Answer:
The recognition of this event will:
not affect total assets, will decrease net income, and will decrease cash flow.
Explanation:
a) Data and Analysis:
Balance Sheet Effect:
Raw materials inventory (Assets) +$48,000
Cash (Assets) -$48,000
Net effect = $0
Income Statement Effect:
Purchase of raw materials (Cost of production) +$48,000
Net income will decrease by cost of $48,000
Statement of Cash Flows (Operating Activities)
Purchase of raw materials (Cash outflow) -$48,000
At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $10,370 and that the associated rate variance was $340 unfavorable. If 5,900 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was:
Answer:
See below
Explanation:
$10,370 - $340 = $10,030
23. Maria, a new employee, noticed that her supervisor, Jasmine, approved an expense report submitted by a co-worker that resulted in the company for which they both worked paying for the co-worker's car repairs that were needed due to an accident that happened when co-worker was on a personal errand instead of company business. Jasmine's actions could encourage Maria to
Answer:
She failed to cover up the co-worker's improper claim of a personal expense on a company expense report.
Explanation:
Analyzing the above case, it is correct to say that the supervisor Jasmine failed to cover up the undue complaint of the co-worker, as the accident occurred when he was on a personal mission and unrelated to the company's business, which makes the company not has legal obligations to pay for repairs to his car and these are broken down in a company expense report like the one approved by Jasmine.
Therefore, the supervisor acted unethically and did not follow the company's legal regulations.
Define corporate culture. What are the components of a good corporate culture? Why do you think that corporate culture has such a huge impact on the success of a company? Please share your thoughts.
Answer:
Corporate culture, also known as company culture, refers to a set of beliefs and behaviors that guide how a company’s management and employees interact and handle external business transactions.
An aircraft manufacturer with a strong presence in the United States, is looking to expand its market overseas. The firm currently sells its aircraft to several airlines in the United Kingdom but now wants to establish manufacturing units there as well in order to acquire a bigger share in the European market. Hence, it plans to merge with QueenAir, a British aircraft manufacturer.
Requied:
What would weaken the company's decision to merge with QueenAir?
Riley has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in the company. His manager is retiring and hopes that Riley will take over for him. However, even though Riley is an experienced employee, there are many things that he still needs to learn. Riley has trained many new employees, but he has never held a management position. Riley needs to have a general understanding of what it takes to be a manager. There are many problems in Riley's department. There are no plans to fall back on in case the initial plan fails. Riley also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Riley feels that this is a great opportunity, and he is anxious to learn everything to be a great manager. He knows that if he performs well in this position, he will have the opportunity to move up the corporate ladder.
Refer to Centrum Springs, Inc. Riley's usual duties represent which of these areas?
a. Financial management
b. Operations management
c. Marketing management
d. Human resources management
e. Administrative management
Answer:
B. I hope i helped!
Explanation:
A firm has to choose between two technologies; both produce same output with one being labor intensive and other being capital intensive. The firm will use labor intensive technology when _________________. Select the correct answer below: wages are less than the interest rate total cost of labor is less than total cost of capital average variable cost is less than average fixed cost labor is more productive than capital
Answer:
total cost of labor is less than total cost
Explanation:
In the case when the firm would use the labor intensive technology at the time when the marginal product from labor intensive would be more than the marginal product of capital intensive this is due to the rise in the firm benefit as the firm would produce and sell more
The other thing is that the cost of labor intensive would be less than the capital intensive cost. This cost would benefit the organization with respect to the decision making
You are considering attending college for one term. Your costs for one term include: tuition: $21,000 food and apartment rent: $6,000 books and college supplies: $2,000. Also, college attendance implies that when you switch work hours to study hours your income will fall from $10,000 to $3,000 (for the full term). What is the opportunity cost of going to college for this term, assuming that your food and apartment rent are the same with college as without it
Answer:
Opportunity cost of going to college $7,000
Explanation:
Opportunity cost is the value of the next best alternative forgone in favour of a decision. In this scenario, opportunity cost would mean any income sacrificed by the college students because he wanted to take a college education.
$
Before the college he could make 10,000
Switching work hours for study, he will now make 3,000
Opportunity cost 7,000
Opportunity cost of going to college $7,000
The opportunity cost of going to college for this term, assuming that my food and apartment rent are the same with college as without it is $7,000
Opportunity cost is an economic term for expressing cost in terms of foregone alternative. It is what has to be given up in order to have an alternative.
With regards to the above, opportunity cost would mean any income sacrificed by the college students because he wanted to take a college education.
Opportunity cost
= Before the college, he could make - Switching work hours for study, he will now make
= $10,000 - $3,000
= $7,000
Hence, the opportunity cost of going to college would be $7,000
Learn more at : https://brainly.com/question/8846809
Julie is purchasing a home for $169,000.00. Her loan has been approved for a 30-year fixed-
rate loan at 5 percent annual interest. She will pay 20 percent of the purchase price as a down
payment. What is the total interest she will pay on her loan?
$135,200.87
$142,613.78
$126,168.64
$122,877.92
Answer:
Julie
The total interest she will pay on her loan is nearly:
= $126,168.64
Explanation:
a) Data and Calculations:
Cost of purchasing a home = $169,000
Downpayment (20% * $169,000) = $33,800
Amount of loan = $135,200 ($169,000 - $33,800)
Interest rate per annum = 5%
From an online financial calculator:
Loan Amount 135200
Loan Term 30 years
0 months
Interest Rate 5
Compound
Annually (APY)
Pay Back Every Year
Results:
House Price $169,000.00
Loan Amount $135,200.00
Down Payment $33,800.00
Total of 360 Mortgage Payments $261,281.82
Total Interest $126,081.82 on a monthly basis
Mortgage Payoff Date Jun. 2051
Payment Every Year $8,794.95
Total of 30 Payments $263,848.62
Total Interest $128,648.62 on a yearly basis
any waste material on the floor should be
Answer:
Cleaned...it's waste
A telecom company assesses its developers more on their client support skills than their development skills. What would best describe the telecom company's performance management process?
Answer:
Contaminated
Explanation:
Performance management is the process by which the management of an organisation communicate and work together with employees to rate the employee's overall contribution to the organisation.
It is important to take a holistic view of contributions made by employees to gain an accurate insight into their performance.
In the given scenario where developers are assessed more on their client support skills than their development skills, the performance management process is contaminated because the employee's overall contribution is not being considered.
ABC issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $18,000 in 2018. Assuming the preferred stock is noncumulative, how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018
Answer and Explanation:
The computation of the dividend paid to preferred stockholder and common stockholder is given below;
Since the preference dividend would be
= 1,000 shares × $100 × 6%
= $6,000
For 2 years, it would be $12,000
Now the remaining shares left is
= $18,000 - $12,000
= $6,000
hence, the dividend paid to preferred stockholder and common stockholder is $12,000 and $6,000 respectively
Wainwright Corporation had the following activities in 2020. Sale of land for $120,000. Purchase of inventory for $645,000. Purchase of treasury stock for $52,000. Purchase of equipment for $315,000. Issuance of common stock for $620,000. Sale of available-for-sale debt securities for $85,000. Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2020 statement of cash flows.
Answer:
net cash used by investing activities = $280,000
Explanation:
Cash flow from Investing Activities :
Proceeds from Sale of Land $120,000
Purchase of Equipment ($315,000)
Proceeds from Sale of debt securities ($85,000)
Net Cash used by Investing activities ($280,000)
therefore,
Wainwright should report as net cash used by investing activities in its 2020 statement of cash flows of $280,000
Cash Flows from Investing Activities would involve all of the following except:
A. The purchase of buildings.
B. The receipt of interest income on short-term investments.
C. The purchase of marketable securities.
D. The proceeds from the sale of equipment.
Answer:
B
Explanation:
there are three types of cash flows:
1. Investing cash flow - It involves the use of long term cash. it is the cash flow generated from the purchase and sale of fixed asset e.g. Sale of plant assets.
2. operating cash flow - it shows the net amount of cash generated from a company's normal business operation
3. financing cash flow - it shows the net amount of funding a company receives over a given period e.g. issuance of common stock
Which of the following is not an advantage of delegating authority at Red Frog Events?
a
Delegation helps develop subordinates
b
Subordinates learn how to make decisions
c
Some managers are too disorganized to delegate appropriately
d
An event manager can get more work done
Answer:
c. Some managers are too disorganized to delegate appropriately
Explanation:
Generally, the advantage of delegating authority in a firm can be numerous. Hence, considering the question, the benefit of delegating authority at Red Frog Events is no different.
Therefore, considering the available options, the statement that is NOT an advantage of delegating authority at Red Frog Events is "Some managers are too disorganized to delegate appropriately."
In contrast, some of the advantages of delegating authority are:
1. Delegation helps develop subordinates: as subordinates take more authority in some cases, they grow in decision-making and overall growth.
2. Subordinates learn how to make decisions: as subordinates are allowed to make decisions, they learn to understand how to make proper decisions
3. An event manager can get more work done: when subordinates are delegated with authority, it helps the manager focus more on other areas that need his attention, thereby getting more work done.
What are competinves prionties, and how do
they help supply chain organizations gain
Competitive advantage?
Explanation:
Competitive priorities can be understood as the central objectives that organizations seek to remain competitive and positioned in the market, through the management of quality, cost, flexibility and delivery.
An organization's supply chain is responsible for the entire operational process of a product, from the purchase of the raw material to the delivery of the product to the end customer.
Therefore, supply chain management is essential so that all interconnected production systems for a good are aligned with the best practices that guarantee the continuous improvement of the entire supply chain, and this is where competitive priorities must be considered, because staying competitive in the market requires quality assurance at each stage of the process, with the greatest flexibility and lowest costs, in addition to delivery in the right quantity, at the right time to the right customer.
An insurance company is obligated to pay a policyholder $500 in one year and $2,000 in 3 years. The insurance company has decided to employ the dedication strategy. The following assets are available: 1 year zero coupon bond with annual effective yield of 7%. 3 year zero coupon bond with annual effective yield of 8%. Determine the cost of establishing the asset portfolio.
Answer:
The total cost of establishing the portfolio is $2054.95.
Explanation:
The present value of a bond is given as
[tex]PV=FV\times\dfrac{1}{(1+r)^n}[/tex]
For 1 year zero-coupon bond is
FV is 500r is 7% or 0.07n is 1So the value is
[tex]PV=FV\times\dfrac{1}{(1+r)^n}\\PV=500\times\dfrac{1}{(1+0.07)^1}\\PV=500\times\dfrac{1}{(1.07)}\\PV=500\times0.9346\\PV=\$ 467.29[/tex]
Similarly, for 3 years zero-coupon bond is
FV is 2000r is 8% or 0.07n is 3So the value is
[tex]PV=FV\times\dfrac{1}{(1+r)^n}\\PV=2000\times\dfrac{1}{(1+0.08)^3}\\PV=2000\times\dfrac{1}{(1.08)^3}\\PV=2000\times0.7938\\PV=\$ 1587.66[/tex]
So the total cost is
Total Cost=Cost of 1-year zero-coupon bond+Cost of 3-years zero-coupon bond
Total Cost=$ 467.29+$ 1587.66
Total Cost= $ 2054.95
So the total cost of establishing the portfolio is $2054.95.
A project has a beta of 0.83, the risk-free rate is 2.9%, and the market risk premium is 6.5%. The project's expected rate of return is ____%.
Answer:
The project's expected rate of return is 8.3%
Explanation:
The following question would be solved using the CAPM (Capital Asset Pricing Module) formulae, which is calculated as follows:
Ra = Rrf + [Ba x (Rm - Rrf)}
Where:
Ra = Project's Expected rate of return
Rrf = Risk-free rate
Ba = Beta
Rm = Expected return of the market
Note: We have been provided with risk premium which is calculated by deducting Risk-free rate from Expected return of the market (Rm - Rrf = Risk premium).
Ra = 2.9% + [0.83 x 6.5%]
Ra = 2.9% + 5.4% (rounded off from 5.395%)
Ra = 8.3%
Pharmicon, Inc., a pharmaceutical firm, discovered a complete cure for the common cold. The medicine could be put into a pill that would be taken once a day for a week. Knowing these results, directors of Pharmicon decided to delay the press release and bought thousands of shares of Pharmicon stock. After the purchases, Pharmicon issued a press release about the pill. The price of the stock skyrocketed. When the SEC found out about the purchases and the delay in the press release, it sued Pharmicon for violating Rule 10b-5. The court in this case would most likely rule in favor of Group of answer choices
Question Completion:
a. the SEC, because the information about the cure was material and was not disclosed to the public prior to the directors' purchase of the stock.
b.Pharmicon, because the information was not material.
c.the SEC, because owning company stock is a conflict of interest for the directors.
d.Pharmicon, because they issued a press release to the public
Answer:
Pharmicon, Inc.
The court in this case would most likely rule in favor of:
a. the SEC, because the information about the cure was material and was not disclosed to the public prior to the directors' purchase of the stock.
Explanation:
SEC's Rule 10b-5 forbids insider trading and, therefore, enables the SEC to sue individuals who use the privileged information they acquire about an entity's security to buy or sell the entity's securities. The information may be acquired illegally or legally, provided it is not publicly available. Insider trading exists when a professional breaches a fiduciary duty or betrays the trust and confidence reposed in him by trading on a security based on material, nonpublic information about the security.
For 2020, X Company's production budget was 3,500 units of finished product, and the budget for direct material costs was $24,080. Actual production in 2020 was 2,500 units of finished product, and actual direct material costs were $17,230. What was the static budget for direct material costs in 2020
Answer: $24,080
Explanation:
The Static budget is based on a particular level of production and once it is prepared, it does not change even if the assumptions used in the calculation of the budget changes.
In this case, the budgeted direct material cost is $24,080 for a production level of 3,500 units of finished goods. This material cost is therefore based on a certain production level which makes it the static budgeted amount for materials.
Consider the market for seedless green grapes. The current price of a pound of seedless green grapes is $3. Two consumers, Leyla and Margaret, are willing to pay $4 and $5, respectively, for a pound of seedless green grapes. Two farmers are willing to sell seedless green grapes for as little as $2 and $3 per pound. How much is the consumer surplus in this market assuming each consumer purchases one pound of grapes and each farmer sells one pound of grapes
Answer:
$3
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Consumer surplus of Leyla = $4 - $3 = $1
Consumer surplus of Margaret = $5 - $3 = $2
total surplus = $1 + $2 = $3
Which of the following are normally recorded on a registration card?
You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $150,000?
Answer:
44 months
Explanation:
RATE = 7%/12
PMT = -3000
PV = $0
FV = 150000
We solve for Nper using MsExcel.
No of months = NPER(Rate, -Pmt, Pv, Fv)
No of months = NPER(7%/12, -3000, 0, 150000)
No of months = 44.00213535
No of months = 44
So, it take 44 months for the account to grow to $150,000.
A financial manager's goal of maximizing current or short-term earnings may not be appropriate because:___________.
A. it fails to consider the timing of the benefits.
B. increased earnings may be accompanied by unacceptably higher levels of risk.
C. earnings are subjective; they can be defined in various ways such as accounting or economic earnings.
D. all of the other answers are correct
Answer:
The correct answer is the option D: All of the other answers are correct.
Explanation:
To begin with, the fact that it is not reasonable to think in short periods of time when it comes to business management is because basically the short term earnings can be very subjective principally depending on how the company define it, being the accounting and the economic ways of doing it very different and impacting differently as well on the company's way of thinking. Moreover, a company's primary focus must always be on the long run due to the timing that the benefits really impact in the company's accounts and therefore in the pocket of the shareholders or owners.
1. Define business. Explain the functions of business.
[tex] \large{ \tt{☄ \: ANSWER}} : [/tex]
↦ Business is an economic activity that is directed towards acquiring and earning profit and wealth through customer's satisfaction. It plays an important role for the economic development of the country and uplift living standard of the people. Some of the functions of business are described below :
Creation of utilities : For the fulfillment of needs of customers , business creates various types of utilities. A business has many components and each component is involved in the creation of the certain utility. For instance : manufacturers create from utility , transportation system created place utility , warehousing time utility and insurance companies risk utility.Generation of employment : Business is a source of employment. Various types of employees are required to a business. In industries , both skilled and unskilled manpower are required for production , distribution and auxiliaries functions. Hence , the development of industry and commerce helps to solve the unemployment problem of a nation.Earning Foreign Currency : Business is the main source of earning Foreign Currency. Foreign currency can be earned by exporting surplus products and services to foreign countries. The development of export trade brings favourable balance in payment.Provides investment opportunities : Business provides investment opportunities to the investors in production and distribution activities. Depending on the nature of investment ; investors receive dividend , interest or other financial benefits. The persons of organizations having sufficient capital can invest their money in production and commercial activities according to their interest , capability and knowledge.[tex] \large{ \tt{✺ \: STUDY \: TIP}} : [/tex]
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Copy Center pays an average wage of $13 per hour to employees for printing and copying jobs, and allocates $19 of overhead for each employee hour worked. Direct materials are assigned to each job according to actual cost. If Job M-47 used $365 of direct materials and took 15 direct labor hours of labor to complete, what is the total cost that should be assigned to the job
Answer:
See below
Explanation:
Given that:
Direct materials = $365
Direct labor = ($13 × 15) = $195
Factory overhead = ($19 × 15) = $285
Total cost is computed as
= Direct material + Direct labor + Factory overhead
= $365 + ($13 × 15) + ($19 × 15)
= $365 + $195 + $285
= $845
Therefore the total cost that should be assigned to the job is $845
Stunning Motors, Ltd. makes economy autos for the world market. Stunning has decided to branch out and produce economical, fuel efficient motor bikes. They are exploring a joint venture With Bay Bikes, a Chinese motorbike company active in the Chinese market. In the meantime, before any formal agreement on a joint venture is reached, Bay Bikes is working with Stunning's R&D engineers to create a feasibility study on the Chinese market potential. This is an example of ___________
a. product differentiation
b. non-equity-based strategic alliance
c. sole proprietorship
d. entrepreneurial orientation
Answer:
b. non-equity-based strategic alliance
Explanation:
In the case of the non-equity strategic alliance, the organizations develop the agreement for sharing the resources without developing the distinct entity or equity i.e. shared.
Non-equity alliances are considered to be loose and not formal as compared to the partnership involving equity.
So as per the given situation, the option b is correct
How can you relate the careers in Finance as Bachelor of Science in Information Systems (BSIS) students?
Answer: can prepare you for an exciting career in a rapidly -expanding field. As an information science major, you'll study the creation and management of information content, the characteristics and needs of people who create, consume, and utilize information, and the technologies that support the creation, management , preservation , and dissemination of information .
Explanation:(none)
Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Flay decided to change to the LIFO method. As a result of the change, net income in 2021 was $87 million. If the company had used LIFO in 2020, its cost of goods sold would have been higher by $5 million that year. Flaya€™s records of inventory purchases and sales are not available for 2019 and several previous years. Last year, Flay reported the following net income amounts in its comparative income statements:
($ in millions) 2018 2019 2020
Net income $87 $89 $91
Required:
a. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes.)
b. Briefly describe other steps Flay will take to report the change.
c. What amounts will Flay report for net income in its 2013–2019 comparative income statements?
Answer:
Flay Foods
a. Journal Entry:
January 2021
Debit Retained Earnings $5 million
Credit Income Summary (Cost of goods sold) $5 million
To record the increased cost of goods sold.
b. Flay will take the following steps to report the change in accounting principle:
1. Retrospectively restate the Cost of goods sold, increasing it by $5 million.
2. Reflect the reduction in Retained Earnings at the beginning of 2021.
3. Disclose the nature of this change and the reason for the change in the footnote to the financial statements of 2020.
4. Disclose its inability to reflect the change in accounting for other comparative financial statements other than 2020's.
c. The amounts that Flay will report for net income in its 2018 to 2019 comparative income statements are:
($ in millions) 2018 2019
Net income $87 $89
Explanation:
a) Data and Calculations:
2021 Net Income, based on LIFO = $87 million
2020 Cost of goods sold, based on LIFO = $5 million higher
This would have reduced the Net income by $5 million
2020 Net income amounts in its comparative income statements:
($ in millions) 2018 2019 2020
Net income $87 $89 $91
Restatement:
Cost of goods sold (5)
Restated net income $87 $89 $86
b) A change in an Accounting Principle is applied retrospectively in the financial statements. This means that Flay must adjust all comparative amounts affected by the change in accounting policy for each prior period's financial statements presented if it is possible. It looks that the possibility for restatement is only limited to 2020 since Flay's records of inventory purchases and sales for previous years were not made available.
Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October are available: Quantity of direct labor used 5,000 hrs. Actual rate for direct labor $22.75 per hr. Bicycles completed in October 800 bicycles Standard direct labor per bicycle 6.0 hrs. Standard rate for direct labor $24.00 per hr. a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance $fill in the blank 1 113,750 Direct Labor Time Variance $fill in the blank 3 4,800 Total Direct Labor Cost Variance $fill in the blank 5 b. How much direct labor should be debited to Work in Process
Answer:
A. Direct Labor Rate variance -$6250 Favorable
Direct labor time variance $4800 Unfavorable
Total Direct Labor Cost Variance $-1450 Favorable
B. Dr Work In Process $116,650
Explanation:
A.
Calculation to determine Direct Labor Rate variance using this formula
Direct Labor Rate variance= (actual hours* actual rate)- (actual hours * standard rate)
Let plug in the formula
Direct Labor Rate variance=( 5000 *22.75) - (5000*24)
Direct Labor Rate variance= $113750- 120,000= Direct Labor Rate variance-6250 Favorable
Calculation to determine Direct labor time variance using this formula
Direct labor time variance= (Actual hours* Standard rate)- (Standard hours * Standard rate)
Let plug in the formula
Direct labor time variance= (5000 * 24) -(4800 * 24)
Direct labor time variance= 120,000-115200
Direct labor time variance= 4800 Unfavorable
Calculation to determine Total Direct Labor Cost Variance using this formula
Total Direct Labor Cost Variance= Direct Labor Rate variance + Direct labor time variance
Let plug in the formula
Total Direct Labor Cost Variance= -6250 Favorable + 4800 Unfavorable
Total Direct Labor Cost Variance= -1450 Favorable
b. Preparation of the journal entry to determine How much direct labor should be debited to Work in Process
Dr Work In Process $116,650
Cr Direct Labor Cost Variance $ 1,450
Cr Payroll $ 115,200
Therefore the amount of Direct Labor to be Debited to Work In Process is $116,650
On-The-Go Merchandiser sells luxury carry-on travel bags for $1,200 each. The firm's fixed operating costs are $600,000 when 5,000 or fewer bags are produced, and its variable cost ratio is 80 percent (i.e., variable cost per unit is 80 percent of the selling price). What is On-The-Go's operating breakeven point
Answer:
On-The-Go Merchandiser
Operating break-even point:
a) in sales dollars = $3,000,000
b) in sales unit = 2,500 units
Explanation:
a) Data and Calculations:
Selling price per unit = $1,200
Fixed operating costs = $600,000
Capacity level = 5,000
Variable cost ratio = 80%
Variable cost per unit = $960 ($1,200 * 80%)
Contribution margin per unit = $240 ($1,200 - $960)
Contribution margin ratio = $240/$1,200 = 0.2
Operating break-even point:
a) in sales dollars = Fixed operating costs/Contribution margin ratio
= $600,000/0.2 = $3,000,000
b) in sales unit = Fixed operating costs/Contribution margin per unit
= $600,000/$240 = 2,500 units