Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $5. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 5,000 $ 6 $ 30,000 Jan. 18 6,000 7 42,000 Totals 11,000 72,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 2,000 Jan. 20 4,000 Total 9,000 8,000 units were on hand at the end of the month. Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.

Answer:

4.62%

Explanation:

we need to calculate the yield to maturity of the bond:

YTM = [coupon + (face value - market value)/n] / [(face value + market value)/2]

YTM = [$50 + ($1,000 - $1,078)/38] / [($1,000 + $1,078)/2]

YTM = $47.95 / $1,039 = 4.615 ≈ 4.62%

Answer: 2.63

Explanation:

The Market to Book ratio is also referred to as the price to book ratio. It is a financial evaluation of the market value of a company relative to its book value. It should be noted that the market value is current stock price of every outstanding shares that the company has while the book value is the amount that the company will have left after its assets have been liquidated and all liabilities have been repaid.

The market-to-book ratio will be the market price per share divided by the book value. It should be noted that the book value per share is the net worth of the business divided by the number of outstanding shares. The book value will be:

= [(12500 ×1) + $21200]/12500

= ($12500 + $21200)/$12500

= $33700/12500

=$2.70

The market-to-book ratio will now be:

= $7.10/$2.70

=2.63

Answer:

The overview of the given circumstances is described in the explanation segment below.

Explanation:

(1)...

Non-compete seems to be a standard procedure in several areas of the globe to safeguard information. There must have been 2 factors for something like a non-competent specified period in exchange, as shown in this scenario:

Neither of the circumstances confirms that realizing as well as trying to teach how and when to start dancing seems to be completely obvious and does not quantity to state secrets. If this were a style of dance that is already recognized mostly to Anthony Murray as well as Witter, therefore the case might have been dissimilar. And while this skill is trained to every learner, it isn't a secret.

Interestingly, Witter doesn't use trade secrets because it is a common experience of dance to learn well how to dance. Haven't broken the non-competition.

(2)...

Buckingham may, if he indeed wishes, promote to prevent Greenberg from operating on such formulations, and even using them for many other businesses, as he created certain formulas although employed at Buckingham. This also acknowledges that all these formulas have been created again for the corporation of Buckingham and therefore any exposure of such formulas to some of its rival businesses directly impacts the company of Buckingham.

In consideration of it all, it would be very unlikely against Buckingham to just get a judge's order targeting Greenberg as well as Briton to prosecute them or even to prevent themselves from being used formulas established by Greenberg although employed for Buckingham.

Answer:

The moral hazard problem

Explanation:

Moral hazard problem is defined as a situation where a party gets involved in a risky venture knowing that another party will incur the cost of failure.

For example if a borrower knows that he can take borrowed funds and default easily, he will tend to not pay back because the lender will bear the loss.

During the the financial crisis that began in 2007, the government began to bail out banks deemed "too big to fail."

This created fiscal irresponsibility in banks that knew if they are at risk of failing they will be bailed out by the government.

Answer:

$3,315.13

Explanation:

To determine the amount of inheritance Marshall should invest today, we have to calculate the present value of $5,400.

PV = FV (1 + r)^-n

FV = Future value = $5,400

P = Present value

R = interest rate 5%

N = number of years 10

$5400(1.05^-10) = $3,315.13

I hope my answer helps you

Answer:

As the production of blenders increases, unitary fixed costs decreases.

Explanation:

Its total fixed costs are​ $30,000. Its variable costs are​ $55.00 per blender.

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.

As the production of blenders increases, unitary fixed costs decreases.

Answer:

The banking industry in Ghana can introduce target costing.  However, its application is much more difficult due to the nature of banking services.

Introducing target costing in the banking industry in Ghana will eliminate non-value adding activities that increase the cost of banking in Ghana.  It will enable Ghanaian customers to be charged competitive prices for the banking services that are rendered to them, with no more room for process wastages.  The quality of services will increase coupled with lowered costs.  The service processes will be improved as they will be more focused on the customers, and less on the staff, as it currently obtains in Ghana.

However, the nature of banking services makes introduction of target costing somehow difficult.  These characteristics of banking services include: a) the production and consumption of banking services are coincidental, as the services are consumed when they are being produced; b) banking services are not storable like goods; c) banking services are not comparable, one unit to another; d) banking services are not tangible; e) ownership of banking services is not transferable; and f) there is not market price for banking services, except the price limits imposed by regulatory bodies.

Explanation:

Target costing in the banking industry in Ghana will take the form of first determining the market price for services that are acceptable to customers, establishing a target profit, and then designing banking services in such a manner that the costs do not exceed the target costs.  The target cost will be the variance between the market price of a banking service and the target profit.

Answer:

Estimate Value of a share= $71.81

Explanation:

The value of a share can be determined using the price earning  ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative P/E ratio.

Value of share = EPS × P/E

The appropriate P/E ratio would be that of a similar operator in the same industry, in this case , Jones Soda.

Hence the estimate value of share =2.04 × 35.2=71.81

Estimate Value of a share= $71.81

Answer:

d. Net realizable value approach.

Explanation:

An impairment usually arises when a company's asset (either intangible or fixed asset) overall future cash-flow ability (fair value) is lesser than its carrying value. This impairment of assets may be as a result of varying consumer demands, recession, damages, inflation or even a change in legal conditions.

For a long-lived asset, if its carrying value exceeds its fair value and isn't really recoverable, there's an impairment loss on the asset.

In the event that, a company performing its long-lived asset impairment testing is reviewing the fair value of equipment. Each of the following valuation techniques may be appropriate for measuring the fair value of the equipment;

1. Market approach: this measures and analyzes whether there's a decline in the market price of the asset.

2. Income approach: this determines if there were any operating or cash-flow losses on the asset.

3. Cost approach: this is an approach used to determine the level of cost associated with purchasing, maintaining and fabricating the asset.

Answer:

a. Calculate current sales and ROI for Charlie’s Furniture Store.

asset turnover formula = net sales / average assets

0.4 = net sales / $800,000

net sales = $320,000

ROI = net income / investment

net income = $320,000 x 34% = $108,800

ROI = $108,800 / $800,000 = 13.6%

b. Assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROI as Charlie’s currently earns.

net income = net sales x 20% (new margin)

net sales = $108,800 / 20% = $544,000

c. Suppose you presented the results of your analysis in parts a and b of this problem to Charlie, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to practically double my sales volume to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required?

sales increase = ($544,000 - $320,000) / $320,000 = 70% increase

d. Now suppose Charlie says, "You know, I'm not convinced that lowering prices is my only option in staying competitive. What if I were to increase my marketing effort? I'm thinking about kicking off a new advertising campaign after conducting more extensive market research to better identify who my target customer groups are." In general, explain to Charlie what the likely impact of a successful strategy of this nature would be on margin, turnover, and ROI.

An extensive market research and a "successful" marketing campaign are generally expensive. Even if the marketing campaign is really successful in increasing sales, costs would also increase. So the equation may or may not change, depending if the contribution margin of the additional units sold will be able to cover the expenses of a complex marketing campaign. If you spend $100 to earn $100 more, your situation hasn't changed at all. Which means that net income may or may not increase, therefore, the profit margin, ROI and asset turnover may not change.

Answer: D) B

Explanation:

The Producer Surplus refers to the area below the Price Floor but above the Supply Curve and left of the new Quantity supplied. It comprises of areas B and E.

Before the Price Floor was introduced, area A, B and C were the Consumer Surplus as they were above the price but below the Demand Curve.

After the Price Floor was introduced however, area B has become a Producer Surplus.

Answer:

Option A

True

Explanation:

The attitude of continuous improvement entails that the members of an organization strive to improve on themselves, operations, and processes within the organization. It usually entails learning from both mistakes and business practices of other companies to ensure that there is a constant improvement in the day to day activities of the business.

During the process of continuous improvement, every manager and employee is definitely expected to try out new policies, and practices to see how well they fit in and aid the company to achieve her overall business goals.

This is the only way a strong "continuous improvement " attitude can be maintained company-wide.

Hence, the answer is option A: True.

Answer:

                                Report for January    Sales Expense Budget

Item                                    Amount                Amount

Sales commissions         $370,500             $380,133

Sales staff salaries              92,400                92,096

Telephone and mailing      43,000                 52,942

Building lease payment     60,000                60,000

Utilities                                  17,100                  17,442

Packaging and delivery     82,000                93,480

Depreciation                      36,750                 37,225

Marketing consultants       52,190                64,500

Total Sales Expenses  $753,940             $797,818

Explanation:

1. Sales volume is expected to increase by 14 percent.

2. Sales prices are expected to decrease by 10 percent.

3. Commissions are based on a percentage of sales revenue.

Sales Commissions = $380,133 ($370,500 x 1.14 x 0.9)

4. Sales staff salaries will increase 4 percent next year regardless of sales volume.

Sales staff salaries = $96,096 ($92,400 x 1.04)

5. Building rent is based on a five-year lease that expires in three years.

6. Telephone and mailing expenses are scheduled to increase by 8 percent even with no change in sales volume. However, these costs are variable with the number of units sold, as are packaging and delivery costs.

Telephone and mailing  =    $52,942 ($43,000 x 1.08 x 1.14)

Package and delivery = $93,480 ($82,000 x 1.14)

7. Utilities costs are scheduled to increase by 2 percent regardless of sales volume.

Utilities = $17,442 ($17,100 x 1.02)

8. Depreciation includes furniture and fixtures used by the sales staff. The company has just acquired an additional $57,000 in furniture that will be received at the start of next year and will be depreciated over a 10-year life using the straight-line method.

Previous depreciation = $36,750

Current year's addition          475 ($57,000/10 years/12 months)

Total for the month       $37,225

9. Marketing consultant expenses were for a special advertising campaign that runs from time to time. During the coming year, these costs are expected to average $64,500 per month.

Answer: elasticity

Explanation:

Elasticity has to do with how the changes in price affects the quantity I goods and services that are demanded by the consumers in the market.

Sometimes, a change in price may lead to either a larger change in the quantity demand or it ma lead to a minimal effect on the quantity of good demanded. This is the concept of elastic and inelastic demand.

Answer:

Net cash flow from operating activities $120

Explanation:

Cash flows from operating activities

Cash collections:

Cash payments:

Net cash flow from operating activities                      $120

Answer:

Return on assets=28.54%

Explanation:

Return on asset is the average rate of return generated by the asset investment of a business. It is the net income earned as a proportion of  the average investment.

Return on assets = net income / Average assets× 100

Average asset value = (opening balance + closing balance of assets)/2

                                  =( 254,000 + 304,000)/2= 164700

Return on assets = 47,000/164,700 × 100 =28.54%

Return on assets=28.54%

Answer:

2356

Explanation:

3546478967654322 321

Answer:

Two sets of accounting records must be maintained.

Explanation:

Variable costing is the costing in which only variable cost is considered i.e direct material cost, direct labor cost, variable manufacturing overhead cost therefore no fixed cost could be considered

Under this the disadvantage is that it recognized two accounting records sets which are to be maintained

Hence, the first option is correct

Answer:

1. By comparing the opportunity cost of producing olives in the two countries, you can tell that Spain has a comparative advantage in the production of olives and Germany has a comparative advantage in the production of rye.

Germany is able to produce more Rye if it is not producing olives meaning that they are more efficient in this giving them the comparative Advantage.

Spain is able to produce 2x more Olives than Germany for the same amount of Rye so they are more efficient in this manner.

2. Spain can gain from specialization and trade as long as it receives more than 5 bushels of rye for each crate of olives it exports to Germany.

If Spain can get more bushels per Olives than it can produce on it's own then they will make a gain.

3. Similarly, Germany can gain from trade as long as it receives more than ⅒ or 0.1 crate of olives for each bushel of rye it exports to Spain.

Similarly if Germany can get more crates of Olives per Rye than it can produce then it makes a gain. For each Bushel of Rye, Germany can create 0.1 crate of olives. Should they get more than this 0.1 crate then they make a gain.

4. The amount of Rye being exchanged for Olives should be between 5 and 10 bushels.

a. 9 bushels of rye per crate of olives.

c. 8 bushels of rye per crate of olives

At both 8 and 9 bushels of Rye per Olive Crate Germany would be getting more Rye per crate of olive than they can produce on their own and similarly at both 8 and 9 bushes of Rye for olives, Spain would getting more bushels than they could have gotten if they gave up olives to produce Rye.

Answer:

Partners: True

LLC: True

S Corporation: False

Explanation:

When dividends are withdrawn from a business tax is only due on a S Corporation because the tax paid for the profits of an organization is not by the stockholder withdrawing the dividends which is why when dividend is withdrawn the tax is to be paid.

When dividends are withdrawn in a partnership or and LLC then no tax is payable as tax is already paid on the profits made by the business that is why dividends are not taxable when withdrawn.

Answer:

The present value is $3,497.3

Explanation:

In order to calculate the present value of a security that pays you $1,500 next year, $1,400 the year after, and $1,300 the year after we would have to make the following calculation:

Present Value = payment next year x P/F(10%, 1) + payment the year after x P/F(10%, 2) + payment the year after that x P/F(10%, 3)

Present Value= $1,500 x 0.9091 + $1,400 x 0.8264 + $1,300 x 0.7513

Present Value = $1,363.65 + $1,156.96 + $976.69

Present Value = $3,497.3

The present value is $3,497.3

Answer:

Stock, Dividend, and Yield:

a) Computation of the percentage total return:

Total return = Dividend + Capital appreciation = $14.30 ($2.30 + $12)

Percentage of total return = $14.30/$70 x 100 = 20.43%

b1) Dividend yield = Dividend per share / price per share = $2.30/$70 = 0.032857 or 3.29%

b2) Capital gains yield = (Current price - initial investment)/ initial investment = ($82 - $70)/$70 = 0.1714 or 17%

Explanation:

a) The Dividend yield is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price.  

b) Capital gains yield is the percentage price appreciation on an investment. It is calculated as the increase in the price of an investment, divided by its original acquisition cost.  For instance, an equity security that is purchased for $700 and later sold for $825, the capital gains yield is 17.86%.

c) The total return from an investment is the sum of the dividend or interest received plus capital gains.

Answer:

There are four types of organizational stressors: task demands, physical demands, role demands, and interpersonal demands.

For air traffic controllers, task demands are probably the most common organizational stressor that they experience.

Among the task demands, we have the need of quick decisions, critical decisions, and the fact that some information may be incomplete.

The job of an air traffic controller is complex, difficult, requires taking quick, and specially, critical decisions all the time. A bad decision by a traffic controller can be very problematic, and even prove fatal, because of the delicate nature of the job. For all these reasons, air traffic controllers are likely to be subjected to this specific organizational stressor.

Answer:

true

Explanation:

Explanation:

Social media directly impacted the relationship between consumer and company.

First, you need to consider how the internet and social media are widely used by thousands of people around the world as a way to connect with others and exchange information.

Realizing this phenomenon, companies decided to use social media as a way to interact with their customers and attract more audiences. Social media works as a space where the construction of the relationship takes place more instantly and a little less formally, which allows for more in-depth interaction and the creation of a valuable relationship between company and customer.

Through the social media it is possible that the time of an answer for example is drastically reduced, which alters the consumer perception in a positive way.

It is also possible that companies use social media as a tool to improve relationship marketing, which is the creation of value for the customer through content, photos and posts, which generate engagement, approximation, loyalty and connection with consumers.

Answer:

In accrual basis accounting, expenses are recorded in the period when their matching revenues are obtained.

In this case, even if the full interest will be paid at maturity, interest expense will still be recorded in each period according to the information that we are given in the question.

Interest expense to be recorded by December 31

5,200,000 * 0.12 = 624,000 / 2 = 312,000

Interest expense to be recorded by September 30

5,200,000 * 0.10 = 520,000 * 3/12 = 130,000

Interest expense to be recorded by October 31

5,200,000 * 0.09 = 468,000 * 4/12 = 156,000

Interest expense to be recorded by January 31

5,200,000 * 0.06 = 312,000 * 7/12 = 182,000

Answer:

The maximum amount that Chad can depreciate in yer 1 if he decides not to elect bonus depreciation is $26,000

Explanation:

MACRS 10 year depreciation rate of recovery half year convention:

Year                Depreciation %      Purchase cost        Depreciation

1                           10%                          $260,000            $26,000

2                          18%                          $260,000             $46,800

3                          14.40%                     $260,000             $37,440

4                          11.52%                      $260,000             $29,952

5                          9.22%                      $260,000             $23,972

6                          7.37%                       $260,000              $19,162

7                          6.55%                      $260,000              $17,030

8                          6.55%                      $260,000             $17,030

9                          6.56%                      $260,000             $17,056

10                         6.55%                      $260,000             $17,030

11                          3.28%                      $260,000              $8,528

Answer:

The​ company's residual​ income is $950,000.

Explanation:

Residual Income is calculated as Operating Income less Cost of Investment.

Calculation of Residual Income :

Operating income                                              $1,550,000

Less Cost of Investment ($2,000,000 × 30%)  ($600,000)

Residual Income                                                   $950,000

Conclusion :

The​ company's residual​ income is $950,000.

Answer:

(a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars.

Gas Cooker:

total cost = $20,000 + $20,000 + $147,618 = $187,618

cost per unit = $187.62

Charcoal Smoker

total cost = $20,000 + $27,000 + $199,284 = $246,284

cost per unit = $61.57

(b) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming manufacturing overhead is assigned using activity-based costing.

Gas Cooker:

total cost = $20,000 + $20,000 + $48,000 + $13,520 + $36,000 = $137,520

cost per unit = $137.52

Charcoal Smoker

total cost = $100,000 + $27,000 + $240,000 + $3,380 + $6,000 = $376,380

cost per unit = $94.10

Explanation:

                                   Gas Cooker      Charcoal Smoker

Units                                1,000               4,000

Number of batches           60                   10

Number of batch moves   80                  20

Direct materials           $20,000          $100,000

Direct labor                 $20,000            $27,000

Manufacturing overhead follows:

Activity                               Cost                         Cost Driver

Materials acquisition  $288,000         Amount of direct

and inspection                                               materials cost

$48,000

$240,000

Materials movement $16,900                 Number of batch moves

$13,520

$3,380

Scheduling                $42,000                 Number of batches

$36,000

$6,000

Answer:

d. $394,767

Explanation:

For computing the amount of deposit at the end we need to apply the future value formula i.e to be shown in the attachment

Given that,  

Present value = $0

Rate of interest = 7.5% ÷ 12 months = 0.625%

NPER = 25 years × 12 months = 300 months  

PMT = $450

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after applying the above formula, the future value is $394,767