Answer:
Option A
Explanation:
Logistics is concerned with the flow of goods (raw material and finished products) to the consumer and the producer.
However, the entire process of logistics involve Flow of physical items as well as abstract items inclusive of time, information, particles, and energy
Hence, option A is correct
Sheffield Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Sheffield Corporation's anticipated annual volume of 524,000 units. Per Unit Total Direct materials $ 6 Direct labor $11 Variable manufacturing overhead $17 Fixed manufacturing overhead $3,144,000 Variable selling and administrative expenses $17 Fixed selling and administrative expenses $1,572,000 The company has a desired ROI of 25%. It has invested assets of $31,440,000. Compute the total cost per unit. Total cost per unit $enter the total cost per unit
Answer:
Total cost per unit using absorption costing = $34
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit
Full cost per unit= Direct material cost + direct labor cost + Variable production overhead + Fixed production overhead
Fixed production overhead = Budgeted overhead/Budgeted production units
unit cost for 2,000 units
Fixed production overhead = $3,144,000/524,000= 6
Total cost = 6 + 11+ 17 = 34
Total cost per unit using absorption costing = $34
James has a large farm. He often gets together with a nearby neighbor who raises chickens. When they meet that trade vegetables for chicken and eggs. No money changes hands. They have made trades like this since their parents own the land and have continued the trades. What type of economy is being described?
Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and production Model A1) is presented below: Sales price per unit $30 Costs per unit: Direct material 7 Direct labor 4 Overhead (50% variable) 6 Selling costs (40% variable) 10 Production in units 10,000 Sales in units 9,500 Refer to Henderson Electronics Corporation. Assume that the remaining Model A1 radios can be sold through normal channels or to a foreign buyer for $6 per unit. If sold through regular channels, the minimum acceptable price will be
Answer:
the minimum acceptable price is $4
Explanation:
The computation of the minimum acceptable price is shown below:
Here the minimum acceptable price would be considered as a variable selling cost i.e. calculated below:
= Selling cost × variable percentage
= $10 × 40%
= $4
hence, the minimum acceptable price is $4
The same would be considered and relevant too
difference between transport business and drink business
Answer:
a transport business uses (preferably semi's) any vehicles to transport one item from one place to another. a drink business is a place/product ( drinks (soft or alcoholic) and you sell them to make a profit
transport business is both cheaper and easy to set up and run.
Discovering the process of distribution of commonly used items is quite interesting and opens eyes to several new processes and careers! Your group will be in charge of dissecting the process of distribution related to any of the following items:
*Televisions
*Milk in Cartons
*Laundry Detergent
*Refrigerators
*Lumber
*Pineapples
*Video Games
*Watches
*Coffee
*Shoes
*Football Helmets
*Pencils
Narrow your research by selecting a brand or company that manufactures or distributes one of the products listed above. For example, not all shoes come from the same country, manufacturer, distributor, or are distributed alike. Select a brand of shoes you are familiar with and begin the search. The goal is to trace the process from production to consumer.
Answer and Explanation:
The distribution of laundry detergent can happen in two ways. The first way, occurs with a distribution of the factory direct to the retailers of a country. These retailers, receive the detergents, store large inventories and send them to smaller stores, within a given region. This type of distribution has a lower economic cost, which causes the detergent to be sold at lower prices.
The second form of distribution occurs with the use of intermediaries between factories and retailers. These intermediaries are the wholesalers, they receive the product from the factories forming large stocks, which will be distributed to retailers, who in turn, will distribute the product to stores. This process makes the product more expensive, making the price higher.
\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% andAllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]
Answer:
WACC = 6.38%
Explanation:
Cost of equity = 1.7% + (1.15 x 5.6%) = 8.14%
Weight of equity = 52%
After tax cost of debt = 5.7% x (1 - 35%) = 3.705%
Weight of debt = 40%
Cost of preferred stock = $2.49 / $30 = 8.3%
Weight of preferred stock = 8%
WACC = (8.14% x 0.52) + (3.705% x 0.4) + (8.3% x 0.08) = 6.3788% ≈ 6.38%
7. The price of a movie ticket goes from $7.00 to $8.50. What should happen to the demand for these tickets?
Answer: The price increses
Explanation: Goes t0 7.00 to 8.50 increses a 1.50
The demand has went up
All leaders tend to share several common characteristics.
O True
O False
Answer:
O True
Explanation:
A company's unadjusted trial balance shows a debit balance in the allowance for doubtful accounts. This means that a. The company has written off more accounts receivable during the period than were accounted for in the opening balance of the allowance. b. The company must recognize bad debt expense at least as great as the unadjusted debit balance of the allowance. c. The company has written off too many accounts receivable and should reassess its write-off policy. d. Both a and b above are correct.
Answer:
d. Both a and b above are correct.
Explanation:
In the case when the company unadjusted trial balance reflect a debit balance of allowance for doubtful debts so this represent that the company would have more written off account receivable that would be shown in the beginning balance of the allowance. Also the company should record the bad debt expense as more as the debit balance of the non-adjusted allowance
Hence, the last option is correct
Fred leases a taco store in the shopping center. In order to prepare his tacos, Fred installs a large, old stove to cook the meat. The lease runs out and Fred does not want to renew the lease. He leaves town and leaves the stove in the landlord's property. The lease contract did not mention the stove and the landlord is very unhappy. What is the legal situation now?
Answer:
The stove is a trade fixture, but Fred did not take it with him upon the expiration of the lease. Now it is the property of the landlord.
Explanation:
Since in the given situation it is mentioned that that lease would run out and he does not want to renew the lease also he leaves the stove in the property of the landlord. Due to this the landlord is very sad
So here the legal situation is that the stove would be classify as a trade fixture also he did not take it with him so now it would be the property of the landlord
The same would be considered
Assume Cluck Home Remedy reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 1,730,200 $ 1,380,920 Allowance for Doubtful Accounts (96,000 ) (79,900 ) Accounts Receivable, Net $ 1,634,200 $ 1,301,020 Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019
Answer: $16100
Explanation:
From the information given, we should note that the amount of bad debt expense reported in 2019 will be:
= Ending balance of the allowance account - Bginning balance of the allowance account.
= $96000 - $79900
= $16100
Therefore, the bad debt expense is $16100
On December 1, Year 1, Childe Company purchased $100,000 of bonds issued by Paperman Company at face value. The bonds mature in ten years. Childe’s intent was to keep the bonds available to sell when cash needs arise in future years. The fair value of those bonds increased to $102,000 on December 31, Year 1. Which of the following statements are correct with regards to this investment? (Select all that apply.) Check All That Apply The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported at their fair value of $102,000 in the balance sheet. The bonds should be reported at their fair value of $102,000 in the balance sheet. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.
Answer: A- The bonds should be reported among assets in the balance sheet at December 31, Year 1.
B- The bonds should be reported at their fair value of $102,000 in the balance sheet.
D- An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.
Explanation:
Nancy Fur Supply has been selling fur coats to Patricia's Fur Shop pursuant to an existing contract. The price of fur pelts goes up sharply and Nancy concludes that she can no longer continue to supply the coats to Patricia's at the agreed price. Nancy asks Patricia to agree to a 10 percent increase in the price of the coats and Patricia agrees but then later changes her mind and refuses to pay the additional 10%. In that case, Patricia:
Answer:
In that case, Patricia:
is still liable to pay the additional 10%.
Explanation:
The 10% price increase was preceded by an agreement between the two parties. Patricia is bound to honor her agreements with her business partner to sustain the business relationship. Refusing to pay a debt just by a change of mind does not repudiate the contract. Nancy can enforce the agreement in the court for specific performance of the contract because this additional agreement simply modifies the earlier contract and remains enforceable.
The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. Click here to view Exhibit 7B-1 and Exhibit 7B-2 to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.): (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $(11,700) $(29,886) $(77,514) $(53,700)
Answer:
$(53,700)
Explanation:
The computation of the net present value is given below:
Given that
Initial investment is $270,000
Time period is 5 years
Annual cash flows is $60,000 per year
Discounting rate is 12%
Now the net present value is
Year cash flows discount rate at 12% Present value
1-5 $60,000 3.605 $216,300
Less:
Initial investment $270,000
Net present value ($53,700)
Georgia Movie Company has a capital structure with 50.00% debt and 50.00% equity. The cost of debt for the firm is 9.00%, while the cost of equity is 15.00%. The tax rate facing the firm is 36.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $3.10 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 13.00-year period. What is the WACC for this project
Answer:
10.38%
Explanation:
The computation of the WACC is given below:
WACC = Weight of debt × After tax Cost of debt + Weight of Equity × Cost of Equity
Here After tax cost of debt is
= Cost of debt × (1 - tax rate)
= 9% × (1 - 36%)
= 5.76%
Now
WACC = 50% × 5.76% + 50% × 15%
= 10.38%
IRR in Excel!(CHAPTER 9) Your company is considering a new project opportunity. It would immediately receive $200. In return, in the next 4 years it will need to pay the following amounts of money: In 1 year: $80 In 2 years: $70 In 3 years: $60 In 4 years: $50 The required annual rate of return is 19%. Answer the following questions: (a) The Internal Rate of Return for this project is . %. (Round your answer to TWO decimal places. Put your answer in percent, NOT in decimals. For example, if your answer is 12.34 percent, then you need to put 12.34, and NOT 0.12)
Answer:
12.44%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
cash floe in yer0 = 200
cash flow in year 1 = -80
cash flow in year 2 = - 70
cash flow in year 2 = - 60
cash flow in year 2 = - 40
irr = 12.44%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
The type of listing agreement that provides for the payment of a commission to the broker even if the owner himself makes the sale without the aid of the broker is called a(n)
a.
open listing
b.
option listing
c.
exclusive-agency listing
d.
exclusive-right-to-sell listing
Bombeck Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. Aug. 1 Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock. 4 Pays insurance in advance for 6 months, $1,800 cash. 16 Receives $1,900 from clients for services performed. 27 Pays secretary $1,000 salary.
Answer: Please see answers in explanation column
Explanation:
Date Accounts titles and explanation Debit Credit
Aug 1 Cash $5000
Common Stock $5000
--Since this is an investment by the owner of the business . When the business is gaining cash, it is being debited as it is an asset which is always debited with increase. Also there will be an increase in the owner's Equity Account leading to crediting the Common stock (equity) account.
Date Accounts titles and explanation Debit Credit
Aug 4 Prepaid Insurance $1800
Cash $1800
--The insurance paid in 6 months advance is an asset for the business. As stated above when asset increases, it is debited in the account journal So, prepaid insurance account is being debited . Also,since cash is being reduced as it is used for payment for insurance, it is credited in the accounts journal.
Date Accounts titles and explanation Debit Credit
Aug 16 Cash $1,900
Service Revenue $1,900
--The amount of $1,800 is the revenue for service rendered and since it is an equity account which increased revenue, we credit it. Also, since cash is being received, because it is an asset, debit is recorded on the cash account.
Date Accounts titles and explanation Debit Credit
Aug 27 Salary Expense $1000
Cash $1000
--Payment of salary is an expense to any business and paid from the business Cash Account causing a decrease in the Cash, since Cash is referred to an asset , because of its decrease, we credit the Cash Account. Also, the salary expense account is debited because it is increasing
user add controls to a form
Answer: meeeeep
Explanation:
Manoel
Which of the following increases the supply of foreign exchange?
a.
Investments of capital in foreign countries
b.
Increases in tourism and export of local goods
c.
Import of goods and services to a country
d.
Demand for foreign goods and services
Purdum Farms borrowed $14 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $2.8 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made
Answer and Explanation:
The amount that should be reported as the current liabilities and long term liabilities is shown below:
The borrowed amount is $14 million
And, the installments is of $2.8 million each
He makes the first payment and then made the balance sheet
So, the current liability amount is $2.8 million
And, the long term liability amount is ($2.8 × 3 years) $8.4 million
So the same would be considered and relevant too
On December 31, 2018, a company had assets of $20 billion and stockholders' equity of $16 billion. That same company had assets of $40 billion and stockholders' equity of $13 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $13 billion and total expenses of $11 billion. What is the company's debt-to-assets ratio on December 31, 2019
Answer:
62.50 %
Explanation:
Debt-to-assets ratio = Interest bearing debt / total assets x 100
where,
Accounting Equation :
Assets = Equity + Liability
also stated,
Liability = Assets - Equity
therefore
Interest bearing debt = Assets - Equity
Equity = Stocks + Retained Earnings
for 2019
Equity = $13 billion + ($13 billion - $11 billion) = $15 billion
Interest bearing debt = $40 billion - $15 billion = $25 billion
therefore,
Debt-to-assets ratio = $25 billion / $40 billion x 100 = 62.50 %
Conclusion
The company's debt-to-assets ratio on December 31, 2019 is 62.50 %
Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number.
Answer:
$463,202.25
Explanation:
The calculation of the selling price of the bond is given below:
The selling price of the bonds is
= Present value of interest + Present value of maturity
where,
In semi-annually basis , the rate of interest would be divided by 2 and the time period would be double
So, The Present value of interest equals to
= $500,000 × 5% × 7.36009
= $184,002.25
The 7.36009 represent PVIFA factor. Refer to the PVIFA table for the same
And, the Present value of maturity is
= $500,000 × 0.5584
= $279,200
So, the selling price of the bond is
= $184,002.25 + $279,200
= $463,202.25
Sara works at a printing company. She and her colleagues have to stagger
their tasks carefully because each of their projects require not only the
printers, but other equipment as well. Sara is currently working to fulfill an
order for 5,000 flyers, which are due tomorrow. Her customer just called to
say that they need additional 5,000 flyers.
What will be least important to Sara as she determines whether her company
can accommodate the request?
A. Whether her company has enough paper on hand
B. Whether her company can print the additional flyers without
negatively affecting the other projects
C. Whether there is enough time to print the additional flyers by
tomorrow
D. Why the customer needs 5,000 extra flyers
Answer: D. Why the customer needs 5,000 extra flyers
Explanation:
The important factors that Sara will consider to know whether her company can accommodate the request are:
• Whether her company has enough paper on hand
• Whether her company can print the additional flyers without negatively affecting the other projects
• Whether there is enough time to print the additional flyers by tomorrow.
These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.
The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.
Answer:
D. why the customer needs 5,000 extra flyers
The following totals for the month of April were taken from the payroll records of Kingbird Company. Salaries $144000 FICA taxes withheld 11020 Income taxes withheld 30000 Medical insurance deductions 5400 Federal unemployment taxes 380 State unemployment taxes 2590 The journal entry to record the monthly payroll on April 30 would include a debit to Salaries and Wages Expense for $144000. debit to Salaries and Wages Expense for $97580. credit to Salaries and Wages Payable for $144000. debit to Salaries and Wages Payable for $144000.
Answer:
debit to Salaries and Wages Expense for $144000
Explanation:
Based on the information given we were told that the company salaries was the amount of $144,000 which means that The journal entry to record the monthly payroll on April 30 would include :
April 30
Debit to Salaries for $144,000
Credit Wages Expense for $144000
(To record monthly payroll)
Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first year of operations. During 2017 the company had the following transactions: Received rent from Barrett Co. for 2018 $64,000 Municipal bond income $80,000 Depreciation for tax purposes in excess of book depreciation $40,000 Installment sales revenue to be collected in 2018 $108,000 For 2017, what is the amount of income taxes payable for Hawkins Inc.
Answer:
Hawkins Inc.
For 2017, the amount of income taxes payable for Hawkins Inc. is:
= $572,600.
Explanation:
a) Data and Calculations:
2017 tax rate = 35%
Pre-tax accounting income = $1,800,000
2018 Rent from Barrett Co. 64,000
Less:
Exempt Municipal bond income (80,000)
Tax Depreciation (in excess of
book depreciation) (40,000)
2018 Installment sales revenue (108,000)
Adjusted taxable income $1,636,000
Income tax (35%) 572,600 (35% of $1,636,000)
Tax expense (provision) 630,000 (35% of $1,800,000)
b) The difference between the income tax payable of $572,600 and the provision for income tax expense for the year of $630,000 is due to temporary differences and exempt Municipal bond income. The temporary differences are caused by the different timings of the recognition of revenue and expenses under the tax jurisdiction and the GAAP accounting.
45.18
What gives the US government the power to collect taxes?
o the Constitution
O laws passed by Congress
O an executive order
common law
Mark this and return
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What gives the US government the right to collect taxes?
You decide that structural changes must be made immediately at Holden Evan to deal with the problems caused by the three SBU marketing teams. What should you do? Select an option from the choices below and click Submit. Merge the independent procurement teams of each SBU into a single procurement division serving all product lines. Create a cross-department team to investigate in depth how the problems arose and to offer suggestions on how to deal with them. Merge the three marketing teams of each SBU into a single marketing division serving all product lines.
Answer:
One of the required structural changes that must be made immediately at Holden Evan to deal with the problems caused by the three SBU marketing teams is:
Merge the three marketing teams of each SBU into a single marketing division serving all product lines.
Explanation:
The marketing department is not a product-based team. Therefore, a marketing team should not be tied to just one SBU. The SBU structure can be continued. But the combination of the marketing teams into a single group creates synergy, avoids effort duplication, reduces competitiveness among the various teams, and above all, helping the group' brand managers to utilize accumulated resources, knowledge,and information of the entire marketing organization for the benefit of the different SBUs.
Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $ 7,980 $ 8,230 Indirect labor 29,820 29,610 Total variable manufacturing overhead cost $ 37,800 $ 37,840 The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month
Answer:
Variable overhead variance = $1,440 unfavorable
Explanation:
The variable overhead efficiency variance is the difference between the actual hours and the standard hours for the actual output valued at the standard variable overhead rate per hour.
Machine hours
standard hours for the actual output 4,190
Actual hours 4,350
Efficiency variance 160 unfavorable
Standard rate per hour(see note) × $9
Variable overhead variance 1,440 unfavorable
Standard variable rate per machine hour
= Budgeted overhead cost/Budgeted machine hour s
= $37,800/4,200 hours =$9 per machine hour
Variable overhead variance = $1,440 unfavorable
In order to sell a product at a profit, the product must be priced higher than the total cost to build the unit, plus period expenses and overhead. At the end of last year, Chester had their product Cake aimed at the Low End segment. Cake's production cost (labor + materials) last year was $14.07 ($5.89 unit labor cost and $8.18 unit material cost). Exclude possible inventory carrying costs. Assume period expenses and overhead total 50% of their production cost. What is the minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead?
Answer:
Chester Cakes
The minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead is:
= $21.11.
Explanation:
a) Data and Calculations:
Production cost:
Labor per unit = $5.89
Materials per unit 8.18
Total production cost $14.07
50% Overhead 7.04
Minimum price = $21.11
b) The minimum price for a unit of the cake includes the total variable production cost and the determined 50% overhead on the production cost to cover period expenses and other overhead costs.