Answer:
a. The dividends received deduction for Rose Corporation is $ 280,000
b. The dividends received deduction for Pansy Corporation is $ 280,000
c. The dividends received deduction for Daffodil Corporation is $ 320,000
Explanation:
a. The dividends received deduction for Rose Corporation would be calculated as follows:
dividends received deduction for Rose Corporation=Qualifying dividends*70%
dividends received deduction for Rose Corporation=$400,000*70%
dividends received deduction for Rose Corporation=$280,000
The dividends received deduction for Rose Corporation is $ 280,000
b. The dividends received deduction for Pansy Corporation would be calculated as follows:
dividends received deduction for Pansy Corporation=Qualifying dividends*70%
dividends received deduction for Pansy Corporation=$400,000*70%
dividends received deduction for Pansy Corporation=$280,000
The dividends received deduction for Pansy Corporation is $ 280,000
c. The dividends received deduction for Daffodil Corporation would be calculated as follows:
dividends received deduction for Daffodil Corporation=Qualifying dividends*70%
dividends received deduction for Daffodil Corporation=$400,000*80%
dividends received deduction for Daffodil Corporation=$320,000
The dividends received deduction for Daffodil Corporation is $ 320,000
Do you think the Business practices in an Islamic country are likely differ from Business practices in the United States? If so, how?
Explanation:
Yes, the business practices of an Islamic country certainly differ from the business practices of the United States, starting with the significant cultural differences between those countries, including differences in the rules of etiquette, employee benefits, communication, the presence of women in the workplace, etc.
There is also strict government control in companies in Islamic countries, which obliges them to follow certain religious laws and regulations, which prevents them from managing an organization more aggressively with regard to paying interest and establishing a culture geared towards receiving "fair" profits, while business in the United States survives without obligation to comply with religious laws or impede profit.
Acme Inc. has the following information available:
Actual price paid for material $1.00
Standard price for material $0.90
Actual quantity purchased and used in production 100
Standard quantity for units produced 110
Actual labor rate per hour $ 15
Standard labor rate per hour $ 16
Actual hours 200
Standard hours for units produced 220
1. Compute the material price and quantity, and the labor rate and efficiency variances.
2. Describe the possible causes for this combination of favorable and unfavorable variances.
Answer:
1. Computation of variances
a. Material Price Variance = (Actual Price - Standard Price) x Actual Quantity
= ($1 - $0.9) x 100
= $10 U
b. Material Quantity Variance = (Actual Quantity - Standard Quantity) x Standard Price
= (100 - 110) x $0.9
= $9 F
c. Labor Rate Variance = (Actual Rate - Standard Rate) x Actual hours
= ($15 - $16) x 200
= $200 F
d. Labor Efficiency Variance = (Actual hours - Standard hours) x Standard Rate
= (200 - 220) x $16
= $320 F
2. Description of the possible causes for this combination of these variances
a. This could be due to scarcity of resources or major demand for this material, thus prices increasing in the market. Or could be purchase of high quality material than budgeted.
b. This could be because of purchase of higher quality material thus lower damages and could also be due to the efficiency of manufacturing plants.
c.This could be because of the use of less qualified cheap labor.
d.This could be due to good management of labors and strict overseeing, co-ordination of their work activities.
The entries to record cost and sale of a finished good on account is Group of answer choices debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales debit Cost of Goods Sold, credit Finished Goods debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales
Answer:
a. debit Cost of Goods sold, credit Finished Goods, debit Account Receivable, credit Sale
Explanation:
The journal entry is shown below:
For the cost of finished goods
Cost of goods sold Dr XXXXX
To Finished goods XXXXX
(Being the cost of finished goods is recorded)
For recording this we debited the cost of goods sold as it increased the expenses and credited the finished goods as it decreased the assets
For the sale of finished goods on account
Account receivable Dr XXXXX
To Sales XXXXX
(Being the sale of finished goods on account is recorded)
For recording this we debited the account receivable as it increased the assets and credited the sales as it also increased the revenue
You just opened a brokerage account, depositing $4,500. You expect the account to earn an interest rate of 8.57%. You also plan on depositing $3,000 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?
Answer:
$74108
Explanation:
Solution
Given that:
Deposit = $4,500
Interest rate =8.57%
Plan to deposit =$3000 at the end of 5 years through 1
n= 20 years
Now
We apply the formula given below:
A=P(1+r/100)^n
Here
A=future value
P=present value
r=rate of interest
n=time period.
Thus
=4500(1.0857)^20+3000(1.0857)^15+3000(1.0857)^14+3000(1.0857)^13+3000(1.0857)^12+3000(1.0857)^11+3000(1.0857)^10
=$74108
Therefore the account value at 20 years (ending) is $74108
Assume that the risk-free rate is 4.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 2
Answer:
Required rate of return= 21.5 %
Explanation:
The capital asset pricing model is a risk-based model. 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. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate, β= Beta, Rm= Return on market.
Using this model,
Ke= 4.5% + 2(13-4.5%)
= 21.5 %
Required rate of return= 21.5 %
Feather Tissues Inc. decided to change the color of its tissue box from red to blue because blue was thought to be visually pleasing to consumers at the time of purchase. The change in color represents the ________ aspect of packaging.
Answer:
aesthetic
Explanation:
Based on the information provided within the question it can be said that the change in color represents the aesthetic aspect of packaging. An aesthetic aspect refers to making sure that the packaging has an overall pleasant, positive, beautiful, or artful appearance in order to evoke positive emotions on the viewer. Which in this scenario is exactly what Feather Tissues Inc. is trying to accomplish by changing the color from red to blue, in order to please/attract their customers and in term increase sales.
You need to make 70
servings of Caesar dressing,
Each serving takes 2
teaspoons of crushed garlic,
How many teaspoons of
crushed garlic do you need?
Answer:
Answer:
140 teaspoons of crushed garlic.
Explanation:
Since you're going to make 70 servings and each requires 2 tsp of crushed garlic, we simply multiply 70 x 2.
I hope this helps :)
The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of a digital video monitor.
a. Purchased $168,500 of materials.
b. Used $149,250 of direct materials in production.
c. Incurred $360,000 of direct labor wages.
d. Incurred $120,000 of factory overhead.
e. Transferred $600,000 of work in process to finished goods.
f. Sold goods for $875,000.
g. Sold goods with a cost of $525,000.
h. Incurred $125,000 of selling expenses.
i. Incurred $80,000 of administrative expenses.
Using the information given, complete the following:
a. Prepare the January income statement for the Digital Vibe Manufacturing Company.
b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.
Answer:
1. Income Statement for Digital Vibe Manufacturing company
For the Month ended January 31
Sales 875,000
Cost of goods sold 525,000
Gross Profit 350,000
Operating Expenses:
Selling expenses 125,000
Administrative expenses 80,000
Total Operating expenses 205,000
Net Income $145,000
B.
1. Ending material inventory = Material purchased - Used material in production
= 168,500 - 149,250
= $19,250
2. Ending work in Process inventory = Material used in production + Direct labor + Factory overhead - Transferred of work in process to finished goods
= 149,250 + 360,000 + 120,000 - 600,000
=$29,250
3. Ending finished goods inventory = Transfer from work in progress - Cost of goods sold
= 600,000 - 525,000
= $75,000
A hospital purchased new MRI equipment and intended to be used for 4 years. The information is given below. As part of the warranty agreement, the maintenance costs will be waived for the first 4 years. At MARR of 29% per year, determine the minimum revenue per year to realize the expected recovery and return.
Answer:
the information is missing but I looked for a similar question that can help as an example (hopefully it will be the same):
purchase cost $750,000
useful life 4 years, salvage value $150,000
discount rate 29%
in order to answer this question, we would need to calculate a cash flow that results in NPV = 0
0 = -$750,000 + CF/1.29 + CF/1.29² + CF/1.29³ + (CF + $150,000)/1.29⁴
$750,000 = CF/1.29 + CF/1.29² + CF/1.29³ + (CF + $150,000)/1.29⁴
$750,000 = 0.7752CF + 0.6009CF + 0.4658CF + 0.3611CF + $54,166.70
$695,833.30 = 2.203CF
CF = $695,833.30 / 2.203 = $315,857.15
Splish Brothers Inc. issues $257,000, 10-year, 8% bonds at 99. Prepare the journal entry to record the sale of these bonds on March 1, 2022.
Answer:
Par value of bonds = $257,000
Issue price of bonds = 99
Cash receipts from issue of bonds = 257,000 x 99% = 254,430
Discount on bonds payable = Par value of bonds - Cash receipts from issue of bonds
= 257,000-254,430
= $2,570
Date Account Titles and Explanation Debit Credit
March 1 Cash $254,430
Discount on bonds payable $2,570
Bonds payable $257,000
(To record issuance of bonds)
Question 3
You are the Chief Operations Officer responsible for overall company operations in ATCHULO Company Ltd, a large courier company in Ghana. Your company has 16 regional offices (terminals) scattered around the country in each of the regional capitals and a main office (hub) located in the capital city of the country. Your operations are strictly domestic. You do not accept international shipments.
The day at each terminal begins with the arrival of packages from the hub. The packages are loaded onto trucks for delivery to customers during morning hours. In the afternoon, the same trucks pick up packages that are returned to the terminal in late afternoon and then shipped to the hub where shipments arrive from the terminals into the late evening and are sorted for delivery early the next day for the terminals.
Examiner: Dr. Abubakari Atchulo Page 1 of 2
Each terminal in your company is treated as an investment centre and prepares individual income statements each month. Each terminal receives 30% of the revenue from packages that it picks up and 30% of the revenue from the packages it delivers. The remaining 40% of the revenue from each transaction goes to the hub. Each terminal accumulates its own costs. All costs relating to travel to and from the hub are charged to the hub. The revenue per package is based on size and service type and not the distance the package travels. (There are two services: overnight and ground delivery, which takes between 1 and 7 days, depending on the distance traveled).
All customer service is done through a central service group located in the hub. Customers access this service centre through a toll-free telephone number. The most common calls to customer service include requests for package pickup, requests to trace an overdue package, and requests for billing information. The company has invested in complex and expensive package tracking equipment that monitors the package’s trip through the system by scanning the bar code placed on every package. The bar code is scanned when the package is picked up, enters the originating terminal, leaves the originating terminal, arrives at the hub, leaves the hub, arrives at the destination terminal, and is delivered to the customers. All scanning is done with hand held wands that transmit the information to the regional and then central computer.
The major staff functions in each terminal are administrative (accounting, clerical, and executive), marketing (the sales staff), courier (the people who pick up and deliver the shipments and the equipment they use), and operations (the people and equipment who sort packages in the terminal).
This organisation takes customer service very seriously. The revenue for any package that fails to meet the organisation’s service commitment to the customer is not assigned to the originating and destination terminals.
All company employees receive a wage and a bonus based on the terminal’s economic value added. This system has promoted many debates about the sharing rules for revenues, the inherent inequity of the existing system, and the appropriateness of the revenue share for the hub. Service problems have arisen primarily relating to overdue packages. The terminals believe that most of the service problems relate to wrong sorting in the hub, resulting in packages being sent to the wrong terminals.
Required:
A) Explain why an investment centre is or not an appropriate organisational design in ATCHULO Company Ltd. (15 marks)
B) Assuming that ATCHULO Company Ltd is committed to the current design, how would you improve it? (15 marks)
C) Assuming that ATCHULO Company Ltd has decided that the investment centre model is
unacceptable, what model to performance evaluation would you recommend and why? (15 marks)
Answer:
ATCHULO Company Ltd
A) ATCHULO Company Ltd, as it is currently being operated should not be using an investment center as the appropriate organizational design when a profit center structure could have been applied. However, if it wants to continue the use of the investment center model as a preferred organizational structure, then it should implement the structure fully. For one, an investment center is a division in ATCHULO company that is supposed to be in control of all its investment activities (assets), and is responsible for generating profits (revenue and costs) for its sustenance. Its performance will then be evaluated based on the revenue it generates less the expenses, including the capital costs incurred for generating the revenue.
B) For a better operation of the investment center, revenues generated by the investment centers should be assigned to the investment centers and all their costs will be assigned as well. The investment centers should have their operational assets and make the necessary decisions regarding their use.
The hub should not be sorting packages for the investment centers as each investment center could handle the sorting at their various centers and route packages to appropriate destinations, accordingly. The investment centers should operate their own trucks or outsource such services at some costs. Since packages are sent from one center to the other and vice versa, they can charge for the services they provide for one another. In this way, each investment center's performance will be more accurately evaluated.
C) The investment center approach would have been the best for ATCHULO Company Ltd if it were being properly implemented, both in terms of operational activities and performance evaluation.
However, since ATCHULO Company has decided to change the model, I recommend the centers to be operated as profit centers, because this is the next best thing in terms of performance evaluation. However, each center must be able to make its own revenue and cost decisions, so that it can be assessed based on profit performance.
Explanation:
An investment center in ATCHULO Company should be a unit of the firm that is responsible for its revenue, cost, and investment decisions, with its performance judged based on the overall outcome achieved or the value added to the company.
A profit center in ATCHULO Company is a unit that is only responsible for its revenue and cost decisions, while investment activities are handled from the headquarters. Its performance is evaluated on profits without consideration of the capital costs incurred in generating the profits.
All organizations have a collective sense of purpose, whether it's producing oil or creating the fastest Internet search engine.
A. True
B. False
Answer:
true
Explanation:
sorry if im wrong
Identify the trade-restraining practice that this example demonstrates.
Company A and Company B both work in the candy industry. They agree that Company A will only sell chocolate to Company C and Company B will only sell fruit candies to Company C.
it demonstrates Division of Markets
Local Co. has sales of $ 10.8 million and cost of sales of $ 5.7 million. Its selling, general and administrative expenses are $ 550,000 and its research and development is $ 1.2 million. It has annual depreciation charges of $ 1.2 million and a tax rate of 35 %.
a. What is Local's gross margin? (answer in %, Round to one decimal place.)b. What is Local's operating margin? (answer in %, Round to one decimal place.)c. What is Local's net profit margin? (answer in %, Round to two decimal places.)
Answer:
Gross profit Margin = 47.2%
Operating profit margin = 19.9%
Net Profit Margin = 12.93%
Explanation:
Requirement A: Gross profit margin
Gross Profit = Sales - Cost of sales
Gross Profit = 5.1m
Gross profit Margin = Gross profit/Sales x 100
Gross profit Margin = 5.1/10.8 x 100
Gross profit Margin = 47.2%
Requirement B: Operating profit margin
Operating profit margin = Operating Profit/ Sales x 100
Operating Profit = Gross Profit - selling,general and administrative expense -research and development - depriciation
Operating Profit = 5.1m - 0.55m - 1.2m - 1.2m
Operating Profit = 2.15m
Operating profit margin = 2.15m/10.8m x 100
Operating profit margin = 19.9%
Requirement C: Net profit Margin
Net Profit margin = Net profit / Sales x100
Net Profit = Operating profit - tax
Net Profit = 2.15m - (2.15m x 35%)
Net Profit = 2.15m - 0.7525m
Net Profit = 1.3975m
Net Profit Margin = 1.3975m/10.8m x 100
Net Profit Margin = 12.93%
Interdepartment Services: Step Method
O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows:
Personnel Payroll Housewares Clothing Furniture
Direct department cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750
Number of employees 5 4 8 16 4
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100
(a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.)
Answer %
(b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer one decimal place.)
Answer %
(c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming O'Brian's uses the step method.
Do not round until your final answers. Round answers to the nearest dollar.
Service Departments Producing Departments
Payroll Personnel Housewares Clothing Furniture
Total costs $Answer $Answer $Answer $Answer $Answe
Answer:
O'Brian's Department Stores
a) Determination of the percentage of total personnel department services that was provided to the Payroll department
Since allocation of the personnel department services is based on the number of employees, we can use this to calculate the percentage. The personnel employees are not included in this calculation.
= 4/32 x 100 = 12.5%
b) Percentage of total payroll department services provided to the personnel department. Since the basis is the gross payroll, we can use this to calculate the percentage. The gross payroll of the Payroll department is not included in the calculation.
= $6,000/$42,100 x 100 = 14.3%
c) Personnel Payroll House- Clothing Furniture Total
Ware
Direct department
cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750 $59,950
Number of
employees 5 4 8 16 4 37
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100 $45,400
Total cost $13,800 $6,500 $22,800 $37,400 $24,850 $105,350
Allocation of service departments costs, using the step method:
Personnel -13,800 1,725 3,450 6,900 1,725 13,800
Payroll 0 -8,225 2,415 3,965 1,845 8,225
Total allocated 0 0 $28,665 $48,265 $28,420 $105,350
Explanation:
a) Data:
Personnel Payroll House- Clothing Furniture Total
Ware
Direct department
cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750 $59,950
Number of
employees 5 4 8 16 4 37
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100 $45,400
b) Cost allocation & Calculations:
Personnel (based on the number of employees)
Rate = $13,800/32 = $431.25 per employee
Payroll (based on gross payroll)
Rate = Payroll cost = Payroll cost divided by the total gross payroll in the other departments, excluding personnel and payroll departments
= $8,225/$36,100 = $0.2278 per gross payroll
c) Allocation of service departments' costs is a method of apportioning costs incurred by service departments to the production departments in order to include all the costs in the product costs. Three methods exist for allocating service departments' costs to the production departments. The first, which is the simplest, is the direct method. With this method, the costs of service departments are allocated directly to each production department based on the consumption of the service department's services. They are not allocated to other service departments.
The second method is the step method. Here, the costs of one service department with the highest cost are allocated to all other departments first, including production and other service departments following a step. The costs of the next service department with the highest costs are allocated to the remaining departments. This step is continued until all the service departments' costs have been allocated. Once the costs of a service department have been completely allocated, that department would not be allocated any other cost.
The Reciprocal method, which is the last method, is the most accurate and complicated method. This method first establishes the relationship among the service departments in equation form and uses the established equations to allocate the costs of service departments. We may not discuss it further than this.
Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $3,150,000, and total direct labor costs would be $1,800,000. During February, the actual direct labor cost totaled $160,000, and factory overhead cost incurred totaled $283,900.
Required:
a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.
b. Journalize the entry to apply factory overhead to production for February.
c. What is the February 28 balance of the account Factory Overhead—Blending Department?
d. Does the balance in part (c) represent overapplied or underapplied factory overhead?
Answer:
a. 175%
b.
Journal Entry to apply factory overhead to production for February.
Work In Process $280,000 (debit)
Overheads $280,000 (credit)
c. $3,900
d. Under-applied Overheads
Explanation:
Predetermined Overhead rate = Total Budgeted Overheads /Total Budgeted Activity
= $3,150,000 / $1,800,000
= $1.75 per direct labor cost. or
= 175% (1.75 × 100)
Applied factory overhead = Predetermined Overhead rate × Actual Activity
= $160,000 × 175 %
= $280,000
Journal Entry to apply factory overhead to production for February.
Work In Process $280,000 (debit)
Overheads $280,000 (credit)
over-applied or under-applied factory overhead
Over-applied Overheads = Actual Overheads < Applied Overheads
Under-applied Overheads = Actual Overheads > Applied Overheads
Actual Overheads (given) = $283,900
Applied Overheads = $280,000
Actual Overheads: $283,900 > Applied Overheads :$280,000
Thus we have an Under-application situation of $3,900 ($283,900 - $280,000)
Determine the number of widgets that you should try to sell in order to maximize revenue. What is the maximum revenue. Be sure to answer in complete sentences and to include units. Explain how you found the results.
Answer:
Hello some important parts of your question is missing ( Table ) attached below is the table
Answer : Number of widgets = 50
Explanation:
The number of widgets that you should sell to maximize revenue can be calculated as
= ( demand for widgets * price per widget ) - Total cost
from the table:
i) ( 10 * 141 ) - 609 = 1410 - 609 = $801
ii) ( 20 *133 ) - 1103 = 2660 - 1103 =$1557
iii) (30 *126) - 1618 = 3780 - 1618 = $2162
iv) (40*128) - 2109 = 5120 - 2109 =$3011
v) (50*113) - 2603 = 5650 -2603 = $3047
vi) (60*97) - 3111 = 5820 - 3111 = $2709
vii) (70*90) - 3619 = 6300 - 3619 =$2681
viii) ( 80*82) - 4103 = 6560 - 4103 = $2457
ix) (90*79) - 4601 = 7110 - 4601 = $2509
From the calculation above the number of widgets that should be sold in other to maximize revenue is : 50. this is because the revenue made is $3047 which is the highest when compared to other revenues generated
The tables show the spending and revenue for Littleland in 2010. Use the tables and other information to answer the questions. Spending category Value (millions) education $320 welfare and Social Security $890 health care $270 defense $120 payments on debt $170* other $240 *This payment covers total interest owed only. Revenue category Value (millions) income tax $800 sales tax $270 corporate tax $300 social insurance $340 GDP in 2010: $7.3 billion Total debt as of 2009: $3.5 billion How much money (in millions) did Littleland need to borrow in 2010 to finance its government spending
Answer:
$300 million
Explanation:
The computation of debt is shown below:-
But before that we need to determine the following amounts
Total Expenditure = Spending on Education + Spending on Welfare and social security + Spending on Healthcare + Spending on Defense + Payments on Debt + Other Spending
= $320 + $890 + $270 + $120 + $170 + $240
= $2,010 million
Total Revenue = Income Tax + Sales Tax + Corporate Tax + Social Insurance
= $800 + $270 + $300 + $340
= $1710 million
Debt or borrowed amount =Total expenditure - Total revenue
= $2,010 - $1,710
= $300 million
Tunneling Inc. fixed costs are at $100,000. The company has sales of 10,000 units with a price of $84 and variable cost per unit of $40. The depreciation is $50,000 and taxes are 21 percent. What is the degree of operating leverage
Answer:
Tunneling Inc.
Degree of operating leverage
= Contribution Margin divided by Operating Income
= $440,000/$290,000 = 1.52
Explanation:
(a) Data and Calculations:
Sales Revenue = $840,000 (10,000 x $84)
Variable cost = $400,000 (10,000 x $40)
Contribution = $440,000
Fixed costs = $100,000
Depreciation = $50,000
Operating Income = $290,000
Tax (21%) ($60,900)
Net Income = $229,100
(b) The degree of operating leverage for Tunneling Inc. is 1.52. It shows the financial impact of a change in sales revenue on Tunneling Inc.'s earnings. Analysts usually work this ratio out to determine this important effect.
three examples of foreign companies operating in Fiji and a type of service they provide
Answer:
Three foreign companies operating in Fiji:
Bank of Baroda: a multinational, financial services companies from India. It offers banking services in Fiji, and is one of the five international banks that operate in that country.Coca Cola: this American multinational beverages corporation from Atlanta, Georgia, also operates in Fiji. It sells consumer goods, specially beverages.Marriott: the American multinational hotel corporation has one hotel in Fiji: the Fiji Marriott Resort Momi Bay.
Identify the best definition of money. whatever serves society in three functions: medium of exchange, store of value, and unit of account paper bills and coins metal or paper currency produced by governments to enable the exchange of goods and services the exchange of goods and services enabled via the double coincidence of wants
Answer:
Unit account of paper bills
Explanation:
I took test during school
In the long run, when price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market.
a. True
b. False
Answer:
a. True
Explanation:
A competitive market is a market in which there are many buyers and sellers. Also, sellers have similar goods and and they don't have the power to influence the market. This means that in a competitive market companies have to accept the price define by the market and if the price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market as it doesn't have the possibility to do something to influence the price and it won't be able to make a profit. According to that, the statement is true.
Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2011. The note, along with interest at 6%, is due on June 30, 2012. On September 30, 2011, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 10%. What amount of cash did Ireland receive from Cloverdale Bank
Answer:
$39,220
Explanation:
The maturity value of the note receivable on June 30, 2012
= Principal + Interest
= $40,000 + $40,000 x 6%
= $40,000 + $2,400
= $ 42,400
The note is discounted on September 30, 2011. Time period remaining to go till maturity as on September 30, 2011
= 12 - 3 months ( July, Aug and Sep)
= 9 months.
Amount of deduction
= $ 42,400 x 10% x 9/12
= $ 3,180
Finally, the Cash received by Ireland will be
= Maturity value - Discount
= $42,400 - $ 3,180
= $39,220
You are given the following information for Bowie Pizza Co.: Sales = $64,000; Costs = $30,700; Addition to retained earnings = $5,700; Dividends paid = $1,980; Interest expense = $4,400; Tax rate = 22 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your answer to the nearest dollar.)
Answer:
$18554
Explanation:
The formula for addition to retained earnings can be used to determine the amount of depreciation expense as shown below:
addition to retained earnings=sales-costs-depreciation expense-interest expense-tax paid-dividends
addition to retained earnings=net income-dividends
5700=net income-1980
net income=5700+1980=7680
if tax 22%,net income is 1-22%=0.78
profit before tax=7680 /0.78= 9,846.15
tax = 9,846.15*22%= 2,166.15
using the long formula,we have depreciation expense
5700=64000-30700-depreciation expense-4400-2666.15-1980
depreciation expense=64000-30700-4400-2666.15-1980-5700
depreciatio expense=$18553.85
Tate Company purchased equipment on November 1, 2015 and gave a 3-month, 9% note with a face value of $20,000. The December 31, 2015 adjusting entry is
Answer:
Dr Interest expense 300
Cr Interest payable 300
Explanation:
Preparation of December 31, 2015 adjusting entry for Tate Company
Since Tate Company had purchased the equipment on November 1, 2015 in which the company gave a 3-month with 9% note and a face value of $20,000, this means we have to record the transaction by Debiting Interest expense with 300 and Crediting Interest payable with the same amount . The amount of 300 is calculated as 2/12×9%×20,000
Therefore Tmthe December 31, 2015 adjusting entry will be :
Dr Interest expense 300
Cr Interest payable 300
The absorption-cost approach is used by most companies for all of the following reasons except that:______a) absorption cost information is readily provided by a company’s cost accounting system.b) basing prices on only variable costs could encourage managers to set too low a price to boost sales.c) this approach is more consistent with cost-volume-profit analysis.d) absorption cost provides the most defensible bases for justifying prices to interested parties
Answer:
c) this approach is more consistent with cost-volume-profit analysis.
Explanation:
The absorption costs does not separate the fixed costs and variable cost for profit determination.
This hence, is not adequate for internal purposes of as it does not provide management accountants of the changes in fixed and variable costs that arise as a result of changes in levels of sales demand.
Thus this method is not consistent with cost-volume-profit analysis.
When stocks are held in street name, Group of answer choices the investor receives a stock certificate without the owner's street address. the investor does not receive a stock certificate. the broker holds the stock in the brokerage firm's name on behalf of the client. the investor does not receive a stock certificate, and the broker holds the stock in the brokerage firm's name on behalf of the client. the investor receives a stock certificate with the owner's street address.
Answer:
the broker holds the stock in the brokerage firm's name on behalf of the client.
Explanation:
In simple words, A security would be carried in "street name," when that is retained by a fund manager or a brokerage on a client 's behest. The title appearing on such stock or bond certification is the buyer 's definition however the person paying for the shares maintains property rights.
If brokers held the physical access credentials, the danger of psychical damage , loss as well as robbery would boost. Brokerage firms are able to maintain the shares electronically by retaining them in street names.
Trak Corporation incurred the following costs while manufacturing its bicycles.
Bicycle components $100,000 Advertising expense $45,000
Depreciation on plant 60,000 Property taxes on plant 14,000
Property taxes on store 7,500 Delivery expense 21,000
Labor costs of assembly-
line workers 110,000 Sales commissions 35,000
Factory supplies used 13,000 Salaries paid to sales clerks 50,000
Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.
Bicycle components
Depreciation on plant
Property taxes on store
Labor costs of assembly-line workers
Factory supplies used
Advertising expense
Property taxes on plant
Delivery expense
Sales commissions
Salaries paid to sales clerks
Answer:
Required: Identify the costs as direct materials, direct labor, manufacturing overhead, or period costs.
They are classified below:
Bicycle components: DIRECT MATERIALS
Depreciation on plant: MANUFACTURING OVERHEAD
Property taxes on store: PERIOD COST
Labor costs of assembly-line workers: DIRECT LABOUR
Factory supplies used: MANUFACTURING OVERHEAD
Advertising expense: PERIOD COST
Property taxes on plant: MANUFACTURING OVERHEAD
Delivery expense: PERIOD COST
Sales commissions: PERIOD COST
Salaries paid to sales clerks: MANUFACTURING OVERHEAD
Definition of terms used:
Period cost is any cost incurred which was not directly involved during production.
Manufacturing overhead can be said to be indirect costs incurred during production.
Direct labour costs involves payment made to workers involved in production.
Direct materials cost are costs of raw materials used in production.
Therefore,
Bicycle components are classified as direct materials.
Depreciation on plant are classified as manufacturing overhead.
Property taxes on store are classified as period cost.
Labor costs of assembly-line workers are classified as direct labour.
Factory supplies used are classified as manufacturing overhead.
Advertising expense is classified as period cost
Property taxes on plant are classified as manufacturing overhead.
Delivery expenseis classified as period cost.
Sales commissions is classified as period cost.
1. A stock has an expected return of 10.2 percent, the risk-free rate is 4.1 percent, and the market risk premium is 7.2 percent. What must the beta of this stock be?
Answer:
Beta is 0.85
Explanation:
The value of Beta can de derived from the CAPM formula of expected return
expected return=risk-free rate+Beta*market risk premium
expected return is 10.2%
risk-free rate is 4.10%
market risk premium is 7.2%
Beta is unknown
10.20%=4.10%+Beta*7.20%
10.20%-4.10%=Beta*7.20%
6.10% ==Beta*7.20%
Beta=6.10% /7.20%
Beta= 0.85
A post-closing trial balance will reflect balances, after closing entires have been posted to reset the temporary accounts as follows:
A) zero balances for balance sheet accounts.
B) Balances only showing in income statement accounts
C) Balances only showing for balance sheet accounts.
D) zero balances for all accounts.
Answer: C) Balances only showing for balance sheet accounts.
Explanation:
A Post-Closing Trial Balance is used to match debits with credits to ensure that they are equal. It will however contain no items from the Income statement because those were considered to be temporary accounts that are part of the calculation of Retained Earnings and have thus have been dissolved during the Closing process.
This Trial Balance will therefore only have Balance Sheet items listed in it.