Answer:
1) sales revenue 61,995.26
2) lease receivables 61,995.26 debit
sales revenue 61,995.26 credit
cost of good sold 56,000 debit
truck inventory 56,000 credit
truck 61,995.26 debit
lease payable 61,995.26 credit
3)
[tex]\left[\begin{array}{cccccc}$Time&$Beg&$Cuota&$Interes&$Amort&$Ending\\0&61995.26&7000&&7000&54995.26\\1&54995.26&7000&1649.86&5350.14&49645.12\\2&49645.12&7000&1489.35&5510.65&44134.47\\3&44134.47&7000&1324.03&5675.97&38458.5\\4&38458.5&7000&1153.76&5846.24&32612.26\\5&32612.26&7000&978.37&6021.63&26590.63\\6&26590.63&7000&797.72&6202.28&20388.35\\7&20388.35&21000&611.65&20388.35&0\end{array}\right][/tex]
For the lessor will be interest revenue while interest expense for the lessee
4)
cash 7,000 debit
interest revenue 1,649.86 credit
lease receivables 5,510.65 credit
--entry for the lessor--
lease payable 5,510.65 debit
interest expense 1,649.86 debit
cash 7,000 credit
--entry for the lessee--
5)
cash 21,000 debit
interest revenue 611.65 credit
lease receivables 20,388.35 credit
--entry for the lessor--
lease payable 20,388.35 debit
interest expense 611.65 debit
cash 21,000 credit
--entry for the lessee--
Explanation:
1) the sales revenue will be the present value of all the lease payments and the residual value of the asset or the bargain-option
Present Value of Annuity-due
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate}(1+rate) = PV\\[/tex]
C 7,000
time 8
rate 0.03
[tex]7000 \times \displaystyle \frac{1-(1+0.03)^{-8} }{0.03}(1+0.03) = PV\\[/tex]
PV $50,611.9807
PRESENT VALUE OF LUMP SUM
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 14,000.00
time 7.00
rate 0.03
[tex]\frac{14000}{(1 + 0.03)^{7} } = PV[/tex]
PV 11,383.28
PV of the lease: 50,611.98 + 11,051.73 = 61,995.26
2) the lessor will have a lease receivable while the lessee has a lease payable.
[tex]\left[\begin{array}{cccccc}$Time&$Beg&$Cuota&$Interes&$Amort&$Ending\\0&61995.26&7000&&7000&54995.26\\1&54995.26&7000&1649.86&5350.14&49645.12\\2&49645.12&7000&1489.35&5510.65&44134.47\\3&44134.47&7000&1324.03&5675.97&38458.5\\4&38458.5&7000&1153.76&5846.24&32612.26\\5&32612.26&7000&978.37&6021.63&26590.63\\6&26590.63&7000&797.72&6202.28&20388.35\\7&20388.35&21000&611.65&20388.35&0\end{array}\right][/tex]
In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$). a. A Belgian stock priced at euros () when the exchange rate is US$/ (i.e., each euro is worth $). b. A Swiss stock priced at Swiss francs (Sf) when the exchange rate is US$/Sf. c. A Japanese stock priced at yen (¥) when the exchange rate is ¥/US$.
Answer:
$114.24
$96.18
$12.23
Explanation:
Here is the complete question :
In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars(US$).
a. A Belgian stock priced at 103.1 euros (euro) when the exchange rate is 0.9025 euro/US$.
b. A Swiss stock priced at 93.1 Swiss francs (Sf) when the exchange rate is 0.968 Sf/US$.
c. A Japanese stock priced at 1,334 yen (¥) when the exchange rate is 109.1149 ¥/US$.
Exchange rate is the rate at which one currency is exchanged for another currency
In this question, US dollar is the base currency while the other currencies are the price currency
1. (103.1 / 0.9025) x 1usd = $114.24
2. (93.1 / 0.9680) x 1 usd = $96.18
c.( 1334/109.1149) x 1 usd = $12.23
Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 31,600 tons from the Casting Department in October. During October, the Rolling Department completed 45,900 tons, including 15,900 tons of work in process on October 1. The ending work in process inventory on October 31 was 1,600 tons.How many tons were started and completed during October?
Answer:
30,000 tons
Explanation:
Units Completed = Beginning Work in Process Units Completed + Units started and Completed during October
45,900 = 15,900 + Units started and Completed during October
Units started and Completed during October = 45,900 - 15,900
Units started and Completed during October = 30,000 tons
How do you make alot of moneyyyyy
Answer:
work hard or k*ll a rich man lol
On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 10% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $90,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $8,000 per year. Insurance premiums of $7,000 annually are related to the equipment. Both amounts were to be paid by the lessor and lease payments reflect both expenditures.
Required:
At what amount will Jasperse record a right-of-use asset?
Answer:
$554,320
Explanation:
Annual payment = $90,000
Rate = 10%
Time period = 10 years
Maintenance of equipment = $8,000
PVAD of $1(n = 10, i=11) = 6.76
Lease payment = $90,000 - $8,000 = $82,000
Amount of Right-of-use asset = Lease payment * PVAD of $1
Amount of Right-of-use asset = $82,000 * 6.76
Amount of Right-of-use asset = $554,320
So, Jasperse will record $554,320 as a right-of-use asset amount.
Analyzing and Computing Accrued Warranty Liability and Expense Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. During the current period, Waymire sold 69,000 units and repaired 1,000 units. (a) How much warranty expense must Waymire report in its current period income statement
Answer:
the warranty expense reported is $138,000
Explanation:
a. The computation of the warranty expense that should be reported in its current period income statement is shown below:
= Given percentage × units sold × repair average cost
= 2% × 69,000 units × $100 per units
= $138,000
Hence, the warranty expense reported is $138,000
The consequences of poor
mangement to the government
and society .
Blending process Units of Product Percent of Conversion
Beginning work in process 150,000 80%
Goods started 310,000 100
Goods completed 340,000 100
Ending work in process 120,000 25
Required:
Compute the total equivalent units of production for conversion using the FIFO method.
Answer:
Number of equivalent units= 370,000
Explanation:
To calculate the cost of equivalent units using the FIFO (first-in, first-out), we need to use the following structure:
COST PER EQUIVALENT UNITS:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Beginning work in process = 150,000*0.2= 30,000
Units started and completed = 340,000 - 30,000= 310,000
Ending work in process completed= 120,000*0.25= 30,000
Number of equivalent units= 370,000
A debit balance in the Allowance for Doubtful Accounts A. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. B. is the normal balance for that account. C. cannot occur if the percentage of receivables method of estimating bad debts is used. Click Save and Submit to save and submit. Click Save All Answers to save all answers. D. indicates that actual bad debt write-offs
Answer:
D. indicates that actual bad debt write-offs
Explanation:
A debit balance can be regarded as negative cash balance when checking ones account with a bank. It should be noted that debit balance in the Allowance for Doubtful Accounts
indicates that actual bad debt write-offs
Which means the same as human resources?
A)
capital resources
B)
service providers
C)
labor resources
D)
unskilled workers
Answer:
A. Capitol Resources
Explanation:
Explanation:
Answer:
Capital resources
Explanation:
"Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view. Likewise, other terms sometimes used include "manpower", "talent", "labour", or simply "people".
Hope this helps out. if not, please let me know so i can edit my answer
Choose the scenarios provided that would cause an increase in the cell phone quantity produced based on the law of supply.
A)
The price of cell phones increases considerably.
B)
Government subsidies provided to cell phone producers increases.
C)
The cost of the main component of cell phones decreases substantially
D)
The price of cell phones is placed on sale around popular holiday seasons.
E)
The federal government decreases the tariff on the imported computer
chip inside cell phones
The following scenarios would cause an increase in the cell phone quantity produced based on the law of supply:
B) Government subsidies provided to cell phone producers increases.
C) The cost of the main component of cell phones decreases substantially.
E) The federal government decreases the tariff on the imported computer
chip inside cell phones.
If the price of the cell phones will increase then the demand for cell phones will decrease. Hence, option A is incorrect. The price of cell phones is placed on sale during holiday seasons will not affect the law of supply because the sale price if less then the demand will increase and considerably the sale. Hence, option C is incorrect. If the government subsidies on cell phone increase then the producers will able to produce more cell phones and this will help in increasing the cell phone supply. Hence, option B is correct. If the cost of the main component of the cell phone decreases then the producers can purchase more number of main components for the production of cell phones and the supply for cell phone increases. Hence, option C is correct. If the federal government decreases the tariff on the chip being imported and used in the cell phones. Then it will decrease the production cost and more number of cell phones are expected to be produced and it will increase the supply of cell phone. Hence, option E is correct.Hence, options B, C, and E are correct.
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Veronica Is thinking about getting a prepaid debit card. She has made a list of good reasons to get the card. What reason should NOT be on her
list?
Select the best answer from the choices provided.
OA. A bank will not let her open an account with them, but she needs a card to be able to make purchases online.
O B. She wants to avoid fees at the bank and prepaid debit cards have no costs other than the money she puts on the card.
Oc with a prepaid debit card she can do many of the same things that she would be able to do with a credit card.
OD. She wants to avoid going into debt with a credit card, so she decides to get a prepaid debit card instead.
Needham Company uses a job-order costing system. During the month of September, the company worked on three jobs. The job-order cost sheets for the three jobs contained the following information at the end of September: Job A Job B Job C Beginning Balances $ 4,900 $ 3,900 $ 6,900 Direct Materials 1,900 2,500 2,900 Direct Labor 3,300 5,500 2,700 The company applies overhead at 120% of direct labor cost. The total cost of Job A at the end of September was:
Answer is in the file below
tinyurl.com/wtjfavyw
Before preparing financial statements for the current year, the chief accountant for Oriole Company discovered the following errors in the accounts.
1. The declaration and payment of $47,000 cash dividend was recorded as a debit to Interest Expense $47,000 and a credit to Cash $47,000.
2. A 10% stock dividend (1,100 shares) was declared on the $10 par value stock when the market price per share was $19. The only entry made was Stock Dividends (Dr.) $11,000 and Dividend Payable (Cr.) $11,000. The shares have not been issued.
3. A 4-for-1 stock split involving the issue of 354,000 shares of $5 par value common stock for 91,750 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,835,000 and a credit to Common Stock $1,835,000.
Required:
Prepare the correcting entries at December 31.
Answer:
Oriole Company
Correcting Journal Entries:
1. Debit Dividends $47,000
Credit Interest Expense $47,000
To correct the error.
2. No corrections required
3. Debit Common Stock $1,835,000
Credit Retained Earnings $1,835,000
To correct the error.
Explanation:
a) Data and Analysis:
1. Dividends $47,000 Interest Expense $47,000
2. No corrections required
3. Common Stock $1,835,000 Retained Earnings $1,835,000
b) When a stock split is done, there is no journal entry involving an amount of money. What is recorded is just a memo entry. The memo entry serves to notify that the number of Oriole shares and the par value per share have changed to reflect the reality.
Whispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2022 and 11,700 in 2023.
Answer: $0.29 per mile
Explanation:
Truck is to be driven for 100,000 miles.
It has a cost of $34,000 and a salvage value of $5,000.
Useful life is 8 years.
Depreciable cost per mile under units-of-activity method = (Cost price - Salvage value) / Miles to be driven
= (34,000 - 5,000) / 100,000
= $0.29 per mile
Which of the following statements about real and nominal interest rates is correct? A. An increase in the real interest rate is necessarily accompanied by either an increase in the nominal interest rate, an increase in the inflation rate, or both. B. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate. C. When the nominal interest rate is rising, the real interest rate is necessarily rising; when the nominal interest rate is falling, the real interest rate is necessarily falling. D. If the nominal interest rate is 4 percent and the inflation rate is 3 percent, then the real interest rate is 7 percent.
Answer:
B. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate.
Explanation:
A real interest rate can be regarded as
an interest rate that adjustment has been made on in order to remove the effects of inflation so that the real cost of funds to the borrower as well as real yield to the lender can be reflected. A nominal interest rate on the other hand can be regarded as interest rates calculated before consideration of inflation. It should be noted that When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate.
Austin Company uses a job order cost accounting system. At the beginning of the year, the company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the year, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate
Answer:
$7.50 per direct labor hour
Explanation:
Calculation for the predetermined overhead allocation rate
Using this formula
Predetermined overhead allocation rate = Factory overhead/Direct labor hours
Let plug in the formula
Predetermined overhead allocation rate = $1,500,000/200,000 hours
Predetermined overhead allocation rate = $7.50 per direct labor hour
Therefore the predetermined overhead allocation rate is $7.50 per direct labor hour
The Astro World amusement park has the opportunity to expand its size nowâ (the end of yearâ 0) by purchasing adjacent property for â$ and adding attractions at a cost of â$. This expansion is expected to increase attendance by percent over projected attendance without expansion. The price of admission is â$â, with aâ $5 increase planned for the beginning of year 3. Additional operating costs are expected to beâ $100,000 per year. Estimated attendance for the next fiveâ years, without expansionâ, is asâ follows:
Year 1 2 3 4 5
Attendance 31,000 35,000 36,750 38,500 42,000
a. The cash flows attributable to theâ park's expansion in year 1 are:_______
b. The cash flows attributable to theâ park's expansion in year 2 are:_______
c. The cash flows attributable to theâ park's expansion in year 3 are:_______
d. The cash flows attributable to theâ park's expansion in year 4 are:_______
e. The cash flows attributable to theâ park's expansion in year 5 are:_______
Answer:
Percent increase as a result of expansion = 30%
Price of admission = $35
Cashflow attributable to the park's expansion = Estimated attendance without expansion * percent increase as a result of expansion * admission fee - additional operating costs per year.
Year 1
= 31,000 * 30% * 35 - 100,000
= $225,500
Year 2
= 35,000 * 30% * 35 - 100,000
= $267,500
Year 3
= 36,750 * 30% * 40 - 100,000
= $341,000
Year 4
= 38,500 * 30% * 40 - 100,000
= $362,000
Year 5
= 42,000 * 30% * 40 - 100,000
= $404,000
Transactions for the Sandhill Company for the month of November are presented below.
a. Stockholders invested an additional $36,000 cash in the business.
b. Purchased land costing $17,000 for cash.
c. Purchased equipment costing $54,000 for $4,500 cash and the remainder on credit.
d. Purchased supplies on account for $800. 5. Paid $3,200 for a one-year insurance policy.
e. Received $2,800 cash for services performed.
f. Received $6,600 for services previously performed on account.
g. Paid wages to employees for $2,400.
h. Paid dividends to stockholders of $600.
Requried:
Journalize each transaction and identify each transaction by number.
Answer:
Part a.
Debit : Cash $36,000
Credit : Common Stock $36,000
Part b.
Debit : Land $17,000
Credit : Cash $17,000
Part c.
Debit : Equipment $54,000
Credit : Cash $4,500
Credit : Accounts Payable $49,500
Part d.
Debit : Supplies $800
Credit : Accounts Payable $800
Item 5
Debit : Prepaid Insurance $3,200
Credit : Cash $3,200
Part e.
Debit : Cash $2,800
Credit : Service Revenue $2,800
Part f.
Debit : Cash $6,600
Credit : Accounts Receivable $6,600
Part g.
Debit : Wages $2,400
Credit : Cash $2,400
Part h.
Debit : Dividends $600
Credit : Cash $600
Explanation:
The first step is to identify the accounts affected by the transaction (usually more than2). Then record the transactions in journal as above.
An automobile battery manufacturer offers a 39/50 warranty on its batteries. The first number in the warranty code is the free-replacement period; the second number is the prorated-credit period. Under this warranty, if a battery fails within 39 months of purchase, the manufacturer replaces the battery at no charge to the consumer. If the battery fails after 39 months but within 50 months, the manufacturer provides a prorated credit toward the purchase of a new battery. The manufacturer assumes that x, the lifetime of its auto batteries, is normally distributed with a mean of 44 months and a standard deviation of 3.6 months.
1. If the maufacturer's assumptions are correct, it would need to replace_____ of its batteries free of charge.
a. 8.23%
b. 4.75%
c. 91.77%
d. 95.25%
2. The company finds that it s replacing 9.34% of its batteries free of charge. It suspects that its assumption about the standard deviation of the life of its batteries is incorrect. A standard deviation of ______ results in a 9.34% replacement rate.
a. 3.8
b. 5.4
c. 4.1
d. 4.2
Answer:
1)
If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.
Option a) 8.23% is the correct option
2)
the required standard deviation is 3.8
Option a) 3.8 is the correct answer
Explanation:
Given the data in the question;
mean μ = 44
standard deviation σ = 3.6
if a battery fails within 39 months of purchase, the manufacturer replaces the battery at no charge to the consumer. If the battery fails after 39 months but within 50 months
1)
If the manufacturer's assumptions are correct, it would need to replace_____ of its batteries free of charge
p( X < 39 ) = P( X-μ/σ < 39-μ/σ )
we substitute
= p( Z < ((39-44)/3.6 ))
= p( Z < -1.39 )
from standard normal table; p( Z < -1.39 ) = 0.08226 ≈ 0.0823
p( X < 39 ) = 0.0823 or 8.23%
Therefore, If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.
Option a) 8.23% is the correct option
2)
The company finds that it s replacing 9.34% of its batteries free of charge. It suspects that its assumption about the standard deviation of the life of its batteries is incorrect. A standard deviation of ______ results in a 9.34% replacement rate.
given that;
P( Z < x-μ/σ ) = 9.34%
⇒ P( Z < 39-44/σ ) = 0.0934 ----- let this be equation 1
now, from standard normal tables
∅( -1.32 ) = 0.0934 ---------- let this equation 2
so from equation 1 and 2
39-44/σ = -132
-5/σ = -1.32
σ = -5 / - 1.32
σ = 3.7879 ≈ 3.8
Therefore, the required standard deviation is 3.8
Option a) 3.8 is the correct answer
Penny’s Pool Service & Supply, Inc. (PPSS) is completing the accounting process for the year just ended, December 31, 2015. The transactions during 2015 have been journalized and posted. The following data with respect to adjusting entries are available:
a. PPSS owed $7,500 wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid in January 2016.
b. On October 1, 2015, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2015.
c. The company received a $520 utility bill for December utility usage. It will be paid in January 2016.
d. PPSS borrowed $30,000 from a local bank on May 1, 2015, signing a note with a 10 percent interest rate. The note and interest are due on May 1, 2016.
e. On December 31, 2015, PPSS cleaned and winterized a customer’s pool for $800, but the service was not yet recorded on December 31.
f. On August 1, 2015, PPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
g. On December 31, 2015, PPSS had $3,100 of pool cleaning supplies on hand. During 2015, PPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2,400 of supplies on hand on December 31, 2014.
h. PPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.
i. At December 31, 2015, $110 of interest on investments was earned
Required: Prepare adjusting entries for Penny's Pool Service & Supply, Inc., on December 31, 2015.
Answer:
Penny's Pool Service & Supply, Inc.
Adjusting Entries:
a. Debit Wages Expense $7,500
Credit Wages Payable $7,500
To record accrued wages.
b. Debit Deferred Revenue $4,000
Credit Service Revenue $4,000
To record earned revenue.
c. Debit Utility Expense $520
Credit Utility Payable $520
To record accrued utility expense.
d. Debit Interest Expense $2,000
Credit Interest Payable $2,000
To record interest expense due.
e. Debit Accounts Receivable $800
Credit Service Revenue $800
To record service revenue earned.
f. Debit Insurance Expense $875
Credit Prepaid Insurance $875
To record expired insurance for the period.
g. Debit Supplies Expense $23,700
Credit Supplies $23,700
To record supplies expense for the period.
h. Debit Depreciation Expense - building and equipment $8,300
Credit Accumulated Depreciation - building and equipment $8,300
To record depreciation expense for the period.
i. Debit Interest Receivable $110
Credit Interest Revenue $110
To record interest revenue earned.
Explanation:
a) Data and Analysis:
a. Wages Expense $7,500 Wages Payable $7,500
b. Deferred Revenue $4,000 Service Revenue $4,000 ($24,000 * 2/12)
c. Utility Expense $520 Utility Payable $520
d. Interest Expense $2,000 Interest Payable $2,000 ($30,000 * 10% * 8/12)
e. Accounts Receivable $800 Service Revenue $800
f. Insurance Expense $875 Prepaid Insurance $875 ($4,200 * 5/24)
g. Supplies Expense $23,700 Supplies $23,700 ($3,100+23,000- 2,400)
h. Depreciation Expense - building and equipment $8,300 Accumulated Depreciation - building and equipment $8,300
i. Interest Receivable $110 Interest Revenue $110
In accounting terms, the adjusting entries are the entries that are usually made at the end of the accounting or the financial year in order to allocate the income and expenditure to the period of time in which they are actually incurred.
The Journal entries have been attached below.
Working notes:
[tex]\begin{aligned}\text{Service Revenue}= \$4,000\times \$24,000 \times\frac{2}{12}\end{aligned}[/tex]
[tex]\begin{aligned}\text{ Interest Payable}= \$2,000\times\$30,000 \times 10\% \times\frac{8}{12}\end{aligned}[/tex]
[tex]\begin{a;igned}\text{Prepaid Insurance}=\ $875 \times\$4,200 \times\frac{5}{24}\end{aligned}[/tex]
[tex]\text{Supplies}=\ $23,700 \times(\$3,100+23,000- 2,400)[/tex]
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The following information is available for Trinkle Company for the month of June: The unadjusted balance per the bank statement on June 30 was $81,500. Deposits in transit on June 30 were $3,150. A debit memo was included with the bank statement for a service charge of $40. A $5,611 check written in June had not been paid by the bank. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $50. Required Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
Answer:
$79,039
Explanation:
A Bank Reconciliation Statement is used to determine the true cash balance
Bank Reconciliation Statement as as June 30
Balance as per Bank Statement $81,500
Add Outstanding Lodgments $3,150
Less Unpresented Checks ($5,611)
Balance as per Cash Book $79,039
Therefore, the true cash balance as of June 30 is $79,039
Bryant Company has a factory machine with a book value of $85,700 and a remaining useful life of 7 years. It can be sold for $25,900. A new machine is available at a cost of $420,000. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $594,400 to $522,800. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer: i don’t remember this that well but i think u have to add the two numbers
Explanation:
Avery works for Proctor and Gamble as a market researcher in the United States. P&G is interested in launching a new line of shampoo in India and has asked her to look into doing research to support this decision. Since Avery is not familiar with the language or the culture, what should she do?
Explanation:
According to the scenario in question, an effective alternative for market researcher Avery would be to hire an Indian market research company to carry out the research that P&G needs to do before launching a new shampoo line in India, because as Avery does not is familiar with the Indian language and culture, these could be significant barriers to conducting effective research, since India is a country known for having a very strong culture, so an Indian company could achieve the objective of Proctor and Gamble of more effectively, as it would have more specific information about the culture and the need of the Indian people about a particular product.
Foxmoor Company applies manufacturing overhead by using a predetermined rate of 50% of direct labor cost. The data that follow pertain to job no. 764:
Direct material cost $55,000
Direct labor cost 80,000
If Foxmoor adds a 40% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the sale of job no. 764?
Account Debited Amount
A. Cost of Goods Sold $175,000
B. Cost of Goods Sold $245,000
C. Finished Goods Inventory $175,000
D. Finished Goods Inventory $245,000
E. Sales Reveune $245,000
a. Choice A
b. Choice B
c. Choice C
d. Choice D
e. Choice E
Answer:
e. Choice E
Explanation:
Total cost of job no. 764 = $55,000 + $80,000 + 80,000 x 50%
= $175,000
Total Revenue for job no. 764 = $175,000 + $175,000 x 40%
= $245,000
E. Sales Revenue $245,000
Arnold is the CEO of Beta Corp. Arnold's responsibilities include making decisions on product development, marketing and other significant business directions. Arnold's position is subject to the approval and oversight by Beta's Board of Directors.
Carol is a Beta manager whose responsibilities include directing Beta's day to day hiring, firing, purchasing and selling.
Dave is a Beta salesperson whose daily activities are controlled by Carol, his supervisor.
Fred works from home to edit Beta's technical manuals on a contract- per-manual basis (he is paid for each manual he edits), and is not otherwise subject to Beta's control.
Identify each of the persons below as a principal, an agent, an agent-employee or an independent contractor - and explain your conclusion. For example, is Arnold a principal, agent- employee, or independent contractor and why? If you believe a person can hold more than one status, discuss/explain.
A. Arnold
B. Carol
C. Dave
D. Fred
Answer:
Beta Corp.
A. Arnold = Agent (Arnold exercises significant power on behalf of the Beta's Board of Directors).
B. Carol = Agent-Employee (Carol does not exercise significant power on behalf of the principal (the Board of Directors of Beta). Instead, she is subject to Beta's control)
C. Dave = Agent-Employee, just like Carol. He is a mere employee subject to Beta's control.
D. Fred = Independent Contractor because he controls and directs the result of his work, though he does not decide the work or how it should be done.
Explanation:
Principal = a person who assigns the agent to act on her behalf.
Agent = a person who the principal authorizes to exercise significant power on her behalf.
Agent-employee = an employee of a company. The employee does not exercise the right of control and direction of the results of her work.
Independent contractor = a person who exercises the right of control and direction for work result, and not how and what is done.
explain the importance of financial planning
Answer:
Financial planning is a step-by-step approach to meet one's life goals. A financial plan acts as a guide as you go through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.
On January 1,2016, the Ruffin Corporation issued $40,000 par value, 4%, four-year bonds that mature on December 31, 2019. Ruffin will pay interest quarterly on March 31, June 30, September 30, and December 31. The company's fiscal year ends on December 31. What is the issue price of this bond assuming the market rate of interest is 4%?
Answer:
Face Value of the Bond = 40000
Effective Interest = 4%
Coupon rate = 4%
Years to Maturity = 4
Quarterly Coupon rate = 1%
No. of compounding periods = 16
Present Value of Face (40000*.85282) $34,112.85
Present Value of Interest Payments (800*14.7179) $5,887.15
Total $40,000.00
Face Value of Bond $40,000.00
Initial Amount of Discount/(Premium) $0.00
Note: As the bonds are issued at par, there is premium or discount.
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs. The company had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $600 of capital expenditures on operating long-term assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow
Answer:
$796
Explanation:
The computation of the excess amount is shown below:
As we know that
Free cash flows = Net Income + Depreciation + Interest (1-tax) - Capital expenditures +- changes in Working capital
Now the difference could be determined by the following formula
-Depreciation - interest (1-tax) + capital expenditure + changes in Working capital
= -$650 - 0.05 × $3,200 × (1 - 0.35) + $1,250 + $300
= $796
Climate change is expected to have a major impact on local weather patterns across the United States (and the world). Use a spatial equilibrium model for simple system of two cities to predict the effect of climate change on 1) A place where climate change lowers that amenity value of the local climate (call this place Miami) and 2) A place where climate change does not change the local amenity value (call this place Chicago). Which of the following best describes the prediction of your model?
A. Real estate prices in Miami will rise, real estate prices in Chicago will fall.
B. Real estate prices in Miami will fall, real estate prices in Chicago will fall.
C. Real estate prices in Miami will rise, real estate prices in Chicago will rise.
D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.
E. None of the above.
Answer:
D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.
Explanation:
Real estate prices in Miami will fall because according to the model, climate change will lower the amenity value of the local climate. This means that climate change will make the climate of Miami less desirable for potential residents, causing a drop in the price of the real estate of the city due to less demand.
Chicago on the other hand, will have the amenity level of its climate increased, and this will attract more potential residents who will drive up demand, causing Chicago's real estate prices to rise.
how might planning in a not for profit organization such as American Cancer Society differ from planning in a for profit organization such as Coca-Cola
Answer:
The strategic planning for a non profit such as the American Cancer Society is not that different from the planning for a profit organization such as Coca Cola. In both cases, the main tools of strategic planning are used, especially SWOT analysis to identify strengths, weaknesses, opportunities and threats.
The difference lies in the ultimate goal of the strategy. For the for profit organization, increasing economic profit is the main concern, while for the non profit, it is not, although the non profit should also aim at obtaining good economic results in order to reinvest in the organization and benefit even more people.