Answer:
c
Explanation:
edge 2021
Alex and Selena are 25 and love to dream about what they will do when they are retired. They want to own a summer home in Florida, travel to Europe, and spend time visiting family around the U.S. To support this dream, they need a retirement income of $100,000 per year throughout their retirement. At their current retirement contribution level, they will have $2 million saved by age 65.
In current business publications, find examples of firms whose strategies to increase profits focus primarily on generating more revenue. Compare these cases with firms that are trying to cut costs to increase profits. In your initial post, include a summary of these firms and how the different strategies have been successful or unsuccessful.
Having a nice size profit margin is the goal for most companies. In order to make this happen there has to be a plan/strategy that is carefully thought out and implemented. You want to take your time and make sure things are done correctly and in a way that it is profitable and not detrimental to your company at the same time. One good example of this act comes from McDonalds. One McDonalds franchise in New York increased the price of their Big Mac from $5.98 to $6.28 currently to increase revenue. Prior to this there was an anual increase that took place. "The Golden Arches' pricing in the U.S. Rose 2% year over year in the first quarter, which was still less than the consumer Price Index's overall".
On the other end of the spectrum we have companies like Apple. Apple fired 1,600 full time employees from retail stores to increase their profit margin. "The retail segment reported operating income of $308 million during the second quarter of 2009 down from #334 million....". In cutting down on those full time positions they were able to increase their profits by paying less full time salaries to employees. "Revenue increase 8.7% to 8.16 Billion, which is more than 7.96 billion expected...". I do not feel that this is the best way to go about getting results. A merger of the two would be effective. Gradually increasing sales prices and not eliminating so many positions at once or merging positions even would be effective. You have to take into account that less employees mean more work for the workers that are left, which could leave them in a stressful work environment. In turn could mean customer service quality decreases drastically. Things have to be looked at on both sides of the spectrum.
Answer:
Following are the responses to these question.
Explanation:
The goal of most businesses is to achieve the optimum gross profit. Moreover, to achieve this, a well-designed plan or plan deserves to be placed in place. The management needs to ensure that things are done properly and so that they are successful at the same period and therefore do not harm the business. That fast-food giant Mcdonald's is a good example of this. One of McDonald's' franchises in York City recently increased its Big Mac sales from $5,98 to $6,28. Before all this, Macdonalds would have an annual boost.
"During first 4th quarter, the price of Eiffel Tower in the U.s. Increased two percent year on year was still less than price index"
They need businesses like Apple at another end of the continuum. Apple also fired 1,600 filled retail employees to increase its gross profit. "Operating revenue inside the second quarter of 2009 were down $308 million to $334 million...." We were able to boost their earnings by cutting such full-time jobs. "To 8.16 billion u.s. dollars, which is over 7.96 percent estimated, the economy increased by 8.7%.
It doesn't seem to be the right way of achieving performance. It'd be effective to mix the two. Gradual sale rates are an optimal option, not cutting too many roles at once or combination. It is borne in mind that a decrease in the number of jobs is much more work to left workers who can keep them in a demanding working environment. This could mean a dramatic decline in customer support efficiency. Stuff on all sides of the spectrum must be looked at.
when an entrepreneur hopes to capitalize financially on the investment in the venture is known as
Answer:
Harvesting
Explanation:
Harvesting can be regarded as systematic practice by entrepreneur whereby an entrepreneur get back value gained by the entity by selling of individual assets or by selling the entire firm as a whole. There are usually alot of reasons that compel the entrepreneur to carry out harvesting process on the entity as well as the section inorder to follow outlines of some of them. It should be noted that
When an entrepreneur hopes to capitalize financially on the investment in the venture is known as harvesting.
Star co.had sale revenue £540000 in 2015
Answer:
Net income $55,000
Earnings per common share $0.55
Explanation:
Preparation of a single-step income statement for Starr for 2015.
Starr Co. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015
REVENUES
Sales revenue $540,000
Total revenues $540,000
EXPENSES:
Cost of goods sold $330,000
Salaries and wages expense $120,000
Income tax expense $25,000
Other operating expenses $10,000
Total expenses $485,000
($330,000+$120,000+$25,000+$10,000)
Net income $55,000
($540,000-$485,000)
Earnings per common share $0.55
($55,000 ÷ 100,000 shares)
Therefore single-step income statement for Starr for 2015 will have a Net income of $55,000 and Earnings per common share of $0.55.
The current price of a non-dividend-paying stock is $80. Over the next six months it is expected to rise to $90 or fall to $74. An investor buys six month maturity put options with a strike price of $80. What is necessary to hedge the position?
Answer:
Buy 0.8 shares for each option purchased
Explanation:
Calculation to determine What is necessary to hedge the position
Using this formula
N=Vu-Vd/U-D
U = stock price in case of an up move = $36
D = stock price in case of an down move = $26
VU = put option value if stock goes up = $0
VU = put option value if stock goes down = $32 - $26 = $6
Using this formula
N=
−
V
U
−
V
D
U
−
D
N
=
−
0
−
6
36
−
26
N
Now let calculate What is necessary to hedge the position
Value =74 x + 6
Hence,
90x=74x + 6,
x=6/(90-74)
x=6/16
x=.375
An Income Statement is comprised of Revenues and
In accounting, the income statement comprises of the revenues and expenses section.
What is an income statement?This is a financial statement that helps to prepare and show the firm's income and expenditures.
Hence, this financial statement is used to derive the net income or loss over a period of time due to earning activities.
In conclusion, the income statement comprises of the revenues and expenses section.
Read more about income statement
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Conversion cost per equivalent unit is the combined costs of direct materials and factory overhead.
A. True
B. False
Answer:
False
Explanation:
Cost
This is simply defined as a payment of cash or the commitment to pay cash in the future for revenues purpose. E.g. The cash used to purchase a tractor, is the cost of the tractor.
Conversion costs
This is simply regarded as direct materials, direct labor, and factory overhead costs that can be selected together or grouped together for analysis and reporting. It consist of direct labor in factory overhead costs.
The Equation for Conversion cost is simply = Direct Labor Cost + Manufacturing Overhead Cost.
While the Equivalent Units of Production = Number of Units Transferred to the next department + Equivalent Units in Ending Works in Process Inventory.
The equation for Equivalent units of production for conversion cost is given below: Units completed and transferred out + Equivalent units in ending work in process for conversion cost.
The equation for Cost per equivalent unit for conversion cost is simply =
(conversion cost of beginning work in process + conversion cost added during the period)/ Equivalent units of production for conversion cost.
Consumers know that some fraction of all new cars produced and sold in the market are defective. The defective ones cannot be identified except by those who own them. Assume that cars do not depreciate in value with use. Suppose consumers are risk-neutral and value non-defective cars at $10,000 each and defective cars at $6,000 each. New cars sell for $8,000 and used ones for $2,000. (Note that since buyers are risk-neutral, the price of a new car reflects the expected value of purchasing a car that may or may not be defective.)
Required:
What is the fraction x?
Answer:
The answer is "0.25".
Explanation:
As buyers rate non-default cars at $10,000, we assume that almost all faulty cars are used. The reason would be that the automobiles have been priced at 2000$, which is well below a good 10000 dealer invoice, implying that only faulty products are available as old cars.
Some used cars sell at $2000, however, in the eyes of a buyer means a faulty vehicle.
Its price that even a threat customer is ready to pay was its price of a non-default product for a new car. It implies $8000 for a good car* chances that even a bad car will get a good car*chance*chances that even a bad car will get a bad one. Because people are aware which x part of all market vehicles is faulty, which means the fraction of good cars is 1-x. Enter beliefs, we get.
[tex]\to x\times 2000+(1-x)\times10000=8000\\\\ \to10000-8000x=80000\\\\\to 8000x=2000\\\\\to x=\frac{2}{8}\\\\ \to x=.25[/tex]
As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $15 million, liabilities of $9 million, after-tax earnings of $3 million, and 761,000 outstanding shares of common stock.
Required:
a. Calculate the earnings per share of Bozo Oils common stock. (Round your answer to 2 decimal places.)
b. Assuming a share of Bozo Oil's common stock has a market value of $40, What is the firm's price-earnings ratio?. (Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.)
c. Calculate the book value of a share of Bozo Oil's common stock. (Round your answer to 2 decimal places)
Answer:
See below
Explanation:
a. Earnings per share
= After tax earnings / Number of common shares outstanding
= $3,000,000 / 761,000
= $3.9 per share
b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:
= Common stock market value / Earnings per share
= $40 / $3.9
= 10.26
c. The book value of a share of Bozo Oil's common stock
Book value = (Assets - Liabilities) / Number of shares outstanding
= ($15,000,000 - $9,000,000) / 761,000
= $6,000,000 / 751,000
= $7.88
Which of the following requires work in utility operation to create energy for
other people?
A. sewers
B. water
C. oil and gas
Oil and gas
Utilities (water, electricity and gas) are essential services that play a vital role in economic and social development. Quality utilities are a prerequisite for effective poverty eradication. Governments are ultimately responsible for ensuring reliable universal access of service under accountable regulatory frameworks. Increased competition in the utilities sectors in recent years has entailed changes in regulatory frameworks and ownership structures of enterprises, in addition to business diversification. These have impacted job security and working conditions in the sector. Adequate staffing levels and training in the use of new technologies are important for ensuring efficiency and safety in the workplace
Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:
Periods 10 Percent
1 0.9091
2 1.7355
3 2.4869
4 3.1699
Required:
What is the net present value of the machine?
Answer:
($3,100)
Explanation:
Net cash flows each year = Projected annual after-tax net income + Depreciation
Net cash flows each year = $1,200 + $10,000
Net cash flows each year = $11,200 each year
Total value of inflows in 3 years = Net cash flows each year * Annuity factor of (10%,3 years)
Total value of inflows in 3 years = $11,200 * 2.4018
Total value of inflows in 3 years = $26,900
Net Present value = Present value of inflows - Cash outflow
Net Present value = $26,900 - $30,000
Net Present value = ($3,100)
So, tnet present value of the machine is ($3,100).
Blue Ridge Crafters is a co-operative that distributes traditional household furnishings, such as home-spun textiles, hand-thrown pottery, and hand-carved wood items. These items invariably are more expensive than mass-produced goods with similar functions, but customers prefer the artistry in Blue Ridge's goods. Because of subtle variations in color and grain, customers typically insist on handling these goods before committing to a sale. Each artisan decides which products to make. Blue Ridge relies on sales parties for about 20% and craft fairs for about 60% of its sales, with the remainder sold through a combination outlet-exhibit along a popular vacation route and independent boutiques and art galleries. Blue Ridge is considering admitting metalworkers to the cooperative, who will add hand-forged fireplace tools, latches, light fixtures, and iron gates to its product line. Of the following, what best describes this strategy?
A) Concentric diversification strategy.
B) Conglomerate diversification strategy.
C) Horizontal growth strategy.
D) Profit strategy.
Answer:
C) Horizontal growth strategy.
Explanation:
In the given situation, blue ridge would added non related products for the customers who already purchased it from them. Also it shows the concept of one-stop shop i.e. catering should be provided to all rounds requirement for the customers who visited them
Therefore as per the given scenario, the option c is correct
And, the same would be considered
Suppose Blue Hamster Manufacturing Inc, is evaluation a proposed capital budgeting project (project alpha) that will require an initial investment of $500,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $325,000
Year 2 $425,000
Year 3 $450,000
Year 4 $400,000
Blue Hamster Manufacturing Inc’s weighted average cost of the capital is 10%, and project alpha has the same risk as the firm’s average project. Based on the cash flows, what is project Alpha’s net present value (NPV)?
a. $871,690
b. $1,157,991
c. $1,182,991
d. $757,991
Answer:
d. $757,991.26
Explanation:
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)
= $1,257,991.25743
NPV = Present value of inflows - Present value of outflows
NPV = $1,257,991.25743 - $500,000
NPV = 757991.25743
NPV = $757,991.26
Which of the following is not true of a mass customization process strategy?
Answer:
phone
Explanation:
Location selection for your bank is critical because location will determine all of the following except____.
A. Visibility of the bank in the community.
B. How many shareholders the bank will have.
C. Customers’ financial needs.
D. Customer pool.
Answer:
b
Explanation:
In a $1031 like-kind exchange, Rafael exchanges a business building that originally cost $346,800. On the date of the exchange, the building given up has an adjusted basis of $138,720 and a fair market value of $190,740. Rafael pays $28,611 and receives a building with a fair market value of $219,351.
Compute the following.
a. Rafael's realized gain on the exchange is $____.
b. Rafael's recognized $1031 gain is $___.
c. Rafael's $1245 depreciation recapture of $___is carried over to the replacement property.
Answer:
A. $52,020
B. $0
C. $208,080
Explanation:
a. Computation of Rafael's realized gain on the exchange
Using this formula
Realized gain=Fair market value -Adjusted basis
Let plug in the formula
Realized gain= $190,740-$138,720
Realized gain=$52,020
Therefore a. Rafael's realized gain on the exchange is $52,020
b. Based on the information given Rafael's recognized $1031 gain is $0 reason been that
NO BOOT WAS RECEIVED
c. Computation for Rafael's $1245 depreciation recapture Amount
Using this formula
Depreciation recapture Amount=Equipment originally cost -Adjusted basis
Let plug in the formula
Depreciation recapture=$346,800-$138,720
Depreciation recapture=$208,080
Therefore Rafael's $1245 depreciation recapture of $208,080 is carried over to the replacement property
why would you put money into a savings account everfi
Answer:
I would put money in a savings account so When i become the age i can buy myself a nice car and a nice apartment
One of the most straightforward ways to generate interest on your money is through savings accounts.
What is a savings account?Money that you just don't intend to spend straight away should be kept in savings accounts. They may be used to save for goals that are both short and long-term, and the majority of savings accounts offer back on donations to help you increase the amount that you save.
They nevertheless make it simple to spend and draw money while providing a greater rate of interest than a standard checking account.
These accounts might serve as secure storage facilities for money that you don't plan to use soon enough. These savings accounts are helpful for long-term goals like saving money for a deposit on a house as well as short-term necessities like emergency funds.
Learn more about savings accounts, here:
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Over a four-year period, LaKeisha Thompson purchased shares in the Oakmark I Fund. Using the following information, answer the questions that follow.
Year Investment Amount Price per share Number of share
Feb 2008 $1500 $40 37.50
Feb 2009 1500 30 50
Feb 2010 1500 34 43.60
Feb 2011 1500 42 35.71
a. At the end of four years, what is the total amount invested?
b. At the end of four years, what is the total number of shares purchased?
c. At the end of four years, what is the average cost for each share?
Answer:
LaKeisha Thompson
a. At the end of four years, the total amount invested is:
= $6,000
b. At the end of four years, the total number of shares purchased is:
= 166.81
c. At the end of four years, the average cost for each share is:
= $35.97.
Explanation:
a) Data and Calculations:
Investments in Oakmark I Fund:
Year Investment Price Number
Amount per share of share
Feb 2008 $1,500 $40 37.50
Feb 2009 1,500 30 50
Feb 2010 1,500 34 43.60
Feb 2011 1,500 42 35.71
Total $6,000 166.81
Average cost per share = $35.97 ($6,000/166.81)
In sampling for attributes (i.e. test of controls) the determination of sample size is a function of:___________
a. risk of assessing control risk too low
b. tolerable rate
c. estimated population deviation rate.
Answer:
b. tolerable rate
Explanation:
A sample is defined as a representative part of a population that is used in a study to replicate the characteristics of the population.
For a sample to be any good it must effectively reflect the characteristics of the population.
When sampling for attributes there are three determinants of sample size that is put into consideration:
- risk of incorrect acceptance
- tolerable rate or error
- expected error
Tolerable rate is the largest deviation or variance that can be acceptable in a sample and this reflects on reliability of specific controls.
It is the allowable deviation in population that still allows original plan to be executed
Nancy and Joan bought a small farm for $300,000 under an installment land contract with a $50,000 down payment. They will pay interest only at 6% for five years when the remaining principal balance becomes due. How much interest will they pay over the life of the contract?
Answer:
75,000
Explanation:
300,000-50,000 = 250000*6%*5
Bargain Purchase: Sontag Corporation's net assets have fair values as described below.
Current assets $250,000
Land 600,000
Building 1,000,000
Loans payable 300,000
The Pratt Company pays $3,000,000 for Sontag Corporation, and records the acquisition as a merger. Pratt Company determines that identifiable intangibles valued at $1, 500,000, not previously reported on Sontag's books, also are recognized as acquired assets.
Required:
1. Prepare a schedule to calculate the gain on acquisition.
2. Prepare Pratt's journal entry to record the merger.
3. Now assume Pratt determines that Sontag Corporation has unreported contingent liabilities, reportable at the date of acquisition following GAAP, with a fair value of $75,000. Recalculate the gain on acquisition.
Answer:
The Pratt Company
1. Schedule of Gain on Acquisition:
Current assets $250,000
Land 600,000
Building 1,000,000
Loans payable (300,000)
Intangible assets 1,500,000
Total fair value $3,050,000
Investment cost (3,000,000)
Gain on acquisition $50,000
2. Pratt's Journal Entry to record the merger:
Debit Assets:
Current assets $250,000
Land 600,000
Building 1,000,000
Intangible assets 1,500,000
Credit Loans payable $300,000
Credit Cash $3,000,000
CreditGain on acquisition $50,000
To record the merger of Pratt Company and Sontag Corporation.
3. The gain on acquisition now changes to a loss of $25,000, which is treated as acquired Goodwill.
Explanation:
a) Data and Calculations:
Fair values of Sontag Corporation's Net Assets:
Current assets $250,000
Land 600,000
Building 1,000,000
Intangible assets 1,500,000
Loans payable (300,000)
Total fair value $3,050,000
Investment cost (3,000,000)
Gain on acquisition $50,000
Fair values of Sontag Corporation's Net Assets:
Current assets $250,000
Land 600,000
Building 1,000,000
Intangible assets 1,500,000
Loans payable (300,000)
Contingent liabilities (75,000)
Total fair value $2,975,000
Investment cost (3,000,000)
Loss on acquisition $25,000
= Goodwill on acquisition
On December 1, Spencer Department Store borrowed $19,250 from First Bank and Trust. Spencer signed a 90-day note with a face amount of $20,000. The interest rate stated on the face of the note is 15 percent per year.
Required:
a. Provide the journal entry recorded by Spencer on December 1.
b. Provide the adjusting entry recorded by Spencer on December 31 before financial statements are prepared.
Answer:
A. Dr Cash $19,250
Dr Discount on notes payable $750
Cr Notes Payable $20,000
B. Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
Explanation:
A.Preparation of the journal entry recorded by Spencer on December 1.
Dr Cash $19,250
Dr Discount on notes payable $750
($20,000-$19,250)
Cr Notes Payable $20,000
(Being a journal entry to recognize short-term note payable issued)
b. Preparation of the adjusting entry recorded by Spencer on December 31 before financial statements are prepared. Show
Since the nterest for three months is the amount of $750 which means that the Per month interest amount will be calculated as : $750/3 = $250
Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 20x3 are as follows:
WIP, beginning inventory 12/1/20x3 10,000 units
Direct materials (100% complete)
Conversion costs (75% complete)
Started during December 40,000 units
Completed and transferred out 12/31/20x3 38,400 units
WIP, ending inventory 12/31/20x3 8,000 units
Direct materials (100% complete)
Conversion costs (65% complete)
Costs for December:
WIP, beginning Inventory:
Direct materials $50,000
Conversion costs 30,000
Direct materials added 100,000
Conversion costs added 140,000
Required:
a. What is the number of total spoiled units?
b. What is the normal spoilage totals?
c. What is the abnormal spoilage totals?
Answer:
1. Particulars Amount
Beginning Inventory 10,000
Add: Started during December 40,000
Less: Completed and transferred out 38,400
Balance that should have been (of WIP ending) 11,600
Less: WIP ending actual balance 8,000
Total Spoiled Units 3,600
2. Completed and transferred out = 38,400 units
Normal spoilage = 38,400 units * 5% Normal Loss
Normal spoilage = 1,920 units
3. Abnormal Loss Unit = Total Spoiled Units - Normal Loss units
Abnormal Loss Unit = 3,600 units - 1,920 units
Abnormal Loss Unit = 1,680 units
Beginning inventory, purchases, and sales for WCS12 are as follows:
Oct. 1 Inventory 300 units at $9
13 Sale 180 units
22 Purchase 380 units at $11
29 Sale 400 units
a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.
$ per unit
b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places.
$
c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
$
Answer:
WCS12
a. Assuming a perpetual inventory system and using the weighted average method, the weighted-average unit cost after the October 22 Purchase is:
= $10.52.
b. Assuming a perpetual inventory system and using the weighted average method, the cost of goods sold on October 29 is:
= $4,208.
c. Assuming a perpetual inventory system and using the weighted average method, the inventory on October 31 is:
= $1,052.
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total Cost
Oct. 1 Inventory 300 $9 $2,700
Oct. 13 Sale (180)
Oct. 22 Purchase 380 $11 4,180
Oct. 29 Sale (400)
Weighted-average unit cost after the October 22 Purchase:
Date Description Units Unit Cost Total Cost
Oct. 1 Inventory 120 $9 $1,080
Oct. 22 Purchase 380 $11 4,180
Total inventory and cost 500 $5,260
Unit cost = $10.52 ($5,260/500)
Cost of goods sold on October 29 = $4,208 (400 * $10.52)
Ending inventory = $1,052 (100 * $10.52)
Garden Zurich Corp. manufactures garden fountains. It currently has two product lines, the basic and the luxury. Garden Zurich has a total of $171,500 in overhead. Direct costs are $200 for the basic and $300 for the luxury. The basic is sold for $500 and the luxury for $750. The company has identified the following information about its overhead activity cost pools and the two product lines. They currently produce 800 basic and 500 luxury:
Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Basic Quantity/Amount Consumed by Luxury
Materials handling Number of moves $14,000 20 moves 50 moves
Quality control Number of inspections $37,500 250 inspections 125 inspections
Machine maintenance Number of machine hours $120,000 5,000 machine hours 5,000 machine hours
Required:
a. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations.)
b. Calculate the activity rates for each cost pool in Hazelnut
Answer:
Garden Zurich Corp.
a. Traditional costing system with machine hours as the cost driver:
Overhead rate = $171,500/10,000 = $17.15
Overhead assigned to each product line:
Basic = $85,750 ($17.15 * 5,000)
Luxury = $85,750 ($17.15 * 5,000)
b. Activity rates for each cost pool:
Materials handling = $200 ($14,000/70)
Quality control = $100 ($37,500/375)
Machine maintenance = $120 ($120,000/1,000)
Explanation:
a) Data and Calculations:
Total overhead = $171,500
Basic Luxury
Direct costs $200 $300
Selling price 500 750
Contribution $300 $450
Production units 800 500
Activity Cost Cost Driver Cost Assigned to Pool Quantity/Amount
Pools Basic Luxury
Materials handling Number of moves $14,000 20 50 moves
Quality control Number of inspections $37,500 250 125 inspec.
Machine Number of machine
maintenance hours $120,000 5,000 5,000 m.hour
Total overhead costs $171,500
Roy is looking to buy a new HDTV set. He knows from friends that LCD set screens reflect less light than plasma set screens, but that LCD sets are also more subject to blurring than plasma sets. This is an example of the ________ component of his attitude toward HDTVs.
A) conative.
B) objective.
C) cognitive.
D) affective.
E) situational.
Answer:
A) conative.
Explanation:
Conative behavior is a component of the attitude that we pertain or we behave at some point. The conative component or the behavior component is the way the attitude that we influence on how we behave or act. It involves the person's knowledge or belief about the attitude object.
In the context, Roy wishes to buy a HDTV set even though he knows that the screen of the LCD reflects less amount of light and it is also subjected to more of blurring the picture when compared to the plasma TVs.
Thus it show the conative component of the attitude of Roy towards HDTVs.
Assume that Warnaco Group Inc. borrowed $100,000 from the bank to be repaid over the next five years, with principal payments beginning next month. Which of the following best describes the presentation of this debt in the balance sheet as of today (the date of borrowing)?
a. $100,000 in the long-term liability section.
b. $100,000 plus the interest to be paid over the five-year period in the long-term liability section.
c. A portion of the $100,000 in the current liability section and the remainder of the principal in the long-term liability section.
d. A portion of the $100,000 plus interest in the current liability section and the remainder of the principal plus interest in the long-term liability section.
Answer:
C
Explanation:
The short term amount due (within the next fiscal year) is classified in the current liability section while the amounts due in years 2-5 would be reported in the long term section. Interest is always an expense and never reported on the balance sheet.
A difference between periodic review and continuous review inventory systems is:________
a. Periodic review is more expensive than continuous review
b. Continuous review usually required more safety stock than periodic review
c. In one system, time triggers orders, in the other, quantity triggers orders
d. Periodic review requires real-time monitoring systems
Answer:
The correct answer is the option C: In one system, time triggers orders, in the other, quantity triggers orders.
Explanation:
On the one hand, the term known as "Periodic review inventory system" refers to a type of inventory system that mainly is focus on the time that the order takes, therefore that it is said that the system is triggered by time because the orders are taken at the same time every period.
On the other hand, the "Continuous review inventory system" actually is triggered by the quantity of orders that take place every period. Therefore that this system keeps track of the exact amount every period and when that number goes down the system automatically order more of the same amount.
Based on the following data, compute the total assets, total liabilities, and net worth.
Balance Sheet
Liquid assets $5,370 Household assets $101,400
Investment assets 22,600 Long-term liabilities 83,200
Current liabilities 3,070
Answer:
Total Asset = Liquid Assets + Investment Assets + Household Assets
Total Asset = $5,370 + $22,600 + $101,400
Total Asset = $129,370
Total Liability = Current liability + Long term Liability
Total Liability = $3,070 + $83,200
Total Liability = $86,270
Net worth = Total Assets - Total Liability
Net worth = $129,370 - $86,270
Net worth = $43,100
The trial balance afyer one month of operation for Mason;s delivery Service as of September 30 ,20 is shown below. Data to complete the adjustments are as fellows:
(a) supplies inventory as of September 30, $90
(b) Insurance expired (used) $650
(c) Depreciation on delivery equipment $600
(d) Wages earned by employees but not paid as of September 30 $350
1. Enter the adjustments in the adjustments columds of hte work sheet and comeple the work sheet
Mason's Delivery Service
Work Sheet
For Month Ended September 30, 20--
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 1,600
Accounts Receivable 940
Supplies 635
Prepaid Insurance 1,200
Delivery Equipment 6,400
Accum. Depr. - Delivery Equip.
Accounts Payable 1,220
Wages Payable
Jill Mason, Capital 8,000
Jill Mason, Drawing 1,400
Delivery Fees 6,200
Wages Expense 1,500
Advertising Expense 460
Rent Expense 800
Supplies Expense
Telephone Expense 165
Insurance Expense
Repair Expense 230
Oil and Gas Expense 90
Depr. Exp. - Delivery Equip.
15,420 15,420
Answer:
Mason's Delivery Service
Mason's Delivery Service
Worksheet
For Month Ended September 30, 20--
Trial Balance Adjustments Adjusted Income Balance
Trial Balance Statement Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Dr. Cr.
Cash 1,600 1,600 1,600
Accounts
Receivable 940 940 940
Supplies 635 545 90 90
Prepaid
Insurance 1,200 650 550 550
Delivery
Equipment 6,400 6,400 6,400
Accum. Depr. - Delivery Equip. 600 600 600
Accounts Payable 1,220 1,220 1,220
Wages Payable 350 350 350
Jill Mason, Capital 8,000 8,000 8,000
Jill Mason,
Drawing 1,400 1,400 1,400
Delivery Fees 6,200 6,200 6,200
Wages
Expense 1,500 350 1,850 1,850
Advertising
Expense 460 460 460
Rent Exp. 800 800 800
Supplies Expense 545 545 545
Telephone
Expense 165 165 165
Insurance
Expense 650 650 650
Repair Exp 230 230 230
Oil and Gas
Expense 90 90 90
Depr. Exp. - Delivery Equip. 600 600 600
Total 15,420 15,420 2,145 2,145 16,370 16,370 5,390 6,200 = 810
10,980 10,989
Explanation:
a) Data and Calculations:
Adjustments:
a) Supplies expense $545 Supplies $545
(b) Insurance expense $650 Prepaid Insurance $650
(c) Depr. - Delivery Equip. $600 Accum. Depr. Delivery Equip. $600
(d) Wages expense $350 Wages Payable $350