Answer:
(1)Total cash receipts:
July = $59,405
August = $65,490
September = $76,500
2-a. Ending Cash Balance:
July = $13,300
August = $26,371
September = $54,206
2-b. Loan Balance End of Month:
July = $2,896
August = $0
September = $0
Explanation:
(1) Prepare a cash receipts budget for July, August, and September.
Note: See part (1) of the attached excel file for the cash receipts budget for July, August, and September.
From the attached excel file, we have:
Total cash receipts:
July = $59,405
August = $65,490
September = $76,500
(2) Prepare a cash budget for each of the months of July, August, and September.
Note: See part (2) of the attached excel file for the cash budget for July, August, and September.
In the attached excel file, the following calculation is made:
July loan repayment = July preliminary cash balance - Minimum cash balance required = $13,704 - $13,300 = $404
From the attached excel file, we have:
2-a. Ending Cash Balance:
July = $13,300
August = $26,371
September = $54,206
2-b. Loan Balance End of Month:
July = $2,896
August = $0
September = $0
In 2006, Lego laid off 1,200 workers and ended production in the U.S.. The company contracted out production of basic Lego bricks to Singapore-based electronics manufacturer Flextronics, which operates factories in Mexico and eastern Europe. Which two of the ten operations management decision types were addressed by this decision
Question Completion:
Ten Operations Management Decision Types:
a. Design of goods and services
b. Managing quality
c. Process and capacity design
d. Location strategy
e. Layout strategy
f. Human resources and job design
g. Supply chain management
h. Inventory management
i. Scheduling
j. Maintenance
Answer:
Lego
The two types of operations management decisions that were addressed by Lego's decision to end production in the US are:
d. Location strategy
g. Supply chain management
Explanation:
Lego decided to close its production facilities in the U.S.A because of the shifting customer demand. There has been a growing demand for electronics by children as against plastic toys. This is why it was able to contract out its production activities to a Singapore-based manufacturer with factories in Mexico and eastern Europe. So the company is strategically moving its production to countries that have high demand for its products and, at the same time, enjoying some tax benefits.
Assume that the risk-free rate is 5.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 1.8
Answer: 17.2%
Explanation:
You can use the Capital Asset Pricing Model to calculate the required return here given the variables in the question:
Required return = Risk free rate + beta * (Market return - risk free rate)
= 5.5% + 1.8 * ( 12% - 5.5%)
= 5.5% + 11.7%
= 17.2%
the excessive use of simple sentences is preferable in academic writing?
Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the next three years, with the growth rate falling off to a constant 6.1 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $2.80, what is the current share price
Answer:
$82.85
Explanation:
Which of the following would cause consumers to demand fewer slices of pizza?
A. an increase in the supply of pizza slices
B. a decrease in the supply of tacos
C. an increase in the price of pizza slices
Answer:
C.
Explanation:
All the others make the supply of pizza larger, or high demand
It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on January 1, 2011. It has a 7 percent annual coupon and had a 30-year original maturity. (It matures on December 31, 2040.) There were 11 years of call protection (until December 31, 2021), after which time it can be called at 108.5 percent of par, or $1,085. Interest rates have fallen since the bond was issued, and it is now selling at 115.5 percent of par, or $1,155. If you bought this bond, what rate of return would you probably earn, assuming you hold the bonds until they either mature or are called
Answer:
a. Assuming you hold the bonds until they mature, the rate of return you would probably earn is the YTM of 5.89%.
b. Assuming you hold the bonds until they are called, the rate of return you would probably earn is the YTC of 5.65%.
Explanation:
This can be determined by calculating the YTM and YTC as follows:
a. Calculation of Yield to Maturity (YTM)
The bond's Yield to Maturity can be calculated using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) .............(1)
Where;
YTM = yield to maturity = ?
nper = number of periods = number of years to maturity = 30
pmt = annual coupon payment = annual coupon rate * Face value = 7% * $1,000 = $70 = 70
pv = present value = current bond price = $1,155 = 1155
fv = face value or par value of the bond = 1000
Substituting the values into equation (1), we have:
YTM = RATE(30,70,-1155,1000) ............ (2)
Inputting =RATE(30,70,-1155,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 5.89%.
Therefore, assuming you hold the bonds until they mature, the rate of return you would probably earn is the YTM of 5.89%.
b. Calculation of Yield to Call (YTC)
The bond's Yield to call can be calculated using the following RATE function
in Excel:
YTC = RATE(nper,pmt,-pv,fv) .....................(3)
Where;
YTM = yield to call = ?
nper = number of periods = number of years of call protection = 11
pmt = annual coupon payment = annual coupon rate * Face value = 7% * $1,000 = $70 = 70
pv = present value = current bond price = $1,155 = 1155
fv = future value of the bond or the amount at which the bond can be called = $1,085 = 1085
Substituting the values into equation (3), we have:
YTM = RATE(11,70,-1155,1085) ............ (4)
Inputting =RATE(11,70,-1155,1085) into excel (Note: as done in the attached excel file), the YTM is obtained as 5.65%.
Therefore, assuming you hold the bonds until they are called, the rate of return you would probably earn is the YTC of 5.65%.
On May 31, Money Corporation's Cash account showed a balance of $17,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Checks outstanding $ 2,850 Deposits outstanding 3,200 NSF check 120 Service fees 110 Error: Money Corp. wrote a check for $50 but recorded it incorrectly for $500. What is the amount of cash that should be reported in the company's balance sheet as of May 31
Answer:
$17,460
Explanation:
The computation of adjusted cash balance is seen below;
Cash account balance
$17,000
NSF check
$120
Service fees
($110)
Amended mistake
$450
Adjusted cash balance
$17,460
The amount of cash that should be reported in the company's balance sheet as of May 31 is $17,460.
Here, the outstanding check and deposit in transit are adjustment for the bank balance and not the firm's cash accounting.
Also, we need to look for the data such as non sufficient funds, service fees etc which were not known until the bank statement was received.
Social computing increases
Answer:
Yes it does. Yes it does.
Put the following statements in the correct order to summarise the sequence of events in moving from the short-run to the long-run in perfect competition.
Answer:
ok
Explanation:
McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that if a product cannot earn a margin on sales of at least 20 percent, it will be dropped. The margin is computed as product gross profit divided by reported product cost.Manufacturing overhead for year 1 totaled $800,000. Overhead is allocated to products based on direct labor cost. Data for year 1 show the following: Chairs DesksSales revenue $ 1,150,000 $ 2,105,000 Direct materials 584,000 800,000 Direct labor 160,000 340,000 Required:a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.Profit Margin (%)Chairs Desks a-2. Which of the two products should be dropped?b. Regardless of your answer in requirement a, the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $650,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2?
Answer:
McNulty, Inc.
Chairs Desks
a) Profit margin (%) 6.33% 31.36%
b) The estimated margin for desks in year 2 is:
= 17.6%
Explanation:
a) Data and Calculations:
Expected gross profit margin on cost = 20%
Manufacturing overhead for year 1 = $800,000
Chairs Desks Total
Sales revenue $ 1,150,000 $ 2,105,000 $ 3,255,000
Direct materials 584,000 800,000 1,384,000
Direct labor 160,000 340,000 500,000
Overhead 337,572 462,428 800,000
Total costs $1,081,572 $1,602,428 $2,684,000
Gross Profit $68,428 $502,572 $571,000
Profit margin 6.33% 31.36% 21.27%
Margin (%) = Gross profit/Total costs * 100
Allocation of Manufacturing Overhead based on direct labor cost:
Chairs = $337,572 ($584,000/$1,384,000 * $800,000)
Desks = $462,428 ($800,000/$1,384,000 * $800,000)
Year 2:
Desks
Sales revenue $ 2,105,000
Direct materials 800,000
Direct labor 340,000
Overhead 650,000
Total costs $ 1,790,000
Gross Profit $315,000
Profit margin 17.6%
Atul purchased goods costing Rs 50000 at an invoice price,which is 50% above cost.. on invoice price je enjoyed 15% trade discount and Rs 3750 cash discount on cash payment of goods in lump sum at the time of purchase ...the purchase price to be recorded in the books will be
Answer: Rs 63750
Explanation:
Since Atul purchased goods costing Rs 50000 at an invoice price,which is 50% above cost. Then the purchase of the goods cost:
= 50000 × (100% + 25%)
= 50000 × 125%
= 50000 × 1.25
= Rs 75000
We then deduct the trade discount of 15% to get the purchase price to be recorded in the book. This will be:
= 75000 × (100% - 15%)
= 75000 × 85%
= 75000 × 0.85
= 63750
Therefore, the answer is Rs63750
what is a business administration
Answer:
Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising business operations.
Explanation:
This is what I found during my research. Please correct me if I am wrong which I feel like I am right. Hope this helped a bit and have a good one!
☜(ˆ▿ˆc)A firm has production function y = f(x1, x2) = x 1^1/3 x 2 ^2/3 , where y is the amount of output, x1, x2 are the amount of input 1 and 2 respectively.
(a) Suppose the firms chooses to produce with inputs x1^0 , x2^0 . Calculate the marginal product with respect to input 1 and input 2. (Express them in terms of x1^0 , x2^0 .)
(b) What’s the firm’s technical rate of substitution given input level x1^0 , x2^0 ?
(c) Suppose the prices for input 1 and input 2 are are respectively w1 = 8, w2 = 2. The market price for the output is p = 50. In order to produce a fixed level of output y 0 = 8, what’s the optimal amount of each input that the firm chooses to use for production?
Answer: B
po yata ayan po yata yung sagot ?
Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,000. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5,500 hours in Year 1; 3,800 hours in Year 2; 3,200 hours in Year 3; and 3,500 hours in Year 4.Required: Complete a separate depreciation schedule for each of the alternative methods. Do not round intermediate calculations a. Straight-line. reciati Book Value At acquisition b. Units-of-production (u four decimal places for the per unit output factor) se Net Depreciation Accumulated Depreciation Book Value Expense At acquisition
Answer:
Purity Ice Cream Company
a. Depreciation Schedule, using straight-line method:
Cost Depreciation Accumulated Net Book
Expense Depreciation Value
Year 1 $9,000 $2,000 $2,000 $7,000
Year 2 $9,000 $2,000 4,000 5,000
Year 3 $9,000 $2,000 6,000 3,000
Year 4 $9,000 $2,000 8,000 1,000
b. Depreciation Schedule, using unit of production method:
Cost Depreciation Accumulated Net Book
Expense Depreciation Value
Year 1 $9,000 $2,750 $2,750 $6,250
Year 2 $9,000 $1,900 4,650 4,350
Year 3 $9,000 $1,600 6,250 2,750
Year 4 $9,000 $1,750 8,000 1,000
Explanation:
a) Data and Calculations:
Cost of ice cream maker = $9,000
Estimated useful life = 4 years
Residual value = $1,000
Depreciable amount = $8,000 ($9,000 - $1,000)
Annual depreciation (Straight-line method) = $2,000 ($8,000/4)
Estimated productive life the machine = 16,000 hours
Annual usage: Depreciation Expense
Year 1 5,500 hours $2,750
Year 2 3,800 hours 1,900
Year 3 3,200 hours 1,600
Year 4 3,500 hours 1,750
Total 16,000 hours $8,000
Depreciation rate per hour = $0.50 ($8,000/16,000)
The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4.00 and for B is $3.80 at the split-off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit. In a decision between selling B at the split-off point or processing B further, which of the following items is not relevant:a. $10,000) per production run b. $96,000 per production run c. ($42,000) per production run d. $36,000 per production run
Answer: $54,000 per production run
Explanation:
As we are dealing with the decision of whether or not to process the good further, the irrelevant cost would be the cost of producing product B from input R.
This is because this cost has already been incurred to produce product B and so is a sunk cost. Sunk costs are irrelevant to the decision to process further.
30,000 units of B were made from 90,000 units R so the cost of B is:
= 30,000 / 50,000 * 90,000
= $54,000
The options here are probably for a variant of this question.
The Reserve Company had 606 million shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year: There are no potential common shares outstanding. 2016 Feb. 27 Purchased 18 million shares of treasury stock. Oct. 30 Sold the treasury shares purchased on February 27. Nov. 29 Issued 72 million new shares. Dec. 31 Net income for 2016 is $1,200 million. 2017 Jan. 14 Declared and issued a 2 for 1 stock split. Dec. 31 Net income for 2017 is $1,200 million. Required: 1. Determine the 2016 EPS. 2. Determine the 2017 EPS. 3. At what amount will the 2016 EPS be presented in the 2017 comparative financial statements
Answer:
1. $2.00
2. $0.88
3. $1.00
Explanation:
1. Calculation to determine the 2016 EPS
First step is to calculate the Total Movement of shares and WACSO
Date Movement of shares Ratio WACSO(no. of shares * Ratio)
1-Jan-16 $606 million*12/12 =$606 million
28-Feb-16 (18 million)*10/12=(15 million)
31-Oct-16 18 million*2/12=3 million
30-Nov-16 72 million*1/12=6 million
Total 678 million 600 million
Now let calculate 2016 EPS
Net income $1,200 million
÷Divided by WACSO 600 million
=EPS $2.00
($1,200 million/600 million)
Therefore 2016 EPS will be $2.00
2. Calculation to determine 2017 Earnings per share
First step is to calculate the No. of shares outstanding after stock split
No. of shares outstanding as of 2017 678 million
*Stock split 2
=No. of shares outstanding after stock split 1,356 million
(678 million*2)
Now let calculate 2017 EPS
Net income $1,200 million
÷Divided by WACSO 1,356 million
=EPS 0.88
($1,200 million/1,356 million)
Therefore 2017 EPS will be $0.88
3. Calculation to determine At what amount will the 2016 EPS be presented in the 2017
First step is calculate No. of shares outstanding after stock split
Wacso based on item no. 1 600 million
*Stock split 2
=No. of shares outstanding after stock split 1200 million
(600 million*2)
Now let calculate the 2016 EPS be presented in the 2017
Net income 1200 million
÷Divided by WACSO 1200 million
=EPS 1.00
(1200 million/1200 million)
Therefore At what amount will the 2016 EPS be presented in the 2017 will be $1.00
Ring Me Up Inc. has net income of $143,100 for the year ended December 31, 2019. At the beginning of the year, 36,000 shares of common stock were outstanding. On May 1, an additional 18,000 shares were issued. On December 1, the company purchased 4,300 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ring Me Up paid the annual dividend on the 9,000 shares of 4.65%, $100 par value preferred stock that were outstanding the entire year.
Required:
Calculate basic earnings per share of common stock for the year ended December 31, 2019.
Answer:
$2.13
Explanation:
Computation what the basic earnings per share of common stock for the year ended December 31, 2019 be
Using this formula
Basic earnings per share = Net income - preferred dividends / Weighted average no of shares outstanding
Let plug in the formula
Basic earnings per share = $143,100 - (9,000*4.65%*100) / (36,000*12/12)+(18,000*8/12) - (4,300*1/12)
Basic earnings per share = $143,100 - 41,850 / 36,000+12,000 - 358
Basic earnings per share = 101,250 / 47,642
Basic earnings per share =$2.13
Therefore the basic earnings per share of common stock for the year ended December 31, 2019 be $2.13
Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is being offered a nominal rate of 6%. But the bank is compounding monthly. What is the effective interest rate that Rahul would pay for the loan
Answer: 6.17%
Explanation:
When calculating the effective rate of an interest rate being compounded over a number of periods in a year, use the following:
= [ (1 + Nominal rate / Number of periods in a year) ^ Number of periods in a year- 1] * 100%
Number of periods = Compounding is monthly = 12
Effective rate = [ (1 + 6% / 12)¹² - 1 ] * 100%
= 6.17%
Assume an investee has the following financial statement information for the three years ending December 31, 2013:(At December 31) 2011 2012 2013Current assets $310,500 $416,550 $428,205Tangible fixed assets 844,500 861,450 992,595Intangible assets 75,000 67,500 60,000Total assets $1,230,000 $1,345,500 $1,480,800Current liabilities $150,000 $165,000 $181,500Noncurrent liabilities 330,000 363,000 399,300Common stock 150,000 150,000 150,000Additional paid-in capital 150,000 150,000 150,000Retained earnings 450,000 517,500 600,000Total liabilities and equity $1,230,000 $1,345,500 $1,480,800(At December 31) 2011 2012 2013Revenues $1,275,000 $1,380,000 $1,455,000Expenses 1,162,500 1,260,000 1,314,000Net income $112,500 $120,000 $141,000Dividends $37,500 $52,500 $58,500Review of pre-consolidation cost method (controlling investment in affiliate, fair value equals book value)Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values. In addition, the acquisition resulted in no goodwill or bargain purchase gain recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the cost method to account for its investment in the investee, what is the balance in the "investment in investee" account in the investor company's preconsolidation balance sheet on December 31, 2013?A. $900,000B. $750,000C. $675,000D. $1,480,800Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values. In addition, the acquisition resulted in no goodwill or bargain purchase gain recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the cost method to account for its investment in the investee, what is the balance in the "income from investee" account in the investor company's preconsolidation income statement for the year ended December 31, 2013?A. $141,000B. $82,500C. $58,500D. $112,500Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values, except for tangible fixed assets, which had fair value that was $150,000 higher than the investee's recorded book value. The tangible fixed assets had a remaining useful life of 10 years. In addition, the acquisition resulted in goodwill in the amount of $300,000 recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the equity method to account for its investment in the investee, what is the balance in the "income from investee" account in the investor company's pre-consolidation income statement for the year ended December 31, 2013?A. $126,000B. $82,500C. $67,500D. $141,000
Answer:
1. The balance in the "investment in investee" account in the investor company's preconsolidation balance sheet on December 31, 2013 is:
A. $900,000
2. The balance in the "income from investee" account in the investor company's preconsolidation income statement for the year ended December 31, 2013 is:
B. $82,500
3. The balance in the "income from investee" account in the investor company's pre-consolidation income statement for the year ended December 31, 2013 is:
D. $141,000
Explanation:
a) Data and Calculations:
Financial Statements for the three years ending December 31, 2013:
(At December 31) 2011 2012 2013
Current assets $310,500 $416,550 $428,205
Tangible fixed assets 844,500 861,450 992,595
Intangible assets 75,000 67,500 60,000
Total assets $1,230,000 $1,345,500 $1,480,800
Current liabilities $150,000 $165,000 $181,500
Noncurrent liabilities 330,000 363,000 399,300
Common stock 150,000 150,000 150,000
Additional paid-in capital 150,000 150,000 150,000
Retained earnings 450,000 517,500 600,000
Total liabilities and equity $1,230,000 $1,345,500 $1,480,800
(At December 31) 2011 2012 2013
Revenues $1,275,000 $1,380,000 $1,455,000
Expenses 1,162,500 1,260,000 1,314,000
Net income $112,500 $120,000 $141,000
Dividends $37,500 $52,500 $58,500
Income retained for the current year $82,500
Retained income for year 2012 517,500
Retained income for year 2013 $600,000
Common stock 150,000
Additional paid-in capital 150,000
Total equity $900,000
Danks Corporation purchased a patent for $405,000 on September 1, 2019. It had a useful life of 10 years. On January 1, 2021, Danks spent $99,000 to successfully defend the patent in a lawsuit. Danks feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2021?
Answer:
Amortization Expense for year 2021 $90,000
Explanation:
The computation of the amount that should be reported for patent amortization for the year 2021 is shown below:
But before that following calculations need to be done
The value of the patent as of 31st Dec, 2020
Purchase Value as of Sep 1,2019 $405000
Less:- Amortization Expense for the year 2019 $13,500
($405000 ÷ 10 × 4 ÷ 12)
Less:- amortization expense for the year 2020 $40500 ($405,000 ÷ 10)
Value of patent as on 1st Jan, 2021 $351,000
Add:- fees to defend $99000
New Book Value for the year 2021 $450,000
Now Remaining Useful Life 5 years
So,
Amortization Expense for year 2021 $90,000 ($450,000 ÷ 5)
What is the net present value of a project with the following cash flows if the required rate of return is 9 percent? Year Cash Flow 0 -$42,398 1 18,201 2 21,219 3 17,800 Group of answer choices -$1,574.41 -$1,208.19 $5,904.64 $6,029.09 $6,311.16
Answer:
$5,904.64
Explanation:
We discount the future cashflows to their present values to determine the net present value.
Using the CFj function of the Financial Calculator, this will be set as :
-$42,398 CFj 0
$18,201 CFj 1
$21,219 CFj 2
$17,800 CFj 3
I/Yr = 9 %
Therefore,
the net present value is $5,904.64
Concord Company gathered the following reconciling information in preparing its July bank reconciliation:
Cash balance per books, 7/31 $21300
Deposits in transit 1100
Notes receivable and interest collected by bank 4340
Bank charge for check printing 80
Outstanding checks 7800
NSF check 730
The adjusted cash balance per books on July 31 is:____.
a. $25930.
b. $18130.
c. $17030.
d. $24830.
Answer:
d. $24830
Explanation:
Calculation to determine what The adjusted cash balance per books on July 31 is:
Using this formula
Adjusted cash balance per books on July =Cash balance + Note collected- Printing Charges - NSF check
Let plug in the formula
Adjusted cash balance per books on July=$21,300 + $4,340 - $80 -$730
Adjusted cash balance per books on July= $24,830
Therefore The adjusted cash balance per books on July 31 is:$24830
Nash Incorporated factored $156,000 of accounts receivable with Crane Factors Inc. on a without-recourse basis. Crane assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Nash Incorporated and Crane Factors to record the factoring of the accounts receivable to Crane.
Answer:
Nash Incorporated,
Dr Cash $143,520
Dr Due from Factor $9,360
Dr Loss on Sale of Receivables $3,120
Cr Accounts Receivable $156,000
Crane Factors
Dr Accounts Receivable $156,000,
Cr Due to Customer Nash $9,360
Cr Interest Revenue $3,120
Cr Cash $143,520
Explanation:
Preparation of the journal entry for Nash Incorporated and Crane Factors to record the factoring of the accounts receivable to Crane.
Nash Incorporated,
Dr Cash $143,520
($156,000-$9,360-$3,120)
Dr Due from Factor $9,360
(6%*$156,000)
Dr Loss on Sale of Receivables $3,120
(2%*156,000)
Cr Accounts Receivable $156,000,
Crane Factors
Dr Accounts Receivable $156,000,
Cr Due to Customer Nash $9,360
(6%*$156,000)
Cr Interest Revenue $3,120
(2%*156,000),
Cr Cash $143,520
($156,000-$9,360-$3,120)
plies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 120,000; however, a lengthy strike resulted in actual machine hours being worked of only 90,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000, respectively. On the basis of this information, the company's year-end overhead was:
Answer:
$580,000 under applied.
Explanation:
The computation of the company's year end overhead is seen below;
The applied overhead is
= Predetermined overhead rate × actual machine hours
= $40 × 90,000
= $3,600,000
Then, the applied overhead
= $4,180,000 - $3,600,000
= $580,000
Hence, the ending overhead is $580,000 under applied
Aster Inc. has developed a new digital three-tier food steamer. Though the product comes with a self-explanatory manual, the controls and the operation of the appliance have to be explained to the customer on a one-to-one basis, in great detail. Which of the following elements of the promotional mix is Aster most likely to rely on to sell its products?
a. Advertising
b. Sales promotion
c. Public relations
d. Personal selling
Answer:
d. Personal selling
Explanation:
Personal selling would be the one of the component of the promotional mix where the person interact with the customers from face to face and explains the product with respect to its features, price, benefits, etc also at the same time customer could solve their doubts related to the product
So as per the given situation, the option d is correct
2- A local car dealer is advertising two leasing options for its new XT 3000 series sports car. Option A: is a standard 24-month lease of $1150 per month. In addition, this option requires a down payment of $4500, plus a $1000 refundable initial deposit. In option A, the lease payments are due at the beginning of every month. For example, the first lease payment (equal to $1150) is due at the beginning of month 1. Option B: In this option, the company offers a 24-month lease plan that has only a single up-front payment of $31000 (which is paid at the beginning of month one) Note: The initial deposit in option A will be refunded to the customer at the end of month 24. Assume an interest rate of 6% compounded monthly. Which option is better for the customer
Answer:
A. Interest rates wouldn't be so high. Customer would be able to afford this lease better.
distribution strategies
If GDP is confidently expected to grow at a rapid 4% rate this year, how do you predict investment spending will change? Is it likely to grow faster than, slower than, or at the same rate as GDP? Why? Based on this expectation, investment spending is likely to by 4%. A rapidly growing economy will generally make business people optimistic, expectations about potential future profits. As a result, they are eager to invest.
Answer:
Based on this expectation, investment spending is likely to increase by more than 4%.
A rapidly growing economy will generally make business people more optimistic, with higher expectations about potential future profits. As a result, they are more eager to invest.
Investment will increase higher than 4% because in a growing economy like this, people will be so optimistic that they would invest huge sums to capitalize on the growth and earn some returns.
This rate of increase would be greater than GDP because GDP is based on multiple factors including investment therefore those factors like government spending would have to increase as well.
If the GDP is expected to be increased by 4%, the investment spending are likely to be increased by more than 4%.
In the rapid growing economy the investors are generally more optimistic they have higher expectations about the future potential profit as a result they will be more eager to invest.
What is GDP?GDP or gross domestic product final value of goods and services produced which is the economy during a financial year. The GDP excludes the value of intermediate consumption to avoid the problem of double counting.
An increasing GDP positively effect the investment spending as the people in the economy are optimistic about the future profit and hence will be eager to invest huge sums to make bigger profits.
Therefore rate of increase in investment spending will we more than 4% when the rate of GDP increases by 4%.
Learn more about GDP here:
https://brainly.com/question/4131508
On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips dishonors the note on May 8. Record the entry that Jackson would make when the note is dishonored, assuming that no interest has been accrued. Assume Jackson expects collection will occur. (Use 360 days for calculation. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate calculations to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 1,525.)
Answer:
Jackson Company
Journal Entries:
Debit Accounts Receivable (Phillips) $6,0687
Credit Notes Receivable $5,200
Credit Interest on Notes Receivable $867
To record the reversal of the dishonored promissory note and the accruing interest for 60 days.
Explanation:
a) Data and Calculations:
March 9, 12% Promissory Note Receivable = $5,200
May 8, Note dishonored
Interest on note = 12% of $5,200 * 60/360 = $867
b) The above entries are made with the hope that collection will be made from Phillips eventually.
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
Case A Case B Case C
Direct materials used $ (a) $91,200 $69,000
Direct labor 52,200 143,800 (h)
Manufacturing overhead applied 42,804 (d) (i)
Total manufacturing costs 149,800 (e) 216,100
Work in process 1/1/14 (b) 21,300 18,400
Total cost of work in process 208,600 (f) (j)
Work in process 12/31/14 (c) 11,900 (k)
Cost of goods manufactured 193,500 (g) 232,600
Answer:
(a) $54796 (b) $58,800 (c) $ 15100 (d) $117916 (e) $ 352916 (f) $ 374216
(g) $326316 (h) $ 82824.18 (i) $ 64276.82 (j) $234500 (k) $1900
Explanation:
The calculations are as follows.
Case A Case B Case C
Direct materials used $ (a) 54796 $91,200 $69,000
Direct labor 52,200 143,800 (h) 82824.18
Manufacturing overhead applied 42,804 (d)117916 (i)64276.82
Total manufacturing costs 149,800 (e) 352916 216,100
Working
The following formula is used to find the missing values :
Total MFG Cost= DM + DL+ MFG OH
a) 149800- 42804-52200= 54796
d) Ratio of MfgOH to DL= 42,804/52,200= 0.82
Mfg Overhead for Case 2= 0.82* 143,800= 117916
e) 91,200+ 143,800+ 117916= 352916
h+i) Conversion Costs for Case 3= 216100-69000=147100
Mfg OH is 82% of DL
Total Conversion Cost will be 1.82
1.82x= 147100
x= 147100/1.82
x= 82,824.18
h)DL= 82824.18
i) MFG OH= CC- DL= 147100- 82824.18= 64276.82
Work in process 1/1/14 (b) 58,800 21,300 18,400
Total cost of work in process 208,600 (f) 374216 (j)234500
Working
The following formula is used to find the missing values
Total WIP Cost- Total MFG Cost= Opening WIP
b)Total WIP Cost- Total MFG Cost= 208600-149800= 58,800
f) Total MFG Cost+ WIP= 352916 + 21,300 =374216
j) Total MFG Cost+ WIP=216,100 + 18,400= 234500
Work in process 12/31/14 (c) 15100 11,900 (k)1900
Cost of goods manufactured 193,500 (g) 326316 232,600
Working
The following formula is used to find the missing values
Total WIP-CGS= Ending WIP
c) Total WIP-CGS= 208600-193500 = 15100
g) Total WIP- Ending WIP= 374216- 11,900 = 326316
k) Total WIP-CGS=234500- 232,600 = 1900
After filling in the blanks:
Case A Case B Case C
Direct materials used $ (a) 54796 $91,200 $69,000
Direct labor 52,200 143,800 (h) 82824.18
Manufacturing overhead applied 42,804 (d)117916 (i)64276.82
Total manufacturing costs 149,800 (e) 352916 216,100
Work in process 1/1/14 (b) 58,800 21,300 18,400
Total cost of work in process 208,600 (f) 374216 (j)234500
Work in process 12/31/14 (c) 15100 11,900 (k)1900
Cost of goods manufactured 193,500 (g) 326316 232,600