Answer:
See explanation below
Explanation:
Given:
Current liabilities at April 30 of $69,400
Current ratio = 1.7
a) Calculate the firm's current assets and working capital at April 30:
Use the formula below to find the firm's current assets:
current ratio= current asset/current liability
current asset = current ratio × current liability
current asset = 1.7 × $69,400
Current asset = $117,980
For working capital:
Working capital= current assets-current liability
= $117,980 - $69,400
= $48,580
Working capital = $48,580
b) Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made:
New current assets = $117,980 + $14,300 = $132,280
New current liability = $69,400 + $14,300 = $83,700
Working capital = $132,280 - $83,700 = $48,580
Current ratio = 132,280/83700 = 1.58
c) There is no change in the working capital.
The current ratio will decrease by 0.12 (1.7 - 1.58) due to payment on 29th April
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 9 units at $47 $423 Aug. 13 Purchase 19 units at $50 950 Nov. 30 Purchase 13 units at $51 663 Available for sale 41 units $2,036 There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) $ c. Weighted average cost
Answer:
a. First-in, first-out (FIFO) $813
b. Last-in, first-out (LIFO) $773
c. Weighted average cost $795
Explanation:
Date transaction units unit cost total cost
Jan. 1 Inventory 9 units at $47 $423
Aug. 13 Purchase 19 units at $50 $950
Nov. 30 Purchase 13 units at $51 $663
Available for sale 41 units $2,036
Ending inventory 16 units
a. First-in, first-out (FIFO) $
ending inventory = (13 x $51) + (3 x $50) = $813
COGS and ending inventory are calculated based on the oldest units purchased
b. Last-in, first-out (LIFO) $
ending inventory = (9 x $47) + (7 x $50) = $773
COGS and ending inventory are calculated based on the last units purchased
c. Weighted average cost
ending inventory = ($2,036 / 41) x 16 = $795
COGS and ending inventory are calculated using an average
The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $3,600 per year. Other operating costs (maintenance) for the forklift total $1,500 per year. Inspection uses some special testing equipment that has depreciation of $1,200 per year and an operating cost of $750. Receiving has three employees who have an average salary of $50,000 per year. The work distribution matrix for the receiving personnel is as follows:
Activity Percentage of Time on Each Activity
Unloading 40%
Counting 25
Inspecting 35
No other resources are used for these activities.
Required:
Calculate the cost of each activity.
Unloading $
Counting $
Inspecting $
Answer:
Calculating the cost of each activity,
Unloading = $ 80,100
Counting = $ 37,500
Inspecting = $54,450
Explanation:
Given:
Unloading lease = $15,000 per year
Fuel for the forklift = $3,600 per year
Maintenance for the forklift = $1,500 per year
Inspection uses some special testing equipment that has depreciation of $1,200 per year
Operating cost = $750.
Receiving employees average salary = $50,000 per year
Salaries; 3 × 50,000 = 150,000
Unloading salary = 40% × 150,000 = 60,000
Counting salary = 25% × 150,000 = 37,500
Inspecting salary = 35% × 150,000 = 52,500
Unloading Counting Inspection
Equipment 15,000 1,200
Fuel 3,600
Operation cost 1,500 750
Labor 60,000 37,500 52,500
Total cost 80,100 37,500 54,450
Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and balance sheet:Net Sales $440,000 Dec 31 2016 Dec 31 2015Cash $26,000 $28,000Accounts Receivable 56,000 58,000Merchandise Inventory 79,000 76,000Prepaid Expenses 8,000 14,000Property, plant and equipment, net 180,000 11,000Compute the asset turnover ratio for 2016.
Answer:
Assets turnover ratio= 1.64 times
Explanation:
The asset turnover is the he amount of sales generated by one dollar invested in asset. it measures how efficient the business is in generating sales using assets
Assets turnover ratio = net sales / Average assets
Asset at the beginning of year 2016
=26,000 + 56,000 + 79,000 + 8,000 + 180,000 = 349 ,000
Asset at the end of year 2016
$28,000 + 58,000 + 76,000 + 14,000 + 11,000= 187 ,000
Average assets = Opening value of asset+ closing value of assets/2
= 349 ,000 + 187 ,000= 268 ,000
Assets turnover ratio = net sales / Average assets
=440000/268,000= 1.64 times
Assets turnover ratio= 1.64 times
Total assets =
Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $22,000 in 2018.Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018? Cumlative Non Cumlativepreferred Dividends for 2018 preferred Dividends in arrears for 2017 Remaining Dividends to common stockholders Total Dividens:
Answer:
1.
Preferred stock dividends to be paid in 2018 = $20000
Common stock dividends to be paid in 2018 = $2000
2.
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = $12000
Explanation:
The preferred stock dividends are always paid before the common stock dividends.
Cumulative preferred stock is the stock which accumulates or accrues dividends if the dividends are partially paid or not paid at all in a particular year. These dividends are accrued and are required to be paid by the company whenever it declares dividends.
Non cumulative preferred stock does not accrue or accumulates dividends. Thus, if dividends are not paid in a particular year, the company has no obligation to pay these dividends ever in the future.
1.
If the preferred stock is assumed to be cumulative, then the dividends in arrears for 2017 will be paid in 2018 along with dividends for 2018 on preferred stock before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = 10000 + 10000 = $20000
Common stock dividends to be paid in 2018 = 22000 - 20000 = $2000
2.
If the preferred stock is assumed to be non cumulative, then the dividends in arrears for 2017 will not be paid in 2018. Only the dividends for 2018 on preferred stock will be paid before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = 22000 - 10000 = $12000
Consider the simple leisure model in which the individual chooses between leisure (L) and money income (M). The marginal utility of leisure (MUL) is 15 and the marginal utility of money (MUM) is 3. At the optimum, the wage rate:_______
a. $45
b. $0.20
c. $5
d. $15
Answer:
Wage rate is $5
Explanation:
The marginal utility of money=marginal utility of leisure/wage rate
When the formula is rearranged,wage rate is given thus:
wage rate=marginal utility of leisure/marginal utility of money
wage rate=15/3
wage rate =$5
In other words, the correct option is C,wage rate is $5
Option D would have been correct if the requirement was to calculate marinal utility of leisure
Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 620,000 Annual net cash flows $ 86,000 Life of the equipment 10 years Salvage value $ 0 Discount rate 6 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be:
Answer:
7.2 years
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
Amount invested = $620,000
Cash flow = $86,000
Payback period = $620,000 / $86,000 = 7.2 years
I hope my answer helps you
Grouper Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item Quantity Cost Cost to Estimated Cost Of Normal NO. Per Replace Selling Completion Profit Unit Price and Disposal 1,320 1,500 $3.87 $3.63 $5.45 $0.421333 1,200 3.27 2.78 4.24 0.61 1426 1,100 5.45 4.48 6.05 0.48 1437 1,300 4.36 3.75 3.87 0.30 1510 1,000 2.72 2.42 3.93 0.97 1522 1,200 3.63 3.27 4.60 0.48 1573 3,300 2.18 1.94 3.03 0.91 1626 1,300 5.69 6.29 7.26 0.61 From the information above, determine the amount of Grouper Company inventory.
Answer:
Normal profit was missing, so I looked for it:
Item Q Cost Cost to Estimated Cost Normal*
No. p/ unit replace selling price of Completion profit
and Disposal
1320 1,500 $3.87 $3.63 $5.45 $0.42 $1.38
1333 1,200 $3.27 $2.78 $4.24 $0.61 $0.67
1426 1,100 $5.45 $4.48 $6.05 $0.48 $0.47
1437 1,300 $4.36 $3.75 $3.87 $0.30 $0.25
1510 1,000 $2.72 $2.42 $3.93 $0.97 $1.18
1522 1,200 $3.63 $3.27 $4.60 $0.48 $0.84
1573 3,300 $2.18 $1.94 $3.03 $0.91 $0.93
1626 1,300 $5.69 $6.29 $7.26 $0.61 $1.56
we have to first determine the ceiling NRV and floor NRV
Item Cost to Estimated Cost NRV NRV
No. replace selling price of Completion ceiling floor
and Disposal
1320 $3.63 $5.45 $0.42 $5.03 $3.65
1333 $2.78 $4.24 $0.61 $3.63 $2.96
1426 $4.48 $6.05 $0.48 $5.57 $5.10
1437 $3.75 $3.87 $0.30 $3.57 $3.32
1510 $2.42 $3.93 $0.97 $2.96 $1.78
1522 $3.27 $4.60 $0.48 $4.12 $3.28
1573 $1.94 $3.03 $0.91 $2.12 $1.19
1626 $6.29 $7.26 $0.61 $6.65 $5.09
we have to determine the market value:
Item Cost to NRV NRV Market value
No. replace ceiling floor (middle of the 3)
1320 $3.63 $5.03 $3.65 $3.63
1333 $2.78 $3.63 $2.96 $2.96
1426 $4.48 $5.57 $5.10 $5.10
1437 $3.75 $3.57 $3.32 $3.57
1510 $2.42 $2.96 $1.78 $2.42
1522 $3.27 $4.12 $3.28 $3.28
1573 $1.94 $2.12 $1.19 $1.94
1626 $6.29 $6.65 $5.09 $6.29
Item Market value Cost Quantity Inventory
No. per unit value
1320 $3.63 $3.87 1,500 $5,445
1333 $2.96 $3.27 1,200 $3,552
1426 $5.10 $5.45 1,100 $5,610
1437 $3.57 $4.36 1,300 $4,641
1510 $2.42 $2.72 1,000 $2,420
1522 $3.28 $3.63 1,200 $3,939
1573 $1.94 $2.18 3,300 $6,402
1626 $6.29 $5.69 1,300 $7,397
total $39,406
GroundCover Pools, Inc., agrees to build a swimming pool for Franci, but fails to complete the job. Franci hires EquiAqua, Inc., to finish the project. Candy may recover from GroundCover:___________.
a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
A portfolio consists of $13,600 in Stock M and $19,400 invested in Stock N. The expected return on these stocks is 8.10 percent and 11.70 percent, respectively. What is the expected return on the portfolio
Answer:
Portfolio return is 10.22%
Explanation:
The expected return of a portfolio is the function of the weighted average of the individual stock returns that form up the portfolio. The formula to calculate the expected return of the portfolio is as follows,
Portfolio Return = wA * rA + wB * rB + ... + wN * rN
Where,
w is the weightage of each asset/stock in the portfolior is the return of each stockThe weightage of each stock can be calculated by dividing the investment in the stock by the total investment in the portfolio.
Total investment - portfolio = 13600 + 19400 = $33000
Portfolio Return = 13600/33000 * 0.0810 + 19400/33000 * 0.1170
Portfolio Return = 0.10216 or 10.216% rounded off to 10.22%
ProBuilder reports merchandise sales of $80,000 and cost of merchandise sales of $20,000 in its first year of operations ending June 30, 2016. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 3% of sales, or $2,400, and 3% of cost of sales, or $600.Required:a. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to sales. b. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to cost of sales.
Answer and Explanation:
The adjusting entries are as follows:
1. Sales returns and allowances $2,400
To Sales refund payable $2,400
(Being the returns and allowance is recorded)
For recording this we debited the sales returns as it increased the sales return and credited the sales refund payable as it increased the liabilities
2. Inventory returns estimated $600
To Cost of goods sold $600
(Being the cost of sales is recorded)
For recording this we debited the inventory returns as it increased the returns inventory and credited the cost of goods sold as it decrease the expenses
Computing unit and inventory costs under absorption costing LO P1
Trio Company reports the following information for the current year, which is its first year of operations.
Direct materials $ 13 per unit
Direct labor $ 17 per unit
Overhead costs for the year $100,000 per year
Variable overhead 200,000 per year
Fixed overhead Units produced this year 25,000 units
Units sold this year 19,000 units
Ending finished goods inventory in units 6,000 units
Compute the cost per unit using absorption costing Cost per unit of finished goods using: Absorption costing Cost per unit of finished goods
Determine the cost of ending finished goods inventory using absorption costing
Answer:
Unitary production cost= $42
Ending inventory= $252,000
Explanation:
Giving the following information:
Direct materials $ 13 per unit
Direct labor $ 17 per unit
Fixed overhead costs for the year= $100,000 per year
Variable overhead= 200,000 per year
Units produced this year 25,000 units
Ending finished goods inventory in units 6,000 units
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary fixed and variable cost:
Unitary overhead= (100,000 + 200,000)/25,000= $12
Unitary production cost= 13 + 17 + 12= $42
COGS= 19,000*42= $798,000
Ending inventory= 6,000*42= $252,000
To be Lean means:
a. to be able to move quickly without significant penalty
b. to decrease economies of scale
c. to do the same things as Agile but modified just a bit
d. to reduce or eliminate waste from the system
Answer:
d. to reduce or eliminate waste from the system
Explanation:
Lean refers in business to generating more benefits to your clients using less resources and a company using lean principles tries to eliminate all the unecessary things that doesn't add value which are considered waste and increase its efficiency. According to this, the answer is that to be lean means to reduce or eliminate waste from the system.
The other options are not right because Agile and Lean are different methodologies and Lean helps to generate cost reductions that can create economies of scale. Also, to be lean it doesn't matter if you move quickly or slow as long as you eliminate the waste to give more value to customers.
Debbie and Alan open a web-based bookstore together. They have been friends for so long that they start their business on a handshake after discussing how they will share both work and profits or losses from the business. Have Debbie and Alan formed a real partnership given that they have signed no written partnership agreement?
Answer:
Yes
Explanation:
Debbie and Alan have formed a real partnership even though they have signed no written partnership agreement because partnership does not require legal Documentation.
Many partnerships are formed naturally because the people who are involved in the business share similar goals, so their partnerships don't need formation documents to exist.
Sunshine LLC sold furniture for $75,650. Sunshine bought the furniture for $89,870 several years ago and has claimed $24,935 of depreciation expense on the machine. What is the amount and character of Sunshine's gain or loss
Answer:
The gain is $10,715
Explanation:
Solution
Given that:
The cost of furniture =$89,870
Accumulation of depreciation = $24,935
Thus
The book value of furniture= $89,870 - $24,935
=$64,935
The sale value of the furniture = $75,650
Now,'
The gain on sale of the furniture is given below:
Gain on sale of furniture = sale price - book value
= $75,650 - $64,935
=$10,715
The gain is The long term capital gain on sale of furniture is $10,715
Torque Manufacturing forecasts that its production will require 600,000 tons of bauxite over its planning period. Demand for Torque's products is stable over time. Ordering costs amount to an average of $15.00 per order. Holding costs are estimated at $1.25 per ton of bauxite. If Torque uses an inventory quantity of 3,000 tons, what will be the total annual cost of inventory
Answer:
Total annual cost of inventory is 4875.
Explanation:
The demand for bauxite by Torque manufacturing (A) = 600000 tons.
It is given that the demand is stable.
The average ordering cost of bauxite (O) = $15 per order.
The cost of holding to bauxite (CP) = $1.25 per ton.
The economics order quantity (EOQ) = 3000
The total annual cost of inventory = ordering cost + inventory cost
[tex]\text{Total annual cost} = \frac{A}{EOQ} \times O + \frac{EOQ}{2} \times CP \\[/tex]
[tex]\text{Total annual cost} = \frac{600000}{3000} \times 15 + \frac{3000}{2} \times 1.25 = 4875[/tex]
Linea, an employee of Hard Labor Industries (HLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Linea accepts $50,000 from HLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong. In terms of the impact on Linea's agreement with HLI, Newt's mis-diagnosis is:_______.
a. obtain damages from HLI.
b. recover nothing.
c. set aside the settlement withHLI.
Answer: set aside the settlement withHLI.
Explanation:
From the question, Linea, who is an employee of Hard Labor Industries (HLI), is injured in a work-related accident and based on the diagnosis of Newt, who is a doctor, Linea accepts $50,000 from HLI and waives the right to future claims.
We are also informed that Newt's diagnosis later proves to have been wrong. In terms of the impact on Linea's agreement with HLI, Newt's mis-diagnosis is to set aside the settlement with HLI.
This will be necessary to make them understand that it was a mistake and make a settlement with Hard Labor Industries so that Linea won't be affected as they make think she has it planned in order to collect money from them so the hospital should make a settlement.
You Just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for computing the present value as of today at 6 percent?
PV = $500/1.06 + $500/1.062+ $500/1.063
PV = $800 PV $800/1.06$500/1.06+$500/1.06 $500/1.06
PV =$800+ $500/1.06 $500/1.06+ $500/1.061
PV = $800(1.06)+ $500 +$500/1.06 $500/1.06
Answer:
The correct answer is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Explanation:
Solution
Given that:
A price was wan by you today at =$800
For the next three years =$500 a year
Now
We compute for the present value of today at 6%
Thus
Present value (PV) = $800 + $500/1.06 + $500/1.062 + $500/1.063
Because $800 is receivable today, its present value is equal to $800,
So,
500 receivable after a year will be divided by 1.06
PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Therefore the right formula for computing the present value as of today at 6 percent is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Assume the following cost of goods sold data for a company: 2018$1417000 20171204000 20161018000 If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018
Answer:
39.19%
Explanation:
2018 $1,417,000
2017 $1,204,000
2016 $1,018,000
if 2016 was the base year, then the % from 2016 to 2018 = ($1,417,000 - $1,018,000) / $1,018,100 = 39.19%
we can also calculate the % increase from 2016 - 2017 and from 2017 - 2018 in a similar manner:
2016 to 2017 increase = ($1,204,000 - $1,018,000) / $1,018,100 = 18.27%
2017 to 2018 increase = ($1,417,000 - $1,204,000) / $1,204,100 = 17.69%
Based upon Booked Orders and Sales Predictions, we expect to need the following finished goods over the planning period: 120 Product A We currently have the following Finished Goods Products in Inventory: 60 Product A We have scheduled the following to be produced in the factory within the planning period: 50 Product A How many products should we include on future Planned Production Orders
Answer:
10 product
Explanation:
Calculation of how many products should we include on future Planned Production Orders
Product A
Finished goods over the planning period =120
Finished Goods Products in Inventory= 60
Scheduled of what will be produced in the factory within the planning period =50
Hence
120-60-50=10
Therefore the amount of products should we include on future Planned Production Orders should be 10 products.
On March 31. 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,810. The balance in the firm's checkbook and Cash account on the same date was $10,276. The difference between the two balances is caused by the items listed below.
a. A $2,935 deposit made on March 30 does not appear on the bank statement.
b. Check 358 for $515 issued on March 29 and Check 359 for $1,710 published on March 30 have not yet been paid by the bank.
c. A credit memorandum shows that the bank has collected a $1,200 note receivable and interest of $120 for the firm.
d. A service charge of $31 appears on the bank statement.
e. A debit memorandum shows an NSF check for $555. The check was Issued by Dane Jarls, a credit customer.)
f. The firm's records indicate that Check 341 of March 1 was issued for $900 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $800.
g. The bank made an error by deducting a check for $590 issued by another business from the balance of Home Decorating Pavilion's account.
Required:
1. Prepare a bank reconciliation statement for the firm as of March 31, 2019.
2. Prepare a bank reconciliation statement for the firm as of March 31, 2019. (Enter all amounts as positive values.)
Answer:
Both requirements 1 and 2 are the same, but I guess one refers to a bank reconciliation statement and the other one to a cash account reconciliation.
Bank account reconciliation:
bank balance $9,810
+ deposits in transit $2,935
- outstanding checks 358 and 359 ($2,225)
+ check deducted by mistake $590
reconciled bank account $11,110
Cash account reconciliation:
Cash account balance $10,276
+ note and interest collected $1,320
- bank fees ($31)
- NSF check Dane Jarls ($555)
+ error on check 341 $100
reconciled cash account $11,110
Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.'s accounting equation
Answer:
Megginson, Inc.
Effect of the Bond Issuance on Megginson, Inc.'s accounting equation:
(The account equation states that Assets = Liabilities + Equity.)
With the bond issuance, the Assets (Cash) will increase by $290,000 and the Liabilities (Bonds Payable) will increase by $300,000, and there will be a loss (Equity - Retained Earnings) of $10,000 in the form of Discount on Bonds. This discount on bonds is usually amortized over the bonds' life, thus increasing the interest payable.
Explanation:
The issuance of bonds is one of the means of obtaining finance for business operations. It is a long-term borrowing, which entities use to finance the activities when funds cannot be sourced from other sources or when it is considered cheaper to borrow from outside sources.
Suppose a consumer has the following utility function defined over the 2 goods X and Y: a. If this consumer originally consumed 10 units of X and 24 units of Y, and if the consumption of X were increased to 12 units, how much Y would be would the consumer be willing to give up and maintain the initial level of satisfaction
Answer:
Y = 22 units (Approx)
Explanation:
Note:
The utility function is not given, the utility function is as follows.
U(X ,Y) = 2X + [tex]16Y^{1/2}[/tex]
So,
U(X ,Y) = 2X + [tex]16Y^{1/2}[/tex]
When X = 10 and Y = 24 units
U(10 ,24) = 2(10) + [tex]16(24)^{1/2}[/tex]
U(10 ,24) = 98.4
U(10 ,24) = 99 Units (Approx)
So,
U(X ,Y) = 2X + [tex]16Y^{1/2}[/tex]
When X = 12 Find Y
99 units = 2(12) + [tex]16Y^{1/2}[/tex]
75 = [tex]16Y^{1/2}[/tex]
Y = 21.97
Y = 22 units (Approx)
Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (168,000 units) $1,010,000 Less: Cost of goods sold 690,000 Gross margin 320,000 Operating expenses 400,000 (includes $55,000 of fixed costs) Operating income -$80,000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month. What is the budgeted operating income for March 2018
Answer:
February Kaizen Budgeted Operating income -$ 69,650
March Kaizen Budgeted Operating income-$ 59,405.5
Explanation:
The Kaizen costing primarily focuses on production processes and in it the cost reductions are obtained through increasing efficiency.
Sales (168,000 units) $1,010,000
Less: Cost of goods sold 690,000
Gross margin 320,000
Operating expenses 400,000 (includes $55,000 of fixed costs)
Operating income -$80,000
Calculations For February
Decrease by 1% of COGS $ 690,000= $ 690,000-$6900=$ 683,100
Decrease by 1% of Variable Expenses $ 345000= $ 345000-3450= $ 341550
Budgeted Operating Income Under Kaizen Costing For February
Sales (168,000 units) $1,010,000
Less: Cost of goods sold 683,100
Gross margin 326,900
Operating expenses
Variable Expenses $ 341550
Fixed Costs $55,000
Operating income -$ 69,650
Calculations For March
Decrease by 1% of COGS $ 683,100= $ 683,100-$6831=$ 676,269
Decrease by 1% of Variable Expenses $ 341 550= $ 341550-3415.5= $ 338134.5
Budgeted Operating Income Under Kaizen Costing For March
Sales (168,000 units) $1,010,000
Less: Cost of goods sold $ 676,269
Gross margin 333,731
Operating expenses
Variable Expenses $ 338134.5
Fixed Costs $55,000
Operating income -$ 59,405.5
In the business gift-giving world, if a company gives a gift to a potential client for the purpose of influencing their behavior in their favor, it is unethical. What are the three criteria and dimensions of evaluating a business gift? Multiple Choice Question
Answer:
Context, culture and content
Explanation:
Gift giving in business is common and also contentious. Business gifts are often for advertising, sales promotion, and marketing communication medium.
These kind of gifts are for the following reasons:
1. In appreciation.
2. In the hopes of creating a positive first impression.
3. Returning a favor or expecting a favor in return for something.
When it comes to considering appropriate business gifts it is helpful for one to think about the content of the gift, the context of the gift, and the culture in which it will be received.
Giving a gift to a potential client for the purpose of influencing their behavior is a form of Bribery.
The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The journal entry to record the transfer of costs from work in process to finished goods is
Answer:
Finished Goods $540,000 Debit
Work In Process $540,000 Credit
Explanation:
The journal entry to record the transfer of costs from work in process to finished goods is
Finished Goods $540,000 Debit
Work In Process $540,000 Credit
This means that finished goods have been debited with the amount $ 540,000 and work in process has credited an amount $ 540,000. In other words work in process has been transferred to the finished goods account.
The amount which was sold and shipped to customers was $ 375,000. It is related to sales .It means sales of goods costing $375,000 had been shipped.
g n a certain economy, when income is $100, consumer spending is $60. The value of the multiplier for this economy is 4. It follows that, when income is $101, consumer spending is a. $60.25. b. $60.75. c. $61.33. d. $64.00.
Answer:
The answer is option (b) $60.75
Explanation:
Solution
Given that
A certain economy, Income is =$100
Consumer spending is =$60
The value of multiplier is =4
Now we need to know when the income is $101, consumer spending, the customer spending will be what?
Now,
Multiplier (k)= 1/1-MPC (marginal propensity to consume)
4=1/1-MPC
Thus
MPC= 1-1/4
MPC=3/4
MPC=.75
So,
MPC= Change in consumption/change in income.
.75=Change in C/101-100
Change in C=.75*1
Change in C=.75
Hence
The new consumption =60+.75=60.75
Therefore, when the income is $101, the consumer spending is $60.75
Based on the income and the amount of money spent from it, the consumer spending at that amount will be b. $60.75
The question can be answered with the Marginal Propensity to Consume (MPC) which is calculated as:
Multiplier = 1 / (1 - MPC)
4 = 1 / (1 - MPC)
MPC = 0.75
If the income is $101, the amount that will be spent is:
= Income + (Increase in income x Marginal Propensity to Consume)
= 100 + (1 x 0.75)
= $60.75
In conclusion, $60.75 will be the consumer spending.
Find out more at https://brainly.com/question/15245341.
When a grocery store makes sure they always have 10 extra dozen eggs in the back storage area "just in case" they are needed, this type of inventory is typically called: A. Cycle Stock B. Safety Stock C. Anticipation Inventory D. Transportation Inventory E. Smoothing Inventory
Answer: Safety Stock
Explanation:
Safety stock is the additional quantity of a product that is kept by a company on its inventory so to reduce the risk of running out of the item in stock. The safety stock can be used when the sales of the product is more than the planned sales.
Regarding the question, when a grocery store makes sure they always have 10 extra dozen eggs in the back storage area "just in case" they are needed, this type of inventory is typically called the safety stock.
Types of bonds
Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date.
1. Which of the following statements about Treasury bonds is the most accurate?
A. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
B. Treasury bonds are completely riskless.
C. Treasury bonds have a very small amount of default risk, so they are not completely riskless.
Based on the information given in the following statement, answer the questions that follow:
New York City issued a general obligation bond for a canal in 1812. It was the first formal debt instrument with a fixed repayment schedule issued by a city.
2. Who is the issuer of the bonds?
A. The New York City government
B. Bank of New York
C. Federal Reserve Bank of New York
3. What type of bonds are these?
A. Treasury bonds
B. Municipal bonds
C. Corporate bonds
4. Which of the following statements is true about bonds?
A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments.
B. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay federal—but not state—taxes on the bond’s coupon payments.
5. Which of the following types of bonds has the least default risk?
A. Corporate bonds
B. Treasury bonds
C. Municipal bonds
Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
2. A. The New York City government
3. B. Municipal bonds
4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments
5. B. Treasury bonds
Explanation:
1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.
2. The City of New York issued to bonds in question so it is a New York City Government bond.
3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.
4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.
5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.
Taco Hut purchased equipment on May 1, 2021, for $12,000. Residual value at the end of an estimated eight-year service life is expected to be $3,000. Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)
Answer:
Depreciation expense in 2021 = $750
Depreciation expense in 2021 = $1125
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($12,000 - $3,000) / 8 = $1125
Depreciation expense each year would be $1125.
Depreciation expense in 2021
There are 12 months in a year, so the depreciation expense each month would be $1125 / 12 = $93.75
Number of months in 2021 for which asset is used ( May to December) = 8 months
$93.75 x 8 = $750
Depreciation expense in 2022 would be $1125 since the machine was used for a full year.
I hope my answer helps you
The expected average rate of return for a proposed investment of $636,800 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $191,560 for the 4 years is (round to two decimal points)
Answer: 15.96
Explanation:
The expected rate of return will be the Average income divided by the average cost.
It is stated that the asset has a useful life of 4 years with no residual value so at the end of 4 years it will be worth $0.
The Average Cost/ Value of the Asset is calculated as;
= (Beginning Asset value - Ending Asset Value) / 2
= (600,000 - 0) /2
= 300,000
Total Income of $191,560 for the 4 years so Average income will be,
= 191,560/4
= $47,890
Expected Average Rate of Return = 47,890/300,000
= 15.96%