Answer:
b. they can be used to produce a variety of products without the need for expensive retooling.
They can be used to produce a variety of products without the need for expensive retooling: a true statement about process layouts. Thus, option B is the correct option.
What are process layouts?Process layout is a design for a plant's floor plan used in industrial engineering that tries to increase productivity by placing equipment according to its purpose. The production line's ideal design should aim to reduce waste in material flows and in the handling and administration of inventories.
Workstations and equipment are not set up in a production-specific order in a process layout. Instead, each department has a collection of related tasks or equipment (such as a drill department, a paint department, etc.). It also goes by the name "function layout." The machining operations in this configuration are carried out in groups rather than in any particular order.
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Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $150,000. Variable processing costs are estimated to be $9 per book. The publisher plans to sell single-user access to the book for $41.
Required:
Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,400 copies?
Answer:
I prepared an excel spreadsheet which includes the income model and an example.
Explanation:
Dean has earned $70,750 annually for the past five years working as an architect for WCC Incorporated Under WCC's defined benefit plan (which uses a seven-year graded vesting schedule) employees earn a benefit equal to 3.5 percent of the average of their three highest annual salaries for every full year of service with WCC. Dean has worked for five full years for WCC and his vesting percentage is 60 percent. What is Dean's vested benefit (or annual retirement benefit he has earned so far)
Answer:
$7,429
Explanation:
Calculation to determine Dean's vested benefit
Using this formula
Vested benefit=Average salary for the prior three years×( 3.5% × 5 years of service)×Vesting percentage)
Let plug in the formula
Vested benefit=$70,750 ×( 3.5% × 5)× 60%
Vested benefit=$70,750 × 17.5%× 60%
Vested benefit=$7,428.75
Vested benefit=$7,429 (Approximately)
Therefore Dean's vested benefit is $7,429
5. Write short note on the following
a. Bailee
b. An overt
c. Estoppel
d. Ratification
e. Del credere agent
Answer:
a). Bailee - It is described as the individual who gains or holds bailed property or possession of it. He/she is the one who takes possession of the property of another(called a bailor) for a temporary period in order to keep that property safe for the other.
b). An overt - In terms of law, an act is characterized as an overt act when it is open and not hidden or concealed. Such an act can clearly be observed and revealed the criminal intent of the person.
c). Estoppel - A legal principle in the law of equity that prevents a party from asserting otherwise valid legal rights against another party because of conduct by the first party, or circumstances to which the first party has knowingly contributed, make it unjust for those rights to be asserted.
d). Ratification - It is described as a formal declaration of agreement, giving consent, sign off, or validifying to a treaty in an official manner. Thus, it is the process of providing legal authority to the law or principle.
e). Del Credere Agent - These are described as the agent who not only engages in selling goods on credit but also ensures a guarantee to the principal that the purchaser/buyer is solvent. The seller is otherwise responsible for the debt.
The income statement of Pharoah Company is shown below.
PHAROAH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $7,410,000
Cost of goods sold Beginning inventory $1,880,000
Purchases 4,360,000
Goods available for sale 6,240,000
Ending inventory 1,500,000
Cost of goods sold 4,740,000
Gross profit 2,670,000
Operating expenses
Selling expenses 460,000
Administrative expenses 630,000 1,090,000
Net income $1,580,000
Additional information:
1. Accounts receivable decreased $313,770 during the year.
2. Prepaid expenses increased $167,640 during the year.
3. Accounts payable to suppliers of merchandise decreased $279,000 during the year.
4. Accrued expenses payable decreased $124,020 during the year.
5. Administrative expenses include depreciation expense of $58,970.
Required:
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Vince Gill Company, using the indirect method.
Answer and Explanation:
The preparation of the operating activities section of the statement of cash flows for the year ended December 31, 2020 is presented below;
Cash flow from operating activities
Net income $1,580,000
Add: depreciation expense $58,970
Add: decrease in account receivable $313,770
Less: Increase in prepaid expense -$167,640
Less: Decrease in account payable -$279,000
Less: decrease in accrued expense payable -$124,020
Add: Decrease in inventory $380,000 ($1,880,000 - $1,500,000)
Cash flow provided by operating activities $1,762,080
Problem 8-20 Like-Kind Exchanges (LO 8.11) Carey exchanges land for other land in a qualifying like-kind exchange. Carey's basis in the land given up is $115,000, and the property has a fair market value of $150,000. In exchange for her property, Carey receives land with a fair market value of $100,000 and cash of $10,000. In addition, the other party to the exchange assumes a mortgage loan on Carey's property of $40,000. a. Calculate Carey's recognized gain, if any, on the exchange. $fill in the blank 2cb026fcb01f033_1 b. Calculate Carey's basis in the property received. $fill in the blank 5522dd03f02dfa9_1
Answer:
Explanation:
a. Calculate Carey's recognized gain
Fair market value of property received = 100,000
Add: Cash received = 10,000
Add: Liability assumed by other party = 40,000
Total amount realized = 150,000
Then, we deduct the adjusted basis of property given up from the total amount realized. This will be:
= 150,000 - 115,000
= 35,000
b. Calculate Carey's basis in the property received.
Basis of property given up = 115,000
Less: Boot received = 50,000
Add: gain realized 35,000
Basis of property received = 100,000
Note that boot received was calculated as:
Cash received = 10,000
Add: Liability assumed by other party = 40,000
Boot received = 50000
The national lottery in the country of San Dayana is advertising on billboards in the poverty stricken, inner-cities of the country. "Buy your way out of here to America" Buy the 5 for 1 lottery tickets every Friday." Would you consider this an ethical marketing strategy? Why/Why not?
The correct answer to this open question is the following.
Would you consider this an ethical marketing strategy?
No. Of course not. It is not ethical. However, it is not illegal.
It cannot be considered ethical because this piece of advertisement is playing with the lack and necessity of the poor people of San Dayana.
The lottery advertisement is trying to be lucrative and benefit from the ignorance and poverty of the people of this poor country.
Once said that people are the ones who had the last word on the decision to buy or not to buy the lottery tickets. They know that the probabilities are minimum to win the big prize.
So instead of work, save and invest, or do other legal things to prosper, they prefer to spend their hard-earn money to get the "miracle" and become rich.
There is a debate about whether sterile hypodermic needles should be passed out free of charge in cities with high drug use,. Proponents argue that doing so well reduce the incidence of diseases, such as HIV/AIDS, that are often spread by needle sharing among drug users. Oppenents believe that doing so will encourage more drug use by reducing the risks of this behaviour. As an economist asked, to assess the policy, you must know the following :
i) How responsive the spread of diseases like HIV/AIDS is to the price sterile needles and
ii) How responsive drug use is to the price of sterile needles.
Assuming that you know these two things, use the concepts of price elasticityof demand for sterileneedle and the cross-price elasticity between drugs and sterile needles to answer the following questions.
a) In what circumstances do you believe this is a beneficial policy?
b) In what circumstances do you believe this is a bad policy?
Answer:
a) This will be a beneficial policy if the price elasticity of demand for sterile needles is elastic and the cross-price elasticity of demand between drugs and sterile needles is positive and high.
b) This is a bad policy if the price elasticity of demand for sterile needles is inelastic and the cross-price elasticity of demand between drugs and sterile needles is negative and high.
Explanation:
a) In what circumstances do you believe this is a beneficial policy?
This will be a beneficial policy if the price elasticity of demand for sterile needles is elastic and the cross-price elasticity of demand between drugs and sterile needles is positive and high.
The elastic price elasticity of demand for sterile needles implies that the quantity demanded for sterile needles is higher than the change in its price.
The positive cross-price elasticity of demand implies that both drugs and sterile needle are substitutes. Therefore, the quantity demanded of drugs falls as the price of sterile needle falls to zero.
b) In what circumstances do you believe this is a bad policy?
This is a bad policy if the price elasticity of demand for sterile needles is inelastic and the cross-price elasticity of demand between drugs and sterile needles is negative and high.
The inelastic price elasticity of demand for sterile needles implies that the quantity demanded for sterile needles is lower than the change in its price.
The negative cross-price elasticity of demand implies that both drugs and sterile needle are compliments. Therefore, the quantity demanded of drugs increases as the price of sterile needle falls to zero.
The following information is provided for Sandhill Company and Whispering Corporation. (in $ millions) Sandhill Company Whispering Corporation Net income 2022 $130 $445 Net sales 2022 1715 4640 Total assets 12/31/20 1010 2010 Total assets 12/31/21 1085 3070 Total assets 12/31/22 1150 4100 What is Sandhill's return on assets for 2022
Answer:
11.63%
Explanation:
Average assets = [Total assets 12/31/21 + Total assets 12/31/22] / 2
Average assets = [$1085 + $1150] / 2
Average assets = $2,235 / 2
Average assets = $1,117.50
Return on Assets = Net income / Average assets
Return on Assets = $130 / $1,117.50
Return on Assets = 0.1163311
Return on Assets = 11.63%
So therefore, Sandhill's return on assets for 2022 is 11.63%.
Entries for Uncollectible Accounts, using Direct Write-Off Method Journalize the following transactions in the accounts of Arrow Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables:
Jan. 19. Sold merchandise on account to Dr. Sinclair Welby, $52,800. The cost of the merchandise sold was $28,500.
July 7. Received $15,300 from Dr. Sinclair Welby and wrote off the remainder owed on the sale of January 19 as uncollectible.
Nov. 2. Reinstated the account of Dr. Sinclair Welby that had been written off on July 7 and received $37,500 cash in full payment.
Answer:
Arrow Medical Co.
Journal Entries:
Jan. 19: Debit Accounts Receivable (Dr. Sinclair Welby) $52,800
Credit Sales Revenue $52,800
To record the sale of goods on account.
Debit Cost of goods sold $28,500
Credit Inventory $28,500
To record the cost of goods sold.
July 7: Debit Cash $15,300
Credit Accounts Receivable (Dr. Sinclair Welby) $15,300
To record the receipt on account.
Debit Bad Debts Expense $37,500
Credit Accounts Receivable (Dr. Sinclair Welby) $37,500
To write-off the balance on account as bad debts.
Nov. 2: Debit Accounts Receivable (Dr. Sinclair Welby) $37,500
Credit Bad Debts Expense $37,500
To reinstate and reverse the bad debts written off.
Debit Cash $37,500
Credit Accounts Receivable (Dr. Sinclair Welby) $37,500
To record the receipt on account.
Explanation:
a) Data and Analysis:
Jan. 19: Accounts Receivable (Dr. Sinclair Welby) $52,800 Sales Revenue $52,800
Cost of goods sold $28,500 Inventory $28,500
July 7: Cash $15,300 Accounts Receivable (Dr. Sinclair Welby) $15,300
Bad Debts Expense $37,500 Accounts Receivable (Dr. Sinclair Welby) $37,500
Nov. 2: Accounts Receivable (Dr. Sinclair Welby) $37,500 Bad Debts Expense $37,500
Cash $37,500 Accounts Receivable (Dr. Sinclair Welby) $37,500
Suppose the end of 2013 is approaching and most of the activity for the year has been entered into the accounts of Hipzone Inc. However, there are a few transactions that still need to be posted.
List the journal entries required
Suppose on December 31, Hipzone Inc. bills one of their customers $450 for a project that they had completed which had accumulated $220 of costs. The invoice has the normal terms requesting payment in 30 days. Make ALL of the entries required by this transaction.
HINT: Think of Accumulated Project Costs as an account similar to Inventory - it is an asset account used to accumulate the costs that have been incurred related to the project being completed for the customer.
THEN Hipzone Inc. needs to record depreciation on a piece of office equipment. The equipment was purchased on 1/1/2010 for $2,000, was expected to last 10 years at the time of purchase, and had an expected salvage value of $200. No depreciation has been recorded on the equipment for 2013. Make ALL of the entries required by this transaction.
Answer:
Hipzone Inc.
a. Journal Entries:
December 31, 2013:
Debit Accounts receivable $450
Credit Service revenue $450
To record the completion of a project for a customer, terms n/30.
Debit Cost of service $220
Credit Accumulated Project Costs $220
To record the cost of service.
b. Journal Entries:
December 31, 2013:
Debit Depreciation Expense $180
Credit Accumulated Depreciation $180
To record the depreciation expense for the year.
Explanation:
a) Data and Analysis:
December 31, 2013:
Accounts receivable $450 Service revenue $450, terms n/30.
Cost of service $220 Accumulated Project Costs $220
December 31, 2013:
Cost of equipment on 1/1/2010 = $2,000
Expected useful life = 10 years
Salvage value = $200
Depreciable amount = $1,800 ($2,000 - $200)
Annual depreciation expense = $180 ($1,800/10)
December 31, 2013:
Depreciation expense $180 Accumulated Depreciation $180
Tamarisk, Inc. gathered the following reconciling information in preparing its April bank reconciliation:
Cash balance per books, 4/30 $18300
Deposits in transit 2500
Notes receivable and interest collected by bank 6160
Bank charge for check printing 210
Outstanding checks 12500
NSF check 1160
The adjusted cash balance per books on April 30 is:_________.
a. $24460.
b. $23090.
c. $25410.
d. $25590.
Answer:
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Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 12%. If Scampini has 50 million shares of stock outstanding, what is the stock's value per share
Answer:
the stock value per share is $42.86
Explanation:
The computation of the stock value per share is shown below
But before that firm value is
= ($150,000,000) ÷ (12% - 5%)
= $2,142,857,142.86
Now the stock value per share is
= Firm value ÷ number of shares of stock outstanding
= $2,142,857,142.86 ÷ 50,000,000
= $42.86 per share
Hence, the stock value per share is $42.86
SECTION -A
Q1. Which of the following is not a feature of divisional structure?
(a) It is easy to fix the responsibility on one department.
(b) It is nor suitable for large firms.
(c) It facilitates managerial development.
(d) It's formation is based on product lines.
Answer:
B. it is more suitable for large firms
Explanation:
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Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 108 $45 Mar. 14, 2017 Purchase 186 $47 May 1, 2017 Purchase 132 $49 The company sold 306 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1800, what is the company's after-tax income using LIFO
Answer: $1,982.40
Explanation:
The company's after-tax income using LIFO will be:
Sales = 306 × $63 = $19,278
Less: Cost of Goods Sold
132 × $49 = $6,468
174 × $47 = $8,178
Coat if goods sold = $14,646
Gross Profit = $19,278 - $14,646 = $4,632
Less: Operating Expense = $1,800
Income Before Tax = $2,832
Less: Tax = 30% × $2832 = $849.60
Income after Tax = $1,982.40
Alpha Corporation has just paid its annual dividend and is looking forward to another successful year ahead. The company had free cash flow for the year just ended of $1 billion, all of which it just paid out to its shareholders as a dividend. Right now, shareholders do not believe that Alpha has any growth opportunities, so they expect the annual cash flow and dividend stream to remain unchanged for the foreseeable future. Alpha has 100 million 3 shares outstanding and a market capitalization of $10 billion. The company is entirely equity-financed. The capital market is efficient.
A) Alpha's CEO now proposes that the company skip its dividend one year from now and instead invest the entire amount of the coming year's $1 billion free cash flow in a project that management believes will generate a perpetual annual rate of return of 21%. The CEO further asserts that the new project has similar risk to the company's assets in place. If the company were to announce immediately its plans for the investment one year from now (financed by skipping next year's dividend) what do you think will happen to Alpha's stock price?
B) Some of Alpha's Board members are worried that shareholders are expecting a dividend next year and that announcing plans to skip next year's dividend will lower the stock price today. Suppose Alpha were to announce instead that it plans to pay its usual dividend one year from now and that it has no plans for any new investment at T-. What will happen to the stock price today?
C) Suppose Alpha settles on a compromise: Alpha announces today that it will invest in the new project one year from now, butwill simultaneously issue enough new shares at that time to enable it to pay the usual S10 dividend per share to its existing shareholders. What do you think will happen to Alpha's share price one year from now under this plan? What do you think will happen to Alpha's stock price today? Which of the three plans do you think Alpha's shareholders would prefer?
Answer:
(A) Alpha's stock price will fall.
(B) What will happen to the stock price today is that it will rise.
Explanation:
(C)
(i) Under the compromise plan and one year from now, Alpha's share price will fall, since Alpha will be desperate for new share holders.
(ii) Alpha's stock price today will rise, since the value of existing stocks will increase - that is, existing shareholders are assured of their usual $10 dividend plus extra dividend from the 21% estimated annual ROR on the intended project.
(iii) Which of the three plans would Alpha's shareholders prefer?
Regular-thinking shareholders would prefer Plan B. Patient shareholders would prefer Plan A, especially if they don't see many new shareholders in one year's time. Optimistic shareholders would prefer Plan C.
About 10 years ago, the POM Pomegranate Juice brand was created by a middle-aged couple in Nebraska. Theyâre business started small and then began to skyrocket after news spread of how yummy pomegranate juice is and also, how healthy is it (more antioxidants than any other juice out there!) Now, brands such as Nantucket Nectars, Ocean Spray, Minute Maid, and more have created their own pomegranate mixtures.
Required:
What has happened to the supply of pomegranate beverages as a result?
Answer:
OM Pomegranate Juice
The supply of pomegranate beverages has risen above demand, thereby causing market glut.
Explanation:
With many suppliers of pomegranate beverages, the quantity being supplied will outstrip demand. The immediate result is a glut in the market. This will lead to producing at less than full capacity as individual producers make efforts to sell their inventories. Workers may need to be laid off in order to meet the resulting economic situation.
Janet's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Janet's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Janet signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Janet's kitchen cannot fit more than two ovens, Janet cannot change the number of ovens she uses in her production of pizzas in the short run.
However, Janet's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Janet lets them know how many workers she needs for each day of the week. In the short run, these workers are (Variable/Fixed) inputs, and the ovens are (Fixed/Variable) inputs.
Janet's daily production schedule is presented in the following table.
Fill in the blanks to complete the Marginal Product of Labor column for each worker.
Labor Output (Number of workers) Marginal Product of Labor
(Pizzas) (Pizzas)
0 0
1 70
2 120
3 160
4 190
5 200
Answer:
Janet's Performance Pizza
Marginal Product of Labor
Labor Output Marginal
(Number of workers) Product of Labor
(Pizzas) (Pizzas)
0 0 0
1 70 70
2 120 50
3 160 40
4 190 30
5 200 10
Explanation:
a) Data and Calculations:
Labor Output Marginal
(Number of workers) Product of Labor
(Pizzas) (Pizzas)
0 0 0 (0 - 0)
1 70 70 (70 - 0)
2 120 50 (120 - 70)
3 160 40 (160 - 120)
4 190 30 (190 - 160)
5 200 10 (200 - 190)
b) Janet Performance Pizza's marginal product of labor describes the change in the number of pizzas that the restaurant produces by employing one more unit of labor (worker).
Ringmeup Inc. had net income of $129,300 for the year ended December 31, 2019. At the beginning of the year, 37,000 shares of common stock were outstanding. On May 1, an additional 15,000 shares were issued. On December 1, the company purchased 4,100 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup paid the annual dividend on the 6,000 shares of 4.95%, $100 par value preferred stock that were outstanding the entire year. Required: Calculate basic earnings per share of common stock for the year ended December 31, 2019. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$2.13 per share
Explanation:
The computation of the basic earnings per share is shown below:
But before that following calculations need to be done
The Weighted average share is
= (37000 shares × 4 ÷ 12 + (37,000 + 15,000) shares × 7 ÷ 12 + (52,000 - 4,100) shares × 1 ÷ 12)
= 46,658 Shares
And, the Preferred dividend is
= 6,000 shares × $100 × 4.95%
= $29,700
Now EPS is
= (Net income - Preferred dividend) ÷ Weighted average share outstanding = ($129,300 - $29,700) ÷ 46,658
= $2.13 per share
Newark Company has provided the following information: Cash sales, $640,000 Credit sales, $1,540,000 Selling and administrative expenses, $520,000 Sales returns and allowances, $109,000 Gross profit, $1,550,000 Increase in accounts receivable, $74,000 Bad debt expense, $52,000 Sales discounts, $62,000 Net income, $1,030,000 How much is Newark's cost of goods sold
Answer:
$459,000
Explanation:
Calculation to determine How much is Newark's cost of goods sold
First step is to calculate the Net sales
Net sales = $640,000 + $1,540,000 - $109,000 - $62,000.
Net sales =$2,009,000
Now let Calculate the cost of goods sold using this formula
Cost of goods sold=Net Sales -Gross profit,
Let plug in the formula
Cost of goods sold=$2,009,000-$1,550,000
Cost of goods sold= $459,000
Therefore the amount of Newark's cost of goods sold is $459,000
The Newark's cost of goods sold is $1,030,000. We can use the following formula:
Cost of Goods Sold = Gross Profit - Selling and Administrative Expenses
Given the information provided:
Gross Profit = $1,550,000
Selling and Administrative Expenses = $520,000
Using the formula:
Cost of Goods Sold = $1,550,000 - $520,000
Cost of Goods Sold = $1,030,000
Therefore, Newark Company's cost of goods sold is $1,030,000.
Cost of Goods Sold (COGS) refers to the direct costs incurred in producing or acquiring the goods that a company sells to its customers. It includes the cost of raw materials, direct labor, and any other costs directly associated with the production or acquisition of good.
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Vijay Company reports the following information regarding its production costs. Direct materials $ 10 per unit Direct labor $ 20 per unit Overhead costs for the year Variable overhead $ 10 per unit Fixed overhead $ 160,000 Units produced 20,000 units
Compute its product cost per unit under absorption costing.
Production cost per unit
Answer:
$48 per unit
Explanation:
Given the above data, we need to find the value of unitary fixed overhead.
Unitary fixed overhead = $160,000 / 20,000 = $8
Now, we can then calculate unitary cost of production
Unitary cost = Direct material + Direct labor + Total overhead
Unitary cost = $10 + $20 + $10 + $8
Unitary cost = $48 per unit
To save money for his daughter's college tuition, Dan invests every quarter in an annuity that pays interest, compounded quarterly. Payments will be made at the end of each quarter. Find the total value of the annuity in years.
The question is incomplete. The complete question is :
To save money for his daughter's college tuition, Dan invests $269 every quarter in an annuity that pays 6.9% interest, compounded quarterly. Payments will be made at the end of each quarter. Find the total value of the annuity in 20 years.
Solution :
Given :
Annuity = $ 269
Compounded quarterly for 20 years, so N = 4 x 20 = 80
Rate of interest = [tex]$\frac{6.90 \%}{4}$[/tex]
= 1.725 %
We know Future value of the annuity is given by :
[tex]$FV= \text{Annuity} \times \frac{(1+R)^{N-1}}{R}$[/tex]
[tex]$FV= \text{269} \times \frac{(1+1.725\%)^{80-1}}{1.725\%}$[/tex]
[tex]$=269 \times 169.762413$[/tex]
= 45666.09
So the total value of he annuity is $45,666.09
For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A patent with a 15-year remaining legal life was purchased for $315,000. The patent will be commercially exploitable for another nine years. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $46,800 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 18 years and is currently worth $378,000. A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for four years was obtained at a cost of $72,000. Satisfactory sales performance over the four years permits renewal of the franchise for another four years (at an additional cost determined at renewal).
Answer and Explanation:
The amount and the journal entry is shown below:
a. Amortization Expense - Patents $35,000 ($315,000 ÷ 9 years)
To Patents $35,000
(Being amortization expense is recorded)
b Amortization Expense - Patent $2,600 ($46,800 ÷ 18 years)
To Patents $2,600
(Being amortization expense is recorded)
c Amortization Expense - Franchises $18,000 ($72,000 ÷ 4)
To Franchises $18,000
(Being amortization expense is recorded)
The Herfindahl-Hirschman index is a measure of concentration found by: squaring the percentage market share of each firm in the industry. squaring the sums of the concentration ratios found in an industry survey of the largest four and largest eight firms. squaring the percentage market share of each firm in the industry and then summing the squared market shares. summing the percentage market shares of each firm in the industry.
Answer:
squaring the percentage market share of each firm in the industry and then summing the squared market shares.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, account payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
Thus, it involves specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time.
Herfindahl-Hirschman index can be defined as a measure of the market concentration of a particular business firm or industry. Thus, it's typically used to measure the size of a particular business firm with respect to the industry it's operating in.
The Herfindahl-Hirschman index is a measure of concentration found by squaring the percentage market share of each firm in the industry and then summing the squared market shares.
While making a business decision, a manager who believes in rights theories is most likely to focus on achieving collective goals, even if that involves violating fundamental rights. weighing the associated social benefits, costs, and risks. maximizing stockholders' wealth and profits. respecting fundamental human privileges. propagating home-country standards of ethics.
Answer:
respecting fundamental human privileges.
Explanation:
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
While making a business decision, a manager who believes in rights theories is most likely to focus on respecting fundamental human privileges that are applicable to the staffs or employees working within an organization, as well as all of its clients or customers.
If Xit is correlated with Xis for different values of s and t, then:________
a. Xit is said to be autocorrelated
b. the OLS estimator cannot be computed
c. statistical inference cannot proceed in a standard way even if clustered standard errors are used
d. this is not of practical importance since these correlations are typically weak in applications
Answer:
a. Xit is said to be autocorrelated
Explanation:
Correlation is the mutual connection between two or more variables. These variables can be dependent or independent but there should be random variables. When there is correlation of Xit with Xis then values of s and t are said to be auto correlated since there is relation existing between them.
Western Energy makes quarterly deposits into an account reserved for purchasing new equipment two years from now. The interest paid on the deposits is 12% per year, compounded monthly. Identify the interest period, compounding period, and compounding frequency in the interest period.
a. The interest period is ____________.
b. The compounding period is _______________ .
c. The compounding frequency is___________ .
Answer:
a. 2 years
b. 1 year
c. 12 times
Explanation:
Interest period is the duration of the deposit. It is the length of time the money would remain in deposit. This is 2 years according to the question
Compounding period = number of times interest would be paid. In the question, this is a year. So interest would be paid every year
The compounding frequency - it is the number of times the deposit would be compounded. It is 12 months
The future value of the deposit can be determined using this formula :
FV = P (1 + r/m)^nm
FV = Future value
P = Present value
R = interest rate
N = number of years
m = number of compounding
Discuss characteristics of modern organization and give reasons why there are frequent changes in organizations
Explanation:
The main characteristics of modern organizations are the focus on people and diversity. These characteristics are impacted by globalization and new technologies, which caused organizations to expand their business to other countries, so it was necessary to adapt the organizational culture, with ethical values that promote cultural diversity and plurality due to globalization.
Human capital is highly valued in today's organizations because the market is extremely competitive and the biggest differentiation is through ideas, innovation, productivity and job satisfaction.
Organizational changes come from economic, social changes that dynamize business and make them geared towards adapting to meet the new forms of consumption demanded by society.
MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has received a bid from Monte Legend Co. (MLC) to produce 10,000 units of the module per year for $16 each. The following information pertains to MSI’s production of the control modules:
Direct materials $9
Direct labor $4
Variable manufacturing overhead $2
Fixed manufacturing overhead $3
Total cost per unit $18
MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production.
Compute the difference in cost between making and buying the control module.
Answer:
If the company makes the units in-house, it will save $10,000.
Explanation:
The fixed costs will remain in both options. Therefore, the fixed costs are irrelevant to the decision-making process.
Buy:
Total cost= 10,000*16= $160,000
Make in house:
Total cost= 10,000*(9 + 4 + 2)= $150,000
If the company makes the units in-house, it will save $10,000.
Land Corporation reported the following: Common Stock, $5 par, 219,000 shares authorized, 179,000 shares issued $895,000 Paid in Capital in Excess of Par—Common 206,000 Retained Earnings 232,000 Total Stockholders' Equity $1,333,000 Which of the following is included in the entry to record the corporation's purchase of 30,000 shares of its common stock for $15 per share?
Question Completion with Options:
A. Paid - In Capital from Treasury Stock Transactions is credited for $450,000.
B. Treasury Stock-Common is debited for $150,000.
C. Common Stock-$5.00 Par Value is credited for $300,000.
D. Retained Earnings is debited for $450,000.
Answer:
Land Corporation
The entry that is included to record the corporation's purchase of 30,000 shares of its common stock for $15 per share is:
B. Treasury Stock-Common is debited for $150,000.
Explanation:
a) Data and Calculations:
Common Stock, $5 par, 219,000 shares authorized,
179,000 shares issued $895,000
Paid in Capital in Excess of Par—Common 206,000
Retained Earnings 232,000
Total Stockholders' Equity $1,333,000
Purchase of 30,000 shares for $15 per share
The journal entries to record this transaction are:
Debit Treasury stock $150,000 ($5 * 30,000)
Debit Paid-in Capital in Excess of Par - Common $300,000 ($10 * 30,000)
Credit Cash $450,000 ($15 * 30,000)
b) The above is used when the par value method of recording the Treasury Stock is applied. When the cost (cash) method is applied, the treasury stock is debited with $450,000 and the cash account is credited with the same amount.
Suppose that you wish to hedge the exchange rate risk on a foreign receivable of 1,240,000 euros. You decide to do this with a long option whose underlying asset is the euro (I won't tell you whether it's a put or a call). If this option has a strike of $1.15/euro, a multiple of 10,000 euros, and a per-contract (i.e. per 10k euros) premium of $175, then what is the least number of dollars you could possibly expect to net from this hedged receivable
Answer: $1404300
Explanation:
The least number of dollars that one could possibly expect to net from this hedged receivable will be calculated thus:
Amount receivable = 1,240,000 euros
Contract size for put option = 10000
Therefore, the number of contract that can be purchased will be:
= 1240000 / 10000
= 124
The total cost of option will be:
= $175 × 124
= $21700
We then calculate the minimum dollars available which will be:
= 1240000 × 1.15
= $1426000
We then deduct the total cost of option to get the net dollar proceed which will be:
= $1426000 - $21700
= $1404300
Therefore, the the least number of dollars that is expected to net from this hedged receivable is $1404300.