Answer:
A. Martin hiring more house painters to meet demand
Explanation:
The BRIE model for entrepreneurship refers to:
Boundary: creating a physical place for your business and creating a mental place for your business inside your customers' mindsResources: all the physical resources that your business possesses Intention: how determined you are in making your business succeed Exchange: actually make your business generate revenue and business transactionsJake, a pharmaceutical sales representative, often takes lunch to doctors' offices. Over lunch with the doctors and their staffs, he reviews his company's products. Jake does not try to close a sale during these lunches. What type of personal selling does this describe
Answer:
The correct answer is: order-creaters.
Explanation:
To begin with, the area of personal selling there are three types of different approaches regarding the sales person and his proper way of selling. According to this theory, one of those types is the one named "order-creaters" and that concept comprehends the type of sellers that primarily focos on not to close the sale, but to persuade the regular customer to promote the product to other clients from the same audience. Therefore that Jake, when goes to have launch in the same place as the doctors, even though he does not want to make a sale, he is looking forward to establish a relationship that later favoured him in promoting the product.
The government establishes an effective price ceiling for a gallon of milk. What will be the result of this ceiling? a) It will create a surplus b) It will create a shortage c) It will have no effect d) It will cause an increase in demand e) it will cause an increase in supply
Answer:
D
Explanation:
Because price ceiling is put by the government so that certain commodities could still be available at a reasonable price for many
Answer: D
Explanation:
Change all of the numbers in the data area of your worksheet so that it looks like this:
Data
4 Unit sales 10,000 units
5 Selling price per unit $20 per unit
6 Variable expenses per unit $8 per unit
7 Fixed expenses $90,000
A) What is the break-even in dollar sales?
B) What is the margin of safety percentage?
C) What is the degree of operating leverage?
1. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%.
2. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this:
Data
4 Unit sales 12,000 units
5 Selling price per unit $20 per unit
6 Variable expenses per unit $8 per unit
7 Fixed expenses $90,000
1. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%.
2. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this:
A. What is net operating income?
B. By what percentage did the net operating income increase?
Answer:
A) What is the break-even in dollar sales?
$150,000B) What is the margin of safety percentage?
25%C) What is the degree of operating leverage?
41. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%.
if unit sales increase by 20%, then profits should increase by 80%2. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20%
A. What is net operating income?
(10,000 x 1.2 x $20) - (10,000 x 1.2 x $8) - $90,000 = $240,000 - $96,000 - $90,000 = $54,000B. By what percentage did the net operating income increase?
net operating income increased from $30,000 to $54,000 (an 80% increase)Explanation:
selling price $20
variable costs $8
contribution margin $12
break even point = $90,000 / $12 = 7,500 x $20 = $150,000
margin of safety = (current sales - break even) / current sales = $50,000 / $200,000 = 25%
degree of operating leverage = (quantity x contribution margin) / [(quantity x contribution margin) - fixed costs] = (10,000 x $12) / ($120,000 - $90,000) = $120,000 / $30,000 = 4
or contribution margin / net profits = $120,000 / $30,00 = 4
The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Units of Product Percent of Conversion Added Beginning Work in Process 230,000 60 % Units started 570,000 100 % Units completed 620,000 100 % Ending Work in Process 180,000 70 %
Answer:
Total Equivalent Units Conversion 746,000
Explanation:
Breakfast Cereal Maker
Weighted-Average Inventory Method
Total Equivalent Units
Units Conversion Equivalent Units
Particulars %
Units completed 620,000 100 % 620,000
Add Ending WIP 180,000 70 % 126,000
Total Equivalent Units 746,000
The total Equivalent units are obtained by adding the percent of the units in the ending work in process inventory to the units completed and transferred out. This is the average weighted method of finding the equivalent units.
As only conversion is required we found out the conversion units only.
Strawberry Fields purchased a tractor at a cost of $40,000 and sold it two years later for $25,000. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $6,000 residual value.
1. What was the gain or loss on the sale?2. Record the sale using a general journal entry.
Answer:
1.Loss on sale 1,400
2.Dr Cash 25,000
Dr Accumulated Depreciation 13,600
Dr Loss on sale 1,400
Cr Equipment - Tractor 40,000
Explanation:
1.Calculation of the gain or loss on the sale of Strawberry Fields
Using this formula
Depreciation per year = (Cost - Salvage value)/Useful life
= (40,000-6,000)/5
=34,000/5
= 6,800 per year
The Book value after two years will be:
40,000 - (6,800*2)
=40,000-13,600
=26,400
Gain(Loss) = Cash received - Book value
= 25,000 - 26,400
Loss on sale 1,400
2.Record of the sale using a general journal entry
Dr Cash 25,000
Dr Accumulated Depreciation 13,600
Dr Loss on sale 1,400
Cr Equipment - Tractor 40,000
Hulston Appliances Co. wants to introduce a new digital display, laser driven iron to the market. The estimated unit sales price is $44.00. The required investment is $88,000. Unit sales are expected to be 8,800 and the minimum required rate of return on all investments is 10.00%. Compute the target cost per iron.
Answer:
Target cost per unit = $43 per unit
Explanation:
Target cost is the cost at which a product must be produced and sold to achieve a desired profit margin
Target cost =(Sales revenue - (ROI × capital) )/ No of units
Target cost =( (44 × 8,800) - (10%× $88,000 ) )/ 8,800 guns
Target cost per unit = (387200 - 8800 ) / 8,800 units= $43 per unit
Target cost per unit = $43 per unit
A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $600,000, the equipment costs $250,000, and $100,000 additional working capital is required. It is expected that the product will result in sales of $750,000 per year for 10 years, at which time the land can be sold for $400,000, the building for $350,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10. The annual expenses for labor, materials, and all other items are estimated to total $475,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method. (Sullivan, 20180327, p. 234) Sullivan, W. G., Wicks, E. M., Koelling, C. P. (20180327). Engineering Economy, 17th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9780134838229 Always check citation for accuracy before use.
Answer:
$327,909.14
Explanation:
Calculation to determine if it should invest in the new product line.
First step
The Investment cost will be:
Land costs $300,000
Building costs $600,000
Equipment costs $250,000
Additional working capital $100,000
=$1,250,000
Annual revenue $750,000
Annual expenses$475,000
Market value:
$400,000 +$350,000 + $50,000 = $80,0000
N: 10 year
MARR: 15% per year
Using PW method
-$1250000 + ($750,000 – $475,000) (P/A, 15%, 10) +$ 80000(P/F, 15%, 10)
-$1250000-$275,000((1+15)^¹⁰−1/15(1+15)^¹⁰+$3000
Hence,
=-$1,250,000 – $275,000(5.0188) + $3000(0.2472)
= $327,909.14
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $15,300. What is the adjusting entry for the accrued interest at December 31 on the note
Answer:
DebitbAccrued Interest on Note receivable -$311.1
Credit Interest Income -$311.1
Explanation:
Preparation of the adjusting entry for the accrued interest at December 31 on the note for Alan Company
The Interest earned till 31 December will be :
(30+31 days)=61 days
=(15,300×12%×61days)÷360 days
=$111,996÷360 days
=$311.1
The Adjusting Entry for Alan Company will therefore be:
Debit Accrued Interest on Note receivable -$311.1
Credit Interest Income -$311.1
The adjusting entry for the accrued interest on December 31 on the note
Debit - Accrued Interest on Note receivable -$311.1
Credit - Interest Income -$311.1
An adjusting entry is an accounting entry made at the conclusion of an accounting period to update the accounts and put them in line with the accrual accounting method.
It is required because some transactions or occurrences may have been missed or recorded incorrectly throughout the period.
The Interest earned till 31 December will be :
(30+31 days)=61 days
=(15,300×12%×61days)÷360 days
=$111,996÷360 days
=$311.1
Learn more about adjusting entries, here:
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Suppose your friend is a music major who sings at weddings. She has no fixed or marginal costs for singing and has two types of customers: 20 customers think it is worth paying $200 to have her sing at their wedding, whereas 10 customers think her singing services are worth only $100. Il earn S if she can charge only one price to:________.
(a) If your friend is able to sing at each wedding and maximizes profits all customers.
(b) She will earn S If she can perfectly price discriminate.
Answer: a. $4,000
b. $5,000
Explanation:
a. If she can sing at each wedding but decides to maximise profits, she will only sing at the weddings of those paying her $200 as it is the higher of the two payment options.
Should she sing at the $200 customer weddings, she would make;
= 20 people * $200
= $4,000
b. Price Discrimination is the charging of different types of customers different prices for the same or similar goods.
If your friend knows how to perfectly charge the two different groups the different prices that they value her at then she will be able to attend and sing at both weddings making her revenue;
= (10* $100) + (20 * $200)
= 1,000 + 4,000
= $5,000
Bill Phillips is developing a Monte Carlo simulation to value a complex and thinly traded security. Phillips wants to model one input variable to have negative skewness and a second input variable to have positive excess kurtosis. In a Monte Carlo simulation, Phillips can appropriately use:_________
Answer: Both of them
Explanation:
The Monte Carlo Simulation is a forecasting technique that allows one to find out the probability of occurence of different outcomes which may be difficult to come up with because there are multiple random variables involved.
Monte Carlo simulations are used in many diverse fields such as Finance, Engineering and Science.
As earlier mentioned, this simulation allows for multiple random variables so Phillips can use it to model both the variables to have different characteristics.
If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising.
a. True
b. False
Answer: a. True
Explanation:
Marginal Cost as well known is the cost of producing an extra unit of a good. Average Cost on the other hand is the cost of producing all the goods divided by the number of units that are produced.
It therefore stands to reason that if goods are getting more expensive to produce, the Average Cost will rise.
For example, take 2 scenarios.
Scenario 1.
Cost of producing units 1 to 5 is $2 each.
Average Cost = (2 + 2 + 2 + 2 + 2) / 5
= 10/5
Average Cost = $2
Scenario 2
Cost of Producing Units 1 to 5 are;
Unit 1 - $2
Unit 2 - $2
Unit 3 - $2
Unit 4 - $2
Unit 5 - $4
Average cost at unit 5 = (2 + 2 + 2 + 2 + 4)/5
= 12/5
= $2.40
Average Cost has increased by $0.40
A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.30% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments? Assume a 70% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)
Answer:
32.13%
Explanation:
The computation of the break-even corporate tax is shown below:
As we know that
Municipal bond return = preferred stock return before tax × [1 - (1 - dividend exclusion) × Break even corporate tax]
7.5 = 8.30 × [1 - ( 1 - 0.70) × Break even corporate tax ]
7.5 ÷ 8.30 = 1 - 0.30 × Break even corporate tax
0.9036 = 1 - 0.30 × Break even corporate tax
0.30 × Break even corporate tax = 1 - 0.9036
So, Break even corporate tax is
= 0.0964 ÷ 0.30
= 32.13%
Basically we applied the above formula
On April 2 a corporation purchased for cash 5,000 shares of its own $11 par common stock at $28 per share. It sold 3,000 of the treasury shares at $31 per share on June 10. The remaining 2000 shares were sold on November 10 for $24 per share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). Apr. 2 b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank. Jun. 10 Nov. 10
Answer:
April 2
Treasury Stock $140,000 (debit)
Cash $140,000 (credit)
June 10
Cash $93,000 (debit)
Treasury Stock $93,000 (credit)
Nov 10
Cash $48,000 (debit)
Treasury Stock $48,000 (credit)
Explanation:
When the Company purchases its own shares
De-recognize the equity item : Treasury Stock and also de-recognize the assets of Cash.
When the Company sales its own shares.
Recognize the Equity item : Treasury Stock and also recognize the asset Cash.
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 39,000 for January, 59,000 for February, and 49,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows. Commissions 11 % of sales dollars Rent $ 20,000 per month Advertising 12 % of sales dollars Office salaries $ 74,000 per month Depreciation $ 49,000 per month Interest 11 % annually on a $270,000 note payable Tax rate 40 % Prepare a budgeted income statement for this first quarter. (Round your final answers to the nearest whole dollar.)
Answer:
Budgeted Income Statement For Quarter Ended March 31
Sales $3,675,000
Cost of goods sold $1,764,000
Gross profit $1,911,000
Operating expenses
Commissions expense $404,250
Rent expense $60,000
Advertising expense $441,000
Office salaries expense $222,000
Depreciation expense $147,000
Interest expense $ 7,425
Total operating expenses $1,281,675
Income before taxes $629,325
Income tax expense $251,730
Net income $ 377,595
Explanation:
Commissions 11 % of sales dollars
Rent $ 20,000 per month
Advertising 12 % of sales dollars
Office salaries $ 74,000 per month
Depreciation $ 49,000 per month
Interest 11 % annually on a $270,000 note payable
Tax rate 40%
Sales = Number of units for first quarter × price per unit
= (39,000 + 59,000 + 49,000) × $25
= $3,675,000
Cost of goods = (39,000 + 59,000 + 49,000) × $12
= $1,764,000
Commissions expense = 11 % of sales = 11% × $3,675,000 = $404,250
Advertising expense = 12 % of sales = 12% × $3,675,000 = $441,000
Interest expense = 11 % annually on a $270,000
= 11% × 270,000 × 3/12
= $ 7,425
Income = Gross profit - total operating expenses
= $1,911,000 - $1,281,675
= $629,325
Income tax expenses = 40% × $629,325 = $251,730
The duration of copyright protection for works not made for hire is: Select one: a. 20 years from the date of filing. b. Generally perpetually as long as the works are in print. c. One year if no registration has been f
Answer:
Life of the author plus 70 years
Explanation:
Copyright can be defined as the legal ways of protecting an author's work. It is a type of intellectual property right that protect authors from unauthorized individuals from publishing their work.
It is the right to copy given by an author to anyone to copy their work. Content that can be protected by copyright includes; books, poems, plays, songs, films, and artwork and website.
Questions: (A) Explain how it has changed the legal profession (B) Identify a specific legal firm that you see exploiting this particular court ruling (C) Identify some regulatory changes in the area of Clean Environment and resulting opportunities for new venture creation (use specific examples/cases to explain your position)
Answer:
a) Many state bar connections have looked to make their advertising guidelines increasingly stiff, seemingly in the fact that the picture of the legal calling has been lasting of late. for instance attempts to clarify these changes endeavors by looking at whether bar affiliations are reacting to requests of individuals as revealed by mentalities as regards to advertising
(b)Now let us take the case of law firm Bates where U.S Preeminent Court choices are not having their anticipated impacts and that advertising by legal advisors is misleading and worsen, making an atmosphere ready for change.
Also, another alternative may be having their expected impacts of driving down costs and enabling youthful firms/lawyers to look for customers all the more adequately.
(c) Utilizing study information of little firm legal advisors amass in four states before the change development got a lot of contemplation, the proof advocates neither of these clarifications represents endeavors to make advertising progressively troublesome. the little firm legal counselors, those that indicate to profit by Bates and ensuing choices, have not changed their conduct in any assessed or measured way.
Explanation:
Solution
Many state bar affiliations have looked to make their advertising guidelines increasingly rigid, apparently in light of the fact that the picture of the legal calling has been enduring lately.
This example tries to clarify these changes endeavors by looking at whether bar affiliations are reacting to requests of individuals as exhibited by mentalities towards advertising, just as by their advertising practices.
For example let us take the case of law firm Bates where U.S Preeminent Court choices are not having their expected impacts and that advertising by legal advisors is misdirecting and compounding, making an atmosphere ready for change
Then again, the choices may be having their expected impacts of driving down costs and permitting youthful firms/lawyers to look for customers all the more adequately.
Utilizing study information of little firm legal advisors accumulated in four states before the change development got a lot of consideration, the proof recommends neither of these clarifications represents endeavors to make advertising progressively troublesome.
The little firm legal counselors, those suggested to profit by Bates and ensuing choices, have not changed their conduct in any calculable way.
Most advertising is in the business catalog and costs practically nothing, also mentalities toward advertising are not especially ideal.
Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
Answer:
$13,153.15
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $2,468
I = 5%
PV = $13,153.15
To find the PV using a financial calacutor:
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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
For each of the following situations involving annuitities solve for the unknown assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1).
Present Value Annuity Amount i = n =
3000 8% 5
242980 75000 4
161214 20000 9%
500000 80518 8
250000 10% 4
Answer:
A) $11,978.10
B) 9%
C) 15 years
D) 6%
E) $78,866.84
Explanation:
Present Value Annuity Amount i = n =
A 3000 8% 5
242980 75000 B 4
161214 20000 9% C
500000 80518 D 8
250000 E 10% 4
A = $3,000 x 3.9927 = $11,978.10
B: annuity factor = $242,980 / $75,000 = 3.23973
using the annuity table, a 9% annuity for 4 years has a factor = 3.2397
C: annuity factor = $161,214 / $20,000 = 8.0607
using the annuity table, a 9% annuity for 15 years has a factor = 8.0607
D: annuity factor = $500,000 / $80,518 = 6.20979
using the annuity table, a 6% annuity for 8 years has a factor = 6.2098
E: annuity payment = present value / annuity factor = $250,000 / 3.1699 (annuity factor 10%, 4 years) = $78,866.84
Prepare a multiple-step income statement through the calculation of gross profit.
For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as negative values. Upon completion, compare the gross profit with the amount reported on the partial income statement.
Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30,
FOB shipping point, invoice dated July 1.
Jul. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point,
invoice dated July 2. The merchandise had cost $500.
Jul. 3 Paid $125 cash for freight charges on the purchase of July 1.
Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash.
Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB
destination, invoice dated July 9.
Jul. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise
purchased on July 9.
Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
Jul. 16 Paid the balance due to Boden Company within the discount period.
Jul. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB
shipping point, invoice dated July 19.
Jul. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.
Jul. 24 Paid Leight Co. the balance due after deducting the discount.
Jul. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.
Jul. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60,
FOB shipping point, invoice dated July 31.
Answer:
inventory 6,000 debit
account payable 6,000 credit
--to record July 1st--
Acc Rec 900 debit
Sales Revenues 900 credit (+900 income)
--to record sale--
COGS 500 debit (-500 expense)
Inventory 500 credit
--to record cost of sale--
Delivery expense 125 debit (-125 expense)
Cash 125 credit
--to record freight-out --
Cash 1,700 debit
Sales Revenues 1,700 credit (+1,700 income)
--to record sale--
COGS 1,300 debit (-1,300 expense)
Inventory 1,300 credit
--to record cost of sale--
Inventory 2,200 debit
Account Payable 2,200 credit
--to record purchase--
Account Payable 200 debit
Inventory 200 credit
--to record return of goods--
Cash 882 debit
Sales DIscount 18 debit
Accounts Receivables 900 credit
--to record payment from customer--
Account Payable 6,000 debit
Cash 5,940 credit
Inventory 60 credit
--to record payment to supplier--
Cash 1,200 debit
Sales Revenues 1,200 credit (+1,200 income)
--to record sale--
COGS 800 debit (-800 expense)
Inventory 800 credit
--to record cost of sale--
Sales Returns 200 debit
Account Receivables 200 credit
-- to record return from customer--
Account Payable 2,000 debit
Cash 1,960 credit
Inventory 40 credit
--to record payment to supplier--
Cash 980 debit
Sales DIscount 20 debit
Accounts Receivables 1,000 credit
--to record payment from customer--
Cash 7,000 debit
Sales Revenues 7,000 credit (+7,000 income)
--to record sale--
COGS 4,800 debit (-4,800 expense)
Inventory 4,800 credit
--to record cost of sale--
Explanation:
Cheek
900 x 2% = 18
net of discount 900 - 18 = 882
Boden:
6,000 x 1% = 60
Net of discount 6,000 - 60 = 5,940
Leight:
2,200 - 2,000 = 2,000 balance due
2,000 x 2% = 40
net of discount 1,960
Art Co:
1,200 - 200 = 1,000 balance due
1,000 x 2% = 20 discount
net = 1,000 - 20 = 980
In each of the following examples, identify whether the individual is experiencing cyclical unemployment, frictional unemployment, structural unemployment, or no unemployment.
a. Eduardo has recently moved to a new city with his wife who was offered a great job there. He is trying to find a position in the same industry he worked in before relocating.
b. Derek worked for a large telecommunications firm that went bankrupt last year due to a recent recession. He has since tried to find work with one of the firm's competitors, but good jobs are currently hard to come by.
c. Drew lost his job at a car manufacturer last year. He spent 6 months applying for every job possible before giving up 2 months ago. He now spends his day playing Xbox.
d. Paula has 20 years of experience in manufacturing. Her employer, and many other manufacturing firms, recently closed their U.S. plants. She would like to find a similar job but is unable to find anything that utilizes her skills.
e. Katherine works part-time at a small retail store. She would like to work full-time, but her employer is currently unable to extend her hours.
f. Tyrell just graduated from college with a business degree. He is currently looking for a job in banking in the major city he just moved to.
g. Mike is a contractor who has been unable to find work, since most businesses are delaying or canceling their construction plans due to economic uncertainty in the coming year.
h. Meg used to own and run her own bookstore. Her sales declined due to competition from online retailers. She has not been able to find any work related to her skills in the diminishing retail industry for books.
Answer:
a. Eduardo has recently moved to a new city with his wife who was offered a great job there. He is trying to find a position in the same industry he worked in before relocating. Voluntary Unemployment
b. Derek worked for a large telecommunications firm that went bankrupt last year due to a recent recession. He has since tried to find work with one of the firm's competitors, but good jobs are currently hard to come by.
Cyclical Unemployment.
c. Drew lost his job at a car manufacturer last year. He spent 6 months applying for every job possible before giving up 2 months ago. He now spends his day playing Xbox.
Voluntary Unemployment
d. Paula has 20 years of experience in manufacturing. Her employer, and many other manufacturing firms, recently closed their U.S. plants. She would like to find a similar job but is unable to find anything that utilizes her skills.
Structural Unemployment
e.Katherine works part-time at a small retail store. She would like to work full-time, but her employer is currently unable to extend her hours.
No Unemployment.
f. Tyrell just graduated from college with a business degree. He is currently looking for a job in banking in the major city he just moved to.
No Unemployment
g. Mike is a contractor who has been unable to find work, since most businesses are delaying or canceling their construction plans due to economic uncertainty in the coming year.
Structural Unemployment
h. Meg used to own and run her own bookstore. Her sales declined due to competition from online retailers. She has not been able to find any work related to her skills in the diminishing retail industry for books.
Structural Unemployment
Cheers!
Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both parties.
A. True
B. False
Answer:
True
Explanation:
Lacy can represent both parties. If Lacy represents both parties this is known as dual agency.
As the “dual” agent Lacy handles all of the communications, paperwork, and negotiations between both parties, that is the buyer and seller who happens to be Jolene and Adam. She is supposed to remain neutral as the facilitator of the deal with no fiduciary duty to either side. Fiduciary duty is to uphold a client's interest in good faith an trust.
The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2015, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2016. Use the information to prepare adjusting entries as of December 31, 2015.
Answer:
Preparation of the adjusting entries as of December 31, 2015.
Dr Salaries Expense 3,920
Cr Salaries Payable 3,920
Explanation:
Since we were been told in the question that all the 15 employees worked the first 2 days of that week, the Adjustment we therefore be $3,920( 1,960×2) . And the transaction will be recorded as:
Dr Salaries Expense 3,920
Cr Salaries Payable 3,920
The Adjustment will be :
1,960 x 2 = 3,920
Therefore the pay that occured in New Year's Day will not be used because it falls in the next year.
At the beginning of the period, the Cutting Department budgeted direct labor of $136,000, direct materials of $150,000 and fixed factory overhead of $11,900 for 8,000 hours of production. The department actually completed 10,600 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations.
Answer:
Total cost under flexible budgeting is $390,850
Explanation:
Calculation of Standard direct labor Cost
Standard Direct labor Cost=Budgeted Labor cost/Budgeted hour of Production
=$136,000 / 8,000
=$17 per hour
Calculation of Standard material Cost
Standard material Cost = Budgeted material Cost /Budgeted hour of Production
=$150,000 / 8,000
=$18.75 per hour
Calculation of Total cost under flexible budgeting
Direct Material Cost = 10,600 * $18.75 = $198,750
Direct Labour Cost= 10,600 * 17 = $180,200
Fixed factory overhead= $11,900
Total budgeted cost $390,850
Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition is known as:
Answer: Value proposition
Explanation: Value proposition in business is that service, innovation, or uniqueness about your business that attracts customers. A value proposition also helps answers the question 'why' someone should do business with you. It hells to convince potential customer why they should patronize you, and why your service or product would be of more value to them than what your competitors offering same service would be able to offer them.
A company has net credit sales of $ 1 comma 300 comma 000, beginning net accounts receivable of $ 270 comma 000, and ending net accounts receivable of $ 202 comma 000. What is the days' sales in accounts receivable? (Use 365 days in calculations as needed. Round any intermediate calculations to two decimal places, and your final answer to the nearest whole day.)
Answer:
66.36 days
Explanation:
Calculation of the days' sales in accounts receivable .
Using this formula
Accounts Receivable Turnover Ratio = [Net credit sales (Beginning net account receivable +Ending net account receivable)/2)]
Let plug in the formula
[$1,300,000/($270,000 + $202,000)/2)]
$1,300,000/($472,000/2)
=$1,300,000/236,000
=$5.50 Days' sales in receivables
= 365/5.5
= 66.36 days
Therefore the days' sales in accounts receivable will be 66.36 days
The Hudson Corporation makes an investment of $24,000 that provides the following cash flow: Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.Year Cash Flow
1 $ 13,000
2 13,000
3 4,000a. What is the net present value at an 8 percent discount rate? (Do not round intermediate calculations and round your answer to 2 decimal places.)b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
NPV = $2,357.77
IRR = 14.31%
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
NPV and IRR can be calculated using a financial calculator.
Cash flow in year 0 = $-24,000
Cash flow each year in year 1 and 2 = $13,000
Cash flow in year 3 = 4,000
I = 8%
NPV = $2,357.77
IRR = 14.31%
To find the NPV using a financial calacutor:
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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calacutor:
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.
I hope my answer helps you
On February 22, Brett Corporation acquired 250 shares of its $3 par value common stock for $26 each. On March 15, the company resold 66 shares for $29 each. What is true of the entry for reselling the shares
Answer: Credit Additional Paid in Capital $198
Explanation:
Brett Corporation reissued the Treasury Stock at $29 which was $3 higher than the amount they had repurchased it for.
When stock is sold for a price higher or lower than they are worth, the balance goes to the Additional Paid-in Capital account. If it is sold higher, the balance is Credited to the Additional Paid-in Capital account and if it is sold for lower than it is worth, it is debited.
The Balance here is,
= $3 * 66 resold shares
= $198
This $198 will therefore be credited to the Additional Paid-in Capital account.
Jayne Butterfield, a single mother with three children, lived in Sacramento, California. Sarah Huckleberry also lived in California until she moved to New York City to open and operate an art gallery. Huckleberry asked Butterfield to manage the gallery under a one-year contract for an annual salary of $90,000. To begin work, Butterfield relocated to New York. As part of the move, Butterfield transferred custody of her children to her husband, who lived in London, England. In accepting the job, Butterfield also forfeited her husband's alimony and child-support payments, including unpaid amounts of nearly $45,000. Before Butterfield started work, Huckleberry repudiated the contract. Unable to find employment for more than an annual salary of $30,000, Butterfield moved to London to be near her children. She filed a suit in an California state court against Huckleberry, seeking damages for breach of contract. Should the court hold, as Huckleberry argued, that Butterfield did not take reasonable steps to mitigate her damages? Why or why not?
Answer:
No, the court should not hold in favor of Huckleberry.
Explanation:
The rule of mitigation that Huckleberry tries to use in her favor states that the non-breaching party (Butterfield) should have taken all the necessary steps to reduce her loss, e.g. take a job in New York. She probably argued that Butterfield leaving for England to meet with her children made things worse.
But in this case, Butterfield relied on Huckleberry's promise to organize her life and the well being of her children. Butterfield made a lot of changes and sacrifices in her life because of this, e.g. forfeiting unpaid alimony, transferring custody of her children , etc.
Moving to a different city or country requires a lot of work, expat life is not easy and not everyone can handle it. Butterfield took decisions that affected the lives of many people and she is not responsible for Huckleberry's breaching, the only party responsible for all this mess is Huckleberry and it is normal that Butterfield would want to go to where her children are.
Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 23,900 Oct. 31 Finished goods X 31 Direct materials 91,000 31 Direct labor 151,900 31 Factory overhead X Finished Goods Oct. 1 Balance 14,700 31 Goods finished 340,600 If the balance of Work in Process on October 31 is $215,100, what was the amount of factory overhead applied in October
Answer:
the amount of factory overhead applied in October is $274,200
Explanation:
First calculate the amount transferred to Finished Goods Account from the Work in Process Account.
Finished Goods T - Account
Debit
Opening Balance $14,700
Transferred from Work In Process Account $325,900
Totals $340,600
Credit
Closing Balance $340,600
Totals $340,600
Prepare the Work in Process T - Account to determine the balance that is Overhead Applied.
Work in Process T - Account
Debits
Opening Balance $23,900
Direct materials $91,000
Direct labor $151,900
Overheads (balancing figure) $274,200
Totals $541,000
Credits
Closing Balance $215,100
Transfer to Finished Goods $325,900
Totals $541,000
Conclusion :
the amount of factory overhead applied in October is $274,200
If a company fails to adjust for accrued revenues:______. a. assets will be understated and revenues will be understated. b. liabilities will be understated and revenues will be understated. c. liabilities will be overstated and revenues will be understated. d. assets will be overstated and revenues will be understated.
Answer:
a. assets will be understated and revenues will be understated
Explanation:
Revenue accrued is recorded as follows :
Account Receivable (debit)
Sales Revenue (credit)
Thus omission of this adjustment would result in Assets (Accounts Receivables) being understated and Revenues being understated as well.