Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales $ 49,000
Costs 40,300
Taxable income $ 8,700
Taxes (22%) 1,914
Net income $ 6,786
Dividends $ 2,400
Addition to retained earnings 4,386


A 20 percent growth rate in sales is projected.
Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all answers as positive values. Do not round intermediate calculations.)

What is the projected addition to retained earnings? (Do not round intermediate calculations.)

Answers

Answer 1

Answer:

HEIR JORDAN CORPORATION

The projected addition to retained earnings is $5,743.

Explanation:

a) Data and Calculations:

HEIR JORDAN CORPORATION

Income Statement              Current Year   Projected

Sales                                      $ 49,000       $58,800 ($49,000 * 1.2)

Costs                                        40,300          48,360 (40,300 * 1.2)

Taxable income                      $ 8,700           10,440 (8,700 * 1.2)

Taxes (22%)                                1,914             2,297 (1,914 * 1.2)

Net income                            $ 6,786              8,143 (6,786 * 1.2)

Dividends                              $ 2,400             2,400

Addition to retained earnings 4,386             5,743


Related Questions

Permanent insurance plans include various options available to the policyowner. What whole life insurance policy options protect a policyowner against an unintentional coverage lapse

Answers

Answer:

Non-forfeiture option

Explanation:

Insurance is usually taken to guard against uncertainty of an event in the future. For example if a fire breaks out in an office, insurance can be used to regain an agreed portion of the office value from the insurance company.

It is a way of guarding against risk.

Non-forfeiture option is used to prevent unintentional coverage payment lapse.

This is done with the use of automatic premium loan and grace periods in case of default.

Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum payout, you get $2,950 today. If you pick the payments over time payout, you get three payments: $1,000 today, $1,000 one year from today, and $1,000 two years from today. At an interest rate of 8% per year, you would be better off accepting the payout since it has the greater present value. At an interest rate of 10% per year, you would be better off accepting the payout since it has the greater present value. Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick decision about whether to collect her money under the lump sum payout or the payments over time payout. What is the best advice to give your friend

Answers

Answer:

take the payments over time payout

Explanation:

My personal opinion/advice would be to take the payments over time payout. There are many reasons for this, the first one being that most individuals are not used to receiving large sums of cash and usually end up wasting all the money as soon as they receive it, which usually does not occur if the payments are made over time. The second and more important reason is that if the payments are made over different years your would pay a much lesser amount on taxes every year that passes. This means that the even with the interest rate you would most likely have more overall money if you take the payments over time.

Applying the midpoint formula, what is the price elasticity of demand if a drop in the price of energy drinks from $2 to $1 per can leads to an increase in the quantity demanded from 100 million to 150 million cans

Answers

Answer:

-0.6

Explanation:

Price elasticity of demand = Δ Change in quantity / Δ Change in price

Price elasticity of demand = [150-100/((150+100)/2)] / [1-2/((1+2)/2)]

Price elasticity of demand = [50/125]/ [-1/1.5]

Price elasticity of demand = 0.4/-0.66666

Price elasticity of demand = -0.6

(1 point) When one rents an apartment, one is often required to give the landlord a security deposit that is returned if the apartment is undamaged when you leave. In some localities, the landlord is required to pay the tenant interest once a year compounded yearly. Assume that the landlord is required to pay the tenant interest of 5 % compounded annually. (a) Suppose the landlord invests a security deposit of $ 550 at a rate of 4.3 % compounded continuously. What is his net gain or loss after one year, rounded to the nearest cent

Answers

Answer:

Amount of Loss = $3.85

Explanation:

Data Given:

Tenant Interest = 5% compounded Annually

Investment = $550

Rate of Interest = 4.3%

Amount by compound interest after "n" years can be calculated by using the following formula:

A = P[tex](1 + \frac{R}{100}) ^{n}[/tex]

P = Principal Amount

R = rate of interest

n = Time period

Amount to be paid to tenant after one year:

A1 = 550 [tex](1 + \frac{5}{100}) ^{1}[/tex]

A1 = $577.5

a) Amount after investing at 4.3% for one year

A2 = 550 [tex](1 + \frac{4.3}{100}) ^{1}[/tex]

A2 = $573.65

As we can see, A1 is greater than A2 so, there is a clear loss.

Amount of Loss = A1-A2

Amount of Loss = $577.5 - $573.65

Amount of Loss = $3.85

At the beginning of the year, Shinedown, Corp., had a long-term debt balance of $47,880. During the year, the company repaid a long-term loan in the amount of $14,205. The company paid $5,650 in interest during the year, and opened a new long-term loan for $12,450. How much is the ending long-term debt account on the company's balance sheet

Answers

Answer:

Shinedown, Corp.

The ending long-term debt account on the company's balance sheet is:

= $46,125

Explanation:

a) Data and Calculations:

Interest expense for the year = $5,650

Beginning long-term debt balance = $47,880

Repayment of a long-term loan          (14,205)

New long-term loan                              12,450

Ending long-term debt balance =      $46,125

b) This means that the long-term debt was reduced by a small difference from $47,880 to $46,125 because of the repayment of a loan and the addition of a new loan to the debt portfolio.  Adding and subtracting the new loan and the old repayment give the balance at the end of the year as $46,125.

For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 360,000 Permanent difference (15,400 ) 344,600 Temporary difference-depreciation (19,100 ) Taxable income $ 325,500 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations

Answers

Answer:

$81,375

Explanation:

Calculation for What should Tringali report as its income tax expense for its first year of operations

Using this formula

Income tax expense=Taxable income*Tax rate

Let plug in the formula

Income tax expense=$325,500 x 25%

Income tax expense=$81,375

Therefore What should Tringali report as its income tax expense for its first year of operations will be $81,375

In March, Kelly Company had the following unit production costs: materials $12 and conversion costs $8. On March 1, it had no work in process. During March, Kelly transferred out 27,500 units. As of March 31, 4,900 units that were 32% complete as to conversion costs and 100% complete as to materials were in ending work in process. Compute the total units to be accounted for. Total units Type your answer here

Answers

Answer:

32,400 units

Explanation:

Compute the total units to be accounted for

Total units to be accounted for = Units transferred out + Ending Inventory

Total units to be accounted for = 27,500 units + 4,900 units

Total units to be accounted for = 32,400 units

Thus, total units to be accounted for are 32,400 units

Materials used in product $125,700 Advertising expense $51,700 Depreciation on plant 63,400 Property taxes on plant 23,100 Property taxes on store 8,100 Delivery expense 24,700 Labor costs of assembly-line workers 116,100 Sales commissions 43,900 Factory supplies used 31,700 Salaries paid to sales clerks 52,800 Work in process inventory was $13,800 at January 1 and $17,600 at December 31. Finished goods inventory was $68,800 at January 1 and $45,700 at December 31. (a) Compute cost of goods manufactured. Cost of goods manufactured $enter the Cost of goods manufactured in dollars

Answers

Answer:

cost of goods manufactured= $356,200

Explanation:

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

Overhead:

Depreciation on plant 63,400

Property taxes on plant 23,100

Factory supplies used 31,700

Total overhead= $118,200

cost of goods manufactured= 13,800 + 125,700 + 116,100 + 118,200 - 17,600

cost of goods manufactured= $356,200

Please check if my answers to first part is correct.
Discussion Question 4-6 (LO. 1)
1. Complete the statements below regarding "what is the control requirement of § 351".
The control requirement specifies that the person or persons transferring property to the corporation must own, immediately after the transfer, stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote, and at least 75% of the total number of shares of all other classes of the corporation's stock.
2. Classify the following as either "True" or "False" regarding the control requirement of § 351.
a. If a shareholder renders only services to the corporation for stock, the transfer cannot qualify under § 351 because services rendered are not "property."
b. If a shareholder renders services and transfers property to the corporation for stock, the shareholder will never be treated as a member of the transferring group.
c. Stock under momentary control counts in determining control if the plan for the sale or other disposition of the stock existed before the exchange.
d. If a long period of time elapses between the transfers of property by different shareholders to the corporation, the control requirement may be lost regarding the later transfers because no documentation exists making multiple transfers part of an integrated plan.

Answers

Answer:

1. Correct

after, 80%, 75%

2. a. True

b. False

c. False

d. False

Explanation:

When shareholder renders services and transfers property to the corporation the shareholder is treated as member of transferring group. Stocks under momentary control does not count in determining control. The long period elapses between transfer of property, the control requirement may be lost because there is no transferring group.

Can anyone please write a summery or a paragraph of life of a homless teen memoir in the Great depression please?

Answers

eso

depen de si el adolecente  ses   amensado

Applying the research findings to a marketing strategy plan is the ______ step in the marketing research process. Multiple choice question.

Answers

Answer:

Fifth.

Explanation:

Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.

Secondary market research can be defined as a method designed to determine the demographics of a particular target market.

Applying the research findings to a marketing strategy plan is the fifth step in the marketing research process.

The table contains information on the price per month and the monthly demand and supply of online music streaming subscriptions. Price Quantity demanded (thousands) Quantity supplied (thousands) $ 9.80 250 180 $ 10.00 210 210 $ 10.20 160 280 $ 10.40 80 410 What is the quantity demanded at $ 10.20

Answers

Answer:

160

Explanation:

The computation of the quantity demanded at $10.20 is given below;

As seen in the chart, at price of $10.20 there is a quantity demanded of 160

So according to the information given in the question, the quantity demanded at $ 10.20 is 160

It is desired to partition customers into similar groups on the basis of their demographic profile. Which data mining problem is best suited to this task

Answers

Answer: Clustering

Explanation:

Data mining simply has to do with getting of usable data which are extracted simply from raw data. The data mining problem that is best suited to this task is clustering.

Clustering simply means when structures are found in data which are usually thesame. Since we want to partition customers into similar groups on the basis of their demographic profile, clustering will be used.

Extended warranties

Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $412,000 for these extended warranties (approximately evenly throughout the year).

Required:

1.Does this situation represent a loss contingency? Why or why not? How should it be accounted for?

2.Prepare journal entries that summarize sales of the extended warranties (assume all credit sales) and any aspects of the warranty that should be recorded during the year.

Answers

Solution :

1. This is not a loss contingency as extended warranty is being priced as well sold separately from warranted products and therefore constitutes the separate sales transaction.

2.

Event    General Journal                                                  Debit          Credit

1           Cash                                                                   $412,000

          Unearned revenue -- extended warranties                           $412,000

2.      Unearned revenue -- extended warranties       $ 57937.50

          Revenue - Extended Warranties                                           $ 57937.50

Working :

The manufacturer provided 90 days which is 3 months of free warranty. Thus a customer who is purchasing the extended warranty is for 09 months.

Now amount received by Carnes Electronics for the extended warranty in one year = $412,000

So, [tex]$\$ 412,000 \times \frac{9}{12}= \$309000$[/tex]   of sales.

The warranty is for two years and so 4.5 months in one year.

Therefore the revenue earned on the extended warranty is :

[tex]$\$309000 \times \frac{4.5 \text{ months}}{24 \text{ months}}$[/tex]

= $ 57937.50

Simon and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of sandwich shops over the next 12 months and the projected growth in the areas where the stores are located. The managers are studying the ______ forces in their organization's general environment.

-self motivation

- personal adapitlity

-openness to change

-resilience

Answers

Answer:

Option D

Explanation:

Simon and his managers are discussing about the factors that might affect the economic performance of their shops. They are concerned about the negative impacts of  unemployment, inflation, and interest-rate trends on their shops and simultaneously are discussing about the future growth, Hence, they are focused on catering the odds to achieve a certain growth during the tough times. Their discussion is aimed at both the risks and consequences

Hence, option D is correct

Gear Co has computed its indifference level of EBIT to be $50,000 between an equity financing option and a debt financing option. Interest expense under the debt option is $25,000 and $10,000 under the equity option. The EBIT for the firm is approximately normally distributed with an expected value of $62,000 and a standard deviation of $19,000. What is the probability that the equity financing option will be preferred

Answers

Answer:

26.43%

Explanation:

The Z-score is needed to find the probability of having EBIT lower than $50,000.

Z-score = The Indifference point - The Expected EBIT / Standard Deviation

Z-score = $50,000 - $62,000 / $19,000

Z-score = -$12,000 / $19,000

Z-score = -0.63

From the standard normal distribution table, the probability that z-score will be less than -0.63 is 0.2643. So therefore, the probability of the equity financing will be preferred is 0.2643.

Question # 2
Multiple Choice
Why might workers leave sheet piling in place even after construction is finished?
Sheet piling is often made from hazardous substances and is dangerous to handle
O Sheet piling is an integral part of the structure of any building,
Sheet piling is often useful for shallow excavations, which require extra stabilization throughout the building's life cycle.
O Sheet piling may be incorporated into the foundation, especially if soil conditions necessitate it.

Answers

Answer:    Sheet piling may be incorporated into the foundation, especially if soil conditions necessitate it.

Fickel Company has two manufacturing departments Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $28.00 per direct labor-hour and $24.00 per direct labor-hour, respectively. The company's direct labor wage rate is $30.00 per hour. The following information pertains to Job N-60:

Assembly Testing & Packaging
Direct materials $420 $57
Direct labor $375 $105
Required:

1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.)

2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer:

Results are below.

Explanation:

First, we need to allocate overhead to Job N-60:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Direct labor hours:

Assembly= 375/30= 12.5

Testing & Packaging= 105/30= 3.5

Overhead:

Assembly= 12.5*28= $350

Testing & Packaging= 3.5*24= $84

Total= $434

Now, the total manufacturing cost:

Total cost= (420 + 57) + (375 + 105) + 434

Total cost= $1,391

Finally, the unitary cost:

Unitary cost= 1,391/10

Unitary cost= $139.1

Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked. The company estimated that it would incur $525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked.

By how much was manufacturing overhead overallocated or underallocated for the year?

Answers

Answer:

Underapplied overhead= $109,500

Explanation:

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=  525,000 / 150,000

Predetermined manufacturing overhead rate=  $3.5 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 3.5*135,000

Allocated MOH= $472,500

Finally, the under/over applied overhead:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 582,000 - 472,500

Underapplied overhead= $109,500

Foxburg Company has the following information: Work-in-Process Finished Goods Materials Beginning inventory $ 550 $ 650 $ 750 Ending inventory $ 1,200 $ 1,400 $ 2,000 Purchases of materials (net) $ 8,700 Cost of Goods Sold $ 16,600 Manufacturing overhead $ 4,750 What was the cost of goods available for sale for the period

Answers

Answer:

the cost of goods available for sale is $18,000

Explanation:

The computation of the cost of goods available for sale is shown below:

Cost of goods available for sale is

= Cost of goods sold + Ending inventory of Finished Good

= $16,600 + $1,400

= $18,000

Hence, the cost of goods available for sale is $18,000

Adhering to utilitarian ethics in making a business decision is likely to result in an action that is considered morally correct if it produces the greatest good for Group of answer choices the fewest people. the most people. the business decision maker. the business.

Answers

Answer:

The most people.

Explanation:

In normative ethics, utilitarian ethics (utilitarianism) can be defined as a theory of morality or ethical theory that typically involves engaging in actions that facilitate pleasure, joy or happiness while completely opposing any action capable of causing harm and unhappiness.

Basically, utilitarian ethics considers an action to be right or morally correct if it produces genuine happiness or joy in the mind of a large number of people in an organization, group or society.

The three (3) main principles (axioms) of utilitarian ethics (utilitarianism) include the following;

I. The only thing with an intrinsic value is pleasure or happiness.

II. If an action promotes happiness or pleasure, then it is right; it is wrong if it causes harm or unhappiness (sadness).

III. The happiness of everyone in a group or society should count equally.

Hence, adhering to utilitarian ethics in making a business decision is likely to result in an action that is considered morally correct if it produces the greatest good for most people.

If a company is using a cost leadership strategy, which of the following potential pitfalls is not a characteristic of that strategy? Multiple Choice Too much focus on one value-chain activity can lead to greater loss. Cost advantages erode when pricing information is readily available. A lack of parity on differentiation is evident. The strategy is not easily imitated.

Answers

Answer:

If a company is using a cost leadership strategy, the potential pitfall which is not a characteristic of that strategy is:

The strategy is not easily imitated.

Explanation:

Cost-leadership is one of the competitive strategies advocated by Michael Porter, which is designed to deliver goods or services to customers at the lowest possible cost.  While a cost-leadership strategy makes it difficult for new companies to enter the market because of low profit margins, it does not prevent existing competitors from lowering their own prices in order to gain the advantage of increased market share.

There are 3 term securities available with the following series of 1-year interest rates:Security A:5%, 4%, 3%, 3%, 4%Security B:4%, 2%, 3%, 5%, 6%Security C:5%, 3%, 3%, 4%, 5%Assume the expectations theory (without uncertainty) of the term structure is correct:(a)Calculate the term structure interest rates for maturities of 1 to 5 years, for all 3 securities.(b)Draw the yield curves for the 3 term securities of length 1 to 5 years.(c)Which security, if you must choose 1, will you buy if you plan to have it mature in 3 years

Answers

Answer:

Hello attached below is a detailed solution to your question

A) attached below

B) attached below

C) Security A

Explanation:

A) calculate the term structure interest rates for maturities of 1 to 5 years for all 3 securities

we will use expectation hypothesis ;

B) Draw the yield curves for the 3 term securities of length 1 to 5 years

- (1+ yield(t))= ( 1 + rate(1) )* ......

C) The security to choose if you plan to have it mature in 3 years is SECURITY A this is because it has maximum yield

Purpose: Organization design refers to the overall set of elements used to configure an organization. The purpose of this exercise is to give you insights into how managers must make decisions within the context of creating an organization design. Introduction: Whenever a new enterprise is started, the owner must make decisions about how to structure the organization. For example, he or she must decide what functions are required, how those functions will be broken down into individual jobs, how those jobs will be grouped back together into logical departments, and how authority and responsibility will be allocated across positions. Instructions: Assume that you have decided to open a handmade chocolate business in your local community. Your products will be traditional bars and novelty-shaped chocolates, truffles, other chocolate products such as ice cream, and gift baskets and boxes featuring chocolates. You have hired a talented chef and believe that her expertise, coupled with your unique designs and high-quality ingredients, will make your products very popular. You have also inherited enough money to get your business up and running and to cover about one year of living expenses in other words, you do not need to pay yourself a salary). You intend to buy food items including chocolate, cocoa, white chocolate, nuts, and fruit from suppliers who deliver to your area. Your chef will then turn those ingredients into luscious​

Answers

Answer:

hmm I know with that is the silver kind to you and

On March 14, Zest Co. accepted a 120-day, 6% note in the amount of $5,000 from AZC Co., a customer. On the due date of the note, AZC dishonors the note and fails to pay. The journal entry that Zest would make to record the failure to pay this note on the due date would include a debit to: Multiple choice question. Notes Receivable for $5,100 Notes Receivable for $5,000 Cash for $5,000 Accounts Receivable - AZC for $5,000 Accounts Receivable - AZC for $5,100 Cash for $5,100

Answers

Answer:

Accounts Receivable -AZC for $5100

Explanation:

Based on the information given The journal entry that Zest would make in order to record the failure to pay this note on the due date would include a debit to:

Accounts Receivable -AZC for $5100

Calculated as :

Accounts Receivable=$5000+[ $5000 x .06 x (120/360) ]

Accounts Receivable=$5000+ $100

Accounts Receivable=$5100

Answer:

account receivable $5100

Explanation:

cash is not received:accounts receivable is debited for $500

If the adjustment for Supplies used during the period wasn't made,

A. revenue would be too high.
B. assets would be too low.
C. expenses would be too low.
D. expenses would be too high,

Answers

Answer:

D

Explanation:

It will give the suppliers an upper hand or edge over the consumers

Answer: think its expenses would be to low

Explanation:

On June 25, Obermayer Repair Service extended an offer of $127,000 for land that had been priced for sale at $145,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $138,000. On October 1, the land was assessed at a value of $207,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $221,000 for the land by a national retail chain.

At what value should the land be recorded in Obermayer Repair Service's records?
$fill in the blank 1

Answers

Answer:

$138,000

Explanation:

Based on the information given the value at which the land should be recorded is 138,000 reason been that we were told that the repairer which is Obermayer Repair Service accepted the seller's counteroffer of the amount of $138,000 and based on accounting principle of COST CONCEPT the land should be recorded at the value or amount of $138,000 which is the seller's counteroffer amount that was accepted by Gallatin Repair Service.

1
Select the correct answer.
Which job is an entry-level position?
OA.
auditor
OB. marketing manager
OC.
restaurant manager
OD
room attendant
Reset
Next

Answers

Answer:

Option D: Room attendant

Explanation:

Its the only entry level jobs, as listed above b and c are managment positions which means you have to have experience. Auditors are appointed by a company to execute an audit you need to be certified by the regulatory authority of accounting and auditing or process certain specified qualifications.

DiSalvio Co. uses a job order cost system. The following data summarize the operations related to production for May:a. Materials purchased on account, $634,000.b. Materials requisitioned, $646,200, of which $74,500 was for general factory use.c. Factory labor used, $660,200, of which $91,200 was indirect.d. Other costs incurred on account for factory overhead, $147,500; selling expenses, $234,000; and administrative expenses, $146,400.e. Prepaid expenses expired for factory overhead were $29,200; for selling expenses, $26,800; and for administrative expenses, $18,000.f. Depreciation of office building was $84,600; of office equipment, $43,340; and of fac-tory equipment, $32,000.g. Factory overhead costs applied to jobs, $362,000.h. Jobs completed, $1,002,000.i. Cost of goods sold, $890,000.InstructionsJournalize the entries to record the summarized operations.SHOWME HOWGeneral Ledger Chapter 2 Job Order Costing 69Ex 2-18PR

Answers

Answer:

Date          Account Description                                     Debit              Credit

May 1         Material inventory                                     $634,000

                 Accounts Payable                                                            $634,000

Date          Account Description                                     Debit                Credit

May 2        Work in Process (646,200 - 74,500)       $571,700

                 Factory Overhead                                      $74,500

                 Materials                                                                            $646,200

Date          Account Description                                     Debit                Credit

May 31       Work in Process (660,200 - 91,200)       $569,000

                 Factory Overhead                                      $91,200

                 Materials                                                                            $660,200

Date          Account Description                                     Debit                Credit

May 31      Factory Overhead                                     $147,500

                Selling expenses                                       $234,000

                Admin expenses                                       $146,400

                Accounts payable                                                             $527,900

Date          Account Description                                     Debit                Credit

May 31      Factory Overhead                                     $29,200

                Selling expenses                                       $26,800

                Admin expenses                                       $18,000

                Prepaid expenses                                                               $74,000

Date          Account Description                                     Debit                Credit

May 31      Depreciation expense - Office building     $84,600

                Depreciation expense - Office equipment $43,340

                Factory Overhead                                        $32,000

                Accumulated depreciation                                                $159,940

Date          Account Description                                     Debit                Credit

May 31       Work in Process                                          $362,000

                 Factory Overhead                                                            $362,000

Date          Account Description                                     Debit                Credit

May 31       Finished Goods                                        $1,002,000

                  Work in Process                                                            $1,002,000

Date          Account Description                                     Debit                Credit

May 31       Cost of goods sold                                     $890,000

                 Finished Goods                                                                $890,000

What are potential problems that could arise out of this approach to e-mail

Answers

Vulnerability to Loss , Accessible to Others , Difficult to Interpret Emotions

The approach to in e-mail communication as suggested by Elon Musk might encounter the following potential problems:

Tendency of idle talks during work hour.Sensitive information might be divulged.Messages might be misinterpreted.

The e-mail from Elon Musk describes a free flow of communication between employees, their managers and anyone without hindrances created by having to follow a chain of command that may end up wasting time in resolving an issue that might cost a company fortunes.

Thus, Elon Musk is suggesting there should be no barriers in communicating via e-mail among employees and managers as are common where one has to go through the chain of command.

This approach to e-mail in communication is good, however, the following problems could arise:

Tendency of .Sensitive information might be divulged.Messages might be misinterpreted.

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