Answer:
$115,035
Explanation:
Calculation for what the The net present value of the project is closest to:
First step is to calculate the Present value of annual cash flows
Using this formula
Present value of annual cash flows = Annual Cash Flow * PVA of * (11%, 4 years)
Let plug in the formula
Present value of annual cash flows = $ 137,000 * 3.1024456895909
Present value of annual cash flows =$425,035
Now let calculate the net present value of the project
Net present value of the project =$425,035-$ 310,000
Net present value of the project=$115,035
Therefore the The net present value of the project is closest to: $115,035
When originally purchased, a truck costing BD 23.000 had an estimated useful life of 8 years and an estimated salvage value of BD 3,000. After 4 years of
straight-line depreciation, the ascet's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage valoe. The
depreciation expense in year 3 cquals:
ABD 5,000
O & BD 5.750.
O CBD 2.875.
ODBD 2,500.
Answer:
d. BD 2,500
Explanation:
Accumulated Depreciation through the end of year 4 = [ Asset's cost - Salvage Value) / Estimated Useful Life] * Years Elapsed
= [(23,000 - 3,000)/8] * 4
= BD 10,000
Depreciation in Year 3 = [Asset's cost - Salvage Value - Accumulated Depreciation] / Remaining Estimated Useful Life
Depreciation in Year 3 = [23,000 - 3,000 - 10,000] / 4
Depreciation in Year 3 = 10,000 / 4
Depreciation in Year 3 = BD 2,500
Garcia Industries has sales of $176,500 and accounts receivable of $18,500. Assume all sales to be on credit. The industry average DSO is 27 days, based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 3.0% on any cash freed-up by this change, assuming other things are held constant, by how much would the net income be affected?
Answer:
$163.32
Explanation:
Days Sales Outstanding = 365 * Accounts receivable / Sales
If the Days Sales Outstanding falls to the industry average:
27 = 365 * Accounts receivable / $176,500
27 * $176,500 = 365 * Accounts receivable
Accounts receivable = 27 * $176,500 / 365
Accounts receivable = $13,056.16
Increase in net income = Decrease in accounts receivable * 3%
Increase in net income = ($18,500 - $13,056.16) * 3%
Increase in net income = $5,443.84 * 3%
Increase in net income = $163.3152
Increase in net income = $163.32
The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020
Answer:
$150 Decrease
Explanation:
Income Statement
Present Proposed
Sales $5,000 $5,350 [(5000+30%)-10%]
Variable 10% $2,000 $2,000 (2000*130%)
Contribution Margin $3,000 $3,250
Fixed cost - $400
Net Operating Income $3,000 $2,850
Effect on Net Operating Income = $2,850 - $3,000 = -$150
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 112,000 $ 56,000 $ 168,000 Variable expenses 34,600 7,400 42,000 Contribution margin $ 77,400 $ 48,600 126,000 Fixed expenses 86,850 Net operating income $ 39,150 Required: 1. What is the overall contribution margin (CM) ratio for the company
What is the difference between profit and revenue?
A. Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
B. Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
C. Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
D. Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good
The correct answer on edge is A
Let's say, to produce one pencil you used $10. This is the cost of the product. You sell this pencil at a price of $15. $15 is your revenue, while $5 would be your profit, because 15-10 = 5.
The answer is correct.
Type the correct answer in the box. Spell all words correctly.
Complete the sentence using the correct term.
Heavy industrialization is polluting a natural lake in a certain area. The lake is a habitat for various natural flora and fauna. The local government is looking for ways to improve the condition of the lake and make it a tourist attraction. They should seek the help of a(n)
Answer:
(i know this is late) im taking the test on plato and I think it's a hydrologist
Explanation:
RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 80 phones available at Charles de Gaulle Airport in Paris. There are, on average, 25 customers per day requesting a phone. These requests arrive uniformly throughout the 24 hours the store is open. The corresponding coefficient of variation is 1.
Customers keep their phones on average 72 hours. The standard deviation of this time is 100 hours. Given that RentAPhone currently does not have a competitor in France providing equally good service, customers are willing to wait for the telephones. Yet, during the waiting period, customers are provided a free calling card. Based on prior experience, RentAPhone found that the company incurred a cost of $1 per hour per waiting customer, independent of day or night.
a. What is the average number of telephones the company has in its store?
b. How long does a customer, on average, have to wait for the phone?
c. What are the total monthly (30 days) expenses for telephone cards?
d. Assume RentAPhone could buy additional phones at $1,000 per unit. Is it worth it to buy one additional phone? Why?
e. How would waiting time change if the company decides to limit all rentals to exactly 72 hours? Assume that if such a restriction is imposed, the number of customers requesting a phone would be reduced to 20 customers per day.
Answer:
Answer:- m = 80
a = 24 hours / 25 customers = 0.96 hours
p = 72 hours
u = p/(m x a) = 72 /(80×0.96)=0.9375
On average 93.75% of the phones are in use. 0.9375 x 80 = 75 phones are in use. Thus, 5 phones are available on average.
From above it is clear that 93.75%% of total phones are in use therefore total number of cell phones in use = 0.9375*80=75
So only 5 phones are available.
Answer:- CVa =1, CVp = 100/72 = 1.3889
Tq =( 72/80*[(0.9375 √2*80+1)-1]/(1-0.9375) * (12+1.88892)/2) = 9.89 hour
Thus average waiting time = 9.89 hours
Explanation:
Answer:- m = 80
a = 24 hours / 25 customers = 0.96 hours
p = 72 hours
u = p/(m x a) = 72 /(80×0.96)=0.9375
On average 93.75% of the phones are in use. 0.9375 x 80 = 75 phones are in use. Thus, 5 phones are available on average.
From above it is clear that 93.75%% of total phones are in use therefore total number of cell phones in use = 0.9375*80=75
So only 5 phones are available.
Answer:- CVa =1, CVp = 100/72 = 1.3889
Tq =( 72/80*[(0.9375 √2*80+1)-1]/(1-0.9375) * (12+1.88892)/2) = 9.89 hour
Thus average waiting time = 9.89 hours
You have a job at a real-estate agency in the small country of Dystopia, where you are paid 72,000 marks (the currency of Dystopia) a year. You are now faced with the decision of whether to work a second job at the local university teaching a real-estate investing class, where the pay is 45,000 marks a year. Social insurance tax and income tax rates are listed below.
Social insurance taxes: 7.65% on your first 110,100 marks of total income
Income taxes:
Taxable income (in marks) Tax rate
0–8,700 10%
8,700–35,350 15%
35,350–85,650 25%
85,650–178,650 28%
a.) Using the information above, what would be the total amount you pay in social insurance taxes on your second job? Give your answer to two decimals.
b.) What is your income tax bill for the second job? Give your answer to two decimals.
c.) What is your total tax bill for the new job? Give your answer to two decimals.
Answer:
2,914.65
2nd question : 12,190.50
Explanation:
income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs. The tax itself is 7.65% × 38,100 = 2,914.65
2nd explaination: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs
28% × (45,000 - 13,650) = 28% × 31,350 = 8,778
Total income tax = 3,412.50 + 8,778 = 12,190.50 .
"Income to be taxed is equal to = 2,914.65 and The Total income tax is = 12,190.50. Find more information check below".
Calculation of Income TaxPart-1: income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs.
Therefore, The tax itself is 7.65% × 38,100 is = 2,914.65
Part-2: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs
Then, 28% × (45,000 - 13,650) = 28% × 31,350 = 8,778
Therefore, The Total income tax is = 3,412.50 + 8,778 = 12,190.50.
Find more information about Income Tax here:
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A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and $16 for B.
a) Determine each alternative’s break-even point in units.
b) At what volume of output would the two alternatives yield the same profit?
c) If expected annual demand is 12,000 units, which alternative would yield the higher profit?
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative A:
Fixed costs= $40,000
Variable cost per unti= $10
Revenue per unit= $15
Alternative B:
Fixed costs= $30,000
Variable cost per unti= $12
Revenue per unit= $16
First, we need to calculate the break-even point in units using the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Alternative A= 40,000 / (15 - 10)
Alternative A= 8,000
Alternative B= 30,000 / (16 - 12)
Alternative B= 7,500
To calculate the indifference point in units, we need to determine the net income equations:
Alternativa A= 5*x - 40,000
Alternative B= 4*x - 30,000
x= number of units
We equal both formulas and isolate x:
5x - 40,000 = 4x - 30,000
x = 10,000
The indifference point is 10,000 units.
Finally, the higher income for 12,000 units:
Alternativa A= 5*12,000 - 40,000= $20,000
Alternative B= 4*12,000 - 30,000= $18,000
For 12,000 units the best option is alternative A.
i develop my abilities through
A company's income statement showed the following: net income, $115,000; depreciation expense, $30,500; and gain on sale of plant assets, $4,500. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $9,500; merchandise inventory increased $18,500; prepaid expenses increased $6,300; accounts payable increased $3,500. Calculate the net cash provided or used by operating activities.
Answer:
$129,200
Explanation:
Cash flow from Operating activities
net income, $115,000
adjust for non cash items :
depreciation expense, $30,500
gain on sale of plant assets, ($4,500)
adjust for changes in working capital :
decrease in accounts receivable $9,500
increase in merchandise inventory ($18,500)
increase in prepaid expenses ($6,300)
increase in accounts payable $3,500
Cash flow from Operating Activities $129,200
1.Production runs can be scheduled in
A. only one shift
B. always two shifts
C. one or two shifts
D. up to three shifts
2.Hiring the Needed Complement will always eliminate
A. Overtime
B. worker layoffs
C. a Second Shift
D. strikes
3.Management should strive to
A. increase Turnover
B. decrease Turnover
4.Increasing Capacity tends to
A. reduce the Needed Complement
B. reduce the number of workers on Second Shift
C. reduce Overtime
5.Increasing Training Hours tends to
A. increase the Needed Complement
B. decrease the Needed Complement
C. neither increase nor decrease the Needed Complement
D. both increase and decrease the Needed Complement
6.Recruiting Costs are incurred when
A. Automation levels increase
B. Production runs increase and teams match hiring to Needed Complement
C. workers are assigned to a Second Shift
7.Assuming the Productivity Index is greater than 100%, adding Overtime will
A. increase the Productivity Index
B. decrease the Productivity Index
8.Worker training is entered by the
A. Hour
B. Dollar
9.Teams can eliminate all Recruiting Costs if they wish
A. True
B. False
10.Generally, Separation Costs will be incurred when
A. Production levels increase
B. Automation Levels increase
C. Production Levels decrease
D. Production levels decrease and / or Automation levels increase
Answer:
Explanation:
10)production levels decrease and/or automation levels increase
Retained earnings, December 31, 2019 $315,450
Decrease in total liabilities during 2019 68,700
Gain on the sale of buildings during 2019 24,150
Dividends declared and paid in 2019 6,750
Proceeds from sale of common stock in 2019 74,100
Net income for the year ended December 31, 2019 33,900
Required:
From the above data, calculate the retained earnings balance as of December 31, 2018. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Answer:
See below
Explanation:
Ending retained earnings = Beginning retained earnings + net profit - dividend
$315,450 = Beginning retained earnings + $33,900 - $6,750
Beginning retained earnings = $288,300
Therefore, retained earning balance is $288,300
Smith and Johnson are partners. Smith's capital balance in the partnership is $56,000, and Johnson's capital balance $42,000. Smith and Johnson have agreed to share equally in income or loss. Smith and Johnson agree to accept Benson for a 25% interest. Benson will invest $40,000 in the partnership. The bonus that is granted to Smith and Johnson equals:
Answer:The bonus that is granted to Smith and Johnson equals:$5,500
that is $2750 each for Smith and Johnson since they share equally.
Explanation:
Given that
Smith's capital balance = $56,000
Johnson's capital balance = $42,000
Since the partners agree to accept Benson with 25% interest
Benson invests $40,000
Now, After allowing Benson,
Total Partnership Equity =Smith's Capital + Johnson's Capital + Benson's Investment
=$56,000 + $42,000 +$40,000 = $138,000
The share of Benson in equity is given as,
$138,000 x 25% = $34,500
The Bonus that is present for Smith and Johnson is
Benson's investment - Benson share of equity
= $40,000 - $34,500
=$5,500
Thus,
When equally shared becomes $2750 each for both Smith and Johnson
A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting 1 year from now, the equation that represents how much the company is required to deposit each year at 10% per year interest to have the $3,000,000 immediately after the last
deposit is:___________
(a) 3,000,000(A∕F,10%,10)
(b) 3,000,000(A∕F,10%,11)
(c) 3,000,000 + 3,000,000(A∕F,10%,10)
(d) 3,000,000(A∕P,10%,10)
Answer:
The correct option is (a) 3,000,000(A∕F,10%,10).
Explanation:
Ordinarily, the equation to use to calculate the amount the company is required to deposit each year is given as follows:
A = F * (r / ((1 + r)^n - 1)) ....................... (1)
Where;
A = Annual deposit = ?
F = Future value or accumulated sum of amount = $3,000,000
r = Annual interest rate = 10%, or 0.01
n = Number of years.
The standard notation of equation (1) above is given as follows:
A = F(A / F, r, n) ................................ (2)
Substituting the relevant description from the above into equation (2), we have:
A = 3,000,000(A∕F,10%,10)
Therefore, the correct option is (a) 3,000,000(A∕F,10%,10).
Analysis of cash flows, analysis of competing hypotheses, consideration of analytical and accounting anomalies, big data and data analytics, consideration of the fraud triangle, use of graphical tools for analysis and communication, internal controls, the control environment and opportunity, interviewing for information and admissions, analysis of nonaccounting and nonfinancial numbers and metrics, financial statement and ratio analysis, consideration of red flags, and analysis of related parties are all examples of:
Answer:
Forensic accounting and fraud examination tools/techniques.
Explanation:
Forensic accounting is one that make use of auditing as well as accounting and investigative skills in conducting examination about the Businesses and individuals finances. It gives accounting analysis that could be used in legal proceedings. It is one of the tools/ techniques for fraud examination
Suppose one-seventh of the employees of a certain company work in the Southeastern region. If the company employs 256 workers in that region, what is the total number of employees working for the company?
Answer:
1792
Explanation:
256 is 1 out of 7.
so 7 times 256 is 7 out of 7
256 x 7 = 1792
if you calculating the simple interest and you are given the time in months. how can you find the time in years
Answer:
Divide the months by 12
Explanation:
The monetary unit assumption: Multiple Choice Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. Means that we can express transactions and events in monetary, or money, units. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Means that a business is accounted for separately from other business entities, including its owner. Prescribes that a company record the expenses it incurred to generate the revenue reported.
Answer:
Means that we can express transactions and events in monetary, or money, units.
Explanation:
monetary unit assumption: Means that we can express transactions and events in monetary, or money, units.
Going concern assumption - accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
Time period assumption - Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
Business entity assumption - Means that a business is accounted for separately from other business entities, including its owner
Matching principle - Prescribes that a company record the expenses it incurred to generate the revenue reported.
Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $111,200, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,720. Shore paid freight of $1,800. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. Inventory fill in the blank 002d1202e07bfb8_2 fill in the blank 002d1202e07bfb8_3 Accounts Payable fill in the blank 002d1202e07bfb8_5 fill in the blank 002d1202e07bfb8_6 Accounts Payable fill in the blank 002d1202e07bfb8_8 fill in the blank 002d1202e07bfb8_9 fill in the blank 002d1202e07bfb8_11 fill in the blank 002d1202e07bfb8_12 fill in the blank 002d1202e07bfb8_14 fill in the blank 002d1202e07bfb8_15 fill in the blank 002d1202e07bfb8_17 fill in the blank 002d1202e07bfb8_18 fill in the blank 002d1202e07bfb8_20 fill in the blank 002d1202e07bfb8_21 fill in the blank 002d1202e07bfb8_23 fill in the blank 002d1202e07bfb8_24 Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank. fill in the blank 2aa3cd04cfa0046_2 fill in the blank 2aa3cd04cfa0046_3 fill in the blank 2aa3cd04cfa0046_5 fill in the blank 2aa3cd04cfa0046_6 fill in the blank 2aa3cd04cfa0046_8 fill in the blank 2aa3cd04cfa0046_9 fill in the blank 2aa3cd04cfa0046_11 fill in the blank 2aa3cd04cfa0046_12
Answer:
SHORE CO BOOKS:
Dec 31
Dr Accounts receivables Blue star Co. $109,760
Cr Sales $109,760
Dec 31
Dr Cost of goods sold $66,720
Cr Inventory $66,720
Dec 31
Dr Cash $111,560
Cr Account receivable Blue star Co. $111,560
Dec 31
Dr Account receivable Blue star Co $1,800
Cr Cash $1,800
BLUE STAR CO BOOKS
Dr Inventory $111,560
Cr Accounts Payable $111,560
Dr Accounts Payable $111,560
Cr Cash $111,560
Explanation:
Preparation of the journal entries for Shore Co.'s entry for the sale, purchase, and payment of amount due
SHORE CO BOOKS:
Dec 31
Dr Accounts receivables Blue star Co. $109,760
Cr Sales $109,760
[$112,000*(100%-2%)]
Dec 31
Dr Cost of goods sold $66,720
Cr Inventory $66,720
Dec 31
Dr Cash $111,560
Cr Account receivable Blue star Co. $111,560
($109,760+$1,800)
Dec 31
Dr Account receivable Blue star Co $1,800
Cr Cash $1,800
BLUE STAR CO BOOKS
Dr Inventory $111,560
Cr Accounts Payable $111,560
($109,760+$1,800)
Dr Accounts Payable $111,560
Cr Cash $111,560
($109,760+$1,800)
how do you propagate
Answer:
Explanation:
There are three ways to propagate a plant: dividing (separating an already growing plant into two), rooting a leaf (typically done with succulents), or rooting a cutting (a small stem with leaves).
Suppose that there are two types of employees: Narutos and Sasukes. Employers cannot distinguish between the two types during a job. interview, but they value Narutos more because everyone is more productive around them. Assume that the value of a Sasuke-type employee is $10 and the value of a Naruto type is $20. Also assume that the cost of education for a Sasuke is 2.5y and the cost of education for a Naruto is 2y, where y is years of education. If Narutos make up 25% ofthe population:
a. What is the pooling equilibrium wage?
b. What values of y will lead to a separating equilibrium?
Answer:
Explanation:
From the given information:
The average wage is expected to be paid to both workers since it is difficult tot distinguish between the two types.
w_s = 10
w_N = 20
ω_s = 2.5y
ω_N = 2y
proportion of N types (λ) = 0.25
proportion of S types (1-λ) = 0.75
Thus, the pooling wage = λ_Nw_N + λ_Sw_S
= (0.25 × 20) + (0.75 × 10)
= 5.0 + 7.5
= $12.5
(b)
The separating equilibrium can be computed as follows:
N-type ( High type) : w_N- w_S > ω_N
= 20 - 10 > 2y
2y < 10
y < 5
For an S-type (low type); the cost of education needs to be greater than the increment in wages if the education is acquired.
w_N- w_S > ω_S
If education is acquired, S-type will get wages as of N-types
Thus;
20-10 <2.5y
10 < 2.5y
y > 4
Hence, the value of y= (4,5)
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 54,000 labor-hours. The estimated variable manufacturing overhead was $7.90 per labor-hour and the estimated total fixed manufacturing overhead was $961,200. The actual labor-hours for the year turned out to be 56,300 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.)
Answer:
$17.80 per labor-hour
Explanation:
Predetermined overhead rate = Budgeted Fixed Overheads ÷ Budgeted Activity
= $961,200 ÷ 54,000 labor-hours
= $17.80 per labor-hour
Predetermined overhead rate for the recently completed year is $17.80 per labor-hour.
Discuss how one might use business analytics in their personal life. Select all that apply. A. A store might keep track of inventory and use it to decide what items are in demand. B. A reporter could analyze social media posts to see what types of people are more likely to share unverified news stories. C. An automobile owner can predict when the next maintenance will be due by recording things such as the miles driven and gas mileage. This would help them budget accordingly. D. A golf player might use statistics to help to diagnose problems and improve their game.
Answer:
A. A store might keep track of inventory and use it to decide what items are in demand.
C. An automobile owner can predict when the next maintenance will be due by recording things such as the miles driven and gas mileage.
Explanation:
Business analytics is an important tool which enables the user to record and keep track of business activities. The analysis of the recorded transactions in business will enable the user to predict about the future activities. An automobile owner can predict the maintenance due by keeping track of mileage. Store keeper may keep track of inventory usage.
Daria plans to retire in 20 years and wants to know how much she will need to have in her account when she retires. She wants to be able to withdraw $5,000 per month for 25 years of retirement, and she expects her account to earn a nominal rate of 9 percent per year. Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)
We know that she has 20 years left until she retire
We need to find the amount she have to save and add to her saving per year for the the next 20 years.
Given she wants to be able to withdraw $5000 per month for 25 years
25 years = 300 months
$5,000 x 300 months = $1,500,000
she will needs one million and five hundred thousand dollars when she retire
Let's say she just started saving
Daria needs to have present value of the annuity of 25 years, PV is then calculated using the PV function as follows:
=PV(rate,nper,pmt)
=PV(9%/12,12*25,5000)
=595808.11
The present value should be 595808.11.
Calculation of the present value:Given that,
The 25 years = 300
The rate is = 9% /12
PMT = $5,000
Now the following formula should be used.
=PV(rate,nper,pmt)
=PV(9%/12,12*25,5000)
=595808.11
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"Insurance is a waste of money. If and when you suffer a financial loss because of an
accident or some other event, you can pay for it from your savings account."
Do you agree or disagree with this statement?
Explain your position.
Answer:
disagree
Explanation:
As a personal opinion I strongly disagree with this statement. This is because for the majority of the people on Earth that live day to day with their finances, an accident can completely wreck them financially. A simple car, house, or health accident can cost thousands of dollars in loss or even hundreds of thousands. Most people would not have 10% of that in a savings account. Therefore, Insurance can be extremely helpful and in most cases cover the entirety of the accident which can (in a way) give you a second chance.
The following information was provided by Dylan Manufacturing: Work in process increased by $19,000. Finished goods inventory decreased by $33,000. Direct materials used totaled $54,000. Direct labor incurred totaled $42,000. The predetermined manufacturing overhead rate was $27.00 per machine hour. Actual manufacturing overhead totaled $77,000. The estimated machine-hours were 3,000 hours and the actual machine-hours was 2,800 hours. How much is the cost of goods sold before any adjustment for overapplied or underapplied overhead
Answer:
$185,600
Explanation:
Direct materials $54,000
Direct labour $42,000
Predetermined OH $75,600 (2800*$27)
Cost of goods manufactured $171,600
Cost of goods sold = Cost of goods manufactured + WIP increase - Finished good decrease
Cost of goods sold = $171,600 + (-$19,000) + $33,000
Cost of goods sold = $185,600
You are an employee of an US firm that produces personal computers in Thailand and then exports them to the US and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict US exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers?
Answer:
In the short-run, I will encourage my firm to export the computers to Canada first, directly from Thailand. From Canada, the computers can be exported into the USA. But this is not the long-term solution. There will be need to find another country in which production will be cost-effective and from which the goods can be exported directly into the USA.
Another approach would be to engage in lobbying, within acceptable rules, the governments of Thailand and the US to end the administrative barriers.
Explanation:
There is no single economy that benefits from trade restrictions. Therefore, every effort should be made to reduce, to the barest minimum, all forms of trade barriers, which stunt economic growth and development. Give and take, in the spirit of competition, should be encouraged at all times.
On June 30, 2018, Kimberly Farms purchased custom-made harvesting equipment from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type of loan agreement. At what amount will Kimberly initially value the equipment? How much interest expense will Kimberly recognize in its income statement for this note for the year ended December 31, 2018?
Answer:
$2,058
Explanation:
Present value = Amount * (Present value of $1: n=2, i=8%)
Present value = $60,000 * 0.85734
Present value = $51,440
Interest expenses = Initial value of equipment * Interest rate * Number of years
Interest expenses = $51,440 * 8% * 6/12
Interest expenses = $2,058
On February 1, 2021, the Xilon Corporation issued 47,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $16 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2021, at a cost of $6,800,000. Xilon paid $4,400,000 in cash and the remainder was paid by the city of Monrovia.
Assuming that Xilon prepares its financial statements according to International Financial Reporting Standards, select all the correct alternatives the company has for recording the acquisition of the office building.
a. Same treatment as GAAP.
b. Deduct the amount of the grant in determining the initial cost of the office building.
c. Record the grant as a liability, deferred income, in the balance sheet and recognize it in the income statement systematically over the office building's useful life.
Answer:
a. Same treatment as GAAP.
Explanation:
the journal entry should be:
Dr Land 752,000
Dr Building 6,800,000
Cr Common stock 752,000
Cr Cash 4,400,000
Cr Donation revenue 2,400,000
the donation is not a deferred liability, nor the basis of the building be reduced by it.