Answer: $4,500
Explanation:
Equipment was purchased for $76,000.
It has an estimated useful life of 8 years.
It will be sold for $4,000 after these 8 years so that is the salvage value.
With these figures depreciation per annum is calculated with the following formula;
[tex]Depreciation per annum = \frac{Cost of Asset - Salvage Value}{Useful life}[/tex]
= [tex]\frac{76,000 - 4,000}{8}[/tex]
= $9,000
The Equipment was purchased on July 1, Year 1. In Year 1 therefore it will only be in use for half the year and this is what it should b depreciated in light of.
Semi-annual Depreciation = 9,000/2
= $4,500
"What marketing metric determines whether a TV program such as The Big Bang Theory remains on the CBS broadcast TV network
Answer:
It's the rating
Explanation:
The higher the rating the more the network will put it on TV
Suppose the price elasticity of demand for a product is 0.5. If a supplier wants to increase revenue, what change should it make to price, if any?
Answer:
The correct answer is: Increase the price in order to increase revenue.
Explanation:
To begin with, the price elasticity of demand for a product is the concept known in the economics that refers to the variation that happens in the quantity demanded of a product when the price of it changes a bit. Moreover, when the price elasticity of demand is 0.5 the product is relatively inelastic and therefore that if the price increases the quantity demanded will basically stay the same more less and that is why if the price increases the product will no suffer changes in its quantity demanded and that will cause the supplier to earn a higher total revenue.
You plan to invest $300 today and $500 three years from today. Two years from today, you plan to withdraw $50. Which of these is a correct statement regarding a time line for computing the future value of your cash flows four years from today?
A. The cash flow at year 4 is a negative $500.B. The cash flow at year 3 is a negative $500.C. The cash flow at year 2 is a negative $50.D. The cash flow at time 0 is a positive $300.
Answer: B. The cash flow at year 3 is a negative $500.
Explanation:
When money is invested into a venture, it is denoted with a negative sign (-) to indicate that this is money leaving the investor as opposed to a positive sign (+) to show when money is coming back to the investor.
In year 3, the investor invested $500 so in year 3 the Cashflow was -$500.
In the 2020 CARES Act, most Americans received $1,200 stimulus checks (sorry college students). Will people spend most of the money they receive (like in the simple MPC model) or will they save most of it? Why?
Answer:
Individuals won't go through the vast majority of the cash as indicated by the MPC fo ordinary occasions. Despite the fact that the $1200 will add to the buying intensity of the individuals and those individuals who have lost positions and are battling to get by will spend on the essential things, the MPC during an emergency or downturn is a lot of lower than ordinary occasions.
It is a result of the vulnerability made by the emergency. Individuals don't have a clue how much their pay can be sooner rather than later and they need to spare as much as could be expected under the circumstances with the goal that they can make sure about their future.
Their longing to spare increments in a monetary emergency. Along these lines, the vast majority of the $1200 will be spared, and generally, just necessities will be expended out of the additional pay.
amantha was ill for four months this year. Samantha missed work during this period, but disability insurance paid $18,000 of disability pay to replace her missed salary. Samantha shares the cost of the insurance with her employer. This year Samantha's employer paid $2,200 in disability premiums for Samantha as a nontaxable fringe benefit and Samantha paid the remaining $1,100 of premiums from her salary. What amount of the disability pay must Samantha include in her gross income (Rounded to the nearest whole dollar)
Answer: $12,000
Explanation:
Disability Insurance paid $18,000 to Samantha but Samantha had to pay $1,100 in premiums for the disability insurance while her employer paid $2,200. This premium that they both paid is the cost of her insurance payout for disability.
Her gross income will therefore be;
= [tex]\frac{2,200}{2,200 + 1,100}[/tex] * 18,000
= $12,000
This is her income because this is the percentage of the payout that was covered by her insurer.
Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now. If Flaherty demands a 15% return, how much is she willing to pay for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PV factor to 4 decimals.)
Answer:
PV= $72,587.80
Explanation:
Giving the following information:
Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now.
To calculate the present worth, we need to use the following formula:
PV= FV/(1+i)^n
FV= $146,000
Interest rate= 15% = 0.15
Number of periods= 5
PV= 146,000 / (1.015^5)
PV= $72,587.80
McGaha VIllage operates a sanitation department as part of its general government activities. McGaha Village will acquire new sanitation trucks that will be financed through the issuance of general obligation bonds. McGaha Village uses a Capital Projects Fund and a Debt Service Fund to account for the transactions. Make journal entries to record the following transactions and events and indicate the appropriate fund in which the transactions are recorded.
1. April1. McGaha Village issues bonds for their face amount of $300,000
2. April1. McGaha Village acquires sanitation trucks at a total cost of $300,000 for cash. The trucks have an estimated useful life of 10 years.
3. October 1. McGaha Village records the fund liability and pays the first installment of principal ($15,000) and interest ($7,500) on the long term debt.
Answer:
McGaha Village
Journal Entries:
April 1:
Debit Cash Account $300,000
Credit Bonds Payable $300,000
To record the issue of bonds.
April 1:
Debit Sanitation Trucks $300,000
Credit Cash Account $300,000
To record the acquisition of sanitation trucks for cash.
April 1:
Debit Cash Account $300,000
Credit Debt Service Fund $300,000
To record the transfer of funds.
October 1:
Debit Capital Projects Fund $300,000
Credit Debt Service Fund $300,000
To record the funds liability.
Debit Bonds Payable $15,000
Credit Cash Account $15,000
To record the repayment of the bonds.
Debit Interest Expenses $7,500
Credit Cash Account $7,500
To record the payment of interest on the long-term debt.
Explanation:
Journal entries help to initiate the recording of transactions. They show the accounts to be debited and credited in the General Ledger. They have some short narrations which explain the transaction.
Xion Co. budgets a selling price of $81 per unit, variable costs of $35 per unit, and total fixed costs of $281,000. During June, the company produced and sold 11,900 units and incurred actual variable costs of $362,000 and actual fixed costs of $296,000. Actual sales for June were $995,000. Prepare a flexible budget report showing variances between budgeted and actual results.
Answer:
Total Variance 70,600 fav.
Explanation:
Xion Co.
Budget Analysis
Acutal Budgeted Variances
No of Units 11900 11900
Sales Price Per unit $ 83.61 $ 81
Sales Price $ 995,000 963,900 31,100 fav
Variable Cost Per unit 30.42 $ 35
Variable Costs $ 362,000 416500 54,500 fav
Contribution Margin $ 633,000 547,400 85,600 fav
Fixed Costs 296,000 $281,000 15,000 unfav
Gross Profit 337,000 266400 70,600 fav
We multiply the individual budgeted costs to the number of units to find the total budgeted costs. When the actual Revenues are greater than the budgeted revenues they are favorable. Similarly when the budgeted costs are greater than the actual costs they are also favorable.
All of the following statements regarding stock dividends are true except : A. Stock dividends provide evidence of management's confidence that the company is doing well. B. Directors can use stock dividends to keep the market price of the stock affordable. C. Stock dividends decrease the number of shares outstanding. D. Stock dividends do not reduce assets or equity. E. Stock dividends transfer a portion of equity from retained earnings to contributed capital.
Answer: Stock dividends decrease the number of shares outstanding.
Explanation:
A stock dividend does not affect the total equity, but rather the transfer amounts that exists between the components of the equity.
Stock dividends also shows evidence of the confidence of the management that the company is doing well and that the directors can use it to keep market price of stock affordable.
The option that Stock dividends decrease the number of shares outstanding is not true.
A company is considering the purchase of a new machine for $49,000. Management predicts that the machine can produce sales of $16,100 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,900 per year including depreciation of $4,100 per year. Income tax expense is $3,280 per year based on a tax rate of 40%. What is the payback period for the new machine?
Answer:
7.47 years
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
= amount invested / cash flows
To derive cash flow: (S - C - D) x (1 - t) + D
S = sales = $16,100
C = Cost of goods sold = $7,900
D = deprecation = $4,100
T = tax = 40%
$16,100 - $7,900 - $4,100 = $4100
$4100 × 0.6 = $2460
$2460 + $4,100 = $6560
$49,000 / $6560 = 7.47 years
I hope my answer helps you
Structuring a Special-Order Problem Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ5 at a price of $5 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ5 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows: Direct materials $1.75 Direct labor 2.50 Variable overhead 1.50 Fixed overhead 3.25 Total $9.00 Fixed overhead will not be affected by whether or not the special order is accepted.
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Fixed Overhead 3.25
Total $9.00
Requried:
a. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
b. By how much will operating income increase or decrease if the order is accepted?
Answer:
Effect on income= $7,500 increase
Explanation:
Giving the following information:
Special offer:
Units= 10,000
Price= $5
Production costs:
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Effect on income= number of units*unitary contribution margin
Effect on income= 10,000*(5 - 1.75 - 2.5 - 1.5)
Effect on income= $7,500 increase
During the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary. The subsidiary also makes sales of inventory at a profit to its parent during the same year. Both the parent and the subsidiary have on hand at the end of the year 20 percent of the inventory acquired from one another. Consolidated revenues for the year should exclude:________.
a) 80 percent of the total revenues from intercompany sales.
b) only the revenues from the subsidiary's intercompany sales.
c) only the revenues from the parent's intercompany sales.
d) total revenues from intercompany sales. A
Answer: total revenues from intercompany sales.
Explanation:
From the question, we are informed that during the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary and that the subsidiary also makes sales of inventory at a profit to its parent during the same year.
We are further told that both the parent and the subsidiary have on hand at the end of the year 20 percent of the inventory acquired from one another.
In this case, the consolidated revenues for the year should exclude total revenues from intercompany sales
The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 9,019 Accounts receivable $ 73,422 Merchandise inventories $ 63,362 Prepaid expenses $ 4,700 Accounts payable $ 15,550 Notes payable $ 89,638 Other current liabilities $ 10,100 If net credit sales for the current year were $608,500, the firm's days' sales uncollected for the year is: (Use 365 days a year.)
Answer:
The firm's days' sales uncollected for the year is 44 days.
Explanation:
Days’ Sales Uncollected is a liquidity ratio that is used to measure the number of days it takes a company to collect cash from its customers. It is the number of days before the receivable or credit balances from customers will be collected. It is also known as average collection period or days sales outstanding.
The formula for calculating the Days’ Sales Uncollected is given as follows:
Days’ Sales Uncollected = (Account receivable / Net credit sales) * 365 days
Substituting the relevant values from the question into the formula above, we have:
Days’ Sales Uncollected = ($73,422 / $608,500) * 365 =
Days’ Sales Uncollected = 0.120660640920296 * 365 days
Days’ Sales Uncollected = 44 days approximately.
Therefore, the firm's days' sales uncollected for the year is 44 days. That is, it takes the firm approximately 44 days to collect cash from his customers on average.
which of the following situations will likely result in the highest price for a good?
-high demand and high supply
-low demand and high supply
-low supply and low demand
-low supply and high demand
Answer:
low supply and high demand
Explanation:
The situation that will most likely result in the highest price for a good is 'low supply and high demand. When there is a low supply of a product that is highly desired by consumers, companies will take this as an opportunity to raise said products price if they have it in stock. A good example of this is the shortage in supply of toilet paper that occurred at the start of the 2020 pandemic. Since there was such a high demand for toilet paper and a rather low supply of it, businesses began to increase their prices when they had it in stock.
On December 2, Coley Corp. reacquired 1,000 shares of its $2 par value common stock for $27 each. On December 20, Coley Corp. reissued 400 shares for $15 each. Which of the following is correct regarding the journal entry for the reissued shares?
a. Debit Cash $15,000.
b. Credit Treasury Stock $10,800.
c. Credit Paid in Capital - Treasury Stock $5,200.
d. Credit Treasury Stock $6,000.
Answer:
b. Credit Treasury Stock $10,800.
Explanation:
The Journal entry is shown below:-
Cash Dr, $6,000 (400 × $15)
Retained Earnings Dr, $4,800
To Treasury Stock $10,800 (400 × 27)
(Being reissued shares is recorded)
Here we debited the cash and retained earnings as it increased the cash and reduced the retained earning balance and we credited the treasury stock as it reduced the balance of treasury stock
Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows:
Assets Cash $ 406,000
Accounts receivable 832,000
Fixed assets 1,014,000
Total assets $ 2,252,000
Liabilities and Stockholders' Equity
Accounts payable $ 473,000
Long term payable 368,000
Common stock (300,000 shares at $2 par) 600,000
Retained earnings 811,000
Total liabilities and stockholders' equity $ 2,252,000
a-1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.)
a-2. Is this realistic?
A. Yes
B. No
b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.)
c. Assume the firm earned an 20 percent return on stockholders’ equity last year. If the board wishes to pay out 40 percent of earnings in the form of dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Answer:
a-1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay?
Dividends can only be paid from retained earnings because a corporation can distribute dividends only if it has made a profit.
Maximum amount of dividends per share = $811,000 / 300,000 common shares = $2.7033 per share
a-2. Is this realistic?
B. No
No corporation has a 100% dividend payout rate because it uses retained earnings to finance existing or new projects.
b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay?
$1.35 per share because the firm has $406,000 in cash and it has 300,000 outstanding shares.
c. Assume the firm earned an 20 percent return on stockholders’ equity last year. If the board wishes to pay out 40 percent of earnings in the form of dividends, how much will dividends per share be?
ROE = net income / stockholders' equity
20% = net income / $1,411,000
net income = $1,411,000 x 20% = $282,200
dividends = $282,200 x 40% = $112,880
dividends per share = $112,880 / 300,000 = $0.38 per share
The table below shows the expenditure components for the United States in 2015. Expenditures in the United States Expenditure Component Amount of Expenditure (billions of dollara) Durable goods $1,367.1 Nondurable goods 2,666.0 Services 8,299.1 Nonresidential fixed investment 2,336.2 Residential fixed investment 645.4 Change in private inventories 111.9 Exports 2,264.9 Imports 2,789.0 Federal government 1,224.0 State and local government 1,994.9sing the values in the table, calculate the following aggregate expenditures and nominal GDP.Instructions: Round your answers to one decimal place.a. What is the value of consumption expenditures in 2015?$ billionb. What is the value of government expenditures in 2015?$ billionc. What is the value of gross investment in 2015?$ billiond. What is the value of nominal GDP in 2015?$ billion
Answer:
a. $12,332.2 billion
b. $3218.9 billion
c. $3093.5 billion
d. $18120.5 billion
Explanation:
a. The value of Consumption Expenditure = Sum of consumption expenditure on all goods and services
= $1,367.1 billion + $2,666 billion + $8,299.1 billion
= $12,332.2 billion
b. The value of Government Expenditure = Sum of expenditure by federal Government and State & Local government
= $1224.0 billion + $1994.9 billion
= $3218.9 billion
c. Gross Investment = Sum of investment and inventories
=Non-residential fixed investment + Residential fixed investment + Change in private inventories
= $2336.2 billion + $645.4 billion + $111.9 billion
= $3093.5 billion
d. Nominal GDP = C + I + G + (X-M)
= $12332.2 billion + $3093.5 billion + $3218.9 billion + ($2264.9 billion - $2789 billion)
= $18120.5 billion
A- The consumption expenditures made in the year 2015 is 12332.2 billion dollars. B- The government expenditures in the year 2015 were 3218.9 billion dollars.
C- Gross investments made in the year 2015 were 3093.5 billion dollars. D- Nominal GDP in 2015 would be 18121.2 billion dollars. Above mentioned are the correct figures are which have been rounded off to one decimal point.
The calculation of all the asked queries can be made as follows. The Consumption expenditure = Summation of expenses on all goods and services. Which can be calculated as 1,367.1 + 2,666 + 8,299.1 which totals to 12332.2 billion dollars.The Government expenditures amount to 1224 + 1994.9 = 3218.9 billion dollars as a part of expenses made by the federal government and the local govt.The gross investments are calculated as under 2336.2 + 645.4 + 111.9 totaling to 3093.5 billion dollars by addition of fixed investments (residential and non-residential) and private inventories.For calculation of nominal GDP of the year 2015 values obtained from A, B and C can be added before subtracting the net difference between exports and imports like 12332.2+ 3218.9 + 3093.5 + (2264.9- 2789.0) which totals as 18121.2 billion dollars.Hence, the correct values obtained for queries A,B,C and D are $12332.2 billion, $3218.9 billion, $3093.5 billion and $18121.2 billion dollars chronologically.
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After deciding to acquire a new car, you can either lease the car or purchase it with a three-year loan. The car you want costs $38,000. The dealer has a leasing arrangement where you pay $105 today and $505 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an APR of 6 percent. You believe that you will be able to sell the car for $26,000 in three years. a. What is the present value of leasing the car
Answer:
The present value of leasing the car is $16,704.86 and the break even sale price is $25483.48.
Explanation:
Solution
Given that
The monthly rate =0.06/12 =(6%/12)
the number of period = 3 * 12 =23
Now
The present value of leasing the car is computed below:
Payment day =$105
add: Present value of future monthly payment = 505 * (1-(1+(0.06/12))^-36/(0.06/12)
= 166,599,86
Present value of the car =$105 +$166,599,86
=$16,704.86
Thus
The present value of purchasing the car:
Purchase cost = $38,000
Less: present value of resale = 26000/(1+(0.06/12))^-36
=21,726.77
Present value of purchasing the car is $38,000 + $21,726.77
=$16,273.23
Now
The break even sale price
Let the resale price be x
38000 -(x/((1+(0.06/12))^-36 =16704.86
(x/((1+(0.06/12))^-36 = 38000 - 16704.86
(x/((1+(0.06/12))^-36 = 21295.14
x = ((1+(0.06/12))^-36 * 212954.14
x = 25483.48
Therefore the present value of leasing the car is $16,704.86 and the break even sale price is $25483.48
Rose Project is a nongovernmental not-for-profit entity established to help runaway children. Every year, Rose holds a charity benefit at which participants are asked to make pledges. This year, Rose received the following pledges: Unrestricted $500,000 Restricted for counseling programs 200,000 The pledges are legally binding and are expected to be received within the next 12 months. Rose estimates that 5% of the pledges will be uncollectible. At what amount should the pledges be reported on Rose’s balance sheet as pledges receivable?
A. $665,000
B. $475,000
C. $190,000
D. $700,000
Answer:
A. $665,000
Explanation:
Rose received the following
Unrestricted $500,000
Restricted for counseling programs $200,000
Hence, Total Outstanding Pledge = $500,000 + $200,000 = $700,000
The Amount of Provision to be reported = $700,000 x 5% = $35,000
Amount should the pledges be reported on Rose’s balance sheet as pledges receivable will be $700,000 - $35,000
= $665,000
Helen worked for ABC Motors for 25 years. The president of ABC said to her: "In consideration of your past service for 25 years, I promise to give you a new car next week." However, he did not give the car. Is this promise legally enforceable
Answer:
No, legal consideration is absent
Explanation:
According to the given situation, the President of ABC company was promised to Helen to give a new car next week as Helen worked for 25 years. But the president did not give the car as he promised to the Helen.
In this case, there was a promise which was verbal, not in the way of legal consideration, which means there is no proof so that Helen can claim from the president.
Therefore the correct answer is No, legal consideration is absent
At Wilson Manufacturing, evaluators are required to justify in writing extremely high or extremely low performance ratings that are given to employees. The managers completing evaluations hate these write-ups, and try to avoid writing them. Which of the following is the most likely outcome of this requirement?
a. leniency
b. central tendency error
c. halo error
d. recent behavior bias
Answer:
B. Central tendency error
Explanation:
From the question the most likely outcome of this requirement is central tendency error.
This kind of error of error happens when managers, interviewers or evaluators rate all or most of the employees or interviewees as average. It occurs when evaluators filling out a rating scale has placed most of the answers in the middle of the scale and avoid the high and low extremes.
The Jewel Golf Club Company, which recently began using a kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips.Use the information in Case 6.2. How many Kanban containers would Jewel require if a 10% policy variable is used? a. three or fewer b. four or five c. five or six d. six or seven
Answer:
d. six or seven
Explanation:
Given that:
Daily demand for the grip = 3000 units
average waiting time = 0.20 day
processing time = 0.10 day / container
a container holds = 150 grips
percentage of policy used = 10% = 0.10
The objective of this question is to determine the amount of Kanban containers would Jewel require.
the amount of Kanban containers = Demand ( wasting time + processing time)(1+percentage policy)/ amount of container holding
the amount of Kanban containers = 3000( 0.2 + 0.1) ( 1+ 0.10)/ 150
the amount of Kanban containers = 3000 ( 0.30) (1.10)/150
the amount of Kanban containers = 990/150
the amount of Kanban containers = 6.6
SO we can infer that the amount of Kanban containers would Jewel require if a 10% policy variable is used falls within the range of six or seven.
On December 31, 2016, Ditka Inc. had Retained Earnings of $270,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $171,100 and interest revenue of $82,800. The company used supplies in the amount of $89,400, advertising expenses were $16,700, salaries and wages totaled $18,750, and income tax expense was calculated as $14,300. During the year, the company declared and paid dividends of $6,300.
Required:
a. Prepare the closing entries dated December 31, 2016.
b. Record the entry for closing revenue and expense account.
c. Record the entry for closing dividend account.
Answer:
Required a
Closing Retained Earnings Balance
Retained Earnings $270,800 (debit)
Statement of Changes in Shareholders Equity $270,800 (credit)
Required b
Closing Service Revenue Balance
Sales Revenue $171,100 (debit)
Statement of Profit and Loss $171,100 (credit)
Closing Interest Revenue Balance
Interest Revenue $82,800 (debit)
Statement of Profit and Loss $82,800 (credit)
Closing Supplies Expenses Account
Statement of Profit and Loss $89,400 (debit)
Supplies Expenses $89,400 (debit)
Closing Supplies advertising expenses
Statement of Profit and Loss $16,700 (debit)
Advertising expenses $16,700 (debit)
Closing Supplies salaries and wages expenses
Statement of Profit and Loss $18,750 (debit)
Salaries and wages expenses $18,750 (debit)
Closing income tax expenses
Statement of Profit and Loss $14,300 (debit)
income tax expenses $14,300 (debit)
Required c
Closing the dividend Account
Dividend $6,300 (debit)
Retained Earnings Statement $6,300 (credit)
Explanation:
Revenues and Expenses are Closed off to the Statement of Profit and Loss.
Dividends are Closed off to the Retained Income Statement.
Adjusting Supplies Account
Supplies Expenses $89,400 (debit)
Supplies Account $89,400 (credit)
Adjusting dividend Account
Dividend $6,300 (debit)
Cash $6,300 (credit)
When CNS decided to enter the global market for its Breathe Right strips, there were many contributing factors for doing so. However, according to Kevin McKenna, vice president for international at CNS, the real key to successfully enter a specific global market is
Answer:
Having a local partner that is entrepreneurial with an ability to distribute and sell
Explanation:
according to Kevin McKenna, vice president for international at CNS, the real key to successfully enter a specific global market is Having a local partner that is entrepreneurial with an ability to distribute and sell.
Merando Industries employs a 5-day workweek and a September 30 year-end. Normal weekly wages amount to $41760. If September 30 ends on a Wednesday, what is the appropriate journal entry at fiscal year-end
Answer:
Debit: Salaries and wages expense $25,056
Credit: Salaries and wages payable $25,056
(To recognize the salaries and wages payable at year-end)
Explanation:
Merando Industries employs a 5-day workweek - this means $41,760 normal weekly wages can be divided by 5 to arrive at the daily workweek wages, which is $41,760 / 5 = $8,352.
If the fiscal year-end is a Wednesday, the company has to recognize a salaries and wages payable of $25,056 due to the following:
the workweek remains 2 weekdays to completethe company pays at the completion of the 5-day workweekthere is no need to recognize the remaining 2 days next year as salaries and wages payable since the employer may not have control over the employees - they may decide the exit the companySo, the amount to be recognized will be $8,352 x 3 = $25,056.
If the ending inventory of a firm is overstated by $50,000, by how much and in what direction (overstated or understated) will the firm's operating income be misstated? (Hint: Use the cost of goods sold model, enter hypothetically "correct" data, and then reflect the effects of the ending inventory error and determine the effect on cost of goods sold.)
Answer:
50,000 overstated.
Explanation:
As the ending inventory is overstated by 50,000 we can conclude the implications using the inventory identity:
Beginning + Purchase = COGS + Ending
As the left side will be the correct display they will have no error.
Therefore the COGS will compensate the mistake in the ending ivnentory
0 = COGS + 50,000
COGS = -50,000
The COGS are 50,000 lower than it should be therefore the gross profit is overstated as
Sales - COGS = Gross Profit
0 - (-50,000) = Gross Profit
+ 50,000 = Gross Profit
This also makes the operating income which, derives from gross profit to be overstated as well.
Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:
Units Materials Labor Overhead
Work in process inventory, beginning 59,000 $ 61,600 $ 15,700 $ 29,100
Units started in process 559,000
Units transferred out 580,000
Work in process inventory, ending 38,000
Cost added during the month $ 815,215 $ 193,285 $ 359,015
The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 45% complete with respect to labor and overhead.
Required:
1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.
2. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month. (Round your answers to 2 decimal places.)
Materials Labor Overhead
1. Equivalent units of production
2. Cost per equivalent unit
Answer and Explanation:
1. The computation of the first department's equivalent units of production for materials, labor, and overhead for the month is shown below with the help of below formulas
Material equivalent units of production
= Units completed and transferred out + Ending work in process in units
Labor equivalent units of production
= Units completed and transferred out + Ending work in process in units
Equivalent units of production
= Units completed and transferred out + Ending work in process in units
2. The computation of the second part is done by using the spreadsheet. Kindly find it below
Riedy purchased (on 1/1/21) $1,000,000 of HTM, 8% bonds for $904,000. The bonds mature on January 1, 2029; Straight-line amortization is used. The 12/31/21 bond carrying value is:
Answer:
The 12/31/21 bond carrying value is $916,000
Explanation:
The discount on bonds payable is the face value of $1000,000 minus the cash proceeds received from the bond issuance.
Discount on bonds payable=$1,000,000-$904,000=$96000
annual bond discount amortization=$96,000/8=$12000
annual coupon payment=$1,000,000*8%=$80,000
The carrying value of the bond as at 12/31/21=cash proceeds+bond discount amortization
The carrying value of the bond as at 12/31/21=$904,000+$12000=$916000
When Shondra shops at the warehouse club, she buys paper towels and tissues in bulk. What type of packaging do these products come in
Answer:
Unit load
Explanation:
A unit-load packaging is used for loading individual goods together and shipping the package into a single box. Another choice is not appropriate for this form of packaging as they're concerned about carton packaging and shipping container related packaging.
Therefore in the given since she wants to buy the paper towels and tissues in bulk so it reflects the unit load as it derives the same meaning
Hence, the correct option is the unit load.
Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $156,748; beginning inventory $108,738; cost of goods sold $348,930 and sales revenue $757,813.
Required:
a. Calculate the inventory turnover for Oakley, Inc. (Round inventory turnover to 2 decimal places, e.g. 5.12.)
b. Calculate the days in inventory for Oakley, Inc. (Round days in inventory to 0 decimal places, e.g. 125.)
Answer:
a. 2.63
b. 139 days
Explanation:
a. Inventory Turnover is a ratio that measures how often inventory is replaced by a company. A higher ratio is good because it means that the company is selling more.
Formula;
= [tex]\frac{Cost of Goods Sold}{ \frac{Beginning Inventory + Closing Inventory}{2} }[/tex]
= [tex]\frac{348,930}{ \frac{108,738 + 156,748}{2} }[/tex]
= [tex]\frac{348,930}{132,743}[/tex]
= 2.63
b. Days in Inventory refers to the amount of time that stock remains in the company before it is sold. This is preferred to be lower as opposed to higher.
= [tex]\frac{365}{Inventory Turnover Ratio}[/tex]
= [tex]\frac{365}{2.63}[/tex]
= 138.78
= 139 days