Cane Company manufactures two products called Alpha and Beta that sell for $210 and $172, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 128,000 units of each product. Its unit costs for each product at this level of activity are given below :
Alpha Beta
Direct materials $40 $24
Direct labor $38 $34
Variable manufacturing overhead $25 $23
Traceable fixed manufacturing overhead $33 $36
Variable selling expenses $30 $26
Common fixed expenses $33 $28
Total cost per unit $199 $171
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.
Assume that Cane expects to produce and sell 113,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 28,000 additional Alphas for a price of $152 per unit. If Cane accepts the customer's offer, it will decrease Alpha sales to regular customers by 13,000 units.
a. Calculate the incremental net operating income if the order is accepted. (Loss amount should be indicated with a minus sign.)
b. Assume that Cane normally produces and sells 108,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?
c. Assume that Cane normally produces and sells 58,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?
d. Assume that Cane normally produces and sells 78,000 Betas and 98,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 11,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease?
e. Assume that Cane expects to produce and sell 98,000 Alphas during the current year. A supplier has offered to manufacture and deliver 98,000 Alphas to Cane for a price of $152 per unit. If Cane buys 98,000 units from the supplier instead of making those units, how much will profits increase or decrease?
f. Assume that Cane expects to produce and sell 73,000 Alphas during the current year. A supplier has offered to manufacture and deliver 73,000 Alphas to Cane for a price of $152 per unit. If Cane buys 73,000 units from the supplier instead of making those units, how much will profits increase or decrease?

Answers

Answer 1

Answer:

Cane Company

a) The incremental net operating income

= -$964,000

b. Profits would decrease by $3,132,000.

c. Profits would decrease by $1,682,000.

d. Profits would decrease by $1,778,000.

e. If Cane buys 98,000 units from the supplier instead of making those units, profits (savings) would increase by $588,000.

f.  If Cane buys 73,000 units from the supplier instead of making those units, profits (savings) would increase by $438,000.

Explanation:

Products manufactured                            Alpha          Beta

Selling price per unit                                 $210           $172

Annual production capacity                 128,000   $128,000

Units costs:

Direct materials                                           $40            $24

Direct labor                                                  $38            $34

Variable manufacturing overhead             $25            $23

Traceable fixed manufacturing overhead $33            $36

Variable selling expenses                          $30            $26

Common fixed expenses                           $33            $28

Total cost per unit                                     $199            $171

Avoidable (Incremental) Costs:

Products manufactured                            Alpha          Beta

Direct materials                                           $40            $24

Direct labor                                                  $38            $34

Variable manufacturing overhead             $25            $23

Traceable fixed manufacturing overhead $33            $36

Variable selling expenses                          $30            $26

Total incremental per unit                        $166           $143

Selling price per unit                                $210            $172

Contribution margin per unit                    $44             $29

Total Revenue for 28,000 at $152 per unit       $4,256,000

Total avoidable cost for 28,000 at $166             (4,648,000)

Loss: Revenue due to decrease in regular  

customers (13,000 *$210)                    2,730,000

Total avoidable cost of 13,000 * $166  2,158,000 (572,000)

Operating loss if the order is accepted              -$964,000                  

Beta:

Selling price per unit =         $172

Incremental cost per unit = $143

Contribution per unit =         $29

Total contribution margin = $3,132,000 ($29 * 108,000)

Total contribution margin = $1,682,000 ($29 * 58,000)

Total contribution margin = $2,262,000 ($29 * 78,000)

Increase in alpha contribution (484,000) ($44 * 11,000)

Loss of profit =                       $1,778,000

Cost price for outside supply =  $152

Incremental unit cost (internal)  $166

Difference in cost per unit             $6

Profits increase from outside supplier = $6 * 98,000 = $588,000

Profits increase from outside supplier = $6 * 73,000 = $438,000


Related Questions

In each of the following​ cases, calculate the price of one share of the foreign stock measured in United States dollars​ (US$). a. A Belgian stock priced at euros ​(​) when the exchange rate is ​US$/ ​(i.e., each euro is worth ​$​). b. A Swiss stock priced at Swiss francs​ (Sf) when the exchange rate is ​US$/Sf. c. A Japanese stock priced at yen​ (¥) when the exchange rate is ​¥/US$.

Answers

Answer:

$114.24

$96.18

$12.23

Explanation:

Here is the complete question :

In each of the following​ cases, calculate the price of one share of the foreign stock measured in United States dollars​(US$).

a. A Belgian stock priced at 103.1 euros (euro) when the exchange rate is 0.9025 euro​/US$.

b. A Swiss stock priced at 93.1 Swiss francs​ (Sf) when the exchange rate is 0.968 Sf/US$.

c. A Japanese stock priced at 1,334 yen​ (¥) when the exchange rate is 109.1149 ¥/US$.

Exchange rate is the rate at which one currency is exchanged for another currency

In this question, US dollar is the base currency while the other currencies are the price currency

1. (103.1 / 0.9025) x 1usd = $114.24

2. (93.1 / 0.9680) x 1 usd = $96.18

c.( 1334/109.1149) x 1 usd = $12.23

Foxmoor Company applies manufacturing overhead by using a predetermined rate of 50% of direct labor cost. The data that follow pertain to job no. 764:

Direct material cost $55,000
Direct labor cost 80,000

If Foxmoor adds a 40% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the sale of job no. 764?

Account Debited Amount
A. Cost of Goods Sold $175,000
B. Cost of Goods Sold $245,000
C. Finished Goods Inventory $175,000
D. Finished Goods Inventory $245,000
E. Sales Reveune $245,000

a. Choice A
b. Choice B
c. Choice C
d. Choice D
e. Choice E

Answers

Answer:

e. Choice E

Explanation:

Total cost of job no. 764 = $55,000 + $80,000  + 80,000 x 50%

                                         = $175,000

Total Revenue for job no. 764 = $175,000 + $175,000 x 40%

                                                  = $245,000

E. Sales Revenue $245,000

Climate change is expected to have a major impact on local weather patterns across the United States (and the world). Use a spatial equilibrium model for simple system of two cities to predict the effect of climate change on 1) A place where climate change lowers that amenity value of the local climate (call this place Miami) and 2) A place where climate change does not change the local amenity value (call this place Chicago). Which of the following best describes the prediction of your model?
A. Real estate prices in Miami will rise, real estate prices in Chicago will fall.
B. Real estate prices in Miami will fall, real estate prices in Chicago will fall.
C. Real estate prices in Miami will rise, real estate prices in Chicago will rise.
D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.
E. None of the above.

Answers

Answer:

D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.

Explanation:

Real estate prices in Miami will fall because according to the model, climate change will lower the amenity value of the local climate. This means that climate change will make the climate of Miami less desirable for potential residents, causing a drop in the price of the real estate of the city due to less demand.

Chicago on the other hand, will have the amenity level of its climate increased, and this will attract more potential residents who will drive up demand, causing Chicago's real estate prices to rise.

Blending process Units of Product Percent of Conversion
Beginning work in process 150,000 80%
Goods started 310,000 100
Goods completed 340,000 100
Ending work in process 120,000 25

Required:
Compute the total equivalent units of production for conversion using the FIFO method.

Answers

Answer:

Number of equivalent units= 370,000

Explanation:

To calculate the cost of equivalent units using the FIFO (first-in, first-out), we need to use the following structure:

COST PER EQUIVALENT UNITS:

Beginning work in process = beginning inventory* %incompleted

Units started and completed = units completed - beginning WIP

Ending work in process completed= Ending WIP* %completed

=Number of equivalent units

Beginning work in process = 150,000*0.2= 30,000

Units started and completed = 340,000 - 30,000= 310,000

Ending work in process completed= 120,000*0.25= 30,000

Number of equivalent units= 370,000

Bond valuation) ​Pybus, Inc. is considering issuing bonds that will mature in years with an annual coupon rate of percent. Their par value will be ​$​, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds​ and, if it​ does, the yield to maturity on similar AA bonds is percent. ​ However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A​ rating, the yield to maturity on similar A bonds is percent. What will be the price of these bonds if they receive either an A or a AA​ rating?

Answers

I uploaded the answer to a file hosting. Here's link:

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At December 31 of the current year, Cullen Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $770 were incurred but not paid. Utilities costing $240 were used but not paid, and use of a warehouse space worth $1,900 was provided to a tenant who had not been billed as of the end of the month. Record the required adusting entries related to these events.

Answers

Answer:

Cullen Corporation

Adjusting Journal Entries:

Debit Maintenance and Repairs Expense $770

Credit Accounts Payable $770

To record costs incurred but not yet paid for.

Debit Utilities Expense $240

Credit Utilities Payable $240

To record utilities expense incurred but not yet paid for.

Debit Rent Receivable $1,900

Credit Rent Revenue $1,900

To record rent revenue due.

Explanation:

a) Data and Analysis:

Maintenance and Repairs Expense $770 Accounts Payable $770

Utilities Expense $240 Utilities Payable $240

Accounts Receivable $1,900 Rent Revenue $1,900

The adjusting entries related to these events are shown in the image below.

What is adjustment entries?

Adjusting entries are those journal entries that are normally made at the end of an accounting period.

It is made at the end of the accounting period to assign income and expenditure to the time period in which they actually happened or occurred.

Required information according to the given case:

Maintenance and Repairs Expense is $770, Accounts Payable $770, Utilities Expense is $240 Utilities Payable is $240, Accounts Receivable is $1,900, and Rent Revenue is $1,900.

Therefore, the adjustment entries of the above transactions are given in the image below.

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On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 10% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $90,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $8,000 per year. Insurance premiums of $7,000 annually are related to the equipment. Both amounts were to be paid by the lessor and lease payments reflect both expenditures.

Required:
At what amount will Jasperse record a right-of-use asset?

Answers

Answer:

$554,320

Explanation:

Annual payment = $90,000

Rate = 10%

Time period = 10 years

Maintenance of equipment = $8,000

PVAD of $1(n = 10, i=11) = 6.76

Lease payment = $90,000 - $8,000 = $82,000

Amount of Right-of-use asset = Lease payment * PVAD of $1

Amount of Right-of-use asset = $82,000 * 6.76

Amount of Right-of-use asset = $554,320

So, Jasperse will record $554,320 as a right-of-use asset amount.

Which means the same as human resources?
A)
capital resources
B)
service providers
C)
labor resources
D)
unskilled workers

Answers

Answer:

A. Capitol Resources

Explanation:

Explanation:

Answer:

Capital resources

Explanation:

"Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view. Likewise, other terms sometimes used include "manpower", "talent", "labour", or simply "people".

Hope this helps out. if not, please let me know so i can edit my answer

Before preparing financial statements for the current year, the chief accountant for Oriole Company discovered the following errors in the accounts.

1. The declaration and payment of $47,000 cash dividend was recorded as a debit to Interest Expense $47,000 and a credit to Cash $47,000.
2. A 10% stock dividend (1,100 shares) was declared on the $10 par value stock when the market price per share was $19. The only entry made was Stock Dividends (Dr.) $11,000 and Dividend Payable (Cr.) $11,000. The shares have not been issued.
3. A 4-for-1 stock split involving the issue of 354,000 shares of $5 par value common stock for 91,750 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,835,000 and a credit to Common Stock $1,835,000.

Required:
Prepare the correcting entries at December 31.

Answers

Answer:

Oriole Company

Correcting Journal Entries:

1. Debit Dividends $47,000

Credit Interest Expense $47,000

To correct the error.

2. No corrections required

3. Debit Common Stock $1,835,000

Credit Retained Earnings $1,835,000

To correct the error.

Explanation:

a) Data and Analysis:

1. Dividends $47,000 Interest Expense $47,000

2. No corrections required

3. Common Stock $1,835,000 Retained Earnings $1,835,000

b) When a stock split is done, there is no journal entry involving an amount of money.  What is recorded is just a memo entry.  The memo entry serves to notify that the number of Oriole shares and the par value per share have changed to reflect the reality.

Needham Company uses a job-order costing system. During the month of September, the company worked on three jobs. The job-order cost sheets for the three jobs contained the following information at the end of September: Job A Job B Job C Beginning Balances $ 4,900 $ 3,900 $ 6,900 Direct Materials 1,900 2,500 2,900 Direct Labor 3,300 5,500 2,700 The company applies overhead at 120% of direct labor cost. The total cost of Job A at the end of September was:

Answers

Answer is in the file below

tinyurl.com/wtjfavyw

You should make sure to send a
you.
letter to the person who interviewed
A. thank you
B. formal
C. recommendation
D. cover

Answers

Answer:

A. thank you

Explanation:

You should make sure to send a

you.

letter to the person who interviewed. you should say thank you to that person who interviewed.

Answer: Truly A. thank-you is the right answer

For me its C.

A debit balance in the Allowance for Doubtful Accounts A. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. B. is the normal balance for that account. C. cannot occur if the percentage of receivables method of estimating bad debts is used. Click Save and Submit to save and submit. Click Save All Answers to save all answers. D. indicates that actual bad debt write-offs

Answers

Answer:

D. indicates that actual bad debt write-offs

Explanation:

A debit balance can be regarded as negative cash balance when checking ones account with a bank. It should be noted that debit balance in the Allowance for Doubtful Accounts

indicates that actual bad debt write-offs

Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 31,600 tons from the Casting Department in October. During October, the Rolling Department completed 45,900 tons, including 15,900 tons of work in process on October 1. The ending work in process inventory on October 31 was 1,600 tons.How many tons were started and completed during October?

Answers

Answer:

30,000 tons

Explanation:

Units Completed = Beginning Work in Process Units Completed + Units started and Completed during October

45,900 = 15,900 + Units started and Completed during October

Units started and Completed during October = 45,900 - 15,900

Units started and Completed during October = 30,000 tons

Analyzing and Computing Accrued Warranty Liability and Expense Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. During the current period, Waymire sold 69,000 units and repaired 1,000 units. (a) How much warranty expense must Waymire report in its current period income statement

Answers

Answer:

the warranty expense reported is $138,000

Explanation:

a. The computation of the warranty expense that should be reported in its current period income statement is shown below:

= Given percentage × units sold × repair average cost

= 2% × 69,000 units × $100 per units

= $138,000

Hence, the warranty expense reported is $138,000

The following information pertains to Wildhorse Company.

1. Cash balance per books, August 31, $7,424.
2. Cash balance per bank, August 31, $7,388.
3. Outstanding checks, August 31, $709.
4. August bank service charge not recorded by the depositor $61.
5. Deposits in transit, August 31, $3,760.
In addition, $3,076 collected for Wildhorse Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Wildhorse Company.
1. Prepare a bank reconciliation at August 31, 2022. (List items that increase balance as per bank & books first.)
2. Journalize the adjusting entries at August 31 on the books of Wildhorse Company.

Answers

Answer:

Part 1

Bank reconciliation at August 31, 2022

Balance as per Bank Statement        $10,439

Add Outstanding Lodgments                $709

Less Unpresented Checks                ($3,760)

Balance as per Cash Book                  $7,388

Part 2

Item 1

Debit :

Credit :

Item 1

Debit :

Credit :

Item 3

Debit : Bank Statement $709

Credit : Outstanding checks $709

Item 4

Debit : Bank service $61

Credit : Cash $61

Item 5

Debit : Deposits in Transit $3,760

Credit : Bank Statement $3,760

Item 6

Debit : Cash $3,076

Credit : EFT $3,076

Explanation:

The correct Cash Balance can be checked by preparing the Bank Reconciliation Statement as above

Answer:

Cash Balance per bank statement                          7,388

Add: Deposits in transit                                           3,760

                                                                                  11,148

Less: Outstanding Checks                                       (709)

Adjusted cash balance per books                         10,439

Cash balance per books                                         7,424

Add: Collection on electronic funds transfer         3,076

                                                                               10,500

Less: Bank service charge                                         (61)

Adjusted cash balance per books                       10,439

Journalize the adjusting entries

06/31 Cash                                       3,076

             Accounts Receivable                       3,076

06/31 Bank CE           61

              Cash                                                    61

Explanation:

Penny’s Pool Service & Supply, Inc. (PPSS) is completing the accounting process for the year just ended, December 31, 2015. The transactions during 2015 have been journalized and posted. The following data with respect to adjusting entries are available:
a. PPSS owed $7,500 wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid in January 2016.
b. On October 1, 2015, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2015.
c. The company received a $520 utility bill for December utility usage. It will be paid in January 2016.
d. PPSS borrowed $30,000 from a local bank on May 1, 2015, signing a note with a 10 percent interest rate. The note and interest are due on May 1, 2016.
e. On December 31, 2015, PPSS cleaned and winterized a customer’s pool for $800, but the service was not yet recorded on December 31.
f. On August 1, 2015, PPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
g. On December 31, 2015, PPSS had $3,100 of pool cleaning supplies on hand. During 2015, PPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2,400 of supplies on hand on December 31, 2014.
h. PPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.
i. At December 31, 2015, $110 of interest on investments was earned
Required: Prepare adjusting entries for Penny's Pool Service & Supply, Inc., on December 31, 2015.

Answers

Answer:

Penny's Pool Service & Supply, Inc.

Adjusting Entries:

a. Debit Wages Expense $7,500

Credit Wages Payable $7,500

To record accrued wages.

b. Debit Deferred Revenue $4,000

Credit Service Revenue $4,000

To record earned revenue.

c. Debit Utility Expense $520

Credit Utility Payable $520

To record accrued utility expense.

d. Debit Interest Expense $2,000

Credit Interest Payable $2,000

To record interest expense due.

e. Debit Accounts Receivable $800

Credit Service Revenue $800

To record service revenue earned.

f. Debit Insurance Expense $875

Credit Prepaid Insurance $875

To record expired insurance for the period.

g. Debit Supplies Expense $23,700

Credit Supplies $23,700

To record supplies expense for the period.

h. Debit Depreciation Expense - building and equipment $8,300

Credit Accumulated Depreciation - building and equipment $8,300

To record depreciation expense for the period.

i. Debit Interest Receivable $110

Credit Interest Revenue $110

To record interest revenue earned.

Explanation:

a) Data and Analysis:

a. Wages Expense $7,500 Wages Payable $7,500

b. Deferred Revenue $4,000 Service Revenue $4,000 ($24,000 * 2/12)

c. Utility Expense $520 Utility Payable $520

d. Interest Expense $2,000 Interest Payable $2,000 ($30,000 * 10% * 8/12)

e. Accounts Receivable $800 Service Revenue $800

f. Insurance Expense $875 Prepaid Insurance $875 ($4,200 * 5/24)

g. Supplies Expense $23,700 Supplies $23,700 ($3,100+23,000- 2,400)

h. Depreciation Expense - building and equipment $8,300 Accumulated Depreciation - building and equipment $8,300

i. Interest Receivable $110 Interest Revenue $110

In accounting terms, the adjusting entries are the entries that are usually made at the end of the accounting or the financial year in order to allocate the income and expenditure to the period of time in which they are actually incurred.

The Journal entries have been attached below.

Working notes:

[tex]\begin{aligned}\text{Service Revenue}= \$4,000\times \$24,000 \times\frac{2}{12}\end{aligned}[/tex]

[tex]\begin{aligned}\text{ Interest Payable}= \$2,000\times\$30,000 \times 10\% \times\frac{8}{12}\end{aligned}[/tex]

[tex]\begin{a;igned}\text{Prepaid Insurance}=\ $875 \times\$4,200 \times\frac{5}{24}\end{aligned}[/tex]

[tex]\text{Supplies}=\ $23,700 \times(\$3,100+23,000- 2,400)[/tex]

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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2018. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Interest Effective Interest Decrease in balance Outstanding balance 1/1/2018 $207,020 6/30/2018 $7,000 $6,211 $789 206,230 12/31/2018 $7,000 6,187 813 205,417 6/30/2019 $7,000 6,163 837 204,580 12/31/2019 $7,000 6,137 863 203,717 6/30/2020 $7,000 6,112 888 202,829 12/31/2020 $7,000 6,085 915 201,913 6/30/2021 $7,000 6,057 943 200,971 12/31/2021 $7,000 6,027 971 200,000 What is the annual stated interest rate on the bonds

Answers

The Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.

Data and Calculations:

Date             Cash Interest   Effective Interest   Decrease    Outstanding

                                                                            in balance       balance

1/1/2018                                                                                        $207,020

6/30/2018       $7,000                $6,211                 $789              206,230

12/31/2018       $7,000                 6,187                    813                205,417

6/30/2019       $7,000                 6,163                   837              204,580

12/31/2019      $7,000                  6,137                   863               203,717

6/30/2020     $7,000                   6,112                  888              202,829

12/31/2020    $7,000                 6,085                    915               201,913

6/30/2021     $7,000                 6,057                   943               200,971

12/31/2021     $7,000                6,027                    971              200,000

Total cash interest per year = $14,000 ($7,000 + $7,000)

Annual stated interest rate = 7% ($14,000/$200,000 x 100)

This annual interest rate can also be worked out as 7% ($7,000/$200,000 x 100 x 2), while the effective interest rate is 6% ($6,027/$200,000 x 100).

Thus, Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.

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Avery works for Proctor and Gamble as a market researcher in the United States. P&G is interested in launching a new line of shampoo in India and has asked her to look into doing research to support this decision. Since Avery is not familiar with the language or the culture, what should she do?

Answers

Explanation:

According to the scenario in question, an effective alternative for market researcher Avery would be to hire an Indian market research company to carry out the research that P&G needs to do before launching a new shampoo line in India, because as Avery does not is familiar with the Indian language and culture, these could be significant barriers to conducting effective research, since India is a country known for having a very strong culture, so an Indian company could achieve the objective of Proctor and Gamble of more effectively, as it would have more specific information about the culture and the need of the Indian people about a particular product.

Which of the following statements about real and nominal interest rates is correct? A. An increase in the real interest rate is necessarily accompanied by either an increase in the nominal interest rate, an increase in the inflation rate, or both. B. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate. C. When the nominal interest rate is rising, the real interest rate is necessarily rising; when the nominal interest rate is falling, the real interest rate is necessarily falling. D. If the nominal interest rate is 4 percent and the inflation rate is 3 percent, then the real interest rate is 7 percent.

Answers

Answer:

B. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate.

Explanation:

A real interest rate can be regarded as

an interest rate that adjustment has been made on in order to remove the effects of inflation so that the real cost of funds to the borrower as well as real yield to the lender can be reflected. A nominal interest rate on the other hand can be regarded as interest rates calculated before consideration of inflation. It should be noted that When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate.

Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 12% note for the balance of the purchase price.3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due one year from May 1.4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31.Make all the journal entries necessary to record the transactions above using appropriate dates.Edwardson Corporation

Answers

Answer:

Edwardson Corporation

Journal Entries:

February 2:

Debit Purchases $68,600

Credit Accounts Payable $68,600

To record credit purchases, net ($70,000 * 98%) with terms of 2/10, n/30.

February 26: Debit Purchases $1,400

Credit Accounts Payable $1,400

To revise the cash discounts not taken.

February 26: Debit Accounts Payable $70,000

Credit Cash $70,000

To record the full settlement for cash

April 1: Debit Truck $50,000

Credit Cash $4,000

Credit Notes Payable $46,000

To record the purchase of truck with a 12% note.

May 1: Debit Cash $83,000

Debit Interest Expense $9,000

Credit Notes Payable $92,000

To record zero-interest-bearing note due on May 1.

August 1: Debit Dividends $300,000

Credit Dividends Payable $300,000

To record the declaration of dividends.

Explanation:

a) Data and Analysis:

February 2: Purchases $68,600 Accounts Payable $68,600 ($70,000 * 98%)

February 26: Purchases $1,400 Accounts Payable $1,400

Accounts Payable $70,000 Cash $70,000

April 1: Truck $50,000 Cash $4,000 Notes Payable $46,000

May 1: Cash $83,000 Interest Expense $9,000 Notes Payable $92,000

August 1: Dividends $300,000 Dividends Payable $300,000

b) Note that the Interest Expense of $9,000 will be split between the current year and the following year.  Specific information for the split is not available.

How do you make alot of moneyyyyy

Answers

Work hard and don’t let anyone stop your grind duhh

Answer:

work hard or k*ll a rich man lol

Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a perpetual inventory system. The following are the transactions for the month of July.
Units Unit Cost
July 1 Beginning Inventory 2,700 $ 47
July 5 Sold 1,350
July 13 Purchased 6,700 51
July 17 Sold 3,700
July 25 Purchased 8,700 57
July 27 Sold 5,700
Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with
(a) FIFO and (b) LIFO.or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.)
FIFO LIFO WEIGHTED AVERAGE COST
Cost of goods available for sale
Ending inventory
Cost of goods sold

Answers

Answer:

               Units      Unit cost   Total

July 1 2700           47        126900

July 13 6700           51         341700

July 25 8700           57        495900

Total       18100                       964,500

Weighted Average Cost = $964,500/18,100 = $53.28

Ending Inventory units = 18100-1,350-3,700-5,700 = 7350

a. FIFO

Cost of Goods Available for Sale = $964,500

Ending Inventory = 7,350*$52 = $382,200

Cost of Goods Sold = $964,500 - $382,200 = $582,300

b. LIFO

Cost of Goods Available for Sale = $964,500

Ending Inventory = (2,700*$47)+(4,650*$51) = $364,050

Cost of Goods Sold = $964,500 - $364,050 = $600,450

c. Weighted average cost

Cost of Goods Available for Sale = $964,500

Ending Inventory = 7350*$53.28 = $391,608

Cost of Goods Sold = $964,500 - $391,608 = $572,892

On January 1,2016, the Ruffin Corporation issued $40,000 par value, 4%, four-year bonds that mature on December 31, 2019. Ruffin will pay interest quarterly on March 31, June 30, September 30, and December 31. The company's fiscal year ends on December 31. What is the issue price of this bond assuming the market rate of interest is 4%?

Answers

Answer:

Face Value of the Bond = 40000

Effective Interest = 4%

Coupon rate = 4%

Years to Maturity = 4

Quarterly Coupon rate = 1%

No. of compounding periods = 16

Present Value of Face (40000*.85282)                       $34,112.85

Present Value of Interest Payments (800*14.7179)      $5,887.15

Total                                                                                $40,000.00

Face Value of Bond                                                       $40,000.00

Initial Amount of Discount/(Premium)                           $0.00        

Note: As the bonds are issued at par, there is premium or discount.

For each hypothetical scenario, indicate whether the tariff described is more likely a protective tariff or a revenue tariff.

a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural re
sources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.
b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.

Answers

Answer:

a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural resources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.

protective tariff since it is designed to protect domestic industries from competition of out of state producers. It is designed to increase the price of imported goods.  

b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.

revenue tariff since its main purpose is to increase government revenue, not to protect domestic industries.

The first scenario describes protective tariff whereas the second scenario explains revenue tariff.

What is protective and revenue tariff?

In international trade, protective tariffs are applied on the imported goods to protect and prevent the domestic industries from competition.

In scenario a, a tariff of $1,500 and additional of 6% was charged on imported goods to protect the domestic producers. Therefore the first scenario describes protective tariff.

The revenue tariff on the other hand refers to a tariff that is designed with an intention to increase revenues.

The scenario b describes a tariff that was applied to reach the target revenue of $100 million. Therefore it is a revenue tariff.

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Use the following information: Accounts receivable, beginning of year: $16,000 Allowance for Uncollectible Accounts, beginning of year: $1,200 Net credit sales during the year: $105,000 Collections on accounts receivable during the year: $93,000 Delinquent accounts written off during the year: $1,600 Assume all accounts have normal balances. If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for

Answers

Answer:

Bad debts expense is $ 2240

Explanation:

Given that;

Accounts receivable, beginning of year = $16,000

Allowance for Uncollectible Accounts, beginning of year = $1,200

Net credit sales during the year = $105,000

Collections on accounts receivable during the year = $93,000

Delinquent accounts written off during the year: $1,600

If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for;

Account Receivable, ending = ( Accounts Receivable, beginning + Net credit sales - Collections on account - Accounts written off )

Account Receivable, ending = ( $16,000 + $105,000 - $93,000 - $1,600 )

Account Receivable, ending = $ 26,400

Estimated accounts uncollectible = (26,400 × 10%) = 2640

Allowance for uncollectible accounts debit balance = ( 1600 - 1200) = 400

so

Bad debts expense = Estimated accounts uncollectible - Allowance for uncollectible accounts debit balance

we substitute

Bad debts expense = (26,400 × 10%) - ( 1600 - 1200)

Bad debts expense = 2640 - 400

Bad debts expense = $ 2240

Therefore, Bad debts expense is $ 2240

Suppose Dan’s cost of making pizzas is C(Q) = 4Q + (Q2/40), and his marginal cost is MC = 4 + (Q/20). Dan is a price taker. (a) What is Dan’s supply function? (b) What is Dan’s supply function if he has an avoidable fixed cost of $10? [HINT: Recall that Dan will not supply anything unless P > min AC(Q). So, as a first step, you need to find AC(Q) from C(Q). In part (a), finding min AC(Q) is easy and you should be able to do so just by looking at the formula for AC (Q). For part (b), you can find the minimum of AC by using the fact that AC(Q) = MC(Q) at the minimum point of AC.]

Answers

Answer:

(a) Dan’s supply function S(P) can be stated as follows:

S(P)= 0 If P<4.

And S(P) = 20P- 80 If P≥4

(b) Dan’s supply function S(P) can be stated as follows:

S(P)= 0 If P<5.

And S(P) = 20P- 80 If P≥5.

Explanation:

Note that the equations given in the question can be correctly stated as follows:

C(Q) = 4Q + (Q^2/40) .................. (1)

MC = 4 + (Q/20) ............................ (2)

Therefore, we can now proceed as follows:

(a) What is Dan’s supply function?

The upward portion of the MC curve is the supply function of Dan.

Equating equation (2) to P, we have:

P = 4+ (Q/20)

P- 4 = Q/20

Q = 20P -80

The shutdown rule is that P > AVCmin

AVC = C(Q) / Q .................. (3)

Substituting equation (1) into (3), we have:

AVC = ( 4Q + Q^2/40)/ Q

AVC = 4 + (Q/40) ............... (4)

Since MC cuts the AVC at its minimum, equations (2) and (4) are then equated to solve Q which is the output level at which AVC is minimum as follows:

4 + (Q/20) = 4 + (Q/40)

(Q/20) - (Q/40) = 4 - 4

(Q/20) - (Q/40) = 0

Q = 0

Substituting Q = 0 into equation (4), we have:

AVCmin = 4+ (0/40)

AVCmin = 4

This implies that Dan will produce at any price ≥ $4.

Therefore,  Dan’s supply function S(P) can be stated as follows:

S(P)= 0 If P<4.

And S(P) = 20P- 80 If P≥ 4.

(b) What is Dan’s supply function if he has an avoidable fixed cost of $10?

Since there is now a fixed cost, equation (1) becomes:

C(Q) = 4Q + (Q^2/40) + 10 ................. (5)

And the average cost (AC) will be as follows:

AC = (4Q + (Q2/40) + 10)/Q

AC = 4 + (Q/40) + (10/Q) .................... (6)

Since AC = MC when AC at its minimum, equations (2) and (6) are therefore equated to solve for Q as follows:

4 + (Q/40) + (10/Q) = 4 + (Q/20)

(Q/40) + (10/Q) = (Q/20)

Q = 20

Divide through by Q, we have:

(1/40) + (10/Q^2) = (1/20)

10/Q^2 = (1/20) - (1/40)

10/Q^2 = 0.05 - 0.025

10/Q^2 = 0.025

Q^2 = 10 / 0.025

Q^2 = 400

Q = [tex]\sqrt{400}[/tex]

Q = 20

Substituting Q = 20 into equation (6), we have:

AC = 4 + (20/40) + (10/20)

AC = $5

This implies that Dan will produce at any price ≥ $5.

Therefore, Dan’s supply function S(P) can be stated as follows:

S(P)= 0 If P<5.

And S(P) = 20P- 80 If P≥ 5

Apple Inc, designs, manufactures, and markets mobile devices, personal computers, and portable digital music players and sells a variety of related software and services. Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018):

a. Borrowed $50 from banks due in two years.
b. Purchased additional investments for $210 cash; one-fifth were long term and the rest were short term.
c. Purchased property, plant, and equipment; paid $12,600 in cash and signed a short-term note for 1,490 Issued additional shares of common stock for $835 in cash; total par value was $1 and the rest was in excess of par value.
d. Sold short-term investments costing $10,020 for $10,020 cash.
e. Declared $52 in dividends to be paid at the beginning of the next fiscal year.

Required:
Prepare a journal entry for each transaction.

Answers

Answer:

Part a

Debit : Cash $50

Credit : Note Payable $50

Part b

Debit : Long - term Investments $42

Debit :  Short - term Investments $168

Credit : Cash $210

Part c

Debit : Property, Plant and Equipment $14,090

Credit : Cash $12,600

Credit : Short term note payable $1,490

Part d

Debit : Cash $10,020

Credit : Short-term investments $10,020

Part e

Debit : Dividends $52

Credit : Shareholders for Dividends $52

Explanation:

The first step is to identify the accounts affected by the transaction (usually 2 or more) then prepare journal entries as above.

The consequences of poor
mangement to the government
and society .​

Answers

Abraham Lincoln is alive

Billy Baroo Company uses a job order cost system. The following information was found in the Work-in-Process account for the month of July.

Date Description Amount [DR. or (CR.)]
July 1 Balance $13,500
July 31 Direct labor 41,000
July 31 Direct materials 58,000
July 31 Factory overhead 32,800
July 31 Transfer to finished goods (86,000 )

Billy Baroo applies overhead to production at a predetermined rate of 80% based on the direct labor cost. Job #23, the lyjob still inprocessattheendofJuly, has been chargedwith direct aboro $12,000 Direct material charged to Job#23 was:_________

Answers

Answer:

$37,700

Explanation:

Ending balance in WIP = 13,500 + 41,000 + 58,000 + 32,800 - 86,000

Ending balance in WIP = $59,300

Direct material charged to Job #23 = $59,300 - $12,000 - ($12,000*80%)

Direct material charged to Job #23 = $59,300 - $12,000 - $9,600

Direct material charged to Job #23 = $37,700

Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs. The company had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $600 of capital expenditures on operating long-term assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow

Answers

Answer:

$796

Explanation:

The computation of the excess amount is shown below:

As we know that

Free cash flows = Net Income + Depreciation + Interest (1-tax) - Capital expenditures  +- changes in Working capital

Now the difference could be determined by the following formula

-Depreciation - interest (1-tax) + capital expenditure + changes in Working capital

= -$650 - 0.05 × $3,200 × (1 - 0.35) + $1,250 + $300

= $796

 

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