Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below: Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of diners Number of parties served $ 33,000 6,000 parties Serving a diner Number of diners served $ 138,000 15,000 diners Serving a drink Number of drinks ordered $ 24,000 10,000 drinks The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $240,000 and that 15,000 diners had been served. Therefore, the average cost per diner was $16.
Required:
1. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (Round your intermediate calculations and final answers to 2 decimal places.)
a. A party of four dinners who order three drinks-?
b. A party of two dinners who do not order any drinks-?
c. A party of one dinner who order two drinks-?
2. Convert the total costs you computed in (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? (Round your intermediate calculations to 2 decimal places and final answers to 3 decimal places.)
a. A party of four dinners who order three drinks-?
b. A party of two dinners who do not order any drinks-?
c. A party of one dinner who order two drinks-?

Answer:

If Brett Thiesen wants to make a political case for regional economic integration to his electorate, the valid statement he can make in this regard is

E) free trade stimulates economic growth, which creates dynamic gains from trade.

Explanation:

Free trade among regional countries is the only sure way to "stimulate economic growth and create dynamic gains from trade."  According to wikipedia.com, "Free trade is a trade policy that does not restrict imports or exports.  It can also be understood as the free market idea applied to international trade."  It is free trade system that created the European economy, enabling them to replace their national currencies with the Euro.  Regional free trade also encourages the movement of not only goods, but also persons and services, and cultures.

Answer:

a. Straight Line Method for 2017

depreciation expense per year = ($162,702 - $17,802) / 5 years = $28,980

depreciation expense (August to December 2017) = $28,980 x 5/12 = $12,075

b. Sum-of-the-years'-digits for 2018

depreciation expense year 1 = 5/15 x $144,900 = $60,375 / 12 months = $5,031.25 per month

depreciation expense year 2 = 4/15 x $144,900 = $48,300 / 12 months = $4,025

depreciation expense January 2018 - July 2018 = $5,031.25 x 7 = $35,218.75

depreciation expense August 2018 - December 2012 = $4,025 x 5 = $20,125

depreciation expense 2018 = $35,218.75 + $20,125 = $55,343.75

c. Double-declining-balance for 2018

depreciation expense year 1 = 2 x 1/5 x $162,702 = $65,080.80 / 12 months = $5,423.40 per month

depreciation expense year 2 = 2 x 1/5 x $97,621.20 = $39,048.48 / 12 months = $3,254.04

depreciation expense January 2018 - July 2018 = $5,423.40 x 7 = $37,963.80

depreciation expense August 2018 - December 2012 = $3,254.04 x 5 = $16,270.20

depreciation expense 2018 = $37,963.80 + $16,270.20 = $54,234

Answer:

a. No, if this income is not likely to be reported to the government.

Explanation:

The GDP refers to the gross domestic product which refers to the finalized value of the goods and services that are produced in the domestic country

In the given case since the job is done on an odd basis and the payment is made without any bill or evidence which is treated as an ineligible for the tax payment

Therefore the correct option is a.

Answer: d. 3.82%

Explanation:

ROE = Net Income / Equity so Equity need to be ascertained.

1.75 = Total Assets/ Total Equity

Total Equity = Total Assets/ 1.75

1.33 = Revenue / Total Assets

Total Assets = Revenue / 1.33

= 320,000/1.33

= $240,601.50

Total Equity = 240,601.50/1.75

= $137,486.57

Old ROE = 10,549/ 137,489.57

= 0.07672582

= 7.67%

New ROE = (10,549 + 5,250) / 137,489.57

= 0.11491053466

= 11.49%

Difference = 11.49 - 7.67

= 3.82%

≤

Explanation:

                               Drive through                Full Service

Annual revenue          200,000                       500,000

Cost                               100,000                        150,000

Income                           100,000                        350,000

Employee                            5                                   15

Income / employee         20,000                        23,333.33

Using simultaneous equation ,

Let X represent the drive through service  ,and Y represent the full service restaurant

Budget = 100,000x + 150,000y ≤ 2,400,000  (equation 1)

Employer = 5x + 15y ≤ 210   (equation 2)

(Divide equation 1 by 10 ,000)

                     10x+ 15y ≤ 240 (equation 3)

Using elimination method, multiply equation 2 by -2

                      10x +15y ≤240

                      -10x - 30y ≤-420

                        -15y ≤ -180

                             y≤ -180/-15

y = 12

substitute y = 12 in equation 3

10x + 15y≤240

10x +180 ≤240

10x≤240-180

10x≤60

x≤6

12         1,800,000      180

6           600,000         30

6 drive through services and 12 full services should be opened.

                           6 Drive through                12 full service            20

Cost                             600,000                      1,800,000           2,400,000

Employees                      30                                 180

Net income                     600,000                    4,200,000

Available Options are:

A. higher in City A than City B.

B. higher in City B than City A.

C. identical in both cities.

D. dependent on non-property tax revenues in each.

Answer:

Option B. Higher in the city B than in city A.

Explanation:

If we talk about the assessment ration, then it is calculated as under:

Assessment ratio = Value of property assessed by municipality / Fair Market value of the property

This ratio helps in calculating the property tax for each year and if the ratio is higher then the property tax rate will be set higher to collect the target property tax revenue and vice versa.

As in this case, the assessment ratio of company B is 100% which is higher than city A, which means that the city B will require higher tax rates to collect the target property tax revenue.

Hence the property tax rate in city B will be higher than City A to collect the same target property tax revenue.

Answer:

a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018

we must first determine the market price of the bonds:

PV of face value = $2,000,000 / (1 + 5%)²⁰ = $753,778.97 ≈ $753,779

PV of coupon payments = $110,000 x 12.462 (PV annuity factor, 5%, 20 periods) = $1,370,820

market value of the bonds = $753,779 + $1,370,820 = $2,124,599

January 1, 2018, bonds are issued at a premium

Dr Cash 2,124,599

    Cr Bonds payable 2,000,000

    Cr Premium on bonds payable 124,599

b. Prepare a bond amortization schedule up to and including January 1, 2022

since we are not told which amortization method to use, I will use the straight line method.

Date           Interest        Cash              Premium          Carrying

                  expense      paid               amortization     value

7/2018        $103,770     $110,000       $6,230             $2,118,369

1/2019         $103,770     $110,000       $6,230             $2,112,139

7/2019        $103,770     $110,000       $6,230             $2,105,909  

1/2020        $103,770     $110,000       $6,230             $2,099,679    

7/2020       $103,770     $110,000       $6,230             $2,093,449

1/2021         $103,770     $110,000       $6,230             $2,087,219  

7/2021        $103,770     $110,000       $6,230             $2,080,989                              

1/2022        $103,770     $110,000       $6,230             $2,074,759                                

c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.

bond premium amortization per coupon = 124,599 / 20 = $6,229.95 ≈ $6,230

January 1, 2020, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

    Cr Cash 110,000

January 1, 2021, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

    Cr Cash 110,000

d. Prepare the journal entry to record the bond called on January 2021 at 106

Dr Bonds payable 2,000,000

Dr Premium on bonds payable 87,219

Dr Loss on retirement of debt 32,781

    Cr Cash 2,120,000

Answer:

Compensatory Damages

Explanation:

Based on this scenario it can be said that Donald is entitled to Compensatory Damages. This is a lawsuit that covers the loss that the non-breaching party incurred as a result of the breach of contract. In this scenario, Donald's employer breached the contract by firing Donald before the twelve months. Therefore Donald can sue for compensatory damages which would be the amount of money that he would have made in the rest of the twelve months.

Answer:

$23,200

Explanation:

                              Alternative 1               Alternative 2            Incremental

                              no repairs                   repair units              revenue

sales revenue       $31,200                       $0                            ($31,200)

repair costs           $0                                -$18,400                  ($18,400)

revenue from        $0                                $72,800                  $72,800

selling repaired units                                                                                    

total                                                                                            $23,200

Incremental revenues refer to the extra or additional revenues generated by a business activity or transaction. In this case, repairing and then selling the damaged units would increase income by $23,200.

Answer:

The answer is question marks

Explanation:

Boston Consulting Group (BCG) growth-share matrix are grouped into four:

Star

Question mark

Cash cows

Dogs.

Question mark, which is of interest to us in this question requires much closer consideration. They are growing rapidly and as a result consume large amounts of money.They have low market shares but have potential to gain market share and become stars and eventually cash cows when market growth slows At that stage(question marks), they do not generate much cash.

They are a starting point for most businesses.

Answer:

Expected rate of return= 21.8 %

Explanation:

The capital asset pricing model is a risk-based model for estimating the return on a stock.. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM,

E(r)= Rf + β×(Rm-Rf)

E(r)- expected return- ?

Rf-risk-free rate- 5%

β= Beta - 1.4

(Rm-Rf) - 12

E(r) = 5% + 1.4× (12%)= 21.8 %

Expected rate of return= 21.8 %

Answer:

$4

Explanation:

The conversion price of the convertible bonds set at issuance was $5 per share ($1000 par/200 conversion ratio). If the company issues more common shares, the market value of outstanding shares will fall. For instance, if the common stock price is trading at $5, Therefore, the bond and the common are at parity. If 25% more share isnissued by the company as it does in the aforementioned example -- there would be $1000000 share of common at $5 par or 200000 shares outstanding and the company intends to share 50000 more  shares, or 25% more), the adjusted conversion price of the stock after issuance will now become $5/1.25 = $4 per share.

Nonetheless, i the conversion isn't being adjusted, the convertible security which was  "at the money" goes "out the money". The protect convertible security holders, an anti-dilutive covenant is included in the trust indenture. The conversion price is adjusted for these dilutive effects. The new conversion pricewill be $5 original price/1.25 = $4

Answer:

64.5%

Explanation:

The requirements of this question is to calculate increase in net operating income.

Increase = 15 percent

Operating leverage = 4.3

increase in net operating income.

Operating leverage x sales increase

= 15 x 4.3

= 64.5%

I hope this answer is helpful.

Answer:

B. The operating leverage for Turner now is 0.47  ⇒ TRUE

operating leverage = fixed costs / total costs = $240,000 / $510,000 = 0.47

C. Turner makes a contribution of $0. 57 per dollar of revenue, on the average.  ⇒ TRUE

total contribution margin = ($20 x 9,000) + ($30 x 6,000) = $180,000 + $180,000 = $360,000

total revenue = $630,000

contribution margin per $ of revenue = $360,000 / $630,000 = $0.57

D. Turner will break even when it reaches a revenue of $420,000.  ⇒ TRUE

break even point in $ = (6,000 x $30) + (4,000 x $60) = $180,000 + $240,000 = $420,000

Explanation:

A. 40% of Turner's revenue comes from P2  ⇒ FALSE

total revenue = $270,000 + $360,000 = $630,000

revenue from P2 = $360,000, which represents 57.14% of total revenue

E. The breakeven volume for Turner is 9,334 units ⇒ FALSE

in order to calculate break even point, we can prepare a bundle of products = 3P1 + 2P2

contribution margin per bundle = $120

break even point = $240,000 / $120 = 2,000 bundles

6,000 P1 and 4,000 P2

Answer:

$5,830

Explanation:

Relevant data provided

Cash paid = $5,300

Transportation cost = $320

Installation fees = $210

The computation of the amount that will record the dishwasher is shown below:-

Total cost = Cash paid + Transportation cost + Installation fees

= $5,300 + $320 + $210

= $5,830

Therefore for computing the total cost we simply applied the above formula and ignore all other values as they are not relevant.

Answer:

January 1, 2019, loan received from bank

Dr Cash 90,000

    Cr Notes payable 90,000

January 1, 2020, first installment paid

Dr Notes payable 22,500

Dr Interest expense 4,500

    Cr Cash 27,000

January 1, 2021, second installment paid

Dr Notes payable 22,500

Dr Interest expense 3,375

    Cr Cash 25,875

January 1, 2022, third installment paid

Dr Notes payable 22,500

Dr Interest expense 2,250

    Cr Cash 24,750

January 1, 2023, fourth installment paid

Dr Notes payable 22,500

Dr Interest expense 1,125

    Cr Cash 23,625

Answer:

Inventory Dr  $77,175

      To Accumulated depletion  $77,175

(being the depletion is recorded)

Explanation:

The journal entry is shown below:

Inventory Dr  $77,175

      To Accumulated depletion  $77,175

(being the depletion is recorded)

For recording this we debited the inventory as it increased the assets and credited the accumulated depletion as it decreased the assets

The computation is shown below:

=  (Cost of coal mine + intangible development cost + estimated fair value of the obligation - sales value) ÷ (extracted estimated tons) × (extracted tons for the first year)

= ($420,000 + $105,000 + $84,000 - $168,000) ÷ (4,200 tons) × (735 tons)

= $77,175

Answer:

1.B

2.B

3.A

4.B

5.A

6.A

7.A

8.A

9.B

10.A

Explanation:

The Net Income is adjusted with non-cash items and changes in working capital to reach Net Cash Flow from Operating Activities.

The Non Cash Expenses previously deducted must be added back whilst the Incomes previously included must be deducted from it.

The items that increase Working Capital must be deducted whilst items that decrease working capital must be added back.

Answer:

e) 118.3.

Explanation:

days' sales in inventory = (average inventory x 365 days) / cost of goods sold year 2

days' sales in inventory = ($129,000 x 365 days) / $398,000 = 118.30 days

Days' sales in inventory measures how much time it takes on average for a company to sell its inventory.

Answer:

a) geographic diversification strategy.

Explanation:

In this scenario, Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. The type of diversification strategies the firm is pursuing is a geographic diversification strategy.

Geographical diversification strategy can be defined as the process of diversifying your investments across various geographical regions (market) so as to improve profits or returns on investment and primarily to mitigate the overall business risk.

Hence, using the geographic diversification strategy Symphon Times Inc., is spreading its risk across various geographical regions or emerging nations by allocation of its resources in order to prevent them from being vulnerable to external conditions and to improve their performance and competitiveness. Thus, a geographic diversification strategy is simply a business management strategy that entails "not putting all your eggs in a basket" rather you should have them spread across in order to prevent or mitigate the overall risks.

Additionally, in order to preserve wealth and to reduce portfolio risks it is advisable that business owners such as Symphon Times Inc. engage in geographic diversification strategy.

Answer:

1. True

Explanation:

Work in process inventory is inventory that is still undergoing processing.  When the processing is completed, the goods (inventory) become finished goods.  And they are transferred to Finished Goods Inventory as cost of goods manufactured.  Finished Goods Inventory represents goods that are available for sale.  The cost of finished goods inventory also forms part of the cost of goods sold, which is used in determining the gross profit.  Accounting for work in process inventory is part of the multi-step system of accumulating and allocating cost of production to finished goods.

Answer:

The cost of preferred stock today is $114.14

Explanation:

To calculate the cost of preferred stock today, we first need to determine the cost of each share of preferred stock 11 years from now when it starts paying dividends and then discount it back to today's value.

The preferred stock pays a constant dividend and after equal interval of time for an indefinite period. Thus, it is like a perpetuity. The present value of perpetuity is,

Present value = Dividend / r

Where,

r is the required rate of return

Value Year 11 = 13 / 0.06

Value Year 11 = 216.6666667

The present value is,

Present value = 216.6666667 / (1+0.06)^11

Present value = $114.137 rounded off to $114.14

Answer:

5.36%

Explanation:

We would need to calculate the yield to maturity of the current bonds:

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

YTM = {$30 + [($1,000 - $1,083)/40]} / [($1,000 + $1,083)/2] = $27.925 / $1,041.50 = 0.026812 x 2 = 0.05362 = 5.36%

Since the bond's coupon rate is higher than the market rate, the bonds are sold at a premium. In order to sell bonds at the par value, you must lower the coupon rate.

Answer:

B)

Explanation:

Cultural competence refers to the ability to understand, communicate with, and effectively interact with people across various cultures. Therefore the best policy to achieve this would be recruiting culturally diverse health care providers to staff the institution. Making sure that the staff is culturally diverse will increase the institutions probability of being able to properly interact and understand all cultures that they do business with.

Answer:

The best aid to accomplish this is a knowledge of the foreign country's history

Explanation:

If Tomas wants to understand the way people in different countries think and act then he has to have a knowledge of the history of these people from different countries so that the company can serve them appropriately. This would help to foster better customer service delivery and also aid in effective communication. This is a great step towards success for the company.

Answer:

U.S. Tax Burden on Cola:

The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.

The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

a. True

b. False

Explanation:

The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5).  However, the cash received by producers reduced by $3 from $5  to $2.  This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).

This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.

"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone.   This because the price of cola would have increased to $9 per unit.  Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.

The amount of the tax on a case of cola is $4 per case. Of this amount, the tax burden that falls on consumers is $1 per case, and the burden that falls on producers is $3 per case.

Tax Burden is a measure of the tax liability imposed by the government on the citizens of a country.

The tax burden on consumers, represented by the price difference of cola from $ 5 to $ 6 per unit is $ 1 ($ 6 - $ 5).

However, producers' revenue has been reduced by $3 from $ 5 to $2.

This indicates that the total tax burden on both buyers and producers is $4 ($ 1 + $ 3).

This represents a total tax burden of $4 or approximately 67% based on the new sales value of cola or 80% based on the old sales value of cola.

Therefore, The statement is true; "The impact of taxes on the sale price would be huge if the tax was levied on consumers alone. This is because the price of cola would increase to $ 9 per unit.

To learn more about tax burden, refer:

https://brainly.com/question/25791968

Answer:

$56,000

Explanation:

Data:

Cost of good sold (single) = $50,000

Weighted average rate of the year = $1.12

Cost of good sold consolidated = ???????

Solution:

In order to find the translated amount of cost of goods sold that should appear in the consolidated income statement, we will multiply the cost of goods sold given for Canadian subsidiary with the weighted average rate of the year.

Calculation:

Cost of good sold (consolidated) = $50,000 x $1.12

Cost of good sold (consolidated) = $56,000

Answer:

Future Value= $814.45

Explanation:

Giving the following information:

Initial investment= $500

Interest rate= 5% interest compounded annually.

Number of years= 10

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 500*(1.05^10)

Future Value= $814.45

Answer:

                                              Firm A           Firm B            Firm C

Total assets, 12/31/16           $417,000     $536,000      $316,000

Total liabilities, 12/31/16         216,000        144,000      $184,000

Paid-in capital, 12/31/16           75,000       $85,000          37,000

Retained earnings, 12/31/16 $126,000      307,000       $95,000

Net income for 2016              $94,000        85,000         117,000

Dividends declared and         44,000            9,000         66,000

paid during 2016

Retained earnings, 1/1/16        76,000      $231,000         44,000

Explanation:

                                               Firm A           Firm B            Firm C

Total assets, 12/31/16           $417,000     $536,000      $316,000

Total liabilities, 12/31/16         216,000        144,000           _____

Paid-in capital, 12/31/16           75,000          _____           37,000

Retained earnings, 12/31/16     _____        307,000           _____

Net income for 2016                _____          85,000         117,000

Dividends declared and         44,000            9,000         66,000

paid during 2016

Retained earnings, 1/1/16        76,000           _____         44,000

we can use the following two basic formulas to determine the missing amounts:

ending balance retained earnings = beginning balance + net income - dividends paid

paid in capital = assets - liabilities - retained earnings

firm A:

417,000 - 216,000 - 75,000 = 126,000

126,000 + 44,000 - 76,000 = 94,000

firm B:

536,000 - 144,000 - 307,000 = 85,000

307,000 - 85,000 + 9,000 = 231,000

firm C:

44,000 + 117,000 - 66,000 = 95,000

316,000 - 37,000 - 95,000 = 184,000