Answer:
$1,505
Explanation:
Calculation for Joan's travel expense deduction for the trip
Travel expense deduction= $975 (flight) + $300 (business hotel) + $140 (business meals $280 x 50%) + $90(business car)
Travel expense deduction=$1,505
Therefore Joan's travel expense deduction for the trip will be $1,505
You project revenue to start at $5,000 for the first month and grow by $200 each month thereafter. You project expenses to begin at $7,000 per month and grow by $50 per month. In what month will you break even (revenue equal to expenses)?
Answer: 14
Explanation: i took the quiz
In the 13th month will you break even (revenue equal to expenses).
What is revenue?Revenue is the entire amount of money made through the sale of products and services that are essential to the business's core competencies. Sale or turnover are other terms used to describe advertising revenues.
To make two equations equivalent, we must write them down.
The first one will appear as follows:
200x + 5,000
The x will match the 200 since after the initial $5,000, the program's revenue increases by $200 per month.
The second equation will have the following form:
50x + 7,000
The x will follow the 50 because the project starts out at $7,000 and expands by $50 every month.
Set both now identical to one another.
200x + 5,000 = 50x + 7,000
150x + 5,000 = 7,000
150x = 2,000
x = 13.333
The project therefore will reach breakeven in the 13th month.
Learn more about Revenue, here:
https://brainly.com/question/8645356
#SPJ5
On February 1, 2021, the Xilon Corporation issued 47,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $16 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2021, at a cost of $6,800,000. Xilon paid $4,400,000 in cash and the remainder was paid by the city of Monrovia.
Assuming that Xilon prepares its financial statements according to International Financial Reporting Standards, select all the correct alternatives the company has for recording the acquisition of the office building.
a. Same treatment as GAAP.
b. Deduct the amount of the grant in determining the initial cost of the office building.
c. Record the grant as a liability, deferred income, in the balance sheet and recognize it in the income statement systematically over the office building's useful life.
Answer:
a. Same treatment as GAAP.
Explanation:
the journal entry should be:
Dr Land 752,000
Dr Building 6,800,000
Cr Common stock 752,000
Cr Cash 4,400,000
Cr Donation revenue 2,400,000
the donation is not a deferred liability, nor the basis of the building be reduced by it.
"Insurance is a waste of money. If and when you suffer a financial loss because of an
accident or some other event, you can pay for it from your savings account."
Do you agree or disagree with this statement?
Explain your position.
Answer:
disagree
Explanation:
As a personal opinion I strongly disagree with this statement. This is because for the majority of the people on Earth that live day to day with their finances, an accident can completely wreck them financially. A simple car, house, or health accident can cost thousands of dollars in loss or even hundreds of thousands. Most people would not have 10% of that in a savings account. Therefore, Insurance can be extremely helpful and in most cases cover the entirety of the accident which can (in a way) give you a second chance.
Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $111,200, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,720. Shore paid freight of $1,800. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. Inventory fill in the blank 002d1202e07bfb8_2 fill in the blank 002d1202e07bfb8_3 Accounts Payable fill in the blank 002d1202e07bfb8_5 fill in the blank 002d1202e07bfb8_6 Accounts Payable fill in the blank 002d1202e07bfb8_8 fill in the blank 002d1202e07bfb8_9 fill in the blank 002d1202e07bfb8_11 fill in the blank 002d1202e07bfb8_12 fill in the blank 002d1202e07bfb8_14 fill in the blank 002d1202e07bfb8_15 fill in the blank 002d1202e07bfb8_17 fill in the blank 002d1202e07bfb8_18 fill in the blank 002d1202e07bfb8_20 fill in the blank 002d1202e07bfb8_21 fill in the blank 002d1202e07bfb8_23 fill in the blank 002d1202e07bfb8_24 Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank. fill in the blank 2aa3cd04cfa0046_2 fill in the blank 2aa3cd04cfa0046_3 fill in the blank 2aa3cd04cfa0046_5 fill in the blank 2aa3cd04cfa0046_6 fill in the blank 2aa3cd04cfa0046_8 fill in the blank 2aa3cd04cfa0046_9 fill in the blank 2aa3cd04cfa0046_11 fill in the blank 2aa3cd04cfa0046_12
Answer:
SHORE CO BOOKS:
Dec 31
Dr Accounts receivables Blue star Co. $109,760
Cr Sales $109,760
Dec 31
Dr Cost of goods sold $66,720
Cr Inventory $66,720
Dec 31
Dr Cash $111,560
Cr Account receivable Blue star Co. $111,560
Dec 31
Dr Account receivable Blue star Co $1,800
Cr Cash $1,800
BLUE STAR CO BOOKS
Dr Inventory $111,560
Cr Accounts Payable $111,560
Dr Accounts Payable $111,560
Cr Cash $111,560
Explanation:
Preparation of the journal entries for Shore Co.'s entry for the sale, purchase, and payment of amount due
SHORE CO BOOKS:
Dec 31
Dr Accounts receivables Blue star Co. $109,760
Cr Sales $109,760
[$112,000*(100%-2%)]
Dec 31
Dr Cost of goods sold $66,720
Cr Inventory $66,720
Dec 31
Dr Cash $111,560
Cr Account receivable Blue star Co. $111,560
($109,760+$1,800)
Dec 31
Dr Account receivable Blue star Co $1,800
Cr Cash $1,800
BLUE STAR CO BOOKS
Dr Inventory $111,560
Cr Accounts Payable $111,560
($109,760+$1,800)
Dr Accounts Payable $111,560
Cr Cash $111,560
($109,760+$1,800)
Expert Manufacturing reported the following: Revenue Beginning inventory of direct materials, January 1, 2015 Purchases of direct materials Ending inventory of direct materials, December 31, 2015 Direct manufacturing labor Indirect manufacturing costs Beginning inventory of finished goods, January 1, 2015 Cost of goods manufactured Ending inventory of finished goods, December 31, 2015 Operating costs How much of the above would be considered period costs for Expert Manufacturing?
Answer:
$153,000
Explanation:
Note: The full question is attached as picture below
All the operating expenses which are associated with the business on a day-to-day basis or on a period-to-period basis is called period costs, and it generally includes the costs and expenses (excluding non-operating expenses) incurred during the business operation of the given period. Here, in the given balance sheet $153,000 of operating costs are period costs.
Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1? (b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased? (c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2019? (d) If $1,600 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2019?
Answer:
A. $800
B. $4,800
August 1, 2019
C.$3,300
$1,500
Explanation:
(a) Calculation for what was the balance in Supplies on January 1
Balance in Supplies on January 1=$950 + $700 - $850
Balance in Supplies on January 1=$800
(b) Calculation for what was the total premium and when was the policy purchased
Total premium=($400 x 12 months)
Total premium= $4,800
Calculation for when was the policy purchased
Prepaid Insurance, 1/31 $2,400
Monthly premium $400
Number of months remaining 6
($2,400/$400)
Hence, The Policy was purchase on August 1, 2019
(c) Salary and Wages Payable at Decemeber 31, 2019 $1,500
Cash Paid $2,500
Salaries and wages payable, 1/31 $800
$3,300
Less: Salaries and wages expense $1,800
Salaries and wages payable, 12/31/19 $1,500
i develop my abilities through
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $360,000 for a standard production run that generates 170,000 pints of Smooth Skin and 300,000 pints of Silken Skin. Smooth Skin sells for $3.20 per pint, while Silken Skin sells for $5.20 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.) Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method
Answer and Explanation:
1. The computation of the joint cost of each production assign to the smooth skin by relative sales values method is shown below:
Smooth skin
= $360,000 × (170,000 × $3.20) ÷ (170,000 × $3.20 + 300,000 × $5.20)
= $360,000 × $544,000 ÷ $2,104,000
= $93,080
And, for silken smooth
= $360,000 × (300,000 × $5.20) ÷ (170,000 × $3.20 + 300,000 × $5.20)
= $360,000 × $1,560,000 ÷ $2,104,000
= $266,920
When originally purchased, a truck costing BD 23.000 had an estimated useful life of 8 years and an estimated salvage value of BD 3,000. After 4 years of
straight-line depreciation, the ascet's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage valoe. The
depreciation expense in year 3 cquals:
ABD 5,000
O & BD 5.750.
O CBD 2.875.
ODBD 2,500.
Answer:
d. BD 2,500
Explanation:
Accumulated Depreciation through the end of year 4 = [ Asset's cost - Salvage Value) / Estimated Useful Life] * Years Elapsed
= [(23,000 - 3,000)/8] * 4
= BD 10,000
Depreciation in Year 3 = [Asset's cost - Salvage Value - Accumulated Depreciation] / Remaining Estimated Useful Life
Depreciation in Year 3 = [23,000 - 3,000 - 10,000] / 4
Depreciation in Year 3 = 10,000 / 4
Depreciation in Year 3 = BD 2,500
Garcia Industries has sales of $176,500 and accounts receivable of $18,500. Assume all sales to be on credit. The industry average DSO is 27 days, based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 3.0% on any cash freed-up by this change, assuming other things are held constant, by how much would the net income be affected?
Answer:
$163.32
Explanation:
Days Sales Outstanding = 365 * Accounts receivable / Sales
If the Days Sales Outstanding falls to the industry average:
27 = 365 * Accounts receivable / $176,500
27 * $176,500 = 365 * Accounts receivable
Accounts receivable = 27 * $176,500 / 365
Accounts receivable = $13,056.16
Increase in net income = Decrease in accounts receivable * 3%
Increase in net income = ($18,500 - $13,056.16) * 3%
Increase in net income = $5,443.84 * 3%
Increase in net income = $163.3152
Increase in net income = $163.32
Suppose consumers buy 50 million packs of cigarettes per month at a price of $5 per pack. If a $1 tax is added to that
price, By what percentage does the price change
Answer:
Percentage change= 20%
Explanation:
Giving the following information:
Selling price before tax= $5
Tax= $1
Selling price after tax= $6
To calculate the percentage increase, we need to use the following formula:
Percentage change= [(Selling price after tax - Selling price before tax)/Selling price before tax]*100
Percentage change= [(6 - 5)/5]*100
Percentage change= 20%
On January 1, 20X1, Beard Company purchased a machine for $620,000. The machine is expected to have a 10-year life, with no salvage value, and will be depreciated by the straight-line method. On January 1, 20x1, it leased the machine to Child Company for a three-year period at an annual rental of $128,000 to be paid at the end of each year. Beard could have sold the machine for $817,298 instead of leasing it. Child does not know the implicit rate in the lease, but it has an incremental rate of 9%. Child Company has a December 31 reporting year. Use tables (PV of 1, PVAD of 1, and PVOA of 1 (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount.)
Required:
1. Why is this an operating lease for Child Company?
2. What are the amounts of the right-of-use asset and lease liab that Child Company should report on its balance sheet at December 31, 20X1?
3. How much lease expense should Child Company recognize in 20X1?
Answer:
1. Why is this an operating lease for Child Company?
The life of the asset is 10 years while the lease is only 3 years long, so it cannot be classified as a financial lease.
2. What are the amounts of the right-of-use asset and lease liability that Child Company should report on its balance sheet at December 31, 20X1?
annual lease payment = $128,000 (ordinary annuity)
PVIFA, 9%, 3 periods = 2.5313
present value = $128,000 x 2.5313 = $324,006.40
3. How much lease expense should Child Company recognize in 20X1?
lease expense = PV of lease x interest rate = $324,006.40 x 9% = $29,160.58
First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) As a potential borrower, which bank would you go to for a new loan
Answer:
14.59%
14.49%
Explanation:
Effective annual interest (EAR) = (1 + periodic interest)^m - 1
where m = number of compounding
periodic interest = APR / m
(1 + 0.137/12)^12 - 1 = 14.59%
(1 + 0.14/2)^2 - 1 = 14.49%
Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby estimated that the total overhead costs would be $72,000 and that the total labour hours would be 2,400. At the end of the year, Bibby obtained the actual overhead costs from the ledger and found that the shop had incurred $65,800 and had worked 2,350 labour hours.
Predetermined (budgeted) overhead rate.
Overhead Rate $30
overhead amount that was applied for the year.
Overhead amount $4700 over applied
Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Answer and Explanation:
The journal entry is shown below:
Overhead $4,700
Cost of goods sold $4,700
(Being overapplied overhead is closed)
Here the overhead is debited as it increased the expenses and credited the cost of goods sold as it decreased the expense
A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting 1 year from now, the equation that represents how much the company is required to deposit each year at 10% per year interest to have the $3,000,000 immediately after the last
deposit is:___________
(a) 3,000,000(A∕F,10%,10)
(b) 3,000,000(A∕F,10%,11)
(c) 3,000,000 + 3,000,000(A∕F,10%,10)
(d) 3,000,000(A∕P,10%,10)
Answer:
The correct option is (a) 3,000,000(A∕F,10%,10).
Explanation:
Ordinarily, the equation to use to calculate the amount the company is required to deposit each year is given as follows:
A = F * (r / ((1 + r)^n - 1)) ....................... (1)
Where;
A = Annual deposit = ?
F = Future value or accumulated sum of amount = $3,000,000
r = Annual interest rate = 10%, or 0.01
n = Number of years.
The standard notation of equation (1) above is given as follows:
A = F(A / F, r, n) ................................ (2)
Substituting the relevant description from the above into equation (2), we have:
A = 3,000,000(A∕F,10%,10)
Therefore, the correct option is (a) 3,000,000(A∕F,10%,10).
Fill in the blanks to complete the sentence.
A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, __________units will need to be produced in the second quarter.
Answer:
509 Units
Explanation:
At second quarter,
safety stock = 10%
With 550 units, for target of the next quarter
Then, safety stock = [(550 ×( 10/100) ]
= 55 units.
Buy the remaining unit is 46, and the expected unit to be sold is 500
Then, units that will be neededto be produced in the second quarter. Is
= (55 + 500) -46
=509 units
Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $151,000, its total variable expenses were $79,700, and its total fixed expenses were $56,600. Required: a. Construct the company's contribution format income statement for April. (Do not round intermediate calculations.) b. Redo the company's contribution format income statement assuming that the company sells 1,900 units. (Do not round intermediate calculations.)
Answer:
See below
Explanation:
Sales
$151,000
Less:
Variable cost
($79,700)
Contribution margin
$71,300
Less:
Fixed cost
($56,600)
Ney profit
Halbur Company reported the following for its recent year of operation: From the income statement: Depreciation expense $ 1,200 Loss on sale of equipment 2,800 From the comparative balance sheet: Beginning balance, equipment $ 12,900 Ending balance, equipment 8,200 Beginning balance, accumulated depreciation 2,200 Ending balance, accumulated depreciation 2,700 No new equipment was purchased during the year. What was the selling price of the equipment
Answer:
$300
Explanation:
From Equipment Account we get :
Cost of Equipment Sold = $12,000 - $8,200 = $3,800
From Accumulated Depreciation Account we get :
Accumulated Depreciation = $2,200 + $1,200 - $2,700 = $700
Using Amounts above to prepare a Disposal Account - Equipment we get :
Cash Proceeds = $3,800 - $700 - $2,800 = $300
Conclusion
The selling price of the equipment $300
Analysis of cash flows, analysis of competing hypotheses, consideration of analytical and accounting anomalies, big data and data analytics, consideration of the fraud triangle, use of graphical tools for analysis and communication, internal controls, the control environment and opportunity, interviewing for information and admissions, analysis of nonaccounting and nonfinancial numbers and metrics, financial statement and ratio analysis, consideration of red flags, and analysis of related parties are all examples of:
Answer:
Forensic accounting and fraud examination tools/techniques.
Explanation:
Forensic accounting is one that make use of auditing as well as accounting and investigative skills in conducting examination about the Businesses and individuals finances. It gives accounting analysis that could be used in legal proceedings. It is one of the tools/ techniques for fraud examination
Suppose one-seventh of the employees of a certain company work in the Southeastern region. If the company employs 256 workers in that region, what is the total number of employees working for the company?
Answer:
1792
Explanation:
256 is 1 out of 7.
so 7 times 256 is 7 out of 7
256 x 7 = 1792
Partial balance sheet data for Diesel Additives Company at August 31 are as follows:Finished goods inventory................$ 89,400Supplies.............................................$ 13,800Prepaid insurance..................................9,000Materials inventory..............................26,800Accounts receivable...........................348,200Cash.....................................................167,500Work in process inventory..................61,100Prepare the Current Assets section of Diesel Additives Company's balance sheet at August 31.
Answer:
Diesel Additives Company
Current Assets section
Materials inventory 26,800
Work in process inventory 61,100
Finished goods inventory 89,400
Supplies 13,800
Prepaid insurance 9,000
Accounts receivable 348,200
Cash 167,500
Total Current Assets 715,800
Explanation:
Current Assets section of Diesel Additives Company's balance sheet at August 31 is shown above.
The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020
Answer:
$150 Decrease
Explanation:
Income Statement
Present Proposed
Sales $5,000 $5,350 [(5000+30%)-10%]
Variable 10% $2,000 $2,000 (2000*130%)
Contribution Margin $3,000 $3,250
Fixed cost - $400
Net Operating Income $3,000 $2,850
Effect on Net Operating Income = $2,850 - $3,000 = -$150
discuss the different situations when the communication exists
Answer:
Communication in Different situations.
1. Communications in different situations Chapter 8
2. The different kind ofcommunication skill is required as per the situation and the functions of the organizations.Communication takes on different characteristics as the situation changes Chapter 8
3. Oral Communication Situations Face-to face InterviewCommunication Telephone
Communication can be divided into three categories: verbal communication, which involves listening to someone to understand what they mean; written communication, which involves reading what they mean; and nonverbal communication, which involves observing someone and drawing conclusions about what they are trying to say.
Why is it important to understand the communication process?Understanding the communication process is crucial for successful and efficient communication. It consistently directs us toward understanding successful communication. Every person who adheres to the communication process will have the chance to be successful in all facets of their work.
Any type of situation where communication is occurring is referred to as a communicative situation; examples include discussions, text in all forms, radio, and film. Any situation where communication is taking place. There is communication, for instance during a conversation.
Learn more about Communication here:
https://brainly.com/question/22558440
#SPJ2
You are an employee of an US firm that produces personal computers in Thailand and then exports them to the US and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict US exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers?
Answer:
In the short-run, I will encourage my firm to export the computers to Canada first, directly from Thailand. From Canada, the computers can be exported into the USA. But this is not the long-term solution. There will be need to find another country in which production will be cost-effective and from which the goods can be exported directly into the USA.
Another approach would be to engage in lobbying, within acceptable rules, the governments of Thailand and the US to end the administrative barriers.
Explanation:
There is no single economy that benefits from trade restrictions. Therefore, every effort should be made to reduce, to the barest minimum, all forms of trade barriers, which stunt economic growth and development. Give and take, in the spirit of competition, should be encouraged at all times.
Which examples demonstrate common Law Enforcement Services workplaces and employers? Check all that apply.
Otto is a self-employed worker who provides legal advice to people accused of crimes.
Peng monitors people who are swimming at a beach.
Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.
Answer:
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.
Explanation:
Criminal justice and law enforcement provide challenging but rewarding career paths. The examples of common law enforcement Services workplaces and employers are options 3,4, and 6.
What are some examples of common law enforcement services?Local legal institutions include police departments and sheriffs. State agencies include state or highway patrol. Government agencies include the FBI and the U.S. Secret Service.
Local, regional, and individual levels of government provide different types of public office.
Hence, the examples of common Law Enforcement Services are
Option 3. Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.Option 4. Zoraida works for the municipal government investigating crime scene evidence in a laboratory.Option 6. Asa sits in an office filling out paperwork to document crimes.To learn more about common law enforcement services. refer to the link:
https://brainly.com/question/25967537
Sawyer Industries began business at the start of the current year. The company planned to produce 25,000 units, and actual production conformed to expectations. Sales totaled 22,000 units at $30 each. Costs incurred were: Variable manufacturing overhead per unit $ 8 Fixed manufacturing overhead 150,000 Variable selling and administrative cost per unit 2 Fixed selling and administrative cost 100,000 If there were no variances, the company's absorption-costing income would be:
Answer:
$208,000
Explanation:
The computation of the absorption-costing income is shown below:
As we know that
Net income = Gross profit - variable expense - fixed expense
where,
Gross profit is
= Sales - cost of goods sold
= (22000 units at $30) - (22,000 units at $14)
= $660,000 - $308,000
= $352,000
The $14 come from
= 8 + 150,000 ÷ 25,000
= 8 + 6
= 14
Now the variable expense is
= 22000 at $2
= $44,000
And, the fixed expense is $100,000
So, the net income is
= $352,000 - $44,000 - $100,000
= $208,000
RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 80 phones available at Charles de Gaulle Airport in Paris. There are, on average, 25 customers per day requesting a phone. These requests arrive uniformly throughout the 24 hours the store is open. The corresponding coefficient of variation is 1.
Customers keep their phones on average 72 hours. The standard deviation of this time is 100 hours. Given that RentAPhone currently does not have a competitor in France providing equally good service, customers are willing to wait for the telephones. Yet, during the waiting period, customers are provided a free calling card. Based on prior experience, RentAPhone found that the company incurred a cost of $1 per hour per waiting customer, independent of day or night.
a. What is the average number of telephones the company has in its store?
b. How long does a customer, on average, have to wait for the phone?
c. What are the total monthly (30 days) expenses for telephone cards?
d. Assume RentAPhone could buy additional phones at $1,000 per unit. Is it worth it to buy one additional phone? Why?
e. How would waiting time change if the company decides to limit all rentals to exactly 72 hours? Assume that if such a restriction is imposed, the number of customers requesting a phone would be reduced to 20 customers per day.
Answer:
Answer:- m = 80
a = 24 hours / 25 customers = 0.96 hours
p = 72 hours
u = p/(m x a) = 72 /(80×0.96)=0.9375
On average 93.75% of the phones are in use. 0.9375 x 80 = 75 phones are in use. Thus, 5 phones are available on average.
From above it is clear that 93.75%% of total phones are in use therefore total number of cell phones in use = 0.9375*80=75
So only 5 phones are available.
Answer:- CVa =1, CVp = 100/72 = 1.3889
Tq =( 72/80*[(0.9375 √2*80+1)-1]/(1-0.9375) * (12+1.88892)/2) = 9.89 hour
Thus average waiting time = 9.89 hours
Explanation:
Answer:- m = 80
a = 24 hours / 25 customers = 0.96 hours
p = 72 hours
u = p/(m x a) = 72 /(80×0.96)=0.9375
On average 93.75% of the phones are in use. 0.9375 x 80 = 75 phones are in use. Thus, 5 phones are available on average.
From above it is clear that 93.75%% of total phones are in use therefore total number of cell phones in use = 0.9375*80=75
So only 5 phones are available.
Answer:- CVa =1, CVp = 100/72 = 1.3889
Tq =( 72/80*[(0.9375 √2*80+1)-1]/(1-0.9375) * (12+1.88892)/2) = 9.89 hour
Thus average waiting time = 9.89 hours
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
a. Cash used for purchase of office supplies, $1,450.
b. Cash provided from consulting to customers, $41,100.
c. Cash used for purchase of mining equipment, $64,000.
d. Cash provided from long-term borrowing, $51,000.
e. Cash used for payment of employee salaries, $23,100.
f. Cash used for payment of office rent, $11,100.
g. Cash provided from sale of equipment purchased in c. above, $21,600.
h. Cash used to repay a portion of the long-term borrowing in d. above, $35,500.
i. Cash used to pay office utilities, $3,400.
j. Purchase of company vehicle, paying $9,100 cash and borrowing $14,100
Required:
Calculate cash flows from investing activities.
Answer:
-$51,500
Explanation:
Calculation for cash flows from investing activities
Cash used for purchasing mining equipment -64,000
Cash provided from sale of equipment $21,600
Purchase of company vehicle -$9,100
Cash used by investing activities -$51,500
Therefore the cash flows from investing activities will be -$51,500
Retained earnings, December 31, 2019 $315,450
Decrease in total liabilities during 2019 68,700
Gain on the sale of buildings during 2019 24,150
Dividends declared and paid in 2019 6,750
Proceeds from sale of common stock in 2019 74,100
Net income for the year ended December 31, 2019 33,900
Required:
From the above data, calculate the retained earnings balance as of December 31, 2018. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Answer:
See below
Explanation:
Ending retained earnings = Beginning retained earnings + net profit - dividend
$315,450 = Beginning retained earnings + $33,900 - $6,750
Beginning retained earnings = $288,300
Therefore, retained earning balance is $288,300
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and $16 for B.
a) Determine each alternative’s break-even point in units.
b) At what volume of output would the two alternatives yield the same profit?
c) If expected annual demand is 12,000 units, which alternative would yield the higher profit?
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative A:
Fixed costs= $40,000
Variable cost per unti= $10
Revenue per unit= $15
Alternative B:
Fixed costs= $30,000
Variable cost per unti= $12
Revenue per unit= $16
First, we need to calculate the break-even point in units using the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Alternative A= 40,000 / (15 - 10)
Alternative A= 8,000
Alternative B= 30,000 / (16 - 12)
Alternative B= 7,500
To calculate the indifference point in units, we need to determine the net income equations:
Alternativa A= 5*x - 40,000
Alternative B= 4*x - 30,000
x= number of units
We equal both formulas and isolate x:
5x - 40,000 = 4x - 30,000
x = 10,000
The indifference point is 10,000 units.
Finally, the higher income for 12,000 units:
Alternativa A= 5*12,000 - 40,000= $20,000
Alternative B= 4*12,000 - 30,000= $18,000
For 12,000 units the best option is alternative A.