Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $150,000 on sales of $2,780,000. Division B is able to make only $28,400 on sales of $307,000. a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.) b. Based on the profit margins (returns on sales), which division is superior

Answer:

$220,000

Explanation:

The maximum exclusion of the gain on sale of the residence which may be claimed on Ryan's 2019 income tax return will be $220,000($400,000-$180,000) because the principal residence was been sold for the net amount of $400,000 after all selling expenses in which the house was bought in 2002 and on the date of sale, the house had a basis of $180,000 given us the amount of the $220,000 as the maximum exclusion of gain on sale of the residence which may be claimed on Ryan's 2019 income tax return.

Answer: $13,800,000

Explanation:

Operating Cashflow for the year = EBIT * (1 - tax rate) + Depreciation.

Earnings before Interest and Tax (EBIT) = Revenue - Operating Costs - Depreciation

= 25 - 7 - 6

= $12 million

Operating Cashflow = 12 * ( 1 - 35%) + 6

= 12 * 65% + 6

= $13.8 million

= $13,800,000

Answer:

Worth of the offer =$20,000

Explanation:

The worth of this offer is the present value of the annual cash inflow receivable forever discounted at the given interest rate. The cash inflow receivable forever is known as a perpetuity

The present of a cash inflow receivable forever is given below:

PV = A× 1/r

A- annual cash inflow, r- discount rate, PV - Present value of a perpetuity

A- 1,000, r- 5%

PV = 1,000 × 1/0.05

PV = $20,000

Worth of the offer =$20,000

Answer:

dependable suppliers who are willing to deliver on short notice

Explanation:

I will first try to explain what the concept means. just in time processing is an inventory strategy that has to do with the ordering of materials at short notice and receiving these items just in time for the production process. It decreases inventory costs and waste and also raises efficiency since goods are only going to be received as they are needed for production.

Therefore the correct answer is: dependable suppliers who are willing to deliver on short notice.

Answer: $75,000 ordinary income; $3,000 of long-term capital gains.

Explanation:

From the question, we are told that the POD Partnership received revenues of $200,000 and paid $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. Also, the partnership earned $6,000 of long-term capital gains during the year and that Partner Donald owns a 50% interest in the partnership.

From the question, the ordinary income of the firm will be the difference between the revenue gotten and the $50,000 paid in rent and utilities which is an expense. This will be:

= $200000 - $50000

= $150000

The income from capital gain = $6000

Since, Donald will get 50% of what the partnership makes, thus will be:

50% of $150,000 ordinary income which is (50/100 × $150,000) = $75,000 and 50% of $6000 capital gain which will be $3,000.

= 50

Therefore, Donald will get $75000 of the ordinary income and $ 3000 of the capital gain.

Answer:

Results are below.

Explanation:

Giving the following information:

Activities Cost Drivers Total Cost

Materials handling Number of requisitions $40,800

Machine setups Number of setups 25,750

Quality inspections Number of inspections 21,000

Cost Drivers Instruments Gauges Total

Number of requisitions= 1,050

Number of setups= 485

Number of inspections= 490

We need to use the following formula for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Materials handling= 40,800/1,050= $38.86 per requisition

Machine setups= 25,750/485= $53.1 per setup

Quality inspections= 21,000/490= $42.86 per inspection

Answer:

Dr land        $278,000

Dr building  $347,500

Dr equipment $556,000

Dr inventories $208,500

Cr cash                                 $1,390,000

Explanation:

The total amount spent in acquiring the assets is $1,390,000 which needs to be shared between the assets acquired on the basis of individual values of the assets

Total of individual assets' values=$304000+$380000+ $608000+$228000=$ 1,520,000.00  

Cost attributable to land:$304000/$1520000*$1,390,000=$ 278,000.00  

Cost attributable to Building:$380000/$1520000*$1390000=$ 347,500.00  

cost attributable to equipment=$608000/$1520000*$1390000=$556,000.00

cost attributable to inventories=$228000/$1520000*$1390000 =$208,500.00  

Answer:

Investment D

Explanation:

Effective Rate of Return can be defined as the the rate of interest on an investment either daily, monthly,quarterly or annually when compounding of them occurs more than once which is why effective interest rate is important and vital in helping to figure out the best loan or helping in determining which investment offers the highest rate of return

Therefore based on the information given in the question, the best alternative that will offers me the highest effective rate of return will be INVESTMENT D because the investment has the HIGHEST RATE of interest which is 6.1204% Monthly more than the rest of the listed investment .

Answer:

a. "President Nixon expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation is on the right course."  

⇒ RECOVERY. Economic recovery refers to the economy starting to grow again after a period of recession. A rightward shift in the aggregate supply curve should decrease unemployment and reduce inflation.

b. "The nation's inflation rate rose to a record high last month, the government reported yesterday. The consumer price index jumped 0.3% in January. Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixon's second term had gotten off to a rocky start."

⇒ STAGFLATION. Stagflation refers to a combination of high inflation and high unemployment. A leftward shift in the aggregate supply curve can result in stagflation.

c. "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working."

⇒ PHILLIPS. According to the Phillips curve, inflation and unemployment are inversely correlated. if inflation goes up, unemployment should go down. Phillips theory was discredited due to stagflation occurring during Nixon's presidency. Nixon created stagflation for the first time in the US since it isn't normal that inflation rises as unemployment increases. That shows you how good a president he was, he even invented new things for Americans to enjoy.

Answer: $3,000,000

Explanation:

From the question, we are informed that a company's capital budget is expected to be $5,000,000 and that the company's target capital structure is 70 percent debt and 30 percent equity.

Equity = 30% × $5,000,000

= 30/100 × $5,000,000

= 0.3 × $5,000,000

= $1,500,000

Debt = 70% × $5,000,000

= 70/100 × $5,000,000

= 0.7 × $5,000,000

= $3,500,000

We are further told that the company's net income is $4,500,000 and since we be calculated the equity that will be needed to finance the capital budget as $1,500,000. Therefore, portion of its net income should it pay out as dividends this year will be:

= $4,500,000 - $1,500,000

= $3,000,000

The portion of its net income should it payout as dividends this year is $3,000,000.

Before that the following calculations need to be done.

Equity = 30% × $5,000,000

= 30/100 × $5,000,000

= 0.3 × $5,000,000

= $1,500,000

Now

Debt = 70% × $5,000,000

= 70/100 × $5,000,000

= 0.7 × $5,000,000

= $3,500,000

Now finally the dividend is

= $4,500,000 - $1,500,000

= $3,000,000

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Answer:

an online editing service

Explanation:

An example of an intangible item is an online editing service. An intangible item is something that does not have an actual physical presence. Take a look at the following lists to get a better understand of an intangible vs. tangible item.

intangible items:

- insurance

- software

- data

tangible items:

- food

- computers

- phones

Since an online editing service is the only item that you cannot physical touch, this is the intangible item.

Answer:

The market rate of interest is the same as the contract rate of interest.

Explanation:

A bond can be defined as a fixed income instrument that firms use as a source of longer-term funding or loans.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid.

A bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium.

Hence, a bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance. Also, a bond that is being issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Generally, bond price is inversely proportional to its interest rate, thus, when interest rates are high, bond prices would be low and when interest rates are low, bond prices are high.

Answer:

Giambi Inc.

T-Accounts for August 2022:

                                       Cash Account

Aug. 1 Common Stock         10,000  Aug. 12 Equipment                1,200

Aug. 10 Service Revenue      1,700

Aug. 31 Accounts Receivable 600

                                     Common Stock

                                                     Aug. 1  Cash Account               10,000

                                    Service Revenue

                                                     Aug. 10  Cash Account              1,700

                                                     Aug. 25 Accounts Receivable 2,500

                                   Equipment

Aug. 12  Cash                      1,200

Aug. 12 Notes Payable      11,000

                                   Notes Payable

                                                          Aug. 12 Equipment             11,000

                                   Accounts Receivable

Aug. 25  Service Revenue  2,500   Aug. 31     Cash                      600

Explanation:

T-accounts are general ledger accounts in T-form.  They are mainly used for accounts adjustments at the end of the accounting period.  The debit side is on the left hand side while the credit side is on the right hand side.  At the end of the period, the accounts are balanced by making the two sides to agree in total with the difference being called the balancing figure.

Answer:

The answer is explained below

Explanation:

To begin with, the policies that the goverments decide to implement in their countries tend to influece in a huge way the companies decisions and therefore its actions as well. Therefore that as a company manager of an international business he needs to stay very updated about the government policies over the countries where his company works. Moreover, the manager will understand that if there is free trade in a country then there will be no problems for his company to start selling there and obtaining the maximum profits as possible and if there is protectionism then the company will have to deal with the policies that the government implemented there. And that is why that as an international business manager he should really care about the policies of the country's government and if there is free trade of protectionism.

Answer: $100

Explanation:

Sometimes Debt instruments like Debentures and Bonds are convertible to shares in the company.

To calculate the Conversion Price, the following formula is used;

= Par Value / Conversion Ratio

= 1,000/10

= $100

Par value is usually $1,000 for such instruments.

Answer is given below

Explanation:

S.no Particulars                         Answer

a         Advertisement expense expense

b         rent expense                         expense

c         rent receivable                  Asset

d         Machinery                          Asset

e         Account payable                  Liability

f         Furniture                          Asset

g         common stock                  Equity

h          Utility Expense                  expense

Answer and Explanation:

The Journal entries are shown below:-

1. Maintenance and Repairs Expense Dr, $150

             To Cash $150

(Being cash paid is recorded)

For recording this we debited the maintenance and Repairs Expense as there is increased in expenses and credited the cash as assets are decreased

2) Equipment $700

        To Cash $700

(Being cash paid is recorded)

For recording this we debited the equipment as it increased the assets and credited the cash as assets are decreased

Answer:

$4,580

Explanation:

since we are using the allowance method, the journal entry to record the write off is:

Dr Allowance for bad debts 140

    Cr Accounts receivable 140

So the accounts receivable balance = $5,000 - $140 = $4,860

the allowance for bad debts balance = $280

accounts receivable net balance = $4,860 - $280 = $4,580

Allowance for bad debts accounts is a contra asset account that reduces the balance of accounts receivable.

Answer:

$16,125.15

Explanation:

DATA:

Activity Cost Pool       Total Cost           Total Activity

Assembly                   $1,398,250           65,800 machine hours

Processing orders      $ 69,451              2,520 orders

Inspection                   $ 184,800             2,400 inspection-hours

Units produced = 920

Machine hours required = 1290

Processing orders required= 61

Inspection hours required = 40

Direct material cost = 57.55

Direct labor cost = 13.56 per unit

Selling price = 123.50

Solution

Sales Revenue (920 ×$123.5)                                   $113,620

LESS: Costs  

Direct Materials (920 × $57.55)                                $52,946

Direct labor (920 ×$13.56)                                        $12,375.2  

Assembly (1,398,250/65,800) = 21.25 × 1290=       $27412.5  

Processing (69,451/2,520) = 27.55 × 61 =               $1681.15

Inspection (184,800/2,400) = 77 x 40 =                   $3080        

Total Cost                                                               ($97494.65)      

Product margin                                                         $16,125.15

Answer:

Sorts of monetary information that would be incorporated and avoided in differential analysis

Differential cost investigation is the expansion or decline in complete expense pf the adjustment in explicit components of cost that outcome from any variety in tasks. It speaks to an expansion or abatement in all out expense coming about out of -  

1. Creating or disseminating a couple of more or barely any less of the items

2. Change in the strategy for creation or of conveyance  

3. An Addition or cancellation of item  

4. Choice of extra deals channel  

In Differential examination increment in incomes, variable expenses and opportunity costs are thought of. Fixed expenses and fixed segment of semi-variable expenses are disregarded.  

differential analysis is utilized:  

1. Dropping or including a product offering  

2. Settle on or purchase choices  

3. Proceed or shutdown item or client and so on.  

Explicit incomes and expenses ought to be considered in an assessment to drop or keep a:  

1. Commitment structure unbeneficial item ought to be thought of  

2. Explicit fixed expenses of the unfruitful item will be thought of  

3. Commitment from other non beneficial items which is proposed to be delivered with the extra limit will be thought of.  

Avoidable fixed expenses are thought of, as these can be stayed away from when item or client is closed down. Avoidable fixed costs partitioned by the pv proportion will give level of deals beneath which it is smarter to close down.  

Unavoidable fixed expenses are overlooked in considering in an assessment to drop or keep. Since these costs will be acquired despite the fact that the item or client is ceased.  

shut down point = avoidable fixed expenses/PV proportion  

Sunk Costs: A sunk expense is a cost that an element has brought about, and which it can not recoup anymore. Sunk expenses ought not be viewed as when settling on the choice to keep putting resources into a progressing venture, since these expenses can't be recouped. As sunk expenses are authentic expenses these are brought about before and notrelavent for dynamic reason. for instance, R&D costs, Feasibility report costs and so on.  

Opportunity Costs: Opportunity costs emerge from inability to unused assets effectively. These are considered in dynamic investigation. in straightforward terms opportunity cost implies the loss of different options when one option is picked.  

Misfortune emerging from picking one option rather than other option will be considered in assessing the task.

Answer:

A) incumbent firms are slow to change.

Explanation:

This business model type is said to be low cost and also can be seen and tested to be highly accessible to buyers and others goods in the market. Disruptive innovation is a business model that deals with the introduction of a new product or service into a market, at a lower cost and affordable that other products or its competitors, hereby luring prospective or buyers to buying the new product; displacing the leaders or top performers in the market. Disruptive innovation is highly favoured because the incumbent firms are slow to change.

Answer: 1.76

Explanation:

Given the following :

R=1.02,

S0 = 100

u=1/d= 1.05

Strike(k) = 102

Total Payoff = (probability of upside × upside Payoff) + (probability of downside × downside Payoff)

Upside Price = u × S0 = 1.05 × 100 = 105

downside Price = S0/u = 100/1.05 = 95.24

Upside Payoff = upside price - strike rate =(105 - 102) = 3

Upside probability :

[e^(r - q) - d] / u - d

E = exponential, q = Dividend (Dividend is 0, since the stock does not pay dividend)

d = 1/d = 1/1.05 = 0.9523809

e = 2.7182818

[2.7182818^(1.02% - 0) - 0.9523809] / (1.05 - 0.9523809)

[1.0102521 - 0.9523809] / 0.0976191

0.0578712 / 0.0976191

= 0.5928266

Probability of downside = 1 - p(upside)

P(downside) = 1 - 0.5928266

P(downside) = 0.4071733

Therefore, total Payoff =

(0.5928266 × 3) + (0.4071733 × 0)

= 1.7784798

European. Call option:

Total Payoff / (1 + r%)

1.7784798 / (1 + 1.02%)

=1.7784798/ (1 + 0.0102)

= 1.7784798 / 1.0102

= 1.7605224

= 1.76

In the case when an excessive amount should be spending so this represents the problem of the Transaction cost.

Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.

So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement

Therefore it represents the transaction cost.

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Answer:

a. $69.46

b. 58.15

Explanation:

a. Price = Benchmark PS ratio × Sales per share

Sales per Share

=  Sales / Shares outstanding

= 2,100,000/130,000

= $16.15

Price = 4.3 * 16.15

Price = $69.46

b. PS Ratio is 3.6

Price = Benchmark PS ratio × Sales per share

Price = 3.6 * 16.15

Price = $58.15

Answer: Option B

Explanation:

A risk management plan is a document which is prepared by the project manager to eliminate the risks and chances of any loss or issues related to the project.

Every project has to follow the risk management plan to ensure the safety of the people and capital invested in the project.

It is also contained in the documents of the risk assessment plan which has to be followed by project manager and people.

It is decided during the baseline, the risks and the cures related to the project. As the boss and the project manger is committed to follow the risk management techniques it should be considered on a priority basis.

Answer:

D. Stockholders' Equity increases

Explanation:

Cost of the share being resale = 400 shares x $27 = $10,800

Proceeds on the resale of shares = 400 shares x $30 = $12,000

Profit / Gain on resale = $12,000 - $10,800 = $1,200

As there is a profit of $1,200 the stockholders equity will be increased on the reselling of share.

As the assets section is increased because more cash is received against the cost of those shares.

Answer:

Purchase order

Explanation:

To verify existence and accuracy of inventory items received, the receiving division must compare the quantities, amounts and descriptions of the items received against the Purchase order.

Answer:

The journal entry to record the dividend declaration is:

June 2, 202x, cash dividends are declared

Dr Retained earnings 4,800

    Cr Dividends payable 4,800

The journal entry to record the payment of the dividend would be:

Dr Dividends payable 4,800

    Cr Cash 4,800

When we calculate dividends, only outstanding stocks are included in the distribution: total outstanding stocks = issued stocks - treasury stocks = 1,000 - 200 = 800

Answer: Financial statement balances are converted to percentages.

Explanation:

Vertical analysis is a method of financial statement analysis whereby each line item will have to be listed as a percentage of the base figure that is within the financial statement. In vertical analysis, the balances in a single period are being converted to percentages.

Vertical analysis helps in comparing the financial information of a small firm to that of a big firm

Answer:

True.

Explanation:

Problem-solving is an interpersonal ability to take corrective action in a problem situation in order to meet desired objectives.

The problem-solving skills is an essential and very important attribute that is meant to be possessed by each and every leader. A problem-solving skill is one of the most important part of conceptual skills and it involves the use of an individual's interpersonal or cognitive ability to take corrective action when faced with a problematic situation in order to meet the desired or set objectives in an organization or team. There are basically four (4) essential steps to solving a problem and these are;

1. You should identify the problem.

2. Design an alternative solution to the problem.

3. Evaluate the solutions and choose the best among the solutions.

4. Execute the solution deemed to be best and most effective.