Answer:
Separate Transactions
a. Reconstructed Journal Entries:
1. Record Sale of Building
Debit Sale of Building $38,500
Credit Building $38,500
To transfer building to sale of building account.
Debit Accumulated Depreciation- Building $23,400
Credit Sale of Sale $23,400
To transfer the accumulated depreciation to sale of building account.
Debit Cash Account $11,400
Credit Sale of Building $11,400
To record the cash received on sale of building.
2. Record Acquisition of machinery :
Debit Equipment (Machinery) $13,400
Credit Notes Payable $13,400
To record the purchase of machinery with notes payable.
3. Record the issuance of common stock for cash :
Debit Cash Account $2,680
Credit Common Stock $2,680
To record the issue of 1,340 shares at par, $2 per share.
4. Record payment of cash to retire debit:
Debit Notes Payable $41,700
Debit Loss on Notes Payable $8,700
Credit Cash Account $50,400
To record the retirement of notes payable.
b. Identification of the effect on the investing section or financing section of the statement of cash flows:
1. Investing Section of the statement of cash flows:
Building $11,400
This increases the cash inflow from investing activities by $11,400.
2. Machinery acquired by issuing notes payable does not affect the statement of cash flows. No cash is involved in the transaction, at least for now.
Financing Section of the statement of cash flows:
3. Issue of common stock $2,680
This increases the cash inflow from financing activities by $2,680.
4. Notes Payable ($50,400)
This increases the cash outflow from financing activities by $50,400 if the notes payable are non-current liabilities. If they are current, it will have the same effect but on the operating activities section of the statement of cash flows.
Explanation:
The financing activities section of the statement of cash flows deals with the sources of funding the business, both inflow and outflow of cash.
The investing activities section deals with the investments made by the entity based on cash flows.
Katie Homes and Garden Co. has 14,000,000 shares outstanding. The stock is currently selling at $66 per share. If an unfriendly outside group acquired 20 percent of the shares, existing stockholders will be able to buy new shares at 25 percent below the currently existing stock price.A. How many shares must the unfriendly outside group acquire for the poison pill to go into effect?B. What will be the new purchase price for the existing stockholders?
Answer:
a. 2,800,000 shares
b. $49.50
Explanation:
a. Poison is a tactic used by a company threatened with an unwelcome takeover bid to make itself unattractive to the bidder
Shares that the unfriendly outside group must acquire for the poison pill to go into effect is
= 20% of 14,000,000 shares.
= 14,000,000 × 20%
= 2,800,000 shares
b. The new purchase price for the existing stockholders will be
=$66 × (1 - 0.25)
= $49.50
W.C. Cycling had $55,000 in cash at the year-end 2011 and a $25,000 en cash at year end 2012. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing activities totaled $170,000.
a. What was the cash flow from operating activities?
a. 55,000-25,000=30,000
b. Decrease in cash flows: -250,000+170,000+Operating incoming cash=-30,000
c. Operating cash flow = 50,000
b. If accruals increased by $25,000, receivables and inventories increased by $100,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?
a. Net income + 25,000 – 100,000+10,000=50,000
b. Net income=$115,000
Answer:
1. c. Operating cash flow = 50,000
2. b. Net income=$115,000
Explanation:
1. The Cashflow for the year is calculated by adding the balances from the Financing, Investing and Operating Activities in the following manner;
Cash Flow for the year = Opening Balance + Operating Activities + Investing Activities + Financing Activities
Operating Activities = Cash Flow - Opening Balance - Investing Activities - Financing Activities
= 25,000 - 55,000 - (-250,000) - 170,000
= $50,000
2. Net Income is calculated from Operating Activities in the following manner;
Net Income = Operating Cashflow + Increase in Inventory - Increase in Accruals - Depreciation
= 50,000 + 100,000 - 25,000 - 10,000
= $115,000
The financial statements of Sunland Manufacturing Company report net sales of $1226400 and accounts receivable of $57000 and $111000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days
Answer:
2.8 billon
Explanation:
cheating
Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $4,100,000; investment center income $700,000; a target income of 12% of average invested assets. The residual income for the division is:
Answer:
$208,000
Explanation:
Calculation for Dartford Company residual income
Using this formula
Residual income=Investment center income -(Target income percentage of average invested assets ×Average investment center total assets)
Let plug in the formula
Residual income =$700,000-(12%×$4,100,000)
Residual income =$700,000 - $492,000
Residual income =$208,000
Therefore The residual income for the division is: $208,000
Which of the following statements is CORRECT?a. Because of their simplified organization, it is easier for proprietors and partnerships to raise large amounts of outside capital than it is for corporations. b. Bond covenants are an effective way to resolve conflicts between shareholders and managers. c. One advantage to forming a corporation is that the owners of the firm have limited liability. d. Corporations face few regulations and more favorable tax treatment than do proprietorships and partnerships. e. Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeovers.
Answer:
c. One advantage to forming a corporation is that the owners of the firm have limited liability.
Explanation:
A company is characterized as a business entity owned by shareholders and regulated by the appointed board of directors bodies. A company is a legal entity that implies it can sue and be taken to court. It can be entered into a contractual agreement, too.
Therefore the correct option is c. as it says that in the corporation the business owners have the limited liability and i.e true statement
Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $ 4,500,000 Costs and expenses D The company has an opportunity to sell 30,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 15% and (2) administrative expenses would increase by $129,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer?irect materials 600,000 Direct labor 1,200,000 Overhead 300,000 Selling expenses 450,000 Administrative expenses 771,000 Total costs and expenses 3,321,000 Net income $ 1,179,000
Answer:
Explanation:
workings
Unit selling price = 4,500,000/300,000 = 15
Unit Direct material = 600,000/300,000 = 2
Direct labor rate = 1,200,000/300,000 = 4
selling expenses = 450,000/300,000 = 1.5
Normal Sales Extra Sales Total
Turnover 4,500,000 390,000 (30,000*13) 4,890,000
Direct material 600,000 60,000(30,000*2) 660,000
Direct labor 1,200,000 120,000(30,000*4) 1,320,000
Overhead 300,000 45,000 (300,000*15%) 345,000
Selling Expenses 450,000 45,000 (1.5*30000) 495,000
Admin Expenses 771,000 129,000 900,000
Total cost 3,321,000 399,000 3,720,000
Net income 1,179,000 (9000) 1,170,000
B) The offer for additional sales at a reduced price of $13 should be declined as it ends up in a loss of $9,000 due to the related increase in the operating costs
atzinger Company budgets sales of $1,270,000, fixed costs of $157,200, and variable costs of $698,500. What is the contribution margin ratio for Matzinger Company?
Answer:
contribution margin ratio= 0.45
Explanation:
Giving the following information:
Budgets sales of $1,270,000, and variable costs of $698,500.
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - variable cost) / sales
contribution margin ratio= (1,270,000 - 698,500) / 1,270,000
contribution margin ratio= 0.45
Prescott Football Manufacturing had the following operating results for 2019: sales = $30,174; cost of goods sold = $21,740; depreciation expense = $3,512; interest expense = $544; dividends paid = $849. At the beginning of the year, net fixed assets were $20,046, current assets were $3,029, and current liabilities were $3,776. At the end of the year, net fixed assets were $23,077, current assets were $4,447, and current liabilities were $3,077. The tax rate for 2019 was 21 percent.
a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Net income $b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Operating cash flow $c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow from assets $Assume no new debt was issued during the year.d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to creditors $e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to stockholders $
Answer:
Prescott Football Manufacturing
a. Net Income for 2019:
2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919-38
Net Income = $3,459
b) Operating cash flow
Net Income = $3,459
Non-cash:
Depreciation Expense 3512
Increase in current assets -1,418
Decrease in current liabilities -699
Net operating cash flow $4,854
c) Cash flow from assets:
Increase in Assets -$3,031`
d) Cash flow to creditors:
Decrease in liabilities -$699
e) Cash flows to stockholders:
Dividends paid = -$849
Explanation:
a) 2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919
Net Income = $3,459
dividends paid = $849.
b) Balance Sheet:
At the beginning of the year,
net fixed assets were $20,046,
current assets were $3,029, and
current liabilities were $3,776.
c) Balance at the end of the year,
At the end of the year,
net fixed assets were $23,077,
current assets were $4,447, and
current liabilities were $3,077.
Prescott Football Manufacturing
Part A:
Net Income for 2016:
Sales = $30,174 Cost of goods sold = $21,740 Depreciation expense = $3,512 Interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919-38Net Income = $3,459
Working Notes:
sales = $30,174 cost of goods sold = $21,740 depreciation expense = $3,512 interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919 Net Income = $3,459 dividends paid = $849.Part B:
Operating cash flow
Net Income = $3,459Non-cash:
Depreciation Expense 3512 Increase in current assets -1,418 Decrease in current liabilities -699 Net operating cash flow $4,854
Working Notes :
At the beginning of the year, Net fixed assets were $20,046, Current assets were $3,029, Current liabilities were $3,776.Part C:
Cash flow from assets:
Increase in Assets -$3,031`
Working Notes :
Balance at the end of the year, At the end of the year, net fixed assets were $23,077, current assets were $4,447, current liabilities were $3,077.
Part D :
Cash flow to creditors:
Decrease in liabilities = -$699
Part E :
Cash flows to stockholders:
Dividends paid =-$849
Learn more :
https://brainly.com/question/14802455?referrer=searchResults
Noma plans to save $4,800 per year for the next 40 years. If she can earn an annual interest rate of 10.6 percent, how much will she have in 40 years
Answer:
Total amount after 40 years = $2502371.012
Explanation:
Annual saving by Noma = $4800 per year
Total time period for saving = 40 years
Interest rate on savings = 10.6 percent
Now we have to find the amount that will be after 40 years if the annual saving is 4800 dollars that earns 10.6 percent interest rate.
[tex]\text{Total amount after 40 years} =Annuity [ \frac{(1+r)^{n} - 1}{r}] \\= 4800[ \frac{(1+ 0.106)^{40} - 1}{0.106}] \\= 2502371.012 \ dollars[/tex]
Total amount after 40 years = $2502371.021
Annual charge per unitWhen the Annual saving by Noma = $4800 annually
Then the Total period for saving is = 40 years
After that charge per unit on savings = 10.6 percent
Now we've to seek out the quantity that may plan40 years if the annual saving is "4800 dollars, 10.64, annuity that earns 10.6 percent charge per unit.
Then the Total amount after 40 year=
Annuity [tex](1+r)n-1/r =4800 (1+0.106)40-1/0.106=250237[/tex]
Find out more information about Annual charge per unit here:
https://brainly.com/question/26121496
Which of the following least likely describes a firm that is experiencing economies of scale?
Select the correct answer below
A) A firm produces hand-painted plates. The firm has no fixed costs, any worker for the firm takes the same amount of time to paint one item regardless of how many items they paint, and the firm cannot receive any discounts for ordering raw materials in bulk.
B) In order to manufacture its product, a firm must purchase one very expensive piece of equipment. Once it has that piece of equipment, the firm can produce as much of the product as it wants at almost no additional cost.
C) As the number of workers at a firm increases, the firm has almost unending opportunities to further specialize the tasks its workers complete, and in each case specialization leads to greater efficiency
D) In order to supply a utility to a house, a utility company must connect the house to some part of its existing infrastructure
Answer:C
Explanation:the firm enjoys the numerical advantage of having division of lab our and diversification in job descriptions
10) Financial intermediaries can substantially reduce transaction costs per dollar of transactions
because their large size allows them to take advantage of
Answer: D) economies of scale.
Explanation:
Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.
Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.
Aloha Inc. has 8 percent coupon bonds on the market that have 11 years left to maturity. If the YTM on these bonds is 10.22 percent, what is the current bond price
Answer:
The answer is $85.73
Explanation:
N(Number of periods) = 11years
I/Y(Yield to maturity) = 10.22 percent
PV(present value or market price) = ?
PMT( coupon payment) = $8
FV( Future value or par value) = $10
We are using a Financial calculator for this.
N= 11; I/Y = 10.22 ; PMT = 8; FV= $100; CPT PV= -85.73
Therefore, the market price of the bond is $85.73
At the organizational level, the Team Leadership Model (TLM) suggests that leaders examine the ________ that may be impacting their team.
Answer:
Reward systems
Explanation:
The Team Leadership is a model that provides a Working environment where members are accountable to the coach and also to the team as a whole.
Team-based reward systems can help increase motivation and collaboration among members of a team, this would help the team goals to be better integrated with better objectives and also serve as a way of getting the whole team to improve
"The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes for the factory payroll are $80,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. Prepare the entry to record the factory labor costs for the month of January"
Answer and Explanation:
The Journal entry is shown below:-
Factory labor Dr, $480,000
To Factory wages payable $400,000
To Employee payroll taxes payable $80,000
(Being factory labor cost is recorded)
Here we debited the factory labor as it increased the expenses and we credited the factory wages payable and employee payroll taxes payable as it also increased the liabilities
Regarding partnering in cooperative alliances, entrepreneurial new companies may seek_____________ while more established companies may need__________.
Answer:
Investment capital; new technological knowledge.
Explanation:
Regarding partnering in cooperative alliances, entrepreneurial new companies may seek investment capital while more established companies may need new technological knowledge.
Cooperative alliances are self-governing and independent association of individuals who voluntarily come together, in order to solve their common cultural, social and economical challenges and aspirations via the jointly owned entity.
When entrepreneurial new companies they would require an investment capital in order to float their respective businesses and as such would request for such capital from the cooperative alliance they belong to.
On the other hand, more established companies would be very much interested in seeking for new technological knowledge since they're well grounded in the business financially. The new technological knowledge would help them to operate efficiently and achieve their organizational goals, aims and objectives.
Argentina can produce either 20 units of cloth or 2 units of wine, while Chile can produce either 24 units of cloth or 12 units of wine. If each country specializes in the good for which it has comparative advantage, the total output by the two countries will be:
Answer:
Their combined production should be 20 clothes and 12 wines.
Explanation:
Argentina's opportunity cost to produce 1 unit of cloth = 0.1 wine
Argentina's opportunity cost to produce 1 unit of wine = 10 clothes
Chile's opportunity cost to produce 1 unit of cloth = 0.5 wine
Chile's opportunity cost to produce 1 unit of wine = 2 clothes
Since Argentina' opportunity cost to produce clothes is lower, then it should specialize int he production of clothes. While Chile should specialize in the production of wine. Their combined production should be 20 clothes and 12 wines.
Which team access level gives the user view only access to QuickBooks Online Accountant firm information, but no access to team and subscription billing and no access to the firm’s books?
Answer:
Basic Access
Explanation:
QuickBooks Online Accountant has three levels of access that can be granted to Team users. These includes:
1. Full Access: this grants the user to perform editing, modifications, update and access firm's QuickBooks Online Accountant.
2. Basic Access: this grants the user to VIEW-ONLY access to QuickBooks Online Accountant firm.
3. Custom Access: this grants the user to pick different mix of permission for the team user.
Hence, the right answer is BASIC ACCESS
Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $8.00. The smallest amount for which you would be willing to wash someone else's car is $5.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it
Answer:
1. The most you would be willing to pay for having a freshly washed car before going out on a
date is $6. The smallest amount for which you would be willing to wash someone else's car is
$3.50. You are going out this evening, and your car is dirty. How much economic surplus
would you receive from washing it?
The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)
minus your cost of doing the job ($3.50), or $2.50.
2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market
for 30 cents per pound. By adding compost to your garden, you can increase your yield as
shown in the table below. If compost costs 50 cents per pound and your goal is to make as much
money as possible, how many pounds of compost should you add?
Pounds
of
compost
Pounds
of
tomatoes
Marginal
Cost
($)
Marginal
Benefit
(pounds)
Marginal
Benefit
($)
Net
Benefits
Marginal
Net
Benefits
0 100 ---- 0 --- 0 ---
1 120 0.50 20 6.00 5.50 5.50
2 125 0.50 5 1.50 6.50 1.00
3 128 0.50 3 0.90 6.90 0.40
4 130 0.50 2 0.60 7.00 0.10
5 131 0.50 1 0.30 6.80 - 0.20
6 131.5 0.50 0.5 0.15 6.45 - 0.35
The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes
that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of
compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than
covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost
gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than
the cost of the compost. You should add 4 pounds of compost and no more.
3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are
allowed to put out as many cans as they wish. The average household disposes of three cans of
garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each
can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not
reusable. What effect do you think the introduction of the tag system will have on the total
quantity of garbage collected in your city? Explain briefly.
In the first case, the cost is $6/week no matter how many cans you put out, so the cost of
disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra
can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag
system, we would expect this system to reduce the number of cans collected.
Explanation:
True or False: Used items like used clothing, electronics, and furniture are included in the computation for GDP because buyers and sellers exchanged money. Explain.
Answer:
False
Used item clothings aren't included in GDP.
The GDP includes only items produced in a given year. The items would have been included in the year they were produced and adding them to GDP again would be double counting
Explanation:
Gross domestic product is the sum of final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export
I hope my answer helps you
Required information Going on a Business Trip to China Business professionals who are high in cultural intelligence possess skills and attributes to work effectively with members of other cultures. They respect, recognize, and appreciate cultural differences; possess curiosity and interest in other cultures; avoid inappropriate stereotypes; adjust conceptions of time and show patience; manage language differences to achieve shared meaning; understand cultural dimensions; establish trust and show empathy across cultures; approach cross-cultural work relationships with a learner mind-set; and build co-cultures of cooperation and innovation. In this exercise, you evaluate the experiences of an operations manager going to China to examine factories and potentially take bids for some of your company's operations. You will notice differences in communication across cultures and analyze the interactions in terms of cultural intelligence and the following cultural dimensions: individualism and collectivism, egalitarianism and hierarchy, future orientation, assertiveness, and humane orientation. Read the case below and answer the questions that follow. Recently, senior managers at Judith Carey's company concluded that some of the company's operations needed to be produced in lower-wage locations for the company to stay profitable. They placed Judith in charge of learning about options in China, a country she had never visited. After several months of making contacts via phone and email, Judith traveled to China to meet some potential manufacturers. She brought two of her staff members along with her on the trip. She also asked Mei, one of the company's sales representatives in China, to join the group and act as an interpreter. Mei had joined the company's sales department in China two years ago. Because she gained a marketing degree in a Canadian university, Mei's English was excellent. The first stop on the trip would be with representatives of the Shunde Manufacturing (SDM) Company, a potential manufacturer for the company's line of dolls. After a long plane trip and a sleepless night at a hotel in Shanghai, Judith started the first day of work in China tired and slightly disoriented. Her team first met the company's president, Bo Chen, and seven other men from SDM for lunch. Judith was seated next to the company's president for the duration of the two-hour lunch, which included course after course of foods Judith had never seen or eaten before. Judith sampled most of the dishes but was clearly uncomfortable. During the meal, the company president asked Judith, "Ms. Carey, what are your impressions of China?" Judith replied, "Well, Bo, I don't really know too much. I'm not quite used to the air here, with all of the pollution. Of course, I've always known about the one-child policy, but not much else. Do you think the policy is fair?" Bo stated, "China and America must solve their problems in their own ways." Then, he talked about the final dish for the meal—a fish. He explained that ending the meal with the fish had special symbolism in China and signaled a prosperous future for their relationship. Near the end of lunch, Bo told Judith, "We'll meet for dinner and a reception later at 6 p.m. I've arranged a tour for you this afternoon. Several of our staff members will take you for a walk along the river, to some beautiful Chinese gardens, and to the Shanghai Museum." Judith was a bit dismayed. She wasn't really in the mood for touring. Rather, she wanted to get down to business, but she obliged for the afternoon tour. During the tour, Judith asked Mei, her interpreter, "What should I do this evening to make sure we can talk about business?" Mei replied, "Tonight, you should make friends with President Chen. Give him a nice toast in front of his employees. Enjoy the wonderful food. Tomorrow you can talk about business." That evening, Judith and her team were taken to a large private room at a restaurant. The SDM Company was now represented by more than 20 employees. Judith and Bo spent most of the dinner discussing family and professional experiences. Judith enjoyed the food, gave a toast mentioning "future cooperation" and thanking "President Chen for his hospitality," and even sang karaoke when invited. The next day, Judith arrived at the company's headquarters. She and her team discussed options for a partnership with SDM representatives for the duration of the day. At the end of the day, both parties agreed to continue their conversations in approximately one month. The first day of the visit is largely spent with lavish banquets and events. Which of the following cultural dimensions can best explain this situation? A-future orientation B-assertiveness C-egalitarianism and hierarchy D-individualism and collectivism
Answer:
The answer is D. individualism and collectivism
Explanation:
Individualism and collectivism looks at the relationship the individual has with others. In high individual ranking, individuality and individual rights are paramount within the society. Judith is from the US where society appreciates a more individualistic attitude and relatively loose bonds with others. On the other hand, Bo is from China where people are integrated from birth into strong cohesive in-groups and the extended family – grandparents, uncles and aunts – is protected in exchange for unquestioned loyalty.
Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth is a. is more efficient and more equal for society. b. is more efficient but less equal for society. c. is more equal but less efficient for society. is less equal and less efficient for society.
Bridget drinks three soda during a particular day. The marginal benefits she enjoys from drinking the third soda. a. can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas. b. determines Bridget's willingness to pay for the third soda. c. is likely different from the marginal benefit provided to Bridget by the second soda.
Answer:
1. c. is more equal but less efficient for society
2. All of the above
Explanation:
1. When taxes reduce the income going to the wealthy and instead redistributes it to the poorer members of society, it increases equality because the poorer members will have some form of income to bridge the gap between them and the rich. However, this may not be good for the efficiency of the society. This is because increasing the income on the wealthier will both reduce the income they have for investment as well as their willingness to work knowing that they will lose some of their rewards to taxes. These 2 things will reduce the output of the society thereby hurting its efficiency.
2. Marginal benefit in terms of production for instance is the extra benefit gained from producing one extra good. It can therefore be calculated by subtracting the total benefit of all the other produced goods from the total benefits of all produced goods including the additional one. In the same way, the marginal benefit of Bridget drinking the third soda can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas.
The marginal benefit that Bridget will get from drinking the third soda will indeed determine what she will pay for it. If she feels that it costs more to her than what she will benefit, she will not buy.
As more of a good is consumed, the marginal benefit decreases in general and is almost never the same. For Bridget therefore, the marginal benefit of the third soda is likely different from the marginal benefit provided to Bridget by the second soda.
The company United Usury Services advertises credit terms that are not actually available. Rather, they are used merely to attract potential buyers. This practice is known as
Answer:
Bait and switch advertising
Explanation:
Bait-and-switch advertising refers to a situation in which a company advertises a good or service at a low price and when customers try to buy the product or service, they find out that it is not available and then, the company try to convince the customers to buy something different that is more expensive. According to this, the answer is that this practice is known as bait and switch advertising because United Usury Services advertised credit terms that they were not actually providing to find people interested and offer them something else.
Whitman Printing has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.
For 2010, Whitman Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that the number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:
Cost Pool Manufacturing overhead costs Activity
Design changes $120,000 200 design changes
Setups 640,000 4,000 setups
Inspections 80,000 16,000 inspections
Total manufacturing overhead costs $840,000
During 2010, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:
Activity Money Managers Hospital Systems
Pages 60,000 76,000
Design changes 10 2
Setups 20 10
Inspections 30 38
When costs are assigned using the single cost driver, number of pages printed, then Hospital Systems will ___?
a. contribute too little to profits, and Wallace Printing will not want to accept additional work from the company.
b. Will likely seek to do business with competitors
c. Is grossly under billed for the job, while other jobs will be unfairly over billed.
d. Is fairly billed because resources are allocated uniformly to all jobs.
Answer:
a. contribute too little to profits, and Wallace Printing will not want to accept additional work from the company.
Explanation:
For reaching any conclusion first we have to determine the cost assigned by using the single cost driver which is shown below:
= Rate × Pages printed
= ($840,000 ÷ 12,000,000) × 76,000
= $5,320
And Cost assigned using ABC is
= (120,000 ÷ 200) × 2 + (640,000 ÷ 4000) × 10 + (80,000 ÷ 16000) × 38
= $2,990
By this above calculation, the first option is chosen as the cost are high as compared to the ABC while on the other hand the profit would be NIL
You Save Bank has a unique account. If you deposit $8,000 today, the bank will pay you an annual interest rate of 3 percent for 5 years, 3.6 percent for 4 years, and 4.3 percent for 8 years. How much will you have in your account in 17 years
Answer:
Total money after 17 years = $14962
Explanation:
Given present value or mount deposited today = $8000
Annual interest rate for 5 years = 3 %
Annual interest rate for 4 years = 3.6 %
Annual interest rate for 8 years = 4.3 %
Now we have to calculate the total amount after 17 years. Below is the calculation.
[tex]Total \ amount = 8000(1 + 0.03)^{5} (1+ 0.036) ^{4} (1+ 0.043 ) ^{8} \\Total \ amount = $14962[/tex]
Computing first-year depreciation and book value
At the beginning of the year, Austin Airlines purchased a used airplane for $33,500,000. Austin Airlines expects the plane to remain useful for five years (4,000,000 miles) and to have a residual value of $5,500,000. The company expects the plane to be flown 1,100,000 miles during the first year.
Requirements
1. Compute Austin Airlinesâs first-year depreciation expense on the plane using the following methods:
a. Straight-line
b. Units-of-production
c. Double-declining-balance
2. Show the airplaneâs book value at the end of the first year for all three methods.
Answer:
1. Compute Austin Airlines' first-year depreciation expense on the plane using the following methods:
a. Straight-line
depreciation expense for first year = ($33,500,000 - $5,500,000) / 5 = $5,600,000 per year
b. Units-of-production
depreciation per mile = ($33,500,000 - $5,500,000) / 4,000,000 = $7 per mile
depreciation expense for first year = $7 x 1,100,000 = $7,700,000
c. Double-declining-balance
depreciation expense for first year = 2 x 1/5 x $33,500,000 = $13,400,000
2. Show the airplane's book value at the end of the first year for all three methods.
a. Straight-line
book value at end of first year = $27,900,000
b. Units-of-production
book value at end of first year = $25,800,000
c. Double-declining-balance
book value at end of first year = $20,100,000
Explanation:
Purchase cost = $33,500,000
useful life of 5 years (or 4,000,000 miles) and residual value of $5,500,000
expected use during first year of 1,100,000 miles
Zhao Co. has fixed costs of $403,200. Its single product sells for $183 per unit, and variable costs are $120 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Answer:
Margin of safety in dollars = $658800
Margin of safety percentage = 0.36 or 36%
Explanation:
The margin of safety in dollars is the number of revenue that a business earns in excess of its break even level of revenue. Thus, the formula for the margin of safety in dollars is,
Margin of safety in dollars = Revenue at current sales level - Revenue at break even sales level
We must first determine the level of sales at the break even point.
The break even point in dollars can be calculated as follows,
Break even in dollars = Fixed cost / Contribution margin ratio
Where,
Contribution margin ratio = (Selling price per unit - Variable cost per unit) / Selling price per unit
Break even in dollars = 403200 / [(183 - 120) / 183]
Break even in dollars = $1171200
Margin of safety in dollars = (10000 * 183) - 1171200
Margin of safety in dollars = $658800
Break even point in units = 1171200 / 183 = 6400 units
Margin of safety as a percentage of expected sales is,
Margin of safety percentage = (10000 - 6400) / 10000
Margin of safety percentage = 0.36 or 36%
During the coming year, Colgate expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $35,000. (a) If sales for 2015 remain at 13,000 units, what price should Colgate charge to obtain the same profit as last year? Round to the nearest cent.
Answer: $130.69
Explanation:
Colgate made a Net Income of $167,000 in 2014 and sold 13,000 units.
Variable costs were $663,000 and fixed costs were $730,000.
Variable costs are to increase by $8 per unit and fixed costs by $35,000.
Price to sell at to maintain same profit as last year will be x
167,000 = 13,000x - (Old + New Variable cost) - ( Old + New Fixed Cost)
167,000 = 13,000x - (663,000 + (8* 13,000)) - ( 730,000 + 35,000)
167,000 = 13,000x - 767,000 - 765,000
167,000 = 13,000x - 1,532,000
13,000x = 1,699,000
x = 1,699,000/13,000
x = $130.69
State the immediate effect of each of the following actions on M1 and M2: Instructions: If there is no change in M1 or M2, enter zero as your response. a. Barry writes his plumber a check for $200. The plumber takes the check to the bank, keeps $50 in cash, and deposits the remainder in his savings account. M1 declines by $ 0 . M2 does not change by $ 0 . b. Maureen deposits the $1,000 from her CD in a money market mutual fund. M1 does not change by $ 0 . M2 does not change by $ 0 . c. Sylvia withdraws $50 in cash from her savings account. M1 rises by $ 0 . M2 does not change by $ 0 .
Answer:
M1 is a measure of money that includes the most liquid of cash instruments such as physical cash, checkable deposits, and traveler's checks.
M2 is the next level in the money hierarchy and includes M1 along with less liquid instruments such as savings deposits, certificates of deposits, as well as money market funds.
a. Barry writes his plumber a check for $200. The plumber takes the check to the bank, keeps $50 in cash, and deposits the remainder in his savings account.
M1 declines by $150.
Barry's Checkable deposit was reduced by $200 and only $50 remained as cash with the plumber with the rest going to a savings account. that $50 is the only M1 measure left as savings do not fall under M1.
M2 does not change
Both M1 and savings fall under M2 so this does not change.
b. Maureen deposits the $1,000 from her CD in a money market mutual fund.
Both M1 and M2 do not change.
Neither CDs nor Money Market Mutual funds fall under M1 so it is not affected.
Both CDs and Money Market Mutual funds fall under M2 so it is not affected as well.
c. Sylvia withdraws $50 in cash from her savings account.
M1 rises by $50
Cash increased by $50 and cash is an M1 measure so M1 will increase by $50.
M2 does not change.
Both the Savings Account and M1 are part of M2 so M2 does not change.
Imagine that you are a senior executive of a large organization such as Starbucks that has geographically scattered operating units. What would NOT be on your agenda?
Answer:
Orchestrate the action steps and the implementation sequence for each operational unit.
Explanation:
A senior executive at a large organization like Starbucks has great responsibilities for managing a company correctly, such as making important decisions, allocating resources to the right places, and directing other people's activities to achieve goals.
Therefore, among its functions are, to establish a clear and effective communication about important organizational changes and behaviors, to establish deadlines and measures to reach objectives and to build consensus on certain procedures.
However, each operating unit of the company contains a specific management responsible for orchestrating the implementation and the actions necessary for the success of the unit, so this is not the function of a senior executive.
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $126,480. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Volume Direct Labor Hours Per Unit Flutes 2,100 units 0.4 Clarinets 800 1.5 Oboes 1,400 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. $ per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products. Total Factory Overhead Cost Per Unit Factory Overhead Cost Flutes $ $ Clarinets Oboes Total $
Answer:
Bach Instruments Inc.
a. Single plantwide factory overhead rate:
= Total overhead/total labor hours = $126,480/3,720 = $34 per hour
b. Total Factory Overhead Cost
Labor Per Unit Cost Product units Total Costs
Hours (Labor hours x $34) per product
Flutes 0.4 $13.60 2,100 $28,560
Clarinets 1.5 51.00 800 40,800
Oboes 1.2 40.80 1,200 57,120
Total $126,480
Explanation:
a) Data & Calculations:
Budgeted factory overhead = $126,480
Budgeted Direct labor Total
Production Volume hours per unit Hours
Flutes 2,100 units 0.4 840
Clarinets 800 1.5 1,200
Oboes 1,400 1.2 1,680
Total hours 3,720
c) Plantwide overhead allocation per unit = $126,480/3,720 = $34
d) The plantwide overhead rate is the dividend from total overhead costs and total labor hours. This rate is applied to the products based on the number of hours used to product a unit to obtain the per unit cost rate for each product. The resulting rate is further applied to the units produced in each product type to get the total cost of overhead for each product.