Answer:
$538,500
Explanation:
Calculation to determine what The total manufacturing costs added during the period is:
Total manufacturing costs=($213,000-$12,000)+($157,000-$22,000)+($157,000-$22,000*1.5)
Total manufacturing costs=$201,000 + $135,000 + ($135,000 × 1.5)
Total manufacturing costs=$201,000 + $135,000+$202,500
Total manufacturing costs= $538,500
Therefore The total manufacturing costs added during the period is: $538,500
Baltimore, MD. The line started forming at 4 a.m. By 8 a.m. there were over 3,000 people in the line snaking around Amazon's fulfillment center. Despite 85-degree heat and equally high humidity, these people were willing to stand in line for hours, just for a chance to land a job at Amazon's local fulfillment center. By the end of the day, over 4,500 job-seekers had applied for the 1,200 jobs Amazon had posted, which pay wages of around $14 an hour. Amazon held similar job fairs in 11 other cities around the nation, promising to hire as many as 50,000 new employees. Source: News accounts of August 2-4, 2017.
a. What was the apparent market surplus at the Amazon job fair?
b. If Amazon increased wages to $16 per hour, what do you predict will happen to that market surplus?
Answer:
Here the quantity demanded, that is, vacancy = 1,200 While the total number of applications for these 1,200 positions was 4,500.
Explanation:
If Amazon increased wages to $16 per hour, what do you predict will happen to that.
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $2 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.
Answer:
$246,000
Explanation:
Calculation to determine the additional funds Carlsbad will need for the coming year
First step is to calculate the 2020 retained earnings using this formula
2020 retained earnings= net income margin* sales* retention ratio
Let plug in the formula
2020 retained earnings= 3%*6000000*30%
2020 retained earnings= $54,000
Now let calculate the AFN using this formula
AFN = Increase in assets-Increase in spontaneous liabilities -Retained earnings
Let plug in the formula
Increase in assets =$2,000,000*20% =$400,000
Increase in spontaneous liabilities= (250000+250000)*20%=100000
AFN= 400000-100000-$54000
AFN =$246,000
Therefore the additional funds Carlsbad will need for the coming year is $246,000
Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow. Department 1 Department 2 Total Short-run usage (hours) 40,000 60,000 100,000 Long-run usage (hours) 45,000 55,000 100,000 If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be
Answer:
$80,000
Explanation:
Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be
Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000
Variable administrative cost to allocate to Department 1=0.4×$200,000
Variable administrative cost to allocate to Department 1= $80,000
Therefore The Variable administrative cost to allocate to Department 1 would be $80,000
Park Corporation is planning to issue bonds with a face value of $780,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (Use appropiate factors from the tables FV, PV, FVA, and PVA of $1)
1. Prepare the journal entry to record the issuance of the bonds.
2. Prepare the journal entry to record the interest payment on June 30 of this year.
3. What bond payable amount will Park report on its June 30 balance sheet?
Answer:
1. Dr Cash $735,385
Dr Premium on Bond Payable $44,615
Cr To Bond Payable $780,000
2. 30-Jun
Dr Interest expense $31,254
Cr Premium on bond payable $2,004
Cr Cash $29,250
3. $737,389
Explanation:
1. Preparation of the journal entry to record the issuance of the bonds.
First step is to calculate the Present value
$780,000 × 0.51379 = $400,756
$29,250* × 11.44031 = $334,629
Issue price = $735,385
$780,000 × .075 × 1/2 = $29,250
Now let Prepare the journal entry to record the issuance of the bonds.
1-Jan
Dr Cash $735,385
Dr Premium on Bond Payable $44,615
($780,000-$735,385)
Cr To Bond Payable $780,000
(To record issuance of the bonds.)
2. Preparation of the journal entry to record the interest payment on June 30 of this year.
30-Jun
Dr Interest expense $31,254
($735,385 × .085 × 1/2)
Cr Premium on bond payable $2,004
($31,254-$29,250)
Cr Cash $29,250
($780,000 × .075 × 1/2 )
(To record interest payment)
3. Calculation to determine the bond payable amount that Park will report on its June 30 balance sheet
Balance Sheet (Partial)
As of June 30
Particulars Amount
Long term liabilities:
Bond Payable $780,0000
Less Discount o Bonds payable ($42,611)
($44,615-$2,004)
Bonds payable $737,389
Therefore the bond payable amount that Park will report on its June 30 balance sheet is $737,389
On a piece of paper or on a device with a touch screen, hand write the solution to the following problem. Then photograph or save the file in .pdf form and submit it on this page. You would like to buy a house for $1,000,000. You put $200,000 down, and then get a mortgage for the rest at 4%, compounded monthly. What is the difference in the What is the difference in the monthly payment if you amortize the loan over 30 years vs. 15 years
Answer:
The difference in monthly payment is:
= $2,098.18.
Explanation:
a) Data and Calculations:
Cost of the Mortgage House = $1,000,000
Down payment = $200,000 or 20%
Mortgage interest rate = 4%
Period of Mortgage amortization = 30 or 15
From an online financial calculator:
Monthly Pay: $3,819.32
House Price $1,000,000.00
Loan Amount $800,000.00
Down Payment $200,000.00
Total of 360 Mortgage Payments $1,374,956.05
Total Interest $574,956.05
Mortgage Payoff Date Apr. 2051
Monthly Pay: $5,917.50
House Price $1,000,000.00
Loan Amount $800,000.00
Down Payment $200,000.00
Total of 180 Mortgage Payments $1,065,150.61
Total Interest $265,150.61
Mortgage Payoff Date Apr. 2036
Monthly payment for 15 years = $5,917.50
Monthly payment for 30 years = 3,819.32
Difference in monthly payment = $2,098.18
What are THREE purposes of monetary policy? A to eliminate competition B. to promote price stability c. to eliminate unemployment D. to devalue foreign currency E, to promote economic growth F to control federal spending
Answer:
c. to eliminate unemployment,B. to promote price stability and F. to control federal spending
Explanation:
Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total. How much loan does Molly need?
Answer: $3000
Explanation:
Based on the information given, the amount of loan that Milly needs will be the addition of the down payment and the cash allowance and this will be:
= Down payment + Cash allowance
= $2500 + $500
= $3000
Molly needs a loan of $3000
Answer:
Molly needs a $1,000 loan.
After its success in Japan, Starbucks worked with local operators, collecting initial fees and then royalties on store revenues as it entered other Asian countries. Starbucks insisted that the local operators incorporate an intensive employee-training program and follow strict specifications regarding the format and layout of the stores. This type of relationship best describes which strategy
Answer:
Franchising.
Explanation:
Franchise is a license consisting of a contractual arrangement between a parent company (franchiser or franchisor) and another (franchisee), that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
One of the main advantages of a franchise is that, franchisers such as Starbucks do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee. For instance, Starbucks could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.
Hence, this type of relationship best describes franchising because Starbucks worked with local operators while collecting initial setup fees and then royalties on store revenues generated by the franchisees as it entered other Asian countries.
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6 Purchased calculators from Dragoo Co. at a total cost of $1,680, terms n/30.
Sept. 9 Paid freight of $60 on calculators purchased from Dragoo Co.
Sept. 10 Returned calculators to Dragoo Co. for $58 credit because they did not meet specifications.
Sept. 12 Sold calculators costing $580 for $810 to Fryer Book Store, terms n/30.
Sept. 14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator costs $33.
Sept. 20 Sold calculators costing $570 for $740 to Heasley Card Shop, terms n/30.
Journalize the September transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
Date Account Titles Debit Credit
Sept 6. Inventory $1,680
Accounts Payable $1,680
Sept 9. Inventory $60
Cash $60
Sept 10 Accounts Payable $58
Inventory $58
Sept 12 Accounts Receivable $810
Sales Revenues $810
Cost of Goods Sold $580
Inventory $580
Sept 14 Sales returns $45
Accounts Receivable $45
Inventory $33
Cost of Goods Sold $33
Sept 20 Accounts Receivable $740
Sales Revenues $740
Cost of Goods Sold $570
Inventory $570
10:02 0
Today
During the year to 31
December 2019 the
following total
transactions occurred:
1. Mary withdrew a
total of
Sh.10,000.00 in
cash
2. Stock in trade was
bought, all on
credit, for
Sh.34,000.00
3. Sales were made
totaling 60,000.00
of stock in trade
which had cost
Sh.37.000.00. Of
these sales Sh.51.
000.00 were on
credit and Sh.9,
000.00 for cash
Send
Answer:
I can't understand the question
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,600. Monthly depreciation is $28,500. Ignore taxes. Balance Sheet October 31 Assets Cash $ 34,000 Accounts receivable 84,500 Merchandise inventory 170,800 Property, plant and equipment, net of $624,000 accumulated depreciation 920,000 Total assets $ 1,209,300 Liabilities and Stockholders' Equity Accounts payable $ 254,000 Common stock 755,000 Retained earnings 200,300 Total liabilities and stockholders' equity $ 1,209,300 Accounts payable at the end of December would be:
Answer:
$204,000
Explanation:
Calculation to determine what the Accounts payable at the end of December would be:
December Account payable = ($325,000*80%)+($225,000*80%*70%)-($325,000*80%*70%)
December Account payable=$260,000+$126,000-$182,000
December purchase= $204,000
Therefore the Accounts payable at the end of December would be: $204,000
Peter wishes to create a retirement fund from which he can draw when he retires and the same amount at each anniversary of his retirement for years. He plans to retire years from now. What investment need he make today if he can get a return of per year, compounded annually
Answer:
$65,742.60
Explanation:
Note: The full question is "Peter wishes to create a retirement fund from which he can draw $20,000 when he retires and the same amount at each anniversary of his retirement for 10 years. He plans to retire 20 years from now. What investment need he make today if he can get a return of 5% per year, com- pounded annually?"
At first, we need to find the PV of withdrawals and there are 11 withdrawals starting 20 years from now.
PV = PMT/r * 1 - 1/(1+r)^n. This formula gives the PV one period before the first withdrawal. That is 19 years from now because the first withdrawal is 20 years from now.
PMT = 20,000, n = 11,
r = 0.05
PV19 = 20,000/0.05 * [1 - 1/(1+0.05)^11]
PV19 = 400,000 * 0.4153207109
PV19 = 166,128.28436
Now, we need to discount this back to toda
PV0 = PV19/(1 + r)^n; n = 19, r = 0.05
PV0 = 166,128.28436/(1 + 0.05)^1
PV0 = $65,742.6033421702
PV0 = $65,742.60
So, Peter needs to make $65,742.60 today.
The deal your assistant signs calls for the sale of a minimum of260 chairs and up to 450 chairs. The price will be $91 per chair ifonly 260 chairs are bought, but will be discounted by $0.25 perchair (on the entire order) for every chair ordered in addition tothe minimum. Answer the questions below, rounding your answers tothe nearest whole dollar.
a) What is the largest revenue you can make under this deal?
revenue = $
b) What is the least revenue you can make under this deal?
revenue = $_________
Answer:
a. Revenue = $23,660
b. Revenue = $40,837.50
Explanation:
a) Data and Calculations:
Minimum number of chairs to be sold under the deal = 260
Price at minimum number of chairs (260) = $91
Maximum number of chairs to be sold under the deal = 450
Discount offered for quantity above 260 = $0.25 per chair on the entire order
Price at maximum number (or just above 260 chairs) = $90.75 ($91 - $0.25)
Minimum revenue to be made under this deal = $23,660 (260 * $91)
Maximum revenue to be made under this deal = $40,837.50 (450 * $90.75)
Mexico and Brazil, ran large trade deficits and borrowed heavily from abroad in the 1970s, but the inflow of financial capital did not boost productivity sufficiently, which meant that Select the correct answer below: the inflow of capital was beneficial to their economies these countries faced enormous troubles repaying the money borrowed these countries were prudent with their spending on imports none of the above
Answer:
these countries were prudent with their spending on imports
Explanation:
The trade deficit arise when the exports value would be lower than the imports value. Here the countries have to borrow so that they are able to pay back the amount so that the economy could be run in the smooth manner
The money that is borrowed from the rest of the world could increase the production so that the imports value could be increased
So according to the given situation, these countries would be prudent with their imports spending
Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2022 (in millions): other plant assets $977.0, land $240.0, patents and trademarks (at cost) $500.0, machinery and equipment $2,080.0, buildings $970.0, goodwill (at cost) $220.0, accumulated amortization $60.0, and accumulated depreciation $2,180.
Required:
Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
Answer:
Nike, Inc.
NIKE, INC.
Partial Balance Sheet as of May 31, 2022
Long-term Assets:
Tangible assets:
Land $240.0
Buildings $970.0
Machinery and equipment $2,080.0
Other plant assets $977.0
Accumulated depreciation ($2,180) 1,847.0
Total net book value $2,087.0
Patents and trademarks (at cost) $500.0
Goodwill (at cost) $220.0
Accumulated amortization ($60.0)
Total net book value $660.0
Total long-term assets $2,747.0
Explanation:
a) Data and Calculations:
Plant assets and intangible assets for the year ended May 31, 2022 (in millions):
Other plant assets $977.0
Land $240.0
Patents and trademarks (at cost) $500.0
Machinery and equipment $2,080.0
Buildings $970.0
Goodwill (at cost) $220.0
Accumulated amortization $60.0
Accumulated depreciation $2,180
b) Long-term assets are non-current resources that the entity owns as a result of past events, which are expected to generate future benefits. Some long-term assets have physical properties. They can be touched or seen. They are tangible assets and are subject to depreciation. Intangible assets do not have physical substance and are amortized.
Income Statement The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 20Y1: Depreciation Expense $6,700 Fees Earned 355,800 Insurance Expense 1,270 Miscellaneous Expense 2,680 Rent Expense 50,900 Salaries Expense 178,900 Supplies Expense 2,280 Utilities Expense 19,400 Prepare an income statement for Urgent Messenger Service.
Answer:
$93,670
Explanation:
Preparation of an income statement for Urgent Mess
INCOME STATEMENT
Urgent messenger service
for the year ended november 30, 20Y1
REVENUE :
Fees earned $355,800
Less expenses :
depreciation expense ($6,700)
insurance expense ($1,270)
miscellaneous expense ($2,680)
rent expense ($50,900)
salaries expense ($178,900)
supplies expense ($2,280)
utilities expense ($19,400)
TOTAL EXPENSES ($262,130)
NET INCOME $93,670
($355,800-$262,130)
Therefore the income statement for Urgent Mess will be $93,670
The net income of Urgent Messenger Service is $93,670.
INCOME STATEMENT
REVENUE:
Fees earned $355,800
Expenses :
Depreciation expense ($6,700)
insurance expense ($1,270)
Miscellaneous expense ($2,680)
Rent expense ($50,900)
Salaries expense ($178,900)
Supplies expense ($2,280)
Utilities expense ($19,400)
Total Expenses ($262,130)
Net Income $93,670
In conclusion, the net income of Urgent Messenger Service is $93,670.
Read more about Income Statement
brainly.com/question/24498019
10 points! Please answer I beg! In a paragraph, How would you describe the brand McDonalds personality? This must be a short-answer paragraph describing the way the brand sounds in communications
Answer:
mcdonalds yumy and funny
Explanation:
In risk management what does risk control include
SCHMIDT MACHINERY COMPANY
Standard Cost Sheet
Product: XV-1
Descriptions Quantity Cost Rate Subtotal Total
Direct materials
Aluminum 4 pounds $25/pound $100
PVC 1 pound 40/pound 40
Direct labor 5 hours 40/hour 200
Variable factory overhead 5 hours 12/hour 60
Total variable manufacturing cost $400
Fixed factory overhead 5 hours 24/hour 120 120
Standard manufacturing cost per unit $520
Standard variable selling and administrative cost per unit I pound 50
* Budgeted fixed factory overhead cost = $120,000
Assume that Schmidt Machinery Company had the standard costs reflected in Exhibit 14.5. In a given month, the company used 3,470 pounds of aluminum to manufacture 935 units. The company paid $28.90 per pound during the month to purchase aluminum. At the beginning of the month, the company had 54 pounds of aluminum on hand. At the end of the month, the company had only 34 pounds of aluminum in its warehouse. Schmidt used 4,400 direct labor hours during the month, at an average cost of $41.90 per hour.
Required:
Compute for the month the following variances:
1. The purchase-price variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U).
2. The usage variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U).
3. The direct labor rate variance. Indicate whether this variance is favorable (F) or unfavorable (U).
4. The direct labor efficiency variance. Indicate whether this variance is favorable (F) or unfavorable (U).
Answer:
See below
Explanation:
1. Purchase price variance
Standard price per pound = $25
Actual price per pound = $28.9
Quantity of aluminium purchased = Closing inventory + Quantity used - Opening inventory
= 34 + 3,470 - 54
= 3,450 pounds
Purchase price variance = (Standard price - Actual price) × Quantity purchased
= ($25 - $28.9) × 3,450
= -$3.9 × 3,450
= $13,455 (U)
2. Usage variance
Standard quantity of Aluminium for actual production
= 935 units × 4 pounds each
= 3,740 pounds
Usage variance = (Standard quantity of material used - Actual quantity used) × Standard price per unit
= (3,740 - 3,470) × $25
= 270 × $25
= $6,750 (F)
3. Direct labor rate variance
= (Standard rate per hour - Actual rate per hour)
× Actual hours for production
= ($40 - $41.9) × 4,400
= -$1.9 × 4,400
= $8,360 (U)
4. Efficiency variance
Standard hours for actual production
= 935 units × 5 per hour
=4,675 hours
Labor efficiency variance = (Standard hours for actual production - Actual hours for actual production) × Standard rate per hour
= (4,675 - 4,400) × $40
= 275 × $40
= $11,000 (F)
The management of City Front Inc. must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $2.50 each or they can be reworked for $3.50 each and then sold for the full price of $9.70 each. What is the incremental income from reworking and selling the units
Answer:
If the units are reworked, income will increase by $40,700.
Explanation:
Giving the following information:
Number of units= 11,000
Sell as-is:
Selling price= $2.5
Rework:
Selling price= $9.7
Increase in costs= $3.5
We will take into account the incremental costs, the first production costs are equal to both options.
Sell as-is:
Effect on income= 11,000*2.5= $27,500 increase
Rework:
Effect on income= 11,000*(9.7 - 3.5)
Effect on income= $68,200 increase
If the units are reworked, income will increase by $40,700.
What can students do to “get smarter” refer to 5 characteristics of Grit
The allowance method of accounting for bad debts has the following advantages over the direct write-off method including:_________.
A. Records estimated bad debts expense in the period when the related sales are recorded.
B. Records estimated bad debts expense when the account receivable is determined to be uncollectible.
C. Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected
D. Reports sales on the income statement at the estimated amount of cash to be collected
Answer:
A) Records estimated bad debts expense in the period when the related sales are recorded.
C) Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected
Explanation:
The allowance method cannbe regarded as ways used in reporting bad debts expense which comes from the action of the company by selling goods/services on credit.
The direct write-off method can be regarded as accounting method whereby uncollectible accounts receivable is been written off inform of bad debt. It should be noted that The allowance method of accounting for bad debts has the advantages over the direct write-off method in ways like
✓ Records estimated bad debts expense in the period when the related sales are recorded.
✓Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected
The actual cost of direct materials is $47.50 per pound. The standard cost per pound is $51.75. During the current period, 7,200 pounds were used in production. The standard quantity for actual units produced is 7,100 pounds. How much is the direct materials price variance? A. $30,600 favorable B. $30,600 unfavorable C. $30,175 favorable D. $30,175 unfavorable
Answer:
A. $30,600 favorable
Explanation:
The computation of the direct material price variance is shown below:
Direct Materials Price Variance = Actual quantity used × (Actual Cost - Standard Cost)
= 7,200 pounds ×($47.50 per pound - $51.75 per pound)
= $30,600 Favorable
Hence, the direct material price variance is $30,60 favorable
So the same should be considered
On August 1, Year 1, SuperCool Software (SCS) began developing a software program to allow individuals to customize their investment portfolios. Technological feasibility was established on January 31st of year 2, and the program was available for release on March 31, year 2. Development costs were incurred as follows:August 1 through December 31, Year 1 $ 4,000,000January 1 through January 31, Year 2 600,000February 1 through March 31, Year 2 900,000SCS expects a useful life of five years for the software and total revenues of $10,000,000 during that time. During Year 2, SCS recognized $2,000,000 in revenue, included in the $10,000,000 total revenue estimate.Calculate the required amortization for Year 2 (Hint: calculate using both methods, choose the greater number)
Answer:
$180,000
Explanation:
Calculation to determine the required amortization for Year 2
(1)Using Percentage-of-revenue method
Percentage-of-revenue method=($2,000,000/$10,000,000)*$900,000
Percentage-of-revenue method= 20% *$900,000
Percentage-of-revenue method= $180,000
(2) Using Straight-line method
Straight-line method=$900,000 × 1/5 × 9/12
Straight-line method= $135,000
Therefore based on the above calculation the required amortization for Year 2 will be $180,000 using The percentage-of-revenue method reason been that the method help to produces higher amortization of the amount of $180,000.
Match the following functions with their descriptions.
A. It allows companies to organize and share information
B. It provides instantaneous tracking by containing identifying information
C. It provides complete visibility of product location Provides access to global markets, suppliers and distribution channels
D. It enables exchange of documents in a standard
Answer:
A. ERP
B. RFID
C. Barcodes
D. E-business
E. EDI
Explanation:
Here is the complete question :
Match the following functions with their descriptions.
(E-Business, EDI, Bar Codes, ERP, RFID)
A. It allows companies to organize and share information
B. It provides instantaneous tracking by containing identifying information
C. It provides complete visibility of product location
D. Provides access to global markets, suppliers and distribution channels
E. It enables exchange of documents in a standard format
Enterprise resource planning (ERP) is a software used to organise a business core processes
Electronic Data Interchange (EDI) is used to exchange business documents in a standardised format electronically
Types of EDI
Direct EDI EDI via value added networks (VANs)Web EDI Mobile EDIAdvantages of EDI
It increases business efficiency It reduces operating costsDisadvantages of EDI
Initial setup cost is usually quite highRadio-frequency identification (RFID) is used to identify and track tags that are attached to items
Barcodes are used as a means of identification of a product. They can identify the country a product is manufactured.
Electronic business (E-business) has accelerated the rate of global integration. It has increased the access to global markets, suppliers and distribution channels.
Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and It backs each notebook It sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $410,000. Actual warranty expenditures in January of the following year were $13,500.
1. Does this situation represent a contingent liability?
Yes
No
1. Record the contingent liabilities for warranties.
4. What is the balance in the warranty liability account after the entries in Part 2 and 3?
Warranty liability _____
Answer:
The responses to these question can be defined as follows:
Explanation:
In question 1:
YES, the guarantee expense is an obligation.
In question 4:
Journal entries:
Date Title of Account Dr Cr
31-Dec expense Warranty [tex](460000\times4\%)[/tex] 18400
Estimated liability Warranty 18400
31-Jan Estimated liability Warranty 16000
Cash 16000
Balance on Warranty Liability:
Part -2 31-Dec Approximate amount of guarantee liability: $ 18400
Part-3 31-Jan Approximate amount of guarantee liability: $ 2400
Beverly, a real estate broker, had the following income and expenses in her business: Commission income $160,000 Expenses: Bribes paid to city officials (illegal under state law) 30,000 Referral fees paid (not illegal) 11,000 Travel and transportation 6,000 Supplies 5,000 Office and phone 4,000 Parking tickets/fines 1,500 How much net income must Beverly report from her business? Group of answer choices $134,000 $104,000 $102,500 $132,500
Answer:
$134,000
Explanation:
Calculation to determine How much net income must Beverly report from her business
Commission income $160,000
Less Expenses:
Commissions to other brokers$11,000
Travel and transportation $6,000
Supplies $5,000
Office and phone$4000
Net income $134,000
Therefore the amount of net income that Beverly must report from her business is $134,000
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $18,600,000
Net operating income $5,200,000
Average operating assets $35,200,000
Required:
1. Compute the margin for Alyeska Services Company.
2. Compute the turnover for Alyeska Services Company.
3. Compute the return on investment (ROI) for Alyeska Services Company.
Answer and Explanation:
The computation is shown below:
a. The margin is
= Net operating income ÷ Sales
= $5,200,000 ÷ $18,600,000
= 27.96%
b. The turnover is
= Sales ÷ average operating assets
= $18,600,000 ÷ $35,200,000
= 0.53 times
c. The return on investment is
= Net operating income ÷ average operating assets
= $5,200,000 ÷ $35,200,000
= 14.77%
Hence, the above formulas to be applied
Condensed financial data of Swifty Company for 2020 and 2019 are presented below. SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,770 $1,170 Receivables 1,780 1,300 Inventory 1,570 1,880 Plant assets 1,870 1,710 Accumulated depreciation (1,210 ) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin 2,180 Selling and administrative expenses 910 Income from operations 1,270 Other revenues and gains Gain on sale of investments 80 Income before tax 1,350 Income tax expense 550 Net income 800 Cash dividends 260 Income retained in business $540 Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method.
Answer:
Swifty Company
Explanation:
a) Data and Calculations:
SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019
Cash $1,770 $1,170
Receivables 1,780 1,300
Inventory 1,570 1,880
Plant assets 1,870 1,710
Accumulated depreciation (1,210 ) (1,190 )
Long-term investments
(held-to-maturity) 1,290 1,430
Total assets $7,070 $6,300
Accounts payable $1,200 $900
Accrued liabilities 200 250
Bonds payable 1,430 1,580
Common stock 1,860 1,730
Retained earnings 2,380 1,840
Total liabilities and equity $7,070 $6,300
SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $6,820
Cost of goods sold 4,640
Gross margin 2,180
Selling and administrative expenses 910
Income from operations 1,270
Other revenues and gains
Gain on sale of investments 80
Income before tax 1,350
Income tax expense 550
Net income 800
Cash dividends 260
Income retained in business $540
Additional Information:
a) Issue of Common stock for plant assets = $80
Adjustments for cash transactions:
Receipts:
Customers = $1,300 + $6,820 - $1,780 = $6,340
Sale of investment = $1,430 - $1,290 = $140
Common stock = $1,860 - $1,730 - $80 = $50
Payments:
Suppliers = $900 + $4,330 - $1,200 = $4,030
Expenses = $250 + $910 - $200 = $960
Bonds = $1,580 - $1,430 = $150
Plant = $1,870 - $80 - $1,710 = $80
Purchases = $1,570 + 4,640 - $1,880 = $4,330
Statement of Cash Flows for the year ended December 31, 2020:
Cash flows from operating activities:
Receipt from customers $6,340
Payment to suppliers (4,030)
Payment for services (960)
Income tax expense (550)
Net cash from operating activities 800
Cash flows from investing activities:
Receipt from sale of investments $140
Purchase of plant assets (80)
Net cash from investing activities 60
Cash flows from financing activities:
Issue of Common stock $50
Payment to bondholders (150)
Payment to stockholders (260)
Net cash from financing activities (360)
Net cash flows $500
The financial statements of Friendly Fashions include the following selected data (in millions): ($ in millions except share data) 2021 2020 Sales $ 8,143 $ 9,234 Net income $ 159 $ 628 Stockholders' equity $ 2,000 $ 2,240 Average Shares outstanding (in millions) 720 - Dividends per share $ 0.30 - Stock price $ 9.90 - Required: Calculate the following ratios for Friendly Fashions in 2021.
Answer:
A. Return on equity 7.5%
B. Dividend yield 3.03%
C. Earnings per share $0.22
D. Price-earnings ratio 45
Explanation:
A. Calculation to determine the Return on equity
First step is to calculate the Average stockholders equity using this formula
Average stockholders equity = ( Beginning stockholders equity + Ending stockholders equity)/2
Let plug in the formula
Average stockholders equity= (2,240+2000)/2
Average stockholders equity= $2,120 millions
Now let calculate the Return on equity using this formula
Return on equity=Net Income / Average stockholders equity
Let plug in the formula
Return on equity=159 / 2,120
Return on equity= 7.5%
B. Calculation to determine the Dividend yield
Using this formula
Dividend yield=Dividend per share / Stock price
Let plug in the formula
Dividend yield=0.30/ 9.90
Dividend yield= 3.03%
C. Calculation to determine the Earnings per share
Using this formula
Earnings per share=Net Income / Average shares outstanding
Let plug in the formula
Earnings per share=159/ 720
Earnings per share= $0.22
D. Calculation to determine Price-earnings ratio
Using this is formula
Price-earnings ratio=Stock price / Earnings per share
Let plug in the formula
Price-earnings ratio=9.90 / 0.22
Price-earnings ratio= 45