Answer:
Non-Value-Adding but required.
Explanation:
A Value-Added flow analysis is a graphical visualization tool that is used for identifying non-essential activities or steps within a process. It basically, allows individuals or team to analyze, identify and separate value-adding activities from non-value-adding activities or steps in an organization. This simply means that, it avails an organization or business the ability to separate activities that add value for the user from the activities that are non-value-adding.
The value-adding activities are the steps that adds value to an organization's product or project while the non-value-adding activities are those steps which do not add any value to the organization's product.
In this scenario, during a value-added flow analysis, the team studied a process step where they checked the customer's credit. The best label for this step is Non-value-adding but required.
The process of checking a customer's credit is a necessary task or a required step but in the real sense of lean, it is considered as a non-value-adding activity. This is simply because, it is required to check the customer's credit in order to update the balance sheet and to know the amount that is granted to these customers.
However, it does not add any value to the organization.
As a person engaged in the image business, the impression you project consists of your outward apperance the conduct you exhibt in the workplace is known as
Answer:As a person engaged in the image business, the impression you project consists of your outward apperance the conduct you exhibt in the workplace is known as
Explanation:j
MV Corporation has debt with market value of $ 95 million, common equity with a book value of $ 102 million, and preferred stock worth $ 20 million outstanding. Its common equity trades at $ 48 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? g
Answer:
Total market value $383.8 million
Debt is 24.75%
Preferred stock is 5.21%
Common equity is 70.03%
Explanation:
Calculation of the weights that MV Corporation should use in its WACC
Debt value : $95 million
Preferred stock value : $20 million
Market value of common equity:
$48 per share×5.6million shares= $268.8 million
Total market value of firm: $95 +20 +268.8 =$383.8 million
Weights for WACC calculation:
Debt =95/383.8
=24.75%
Preferred Stock =20/383.8
=5.21%
Common Equity =268.8/383.8
=70.03%
Therefore the total market value of the firm will be $383.8 million Debt is 24.85% of the total value, preferred stock is 5.21%, and common equity is 70.03%
Eviyan recently received a copy of his performance review report. During the review, his manager took notes regarding his performance and typed them up for the report, Eviyan was required to write a review of his own work following a questionnaire provided by the employer, and comments were solicited from other employees regarding his performance. Because he also has contact with the public, comments that were submitted to the company from the public concerning his performance were included in the report. After reading the report he received a phone call from his manager’s secretary informing him that he has been scheduled with an appointment with the manager the next day. If the manager is following good performance review policies, why has he scheduled the meeting with Eviyan? Group of answer choices The manager has scheduled him for a meeting for a performance feedback interview. The manager wants to meet with him so he can tell him about his evaluation and tell him in person that he is doing well or poorly and will then attempt to get Eviyan to agree to the performance evaluation. The manager has scheduled the meeting to solve Eviyan’s performance problems. The manager has scheduled the meeting to tell Eviyan what he has done well or poorly and give him the opportunity to defend himself.
Answer:
Eviyan's Performance Evaluation Report:
The manager has scheduled him for a meeting for a performance feedback interview.
Explanation:
Performance feedback interview is an opportunity for the employee to meet with his manager in order to iron out issues and reflect on the outcome of the evaluation. The employee will also be required at the interview to explain and defend the performance result face to face with the manager. Since there are always some differences in perception and evaluation, the interview provides that needed chance for a detailed discussion so that corrective measures will be defined and agreed upon. It is a good performance policy to schedule such an interview following a performance evaluation report.
The green giant has 4 percent profit margin and a 30 percent dividend payout ratio. The total assets turnover is 1.2 times and the equity multiplier is 1.6. What is the sustainable rate of growth?
Answer:
5.68%
Explanation:
The green giant has a 4% profit ratio
= 4/100
= 0.04
The dividend payout ratio is 30%
= 30/100
= 0.3
The total assets turnover is 1.2 times
The equity multiplier is 1.6
The first step is to calculate the return on equity
ROE= Profit margin×Total assets turnover×Equity multiplier
= 0.04×1.2×1.6
= 0.0768 or 7.68%
The next step is to calculate the Plowback ratio
b = 1-dividend payout ratio
b = 1-0.3
b = 0.7
Therefore, the sustainable growth rate can be calculated as follows
= ROE×b/(1-(ROE×b)
= 0.0768×0.7/(1-(0.0768×0.7)
= 0.05376/(1-0.05376)
= 0.05376/0.94624
= 0.05681
= 5.68%
Hence the sustainable rate of growth is 5.68%
The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2017, unadjusted trial balance of Emiko Co. Use these account balances along with the additional information to journalize: a. Adjusting entriesb. Closing entries. Emiko Co. uses a perpetual inventory system. Debit CreditMerchandise inventory $30,000 Prepaid selling expenses 5,600 K. Emiko, Withdrawals 33,000 Sales $529,000Sales returns and allowances 17,500 Sales discounts 5,000 Cost of goods sold 212,000 Sales salaries expense 48,000 Utilities expense 15,000 Selling expenses 36,000 Administrative expenses 105,000 Additional Information: Accrued and unpaid sales salaries amount to $1,700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $28,700 of goods still available.
Answer:
Emiko Co.
a) Adjusting Journal Entries:
Debit Sales Salaries Expense $1,700
Credit Sales Salaries Payable $1,700
To record unpaid salaries expense.
Debit Selling Expenses $3,000
Credit Prepaid Selling Expenses $3,000
To record expired expenses.
b) Closing Journal Entries:
Debit Income Summary $30,000
Credit Beginning Inventory $30,000
To close the beginning inventory to the Income Summary.
Debit Sales $529,000
Credit Sales Returns and Allowances $17,500
Credit Sales Discount $5,000
Credit Income Summary $506,500
To close sales, sales returns & allowances & discount.
Debit Income Summary $212,000
Credit Cost of goods sold $212,000
To close cost of goods sold to the income summary.
Debit Income Summary $208,700
Credit Sales Salaries $49,700
Credit Utilities $15,000
Credit Selling expenses $39,000
Credit Administrative expenses $105,000
To close expenses to the income summary.
Explanation:
Adjusting journal entries are often used to make some changes in the accounts at the end of the reporting period in order to ensure that transactions are reported on the accrual basis. Entries made under this journal are usually accrued expenses and income, prepaid expenses and deferred revenue, depreciation charges.
On the other hand, closing journal entries are used to differentiate the temporary accounts from the permanent accounts. Temporary accounts are closed at the end of the accounting period to the Income Summary. Permanents accounts are carried over to the next accounting period. Their accounts make up the balance sheet and their opening balances of the next reporting period.
Billy Thornton borrowed $20,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month
Answer:
Interest for a 30 day month = $120.83
Explanation:
Interest rate rate is the price paid by a borrower for the use of money and the return earned by a lender for postponing his consumption in favour of investment.
Interest is computed in two ways; Simple interest and compound interest
Simple interest: This is the interest paid on the principal invested or borrowed. To calculate simple interest, we use the formula below:
Annual Simple interest= Principal × interest Rate (%) × Time.
Monthly simple interest =Principal ×interest Rate (%)× 30/360
= 20,000 × 7.25% × 30/360= 120.833
Interest for a 30 day month = $120.83
On January 1, 2021, an investor paid $296,000 for bonds with a face amount of $316,000. The contract rate of interest is 12% while the current market rate of interest is 15%. Using the effective interest method, how much interest income is recognized by the investor in 2022 (assume annual interest payments and amortization)
Answer:
$45,372
Explanation:
The computation of the interest income using the effective interest method is shown below
Interest Income is
= [Paid amount + (Paid amount × current market rate of interest) - (face value of the bond × contract rate of interest)] × current market rate of finterest
= [$296,000 + ($296,000 × 15%) - ($316,000 × 12%)] × 15%
= [$296,000 + $44,400 - $37,920)} × 15%
= $45,372
We simply applied the above formula
A company has $600 in inventory, $1,885 in net fixed assets, $276 in accounts receivable, $125 in cash, and $322 in accounts payable. What are the company's total current assets
Answer:
The answer is $1001
Explanation:
Solution
Given that:
A company inventory is = $600
Net fixed assets =$1,885
Cash =$125
Accounts payable = $322
Now we have to find the company's total current assets
Thus
Inventory =$ 600
Accounts receivable=$276
Cash=$125
Total current assets =$1001
Hence the total assets of the company is $1001
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.:
Accumulated Depreciation $32,000
Fees Earned 78,000
Depreciation Expense 7,250
Rent Expense 34,000
Prepaid Insurance 6,000
Supplies 400
Supplies Expense 1,800
Requried:
Prepare an income statement.
Answer:
Its 4oo
Explanation:
Its option C
Answer:
Fees Earned: 78,000
Expenses:
Rent Expense: (7,250)
Depreciation Expense: (34,000)
Supplies Expense: (1,000)
Total Expenses: 43,050
Net Income: 34,950
A factory currently manufactures and sells 800 boats per year. Each boat costs $5,000 to produce. $4,000 of the per-boat costs are for materials and other variable costs, while the per-boat fixed costs (incurred on yearly rent, administrative, and other fixed costs) are $1,000. If boat orders increase to 1000 boats per year, how do per-unit costs change?
Answer:
Total unitary cost= $4,800
Explanation:
Giving the following information:
Actual units= 800
Total fixed costs= 1,000*800= 800,000
UNitary variable cost= $4,000
Units increase= 200
On unitary bases, variable costs remain constant. On the contrary, fixed costs vary at a unitary level. Now, the same amount of costs is divided by a larger number of units.
Unitary fixed overhead= 800,000/1,000= $800
Total unitary cost= 4,000 + 800= $4,800
If the total revenue variance is favorable and the revenue price variance is unfavorable, then the revenue volume variance must a.exceed the revenue price variance and be favorable b.be less than the revenue price variance and be favorable c.be less than the revenue price variance and be unfavorable d.be equal to the revenue price variance and be favorable
Answer: a.exceed the revenue price variance and be favorable
Explanation:
Revenue Volume x Revenue Price = Total Revenue
From the above formula, for the Total Revenue to be variated positively and yet the Revenue Price is of Negative Variance, it would follow logically that the other variable in the transaction contributed to the favorable variance of the Total Revenue apart from the Revenue Price.
The only other variable is the Revenue Volume. The Revenue volume must therefore have been large and favorable enough to offset the Negative Variance of the Revenue Price.
Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable Net SalesWalCo $1,795 $2,742 $320,427 TarMart 6,066 6,594 65,878 CostGet 609 645 66,963 Required:1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.)2.Which company appears most efficient in collecting cash from sales?a) WalCob) TarMartc) CostGetWalCo TarMart CostGet WalCo TarMart CostGet Net sales Receivables Turnover Ratio Average accounts receivable Receivables turnover ratio times times times Average Collection Period Average collection period days days days
Answer:
1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet.
WalCo = 70.63TarMart = 10.41CostGet = 106.802.Which company appears most efficient in collecting cash from sales?
CostGet because its average collection period is shortestExplanation:
Beginning Accounts Ending Accounts Net Sales
Receivable Receivable
WalCo $1,795 $2,742 $320,427
TarMart $6,066 $6,594 $65,878
CostGet $609 $645 $66,963
accounts receivable turnover ratio = net sales / average accounts receivable
WalCo = $320,427 / [($1,795 + $2,742)/2] = 70.63
TarMart = $65,878 / [($6,066 + $6,594)/2] = 10.41
CostGet = $66,963 / [($609 + $645)/2] = 106.80
average collection period = 365 / accounts receivable turnover ratio
WalCo = 365 / 70.63 = 5.17 days
TarMart = 365 / 10.41 = 35.06 days
CostGet = 365 / 106.80 = 3.42 days
A company had the following purchases during its first year of operations:
January: 17 units at $127
February: 27 units at $137
May: 22 units at $147
September: 19 units at $157
November: 17 units at $167
On December 31, there were 61 units remaining in ending inventory. These 61 units consisted of 9 from January, 11 from February, 13 from May, 11 from September, and 17 from November. Using the specific identification method, what is the cost of the ending inventory?
a. $8,960.
b. $7,620.
c. $9,294.
d. $9,127.
e. $7,714.
Answer:
Ending inventory value= $9,127
Explanation:
Giving the following information:
January: 17 units at $127
February: 27 units at $137
May: 22 units at $147
September: 19 units at $157
November: 17 units at $167
Using the specific identification method, we need to multiply each unit for its specific cost.
Ending inventory:
January= 9*127= 1,143
February= 11*137= 1,507
May= 13*147= 1,911
September= 11*157= 1,727
November= 17*167= 2,839
Ending inventory value= $9,127
Fred owns a small manufacturing plant. His friend Paul also owns a manufacturing plant and has talked to Fred about issues he has found so far with his system. What is Paul likely to say
Answer:
Please refer to the below explanation.
Explanation;
With regards to the above, Paul is likely to say that Fred should beware of the high price to buy and maintain the cost accounting system. Although there are faults or issues in the small manufacturing plant owned by Fred, yet he must estimate the cost of buying new plant for profitability purpose.
Paul is also likely to tell Fred that he should inform his accountant to conduct reconciliations inorder to ensure that the rates in the system makes sense when compared to actual rate. Fred's accountant would also ensure that the rate loaded in their system correspond with actual rates dispensed by the system. This is to ensure that the anomaly in the system is constantly monitored.
Adam Smith believed that incentives to seek personal gain would create wealth, but that the government must then step in to make sure that this wealth is equitably distributed.
a. True
b. False
Answer:
b. False
Explanation:
Adam Smith believed that incentives to seek personal gain would create wealth. He did not believe in active government intervention in order to redistribute wealth in an equitable manner. Adam Smith favored capitalism and the accumulation of wealth by individuals, he did not favor socialism and the redistribution of wealth.
What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? Interest is paid annually.
Answer:
Coupon rate is 8%
Explanation:
We can ascertain the coupon rate by first of all determine the amount of coupon with pmt excel function below:
=pmt(rate,nper,-pv,fv)
rate is yield to maturity of 6%
nper is the number of coupons before maturity i.e 3 annual coupons in three years
pv is the current market price of $1,053.46
fv is the par value of $1,000
=pmt(6%,3,-1053.46,1000)=80
Coupon rate=pmt/face value=80/1000=8%
Examples of cash equivalents include all of the following except:
a. U.S. Treasury bills.
b. notes issued by major corporations (referred to as commercial paper).
c. currency and coins.
d. long-term notes receivable.
Answer:
d. Long-term Notes Receivable.
Explanation:
Cash and cash equivalent are those financial instruments which can be converted into cash easily and within a short period of time. Cash and cash equivalent includes the treasury bills, commercial papers( notes issued by major corporation), bills, currencies and coins but it does not include the long term notes receivable.
All the equivalents are easy to convert to cash easily except the Long term notes receivables because it requires to wait for some long period before such note can be converted into money.
From the income statement, the corporation had a net income of $724 million for the year. Total dividends were $106 million. There were 400 million shares outstanding. How much is the dividends per share
Answer:
Dividend per year= $0.265 per share
Explanation:
Calculation of the dividend per year
Using this formula
Dividends per share=Total dividends/Total shares outstanding
Let plug in the formula
Dividend per share=$106/400
Dividend per share= $0.265 per share
Therefore the amount of dividend per share will be $0.265
You are the supervisor for a team of employees who have a high number of product defects. They also waste materials. You recognize that products defects and wasted materials affect your department's budget. You have told your team to decrease the amount of wasted materials, bur your employees do not seem to are. How can you get them to increase their quality and decrease waste
Answer:
I will write a memo to the management office requesting for a complete change of team members in my department.
Explanation:
In this case in which the staffs do not care about the high number of defective products, and material wastage, I will try to persuade the team to decrease the amount of waste as stated. If talking to the team members does not fix the problem, then I will write to the management office requesting for a complete change of team members. The reason is that first, my effectiveness and job as the supervisor of such a wasteful team will be questioned and will be at risk, and I stand to lose a lot if I do not do anything about it. Requesting for a change of some of the team member won't fix the problem, the members that are retained in the team will still pass this wasteful culture to the new team members, which would not justify the change. Bringing in a fresh batch of workers will allow me set the new standard, and enforce the new standard, which will be to minimizing defective products and waste.
You’re trying to save to buy a new $245,000 Ferrari. You have $50,000 today that can be invested at your bank. The bank pays 4.3 percent annual interest on its accounts. How long will it be before you have enough to buy the car?
Answer:
38 years
Explanation:
You want to find n such that the multiplier over n years gets you from 50,000 to 245,000.
245,000 = 50,000(1 +4.3%)^n
4.9 = 1.043^n
log(4.9) = n·log(1.043)
n = log(4.9)/log(1.043) ≈ 37.7
It will be about 38 years before you will have enough to afford the car at today's price.
_____
Comment on car prices
The rate of inflation of car prices has been about 1.67% since 1953, so taking that into account, you will need much more than $245000 to buy the car. It will take more than 62 years for your bank account to catch up to the price of the car.
Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its quick ratio is 1.1. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar.
Answer:
a
Explanation:
I have no clue but good luck on test
Gentleman Gym just paid its annual dividend of $4 per share, and it is widely expected that the dividend will increase by 5% per year indefinitely.
Requried:
a. What price should the stock sell at if the discount rate is 15% (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. What price should the stock sell at if the discount rate is 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
a) Price of stock = $42
b) Price of stock = $60
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)
a) Where discount rate is 15%
Price of stock = 4× (1.05)/(0.15-0.05) = 42
Price of stock = $42
b) Where discount rate is 12%
Price of stock =4× (1.05)/(0.12-0.05)= 60
Price of stock = $60
Wilt's has earnings per share of $2.98 and dividends per share of $0.35. What is the firm's sustainable rate of growth if its return on assets is 14.6% and its return on equity is 18.2%?
Answer:
16.06%
Explanation:
According to the given situation the computation of sustainable rate of growth is shown below:-
Sustainable Growth Rate = Return on equity × (1 - Dividend payout ratio)
= 18.2% × ( 1 - 0.35 ÷ 2.98)
= 18.2% × ( 1 - 0.1174)
= 16.06%
Therefore for computing the sustainable rate of growth we simply applied the above formula.
The problem of ________________ in insurance markets is that insurance companies are unable to ______________ . Group of answer choices
Answer:
adverse selection, differentiated those with high risk and low risk
Explanation:
Adverse selection refers to the selection in which an individual gained the insurance at a cost but it is below the level of risk. In other words we can say that the applicant pay the lower amount of premium in case of higher premium charged by the company as the company is not aware of the fact
In the given case, the problem of adverse selection is there that unable to differentiate between a high level of risk and lower level of risk
Broussard Skateboard's sales are expected to increase by 20% from $7.6 million in 2016 to $9.12 million in 2017. Its assets totaled $4 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 70%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar. $ Assume that an otherwise identical firm had $5 million in total assets at the end of 2016. The identical firm's capital intensity ratio (A0*/S0) is higher than than Broussard's; therefore, the identical firm is -Select- capital intensive - it would require -Select- increase in total assets to support the increase in sales.
Answer:
$510,560
Explanation:
AFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
A = assets = $4,000,000S = sales = $7,600,000L = liabilities that vary according to sales level = $450,000 + $450,000 = $900,000Δ Sales = change in sales = $9,120,000 - $7,600,000 = $1,520,000PM = profit margin = 4%FS = forecasted sales = $9,120,000d = payout ratio = 70%AFN = ($4,000,000/$7,600,000) x ($1,520,000) - ($900,000/$7,600,000) x ($1,520,000) - (4% x $9,120,000 x (1 - 70%)) = $800,000 - $180,000 - $109,440 = $510,560
In 2017, Costello Company performs work for a customer and bills the customer $10,000; it also pays expenses of $3,000. The customer pays Costello in 2018. If Costello uses the accrual-basis of accounting, then Costello will report:_____
a. revenue of $10,000 in 2018.
b. revenue of $10,000 in 2017.
c. net income of $7,000 in 2018.
d. expenses of $3,000 in 2018.
Answer: revenue of $10,000 in 2017
Explanation:
Accrual basis of accounting is a method that is used in accounting whereby the revenue or expenses have to be recorded when the transaction is made and not when the payment dor the transaction is made or received.
Since we are told that Costello Company performs work for a customer and bills the customer $10,000 in 2017, therefore if Costello uses the accrual-basis of accounting, then Costello will report revenue of $10,000 in 2017.
Miramar Tire and Rubber Company has capacity to produce 119,000 tires. Miramar presently produces and sells 91,000 tires for the North American market at a price of $99.00 per tire. Miramar is evaluating a special order from a South American automobile company, Ria Motors. Rio Motors is offering to buy 11,000 tires for $83.25 per tire. Miramar's accounting system indicates that the total cost per tire is as folows: Direct materials Direct labor Factory overhead (70% variable) Selling and administrative expenses (30% variable) Total 538 23 20 $95 Miramar pa s a sales commiss on equal to 5% of t e seling price on North American arders, whichis n uded in the variable portion of the selling and adm?n strative expenses. However, this special order would not havea sales comm saan. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5.00 per tire. In addition, Rio has made the order conditional on Miramar Tire and Rubber Company receiving a Brazilian safety certification. Rio estimates that this certification would cost Miramar Tire $72,800
a. Prepare a differential analysis report for the proposed sale to Rio Motors, Round your answers to the nearest cent.
b. What is the minimum price per unit that would be financially acceptable to mirama?Round your answers to the nearest cent.
Answer:
a) spare capacity = 119,000 - 91,000 = 28,000 tires
normal sales price $99 per tire
special order for 11,000 at $83.25
Direct materials $38
Direct labor $14
Factory overhead (70% variable) $23
Selling and administrative expenses (30% variable) $20
Total $95
total avoidable costs = ($23 x 30%) + ($20 x 70%) = $20.90
total unavoidable costs = $74.10
additional costs related to the special order $5 per tire (shipping costs) + $72,800 in total
accept special reject special differential
order order amount
sales revenue $915,750 $0 $915,750
variable prod. costs ($815,100) $0 ($815,100)
variable costs ($55,000) $0 ($55,000)
associated to special order
certification costs ($72,800) $0 ($72,800)
associated to special order
total ($27,150) $0 ($27,150)
b) minimum price per unit = ($27,150 / 11,000) + $83.25 = $85.7182 ≈ $85.72
Mattola Company is giving each of its employees a holiday bonus of $125 on December 16 (a non payday). The company wants each employee's check to be $125. The supplemental tax percent is used. Round your calculations and answers to the nearest cent.
a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)?
b. What would the net amount of each bonus check be if the company did not gross-up the bonus?
Answer:
a. $193.65
b. $80.69
Explanation:
The computation is shown below:
a) The gross amount of each bonud is
= Holiday bonus ÷ (1 - supplemental tax rate - OSADI tax rate - HI rate - state tax rate)
= $125 ÷ (1 - 0.25 - 0.062 - 0.0145 - 0.028)
= $125 ÷ 0.6455
= $193.65
b) Now the Net amount of each bonus check is
= Holiday bonus - (Holiday bonus × supplemental tax rate - Holiday bonus × OSADI tax rate - Holiday bonus × HI rate - Holiday bonus × state tax rate)
= $125 - ($125 × 0.25) - ($125 × 0.062) - ($125 × 0.0145) - ($125 × 0.028)
= $125 - $31.25 - $7.75 - $1.8125 - $3.5
= $80.69
Refer to the different tax table rate
The following is TRUE about Inventory:________.A. Firms decrease inventory because there is a risk of significant and unpredictable fluctuations in downstream demand B. Firms decrease inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms decrease inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures D. Firms decrease inventory because there is a risk of interruptions in the flow of components/materials from upstream suppliers E. Firms decrease inventory because there is a risk of interruptions due to unreliable productivity and quality.
Answer:
The correct answer is option (c).
Explanation:
Solution
From the question sated above the answer is, Firms or organisation decrease inventory because the more we spend on inventory, the more we will need to spend on the other related inventory expenditures.
The reason is because if the inventory is kept full or complete, then the cost related or connected with the maintenance of the inventory increases or goes up and it is not beneficial for the company itself.
The true statement about inventory is that Firms decrease inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures.
Inventory management is simply known as a systematic approach to sourcing, storing, and selling inventory.
It includes raw materials and finished goods. It is also regarded as having the right stock and at the right cost.
Inventory management is used by companies to know which and how much stock to buy and at what time.
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A company had the following transactions during September, the first month of its operations: Issued 50,000 shares of common stock in exchange for $600,000. Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance. Received $5,000 from a customer for services to be performed in December. Made a $60,000 payment on the note payable from the purchase of the land. Total monthly sales: Cash sales $50,000 Credit Sales: $17,000 Purchased equipment on credit for $63,000. Collected $8,000 from customers on account. Paid $2,000 for September employee wages. Received a utility bill for $500 which will be paid next month. What is net income for the month of September
Answer:
Net income for the month of September is $451,000
Explanation:
Particulars Amount
Issue of common stock 600,000
Receipt from customer 5,000
Cash sales 50,000
Collection from customer 8,000 663,000
Less:
Cash down-payment made (150,000)
Payment made on notes payable (60,000)
Employee wage paid (2,000)
Cash balance as at end of Sep. 451,000