000)
Add: Loss on sale of asset $29,000
Cash Flow From Operating Activity $596,000
The internal rate of return for a project will increase if: the initial cost of the project can be reduced. the total amount of the cash inflows is reduced. each cash inflow is moved such that it occurs one year later than originally projected. the required rate of return is reduced. the discount rate is increased.
Answer:
the initial cost of the project can be reduced
Explanation:
As we know that the internal rate of return is the return where the net present value comes to zero or we can say that the initial investment would be equivalent to the present value of annual cash inflows
In the case when the internal rate of return is rise up so the initial investment or initial cost would be decreased
Therefore the first option is correct
The subject of the auditing procedure observing is least likely to be: a. procedures. b. inventory taking. c. personnel d. processes. e. physical assets.
Answer:
e. physical assets.
Explanation:
Audit procedures can be regarded as processes or techniques, or methods that is been followed by auditors in obtaining audit evidence that will give them enablement to make a conclusion as regards to set audit objective so they can express their opinion. audit procedures can as well be called audit programs. It should be noted that The subject of the auditing procedure observing is least likely to be physical assets. physical asset can be regarded as item of economic, even exchange value which has a material existence. They are regarded asPhysical assets tangible assets. Example is
properties, equipment,
CWN Company uses a job order costing system and last period incurred $82,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $73,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
Answer:
the predetermined overhead rate is 65%
Explanation:
The computation of the predetermined overhead rate is shown below;
The Predetermined overhead rate
= Expected overhead ÷ expected total direct labour cost
= $73,000 ÷ $100,000
= 0.73
= 65%
hence, the predetermined overhead rate is 65%
The same would be considered and relevant