Answer:
The answer is $44,000
Explanation:
Solution
Given that
Now
Present/current year AGI = $300000
Present /current year tax liability = $60000
Prior year AGI = $200000
Prior year tax liability = $40000
Thus
As per Tax rule or applying the Tax rule
If Adjusted gross income(AGI) of prior year is below $250000 then the minimum required tax payment in the current year in order to avoid interest penalty is lower of
(1) 90% of present /current year tax (liability) or
(2) 110% of prior year tax liability
So
Because the prior year AGI is $200000 which is lower than $250000, in order to avoid interest penalty, the minimum required payment amount of tax liability in current/present year is lower of
(1) 90% of current year tax liability of $60000
Then
$60000 *90% = $54000
Or
(2)110% of prior year tax liability of $40000
$40000 ×110% = $44000
Hence, minimum required total tax payment amount for the current year is $44,000
Continental Company is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%.
Required:
a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
b. Prepare a bond amortixation schedule up to and including January 1, 2022
c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
d. Prepare the journal entry to record the bond called on January 2021
Answer:
(a). Date: January 1, 2018.
Account description( Debit) :
(1). cash( face value of bond + interest) = $2,124,622( 753779 + 1370843).
Account description (credit):
(2). Premium on issue of bonds( issue price of bond - (face value of bond ) =$124,622( $2,124,622 - 2,000,000).
(3). Bond payable: Bond payable =face value of bond = #2,000,000.
(b). Check attachment.
(c).
Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
Date: January 1, 2021.
Account description (debit) :
(1). Interest expense= $105,190.
(2). Premium on issue of bonds = $ 4,810.
Account description (credit):
(3) cash = $110,000.
(d). Date: January 1, 2021.
Account description (debit) :
(1). Bond payable= $2,000,000.
(2). Premium on issue of bonds = $98,986.
(3). Loss on redemption of bonds =$21014.
Account description (credit):
(4) cash = $2,120,000.
Explanation:
So, we are given the following data or information which is going to help us in preparing the journals from "a" to "d".
=> The new hockey arena cost
= $2,500,000.
=> " The downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project."
=> *It therefore decides to issue $2,000,000 of 11%."
So, let us go down in solving these question.
(a). The journal entry to record the issuance of the bonds on January 1, 2018;
Date: January 1, 2018.
Account description( Debit) :
(1). cash( face value of bond + interest) = $2,124,622( 753779 + 1370843).
Account description (credit):
(2). Premium on issue of bonds( issue price of bond - (face value of bond ) =$124,622( $2,124,622 - 2,000,000)..
(3). Bond payable: Bond payable =face value of bond = #2,000,000.
(b). Check the attached picture below.
(c).
Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
Date: January 1, 2021.
Account description (debit) :
(1). Interest expense= $105,190.
(2). Premium on issue of bonds = $ 4,810.
Account description (credit):
(3) cash = $110,000.
(d).Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
(d). Date: January 1, 2021.
Account description (debit) :
(1). Bond payable= $2,000,000.
(2). Premium on issue of bonds = $98,986.
(3). Loss on redemption of bonds =$21014(carrying value bond - redemption value).
Account description (credit):
(4) cash = $2,120,000(106% of $2,000,000).
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $1.5 million. If it would cost $2 million to finish development and make the product, you go ahead and do so. The most you should pay to complete development is $_______million.
Answer:
You should pay "$3" million to complete the development.
Explanation:
The possibility you've already plunged $5 million is therefore no longer important to either calculation, although this money disappears. All counts now would be the small chance of gaining money. When you are investing around $1 million and are able to produce $3 million in funding, users earn $2 million in gross income, so clients will.You seem entitled to say that perhaps a gross of $3 million has indeed been wasted to the venture, and you really should not even have begun it. That would be real, however, if you ever don't invest about $1 million extra you apparently can't have any profits and total damages will have been $5 million.And therefore what counts has never been the overall income, but the incremental benefit that you will receive. In reality, you'd pay approximately $3 million to feel a sense of achievement, not much more, and towards the bottom, you won't increase income.
What are the 3 levels of access that can be granted to Team users of QuickBooks Online Accountant
Answer:
In QuickBooks Online Accountant, users with admin access and Firm Owners and have the authority to access of other users in the firm. The 3 levels of access that can be granted to Team users of QuickBooks Online Accountant are:
Full : these users have access to accounting features, and books such as edit, remove and add users.Basic : These users have access to create and read accounting.Custom: These users can access administrative functions for the firm , access to manage clients and access to client QuickBooks .The three levels of access that can be granted to the team users of QuickBooks Online includes the Basic access, Full access and Custom access.
QuickBooks Online Accountant is an accounting based software which allows companies to controls all the financial side of their business
Only the users with administrator access and Firm Owners have the authority to access information on the accounting software.
The 3 levels of access granted to team users on the QuickBooks Online Accountant includes:
Basic access users: These are users who have access have access to create and read accounting information.Full access users: These are users who have access to accounting features such as edit, remove and add users as well as privilege enjoyed by basic access users. Custom access users: These are users who can access administrative functions for the firm.Read more about this here
brainly.com/question/14326501
A customer enters your facility and discusses their most recent hunt. This was strictly a friendly, non-
professional conversation. According to your book, which of the following would you consider this use of
time in your business environment as?
1
Answer: Time spent
Explanation:
From the question, we are informed that a customer enters a facility and discusses their most recent hunt. We are further informed that it was strictly a friendly, non-professional conversation.
This will be consider as time spent in a business environment. Good customers relationship is needed for the success of every organization. Therefore, in this case, it'll be termed time spent.
On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on the November 1 to record the acceptance of the note
Answer:
Debit note receivable with $10,000
Credit accounts receivable with $10,000
Explanation:
The journal entry below should be used to record the acceptance of the note on November 1.
Note receivable account Dr $10,000
Accounts receivable Cr 10,000
What are the 4 phases in doing research?describe each phase
(for psychology)
Answer:
•Discovery
• Data
• Analyze
• Ethical
Explanation:
• Discovery . Here, there are observations of events or actions which bring about new knowledge that will be further exposed to new hypothesis.
• Data . Raw data(qualitative- non numerical and quantitative -numerical) are collected in this stage and then processed to become information.
• Analyze . This is a stage where the processed data and information are analyzed. It is where the data are cleaned, inspected, transformed and then modeled with the aim of making meaningful insights, drawing conclusion and then support further decision making.
• Ethical. In this stage, researchers check to determine whether their procedures are ethical or not. This is where the data analysed are checked whether they conform with the correct rule of conduct.
What is the current price for a bond worth $4,000 that has a price quote of 50?
Answer:
$ 2,500 as far as i know.
Explanation:
What are some of the issues to consider in determining whether the Internet would provide your business with a competitive advantage
Answer:
relevancy, cost, and information
Explanation:
When determining whether the Internet would provide your business with a competitive advantage you need to consider relevancy, cost, and information. First would be how much extra cost will you incur in order to place your business on the internet. Secondly, you need to consider the importance of the internet to you business, such as what percentage of your customer population will be on the internet. And lastly, you need to consider how much information you actually need to acquire in order to successfully implement this course of action.
Analysis of income statements,balance sheet and,aditional information from the accounting records of Gatdgets.Inc., reveals the following items1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.Required:Indicate in which section of the statement of the cash flows each of these items would be reported:operating activities,or a separate non cash activities note.
Answer:
1. Purchase of a patent - Investing activities
2. Depreciation expense - Operating activities
3. Decrease in accounts receivable - Operating activities
4. Issuance of a note payable - Financing activities
5. Increase in inventory - Operating activities
6. Collection of notes receivable - Investing activities
7. Purchase of equipment - Investing activities
8. Exchange of long-term assets - Non-cash activities
9. Decrease in accounts payable - Operating activities
10. Payment of dividends - Financing activities
On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $700,000 and has an expected useful life of six years. Its normal sales price is $700,000. The residual value after four years, guaranteed by the lessee, is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. Collectibility of the remaining lease payments is reasonably assured, and there are no material cost uncertainties. The interest rate is 5%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Calculate the amount of the annual lease payments
Guaranteed Residual Value
Table or calculator function: n=?, i=?
Amount ot be recovered (fair value) $?
Guaranteed residual value $?
Amount to be recovered through periodic lease payments $?
Lease Payment
Table or calculator function: PVAD of $1 ?
n=?, i=?
Amount of fair value recovered each lease payment (Lease Payments $?)
* I would like to make sure the answer is correct. Please provide step by step calculate and explain.
Answer:
- $700,000
- 82,270
- $617,730
- present value of $1: n=4, i=5%
- the present value of an ordinary annuity of $1: n=4, i=5%
Explanation:
Amount to be recovered (fair value): $700,000
Less: Present value of the residual value ($100,000 x .82270*): 82,270
Amount to be recovered through periodic lease payments: $617,730
Lease payments -: end of each of the next four years: ($617,730 ÷ 3.54595**) $174,207
* present value of $1: n=4, i=5%
** present value of an ordinary annuity of $1: n=4, i=5%
A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent and 12.50 percent, respectively. What is the expected return on the portfolio
Answer:
Portfolio return = 11.08%
Explanation:
The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.
The expected return can be determined as follows
Weighted of stock A= 15,200/(15200+23400)=0.39
Weight of stock B = 23.400/((15200+23400)= 0.61
Expected return on portfolio = (0.39 ×8.90% ) + (0.61*12.50%)= 11.08 %
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Queno Company had FUTA taxable wages of $510,900 during the year. Determine its: (Round your answers to two decimal places.) a. gross FUTA tax $ . b. FUTA tax credits (assuming no penalties) $ . c. net FUTA tax
Answer:
a. $30,654
b. $27,588.60
c. $3,065.40
Explanation:
The Gross/ Standard Federal Unemployment Tax (FUTA) is 6.0% but employers tend to receive a 5.4% reduction/ credit upon filing form 940 leaving them with a net of 0.6%.
a. The Gross tax is;
= 510,900 * 6%
= $30,654
b. FUTA Tax Credits
= 510,900 * 5.4%
= $27,588.60
c. Net FUTA Tax
= 510,900 * 0.6%
= $3,065.40
Knowledge Check 01 On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent note from one of its customers to settle his $4,000 past-due account. Prepare the March 15 entry for Viking Office Supply by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Viking Office Supply
Debit Accounts Receivable $4,000
Credit Allowance for Uncollectible Accounts $4,000
To revise the write-off of past-due account.
Debit Cash Account $1,200
Debit 15% Notes Receivable $2,800
Credit Accounts Receivable $4,000
To record the cash receipt and notes settlement.
Explanation:
Since the account is past-due, it must have been written off as uncollectible expense. To revise this entry, a credit is made to the Allowance for Uncollectible Accounts and a debit to the Accounts Receivable.
Then a debit to the Cash Account in the sum of $1,200 and a debit to the Notes Receivable account for $2,800 and a credit to the Accounts Receivable.
In response to the economic crisis in 2008, President Merkel "highlighted in her speech what the German government has already done: a financial sector rescue package worth up to €500 billion, and a proposed stimulus package of tax breaks [on income] and spending measures aimed at triggering investments of up to €50 billion over the next two years." Which parts of the stimulus plan will increase labor supply?
Answer:
Chancellor Merkel's proposed stimulus consisted of two parts:
a financial rescue package worth €500 billion (which I personally believe only helped bankers but didn't increase labor supply)tax breaks and investment measures worth €50 billionThe only part of the stimulus package that would actually help to increase labor supply is the last part, which also is the smallest part, since it should have increased investments. When investment increases, the interest rates decrease and aggregate demand increases. As aggregator demand increases, the demand for labor also increases. An increase in the demand for labor results in higher wages, which in turn increases labor supply until an equilibrium is reached.
Governments generally rescue financial institutions arguing that they are really important to the economy, but what is really amazing and repeats itself all over the world is that the same governments favor free markets. When small businesses fail, governments do not care, and small businesses represent 99% of America's companies. Governments only start caring when rich people lose money, since free market rules only apply to them when they favor them. If free market rules do not favor the rich, they are bad and governments intervene.
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Inventory on units; cost $5.70 each.
Purchased 12,000 units for $5.90 each.
Sold 9,600 units for $12 each.
Purchased 7,200 units for $6.00 each.
Sold units for $11.40 each.
Purchased 4,400 units for $5. 80 each.
Inventory on units.
Required:
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method.
Aug. 1 Inventory On Hand—2,000 Units; Cost $5.70 Each.
Second sales assumed to be 7,000 units at a price of $11.40 each.
Answer:
Altira Corporation
August 2021 Ending Inventory & Cost of Goods Sold:
1. Ending Inventory = 9,000 units at $5.88 per unit = $52,920
2. Cost of goods sold =
9,600 x $5.87 = $56,352
7,000 x $5.95 = $41,650
16,600 units = $98,002
Explanation:
a) Calculations:
Units Unit Cost Total Cost
Beginning Inventory 2,000 $5.70 $11,400
Purchases 12,000 $5.90 $70,800
Weighted average cost = ($11,400 + $70,800) / 14,000 = $5.87
Sales (9,600) $12.00 $115,200
Units remaining 4,400 $5.87 $25,828
Purchases 7,200 $6.00 $43,200
Weighted average cost = ($25,828 + $43,200) / 11,600 = $5.95
Sales (7,000) $11.40 $79,800
Units remaining 4,600 $5.95 $27,370
Purchases 4,400 $5.80 $25,520
Weighted average cost = ($27,370 + $25,520) / 9,000 = $5.88
Ending Inventory 9,000 $5.88 $52,920
b) The 'Average Cost Method' or the Weighted Average Cost Method assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. To compute the average cost, divide the total cost of goods available for sale by the total units available for sale.
The combination of the degree of complexity and the degree of change existing in an organization's external environment is/are called:________
a. strategic fit.
b. strategic issues.
c. scenarios.
d. environmental uncertainty.
e. strategic factors.
Answer:
D. environmental uncertainty.
Explanation:
This could be explained to be a condition or situation when an organisation in form of a firm is said to have little or no information about its external environment and in this condition, making it unpredictable; especially when not expected. In other words, the term environmental uncertainty can be easily explained to be unpredicted, unexpected uncertainties that are said to happen in an external environment.
Global warming can be capitalized to be one of the physical and major environmental uncertainties that occurs in such a place.
When setting optimal prices, which of the following is a concern when utilizing a regression of observed sales on observed prices to set them?
a. All of these answers apply.
b. Future prices might be outside the range of past prices.
c. There is not enough variation in observed prices.
Answer:
The Future prices might be outside the range of past prices when setting optimal price
Explanation:
Future prices might be outside the range of past prices is a concern when utilizing a regression of observed sales on observed prices to set them because setting An optimal price enables the price at which the seller can make the highest profit possible in order to increase revenue with maximum profitability in which this can only be done when using the optimal pricing strategy for example in a situation where a company is competing in several locations and different market segments, this means clearly understanding and planning a special approach for the environments before the company makes any changes in their pricing strategy is important because Future prices might be outside the range of past prices.
At the beginning of the year, Bryers Incorporated reports inventory of $7,300. During the year, the company purchases additional inventory for $22,300. At the end of the year, the cost of inventory remaining is $9,300. Calculate cost of goods sold for the year.
Answer:
$20,300
Explanation:
beginning inventory $7,300
purchases during the year $22,300
ending inventory $9,300
cost of goods sold = beginning inventory + purchases - ending inventory = $7,300 + $22,300 - $9,300 = $20,300
When you use a periodic inventory system, you calculate COGS using the previous formula, but if you use a perpetual inventory system, COGS are calculated for every individual sale.
A stock just paid a dividend of $3. The stock is expected to increase its dividend payment by 30% per year for the next 3 years. After that, dividends will grow at a rate of 8% forever. If the required rate of return is 10%, what is the price of the stock today?
Answer:
Price of stock today = $334.56
Explanation:
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
Year Present Value ( PV)
1 3 × 1.3 × 1.1^(-1) = 3.5454
2 3 × 1.3^2 × 1.1^(-2) = 4.1900
3 3 × 1.3^3 × 1.1^(-3) = 4.9519
Total 12.6874
Year 4 and beyond
This will be done in two steps
Step 1
D× (1+g)/k-g
3 × 1.3^4/(0.1-0.08)
=428.415
Step 2
Present Value in year 0
=428.415 × 1.1^(-3) = 321.87
Total present value = 12.6874 + 321.87 = 334.56
Price of stock today = $334.56
For the past year, Momsen, Ltd., had sales of $46,967, interest expense of $4,088, cost of goods sold of $17,184, selling and administrative expense of $12,051, and depreciation of $6,850. If the tax rate was 35 percent, what was the company's net income
Answer:
The Net Income is $4416.1
Explanation:
The net income is calculated as follows,
Sales $46967
Less:Cost of sales (17184)
Gross Profit 29783
Less:Expenses
Selling & Admin exp (12051)
Depreciation exp (6850)
Interest exp (4088)
Net income before ta 6794
tax expense (2377.9)
Net Income 4416.1
Your client is an attorney. Her new admin is just learning how to use QuickBooks Online. The Automatically create invoices and don't notify me setting is on. The attorney charges her clients for copies made. These should have been entered using delayed charges, but the admin did not know that, and they were not entered into QuickBooks Online. What is the risk/danger of the new office admin person not entering the copies made in the Delayed Charges? 1. Job costs for this client will be reduced 2. There is no risk. Invoices will go out just fine 3. The attorney's clients will be undercharged 4. Photocopy expense will be understated
Answer:
3. The attorney's clients will be undercharged
Explanation:
Since the QuickBooks Online is set to "automatically create invoices" and clients are charged for copies made. The only missing link is that the charges to clients have not been entered into the Delayed charges, which will capture the expenses on photocopy. Therefore, "the risk/danger of the new office admin person not entering the copies made in the Delayed Charges" is that "the attorney's clients will be undercharged."
Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $93 per share. What is the bank's cost of preferred stock
Answer:
6.45%
Explanation:
Calculation for bank's cost of preferred stock
Using this formula
Cost of preferred stock = Dividend / Price of Stock * 100
Where,
Dividend $6
Price of Stock 93 per share
Let plug in the formula
Cost of preferred stock =6/93*100
Cost of preferred stock= 0.0645*100
Cost of preferred stock=6.45 %
Therefore the bank's cost of preferred stock will be 6.45%
The journal entry to record the $500 of work in process ending inventory that consists of $300 of direct materials, $50 of manufacturing overhead, and $150 of direct labor is which of the following?
A. Work in Process Inventory 500
Accounts Payable 500
B. Accounts Payable 500
Work in Process Inventory 500
C. Work in Process Inventory 500
Materials Inventory 300
Wages Payable 150
Manufacturing Overhead 50
D. Cost of Goods Sold 500
Work in Process Inventory 500
Answer:
C. Work in Process Inventory 500; Materials Inventory 300; Wages Payable 150; Manufacturing Overhead 50
Explanation:
The journal entry will definitely be as follows
Account Title Debit Credit
Work in Process Inventory $500
Raw materials inventory $300
Wages payable $150
Manufacturing overhead $50
The following transactions are for Kingbird Company.1. On December 3, Kingbird Company sold $450,000 of merchandise to Blossom Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $310,000.2. On December 8, Blossom Co. was granted an allowance of $22,000 for merchandise purchased on December 3.3. On December 13, Kingbird Company received the balance due from Blossom Co.Instruction:Prepare the journal entries to record these transactions on the books of Mack Company. Mack uses a perpetual inventory system.
Answer:
Kingbird Company or Mack Company
Journal Entries:
Dec. 3:
Debit Accounts Receivable (Blossom Co.) $450,000
Credit Sales Revenue $450,000
To record the sale of goods on account, terms 1/10, n/30.
Debit Cost of Goods Sold $310,000
Credit Inventory Account $310,000
To record the cost of goods sold.
Dec. 8:
Debit Sales Allowance $22,000
Credit Accounts Receivable (Blossom Co.) $22,000
To record the allowance granted.
Dec. 13:
Debit Cash Account $423,720
Debit Cash Discount $4,280
Credit Accounts Receivable (Blossom Co.) $428,000
To record the settlement of account.
Explanation:
Journal entries are used to record transactions that occur on a daily basis. They are usually the first set of records made in the accounting books. They show the accounts to be debited and the accounts to be credited. Each transaction is usually debited in one account and credited in another to reflect the double entry system of accounting and to keep the accounting equation in balance.
On January 1, 2016, Sheldon Unlimited issues 12%, 15-year bonds payable with a face value of $250, 000. The bonds are issued at 106 and pay interest on June 30 and December 31.
1. Journalize the issuance of the bonds on January 1, 2016.
2. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2016.
3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2016.
4. Journalize the retirement of the bond at maturity.
Answer:
1. Date Account Title and Explanation Debit Credit
January 1 Cash $265,000
2016 Premium on bonds payable $15,000
Bonds payable $250,000
(To record Issuance of bonds )
2 . Date Account Title and Explanation Debit Credit
June 30 Bond interest expense $14,500
2016 Premium on bonds payable $500
Cash $15,000
(Interest on bond paid and Premium amortized)
3 . Date Account Title and Explanation Debit Credit
Dec 31 Bond interest expense $14,500
2016 Premium on bonds payable $500
Cash $15,000
(Interest on bond paid and Premium amortized)
4. Date Account Title and Explanation Debit Credit
Dec 31 2030 Bonds payable $250,000
Cash $250,000
(Bond redeemed)
Working
Bond issue price (250000 / 100*106) $265,000
Face value $250,000
Premium on bonds payable $15,000
Number of Interest payments (15 years x 2) 30 period
Discount/ premium to be amortized per Half year $500.00
Interest on bond $15,000.00
Interest expense to be recorded $14,500
(15000-500)
is (R$), has been trading at R$3.40/US$. Exports to Brazil are currently 50,000 printers per year at the reais-equivalent of $200 each. A rumor exists that the reais will be devalued to R$4.00/$ within two weeks by the Brazilian government. Should the deva
Answer:
Some information was missing, so I looked it up:
Should the devaluation take place, the reais is expected to remain unchanged for another decade.
Accepting this forecast as given, DP faces a pricing decision which must be made before any actual devaluation: DP may either 1) maintain the same reais price and in effect sell for fewer dollars, in which case Brazilian volume will not change or 2) maintain the same dollar price, raise the reais price in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the U.S. are 60% of the U.S. sales price.
What would be the short-run (one-year) implication of each pricing strategy? Which do you recommend?
In the short run:
if you decide to keep the current price in reais, then your contribution margin per unit will decrease from $80 to $50. Total contribution from sales to Brazil will reduce from $4,000,000 to $2,500,000.
If you decide to increase the price in reais, then your contribution margin per unit will remain at $80, but your total sales will fall to 40,000. Total contribution margin from sales to Brazil will reduce from $4,000,000 to $3,200,000
Personally, I would recommend increasing the price since operating profits will reduce in a smaller proportion.
Consider the everyday task of getting to work on time or arriving at your first class on time in the morning. Complete a fish-bone chart detailing reasons why you might arrive late in the morning. Identify each possible source of error.Material ________▼
Methods _______ ▼
Machinery ______▼
Complete the fish-bone chart by matching each number in the chart with the corresponding reason.
Answer:
Part 1.
Material - The road
Reason: due to the road is a part of the material or resource that is used in the driving process)
Method - Driving
Reason: driving itself is the method)
Machinery - The car
Reason: the car is the primary equipment for the driving process)
Manpower - Family or me
reason: the family or the owner is the manpower involved in the driving process)
Part 2. the correct chart is with reason and the possible source is attached.
Part 1. Reason: thanks to the road could be a part of the fabric or resource that's utilized in the driving process)
Fish-bone chartMaterial - The road
Method - Driving
Part-2 -Reason: driving itself is that the method)
Machinery - The car
Part-3 Reason: the car is that the primary equipment for the driving process)
Manpower - Family or me
Part-4 Reason: the family or the owner is that the manpower involved within the driving process)
Find out more information about Fish-bone chart here:
https://brainly.com/question/15898050
Why does e-commerce save businesses money?
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A. Because warehouses can stock much more inventory than stores.
B. Because they charge more for online purchases.
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C. Because more people shop online than in stores.
D. Because they lower the quality of the product for online
purchases.
Answer:
A. Because warehouses can stock much more inventory than stores.
Explanation:
Expenditures on a nation's domestic production Group of answer choices are less than its domestic production. are equal to its domestic production. are greater than its domestic production. could be less than, equal to, or greater than its domestic production.
Answer:
are equal to it's domestic production
Explanation:
A country's Gross Domestic Product (GDP) is defined as value of all goods and services produced in a country during a given time. Domestic production refers to those goods and services produced at home for local consumption.
Expenditure refers to the monies expended by all entities namely; household, firms and government on goods and services with a country.
When all the entities involved in generating a country's GDP spend their money towards purchasing goods and services produced in a country, then local producers would have more money to buy materials that will be used for further production. The higher the money spent, the higher the production and vice versa.
The above is a cycle that is repeated each time household, firms and government buys locally produced goods hence expenditure on a nation's domestic production equal to it's domestic production.
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181,090. Estimated direct labor cost was $481,580 for 19,900 hours.Actual costs for the most recent month are summarized here:Item Description Total CostDirect labor (1,800 hours) $46,361Indirect costs Indirect labor 2,540Indirect materials 3,420Factory rent 3,300Factory supervision 4,730Factory depreciation 5,760Factory janitorial work 1,270Factory insurance 1,890General and administrative salaries 4,240Selling expenses 5,350Required1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)Predetermined Overhead Rate _____ Per DL Hour2. Calculate the amount of applied manufacturing overhead.Applied Overhead Rate _____3. Calculate actual manufacturing overhead costs.Actual Manufacturing Overhead Costs _____4. Compute over- or underapplied overhead.Overhead _____
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated overhead= $181,090
Estimated direct labor houra= 19,900
Actual costs:
Indirect labor= $2,540
Factory rent= $3,300
Factory supervision= $4,730
Factory depreciation= $5,760
Factory janitorial work= $1,270
Factory insurance= $1,890
Actual overhead= $19,490
Actual direct labor hours= 1,800
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 181,090/19,900= $9.1 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.1*1,800= $16,380
Actual manufacturing overhead costs= $19,490
Finally, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 19,490 - 16,380
Under/over applied overhead= $3,110 underapplied