Answer:
The amount to expense in 2024 related to the patent and equipment should be: $45,000.
Explanation:
Note that Tabitha uses straight-line Method for all long-term assets.
Straight lime method charges a fixed amount of expense (depreciation / amortization) over the period of use of an asset.
Depreciation / Amortization Charge = (Cost - Residual Value) / Estimated Useful Life
Patent = $240,000 / 8 years
= $30,000
Equipment = ($140,000 - $20,000) / 8 years
= $15,000
Conclusion :
The amount to expense in 2024 related to the patent and equipment should be: $45,000 ( $30,000 + $15,000).
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents.
January 2,2015 Paid $87,000 cash to purchase storage shed components.
January 3;2015 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $6,000.
April 1,2015 Paid $39,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $4,000.
May 13,2015 Paid $400 cash for repairs to the pickup truck.
July 1,2015 Paid $28,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years.
December 31,2015 Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
June 30,2016 Sold the pickup truck for $33,000 cash. (Record the depreciation on the truck prior to recording its disposal.)
December 31,2016 Recorded depreciation on the storage shed. Determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero).
Required:
Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Answer:
Gravure Graphics International
General Journal:
Jan 2, 2015:
Debit Storage Shed $87,000
Credit Cash Account $87,000
To record the purchase of storage shed components.
Jan 3, 2015:
Debit Storage Shed $3,000
Credit Cash Account $3,000
To record the payment for shed erection.
April 1, 2015:
Debit Pickup Truck $39,000
Credit Cash Account $39,000
To record the purchase of a pickup Truck
May 13, 2015:
Debit Truck Repair Expense $400
Credit Cash Account $400
To record the payment for repairs.
July 1, 2015:
Debit Patent Rights $28,000
Credit Cash Account $28,000
To record the purchase of patent rights.
Dec. 31, 2015:
Debit Depreciation Expense - Storage Shed $8,400
Credit Accumulated Depreciation - Storage Shed $8,400
To record the depreciation expense for the year.
Debit Depreciation Expense - Pickup Truck $5,250
Credit Accumulated Depreciation - Pickup Truck $5,250
To record the depreciation expense for the 9 months.
Debit Impairment Expense - Patent Rights $2,800
Credit Accumulated Impairment- Patent Rights $2,800
To record the impairment expense for the 6 months.
June 30, 2106:
Debit Depreciation Expense- Pickup Truck $3,500
Credit Accumulated Depreciation- Pickup Truck $3,500
To record depreciation expense for the half year.
Debit Accumulated Depreciation - Pickup Truck $8,750
Credit Sale of Truck $8,750
To transfer the balance to Sale of Truck.
Debit Sale of Truck $39,000
Credit Pickup Truck $39,000
To record the transfer to Sale of Truck.
Debit Cash Account $33,000
Credit Sale of Truck $33,000
To record the sale of the pickup truck for cash.
Dec. 31, 2016
Debit Sale of Truck $2,750
Credit Gain on Sale of Truck $2,750
To record the gain on sale of truck.
Debit Depreciation Expense - Storage Shed $8,400
Credit Accumulated Depreciation - Storage Shed $8,400
To record the depreciation expense for the year.
Debit Impairment Expense - Patent Rights $25,200
Credit Accumulated Impairment- Patent Rights $25,200
To write down the book value to zero.
Explanation:
a) Depreciation / Impairment Expenses:
1) Storage Shed = $8,400 ($87,000 + 3,000 - 6,000) / 10
2) Pickup Truck = $7,000 ($39,000 - 4,000) / 5
for 2015 = $5,250 ($7,000 x 9/12)
3) Patent Rights = $5,600 ($28,000/5)
for 2015 = $5,600 /2 = $2,800
4) Truck for 2016: $7,000/2 = $3,500
5) Depreciation is an accounting method for expensing the cost of a fixed asset over its useful life. It is based on estimate and there are many methods for estimating the depreciation expense for the various fixed assets.
6) Impairment is like depreciation as a method for expensing cost of an asset. The difference is that while depreciation is used for tangible non-current assets, impairment is for intangible non-current assets. Another difference is that impairment is determined at the end of the period when the asset is checked for impairment based on fair value.
24. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months
Answer:
The most expensive car can be afforded is = $17290.89
Explanation:
The down payment of a new car = $4000
The mothly payment (annuity ) = $350
Interest rate on the rate = 12% = 12% / 12 per month.
Now we have to calculate the most expensive car that can be afforded with the finance time of 48 months.
Below is the calculation:
[tex]Present \ value = annuity \times \left [ \frac{1-(1+r)^{-n}}{r} \right ] \\= 350 \times \left [ \frac{1-(1+ 0.01)^{-48}}{0.01} \right ] \\= 13290.89 \\[/tex]
[tex]\text{Total value of car} = savings + present \ value \\= 4000 + 13290.89 \\= 17290.89[/tex]
What does a descriptive study seek to accomplish?
Suppose a five-year, $ 1 comma 000 bond with annual coupons has a price of $ 902.86 and a yield to maturity of 5.7 %. What is the bond's coupon rate?
Answer:
The coupon rate is 3.41%
Explanation:
The price of a bond is calculated as the present value of the annuity payments of its interest plus the present value of the face value of the bond. The formula to calculate the price of the bond is attached.
As the bond is an annual coupon paying bond, we determine the following,
r = 5.7%
n = 5 years or 5
The C or coupon payment is unknown. Let x be the coupon rate paid by the bond. Then C or coupon payment is 1000 * x or 1000x.
We know the current price of the bond. Thus putting in the available values for all the variables, we can calculate the value of x which is the coupon rate.
902.86 = 1000x * [(1 - (1+0.057)^-5) / 0.057] + 1000 / (1+0.057)^5
902.86 = 1000x * (4.246965615) + 757.92296
902.86 - 757.92296 = 4246.965615x
144.93704 / 4246.965615 = x
x = 0.03412 or 3.412% rounded off to 3.41%
Government organizations such as the IRS and other government regulatory agencies are interested in a firm's accounting information in order to help the firm strategize about ways to cut costs in order to minimize net income before taxes.
a. True
b. False
Answer: False
Explanation:
The role of the IRS and other Government regulatory agencies is to collect taxes as well as to ensure that companies follow the prescribed Generally Accepted Accounting Principles. This is the main purpose that they go through a firm's Accounting records. To ensure that they are paying the correct amount of taxes and to ensure that they are not engaging in illegal and unacceptable accounting practices.
In a team that follows agile, how would a team member know what others are working on? 1. The Product Owner and the Facilitator are responsible for maintaining work transparency. 2. The team should have a daily sync-up. 3. One team member must play the role of coordinator and should share daily status for each member. 4. They may refer to the backlog maintained in a tool.
Answer:
Option 3 is the correct answer.
Explanation:
An agile operating paradigm corresponds to their functioning style, whereby the guidelines, like other types of functioning models, do never remain static in all situations but adjust appropriately to the conditions that occur as the research starts.For all-inclusive marketing, the guidelines are also not strict and will concentrate mostly on design specifications.The other alternative in question is not linked to the specified scenario. So Option 3 is the best one.
When you take your first job, you decide to start saving right away for your retirement. You put $5,000 per year into a saving plan, which interest rate 10% per year. Five years later, you move to another job and stop making contributions to the saving plan. If the first plan continued to earn interest for another 35 years, determine the future worth in year 40.
Answer:
FV= $857,840.94
Explanation:
Giving the following information:
First investment:
Annual deposit= $5,000 per year
Interest rate= 10%
Number of years= 5
Second investment:
Number of years= 35
Interest rate= 10%
Lumpsum= first investment
First, we need to calculate the future value of the first investment. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.1^5) - 1]} / 0.10
FV= $30,525.5
Now, the future value of the second investment.
FV= PV*(1+i)^n
FV= 30,525.5*(1.1^35)
FV= $857,840.94
Advertising expenses are a significant component of the cost of goods sold. Listed below is a frequency distribution showing the advertising expenditures for 40 manufacturing companies. Estimate the mean, median, and standard deviation of advertising expense.
Advertising Expenditure ($millions) Number of companies
$20 to under $30 9
30 to under 40 13
40 to under 50 21
50 to under 60 18
60 to under 70 14
Total 75
Answer:
Mean = 47
Median = 47.38
Standard Deviation = 12.73
Explanation:
Note: You wrote " 40 manufacturing companies, but the total number of companies you actually listed is 75, definitely you meant 75.
Let y represent the range of advertising expenditure, f represent the number of companies, x represent the midpoint of the range of advertising expenditure.
y f x fx fx²
$20 to under $30 9 25 225 5625
$30 to under $40 13 35 455 15925
$40 to under $50 21 45 945 42525
$50 to under $60 18 55 990 54450
$60 to under $70 14 65 910 59150
n = 75 [tex]\sum fx = 3525[/tex]
[tex]\sum fx^2 = 177675[/tex]
Mean, [tex]\bar{X} = \frac{\sum fx}{n}[/tex]
[tex]\bar{X} = \frac{3525}{75} \\\bar{X} = 47[/tex]
Standard Deviation:
[tex]SD = \sqrt{\frac{n \sum fx^2 - (\sum fx)^2}{n(n-1)} } \\SD = \sqrt{\frac{(75*177675) - (3525)^2}{75(75-1)} }\\SD = 12.73[/tex]
Median:
Get the cumulative frequencies(cf)
y f cf
$20 to under $30 9 9
$30 to under $40 13 22
$40 to under $50 21 43
$50 to under $60 18 61
$60 to under $70 14 75
N = 75
Median = Size of (N/2)th item
Median = Size of (75/2)th item
Median = Size of (37.5)th item
The median class = 40 to under 50
Lower limit, L₁ = 40
Cumulative frequency, cf = 22
f = 21
Class Width, h = 10
Median = [tex]L_1 + \frac{ (N/2) - cf}{f} * h\\[/tex]
Median = [tex]40 + \frac{ (75/2) - 22}{21} * 10\\[/tex]
Median = 47.38
Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?a. Depreciation expense.b. A loss on the sale of equipment.c. Dividends declared and paid.d. Gain on sale of land.
Answer:
d. Gain on sale of land
Explanation:
When using the indirect method in calculating net cash flow from operating activities, the net income is adjusted by the following items :
Non-Cash flow items included in net incomeChanges in Working Capital items in net income.From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.
Select the most appropriate answer about bringing components from other continents.
a. It potentially results in better products for the customer.
b. It never affects innovation of the final product.
c.It has no impact on the production lines in the home country.
d. It always lowers the quality of the final product.
e. It always increases the cost of the final product.
Answer:
A. It potentially results in better products for the customer.
Explanation:
When components for the production of a good are imported from other continent, such could potentially results in better products for the customer because most often than not, the exporting country has superior knowledge base in terms of manufacturing these component parts which can be utilized by the importing country.
Moreover, companies import components for various reasons; either to reduce or save cost or they found superior materials somewhere else . Where they found superior materials in in other continent, then the chances of making good or better product is high because of these superior components.
Also, one of the gains in globalization is that one can source for materials or components in other continent for products that can be made locally with high quality and value.
____ materials are materials that are no longer serviceable, have been discarded, or are a by-product of the production process. Group of answer choices Obsolete Excess Waste Scrap
Answer:
Scrap
Explanation:
The scrap material is that material that is not usable for the or the services are no longer available and these products are not used so far for the production process. It is totally and completely discarded and used as a by product production process
Hence, the correct option is scrap
And all other options are wrong and incorrect
. The set of activities used to obtain a sufficient number of the right people at the right time in order to select those who best meet the needs of the organization is called
Answer:
Interview
Explanation:
This set of activities done by an organization is called an Interview. All companies/organizations do this in order to find the best candidate for a specific position within their company. Although there are different types of interviewing methods (face-to-face, group interview, online interview, etc.) all of which include a set of questions or activities that show the employer/hiring manager that you can complete the tasks and responsibilities that the job position demands.
Assuming all other factors remain constant, if variable cost per unit increases, then the break-even point will:
Answer:
The break-even point in units increases.
Explanation:
The break-even point in units is the number of units required to cover for the fixed costs. In this sales level, the net income is zero.
To calculate the break-even point in units, you need to use the following formula:
Break-even point in units= fixed costs/ (selling price - unitary variable cost)
If the unitary variable cost increases, the contribution margin per unit decreases. Therefore, now you need to sell more units to cover for the fixed costs. The break-even point in units increases.
Assume that Pope Enterprises held a $10,000, 10 percent, six-month note signed by Mary Drew. On December, 1, 2015, the maturity date, Drew dishonored the note. At this point, Drew owes a total of $10,500, which is comprised of the principal of $10,000 plus interest in the amount of $500 (or $10,000 x 10% x 6/12). Prepare the December 1 entry for Pope by selecting the account names and dollar amounts from the drop-down menus. If there are multiple debits or multiple credits, please enter the account titles in alphabetical order.
Answer:
Prepare the December 1 entry for Pope:
Dr Accounts receivable 10,500
Cr Notes receivable 10,000
Cr Interest receivable 500
Since the note was dishonored, it must be turned into an account receivable. The new account receivable must include the accrued interests on the note.
The market risk premium is defined as __________. A. the difference between the return on an index fund and the return on Treasury bills B. the difference between the return on a small-firm mutual fund and the return on the Standard
Answer:
A. the difference between the return on an index fund and the return on Treasury bills.
Explanation:
This term can be primarily used in denoting of opportunity cost in an investment, and also for risk assessment.
It is primarily defined to be the difference between an expected return on a market investment against the risk free rate. When a graph is been put to consideration, the market risk premium equals the security market line.
It is also primarily known also for its provision of quantitative measure found in the extra return demanded by market participants for the increased risk. At this summation, it is denoted that it is the difference between the return on an index fund and the return on Treasury bills.
McLin, Inc., is a calendar year S corporation. Its AAA balance is zero. Determine the tax aspects of the following transactions. If an amount is zero, enter "0". a. McLin holds $90,000 of AEP. Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock. Tobias is paid a $90,000 salary. Ignore the 20% QBID.
Answer:
$10,000
Explanation:
Given that:
McLin holds $90,000 of AEP, this implies what is salary is made of;
Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock.
Tobias is paid a $90,000 salary income.
Ignore the 20% QBID
We are to determine the tax aspects of the transactions
Since the company receives a $90000 for salary expense. Thus Tobias basis is zero, then :
The tax aspect of the transaction is : ($90000 - $80000)
The tax aspect of the transaction = $10,000
Acme Manufacturing Corporation pays an annual dividend rate of 11.40% on its preferred stock that currently returns 15.28% and has a par value of $100.00 per share. What is the value of Acme’s preferred stock?
Answer:
The value of Acme’s preferred stock is $74.61
Explanation:
Dividend = 11.40% * $100
Dividend = $11 .40
Return =
Value of stock = Dividend / Return
Value of preferred stock = $11.40 / 15.28%
Value of preferred stock = $74.60732
Value of preferred stock = $74.61
When a price ceiling is in effect:_______
a. there is no competition for goods.
b. demanders compete for goods in short supply by accepting reductions in quality.
c. suppliers compete for customers by inefficiently raising quality levels.
d. suppliers have an incentive to provide really good customer service.
Answer:
i got answer c
(i took the test)
Financial statement data at December 31 for Ecco Company are shown below. Cost of merchandise sold $552,500 Inventories: Beginning of year 200,000 End of year 140,000 Determine inventory turnover for the year. a.1.63 b.2.76 c.3.95 d.3.25
Answer:
Inventory turnover= 3.25
Explanation:
Giving the following information:
Cost of merchandise sold $552,500
Inventories:
Beginning of year 200,000
End of year 140,000
To calculate the inventory turnover, we need to use the following formula:
Inventory turnover= Cost of goods sold/ average inventory
Average inventory= (beginning inventory + ending inventory) / 2
Average inventory= (200,000 + 140,000)/2= 170,000
Inventory turnover= 552,500/170,000
Inventory turnover= 3.25
An American company recently won a huge contract with a company in Indonesia, by gifting the Indonesian government officials with American cars and an assurance of monetary gifts. Clearly, this procedure.
a. defines the terms of the business contract, and as long as both parties sign, the agreement is binding.
b. violates the Fair and Balanced Competitive Practices Act.
c. defines the common business practices of the foreign nation and should be respected.
d. violates the Foreign Corrupt Practices Act.
Answer:
d
Explanation:
it is international traveling
The correct answer is option D.
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.
What does the Foreign Corrupt Practices Act do?Under the Foreign Corrupt Practices Act (FCPA), it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business.
Learn more about Foreign Corrupt Practices Act here https://brainly.com/question/26495697
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In Sheridan Company, the Cutting Department had beginning work in process of 8800 units, transferred out 25300 units, and had an ending work in process of 5000 units. How many units were started by Sheridan during the month?
Answer:
The units were started by Sheridan during the month is 21500 units
Explanation:
The units started in the month can be derived from the below formula:
units started =units completed-beginning work-in process+ending work-in process
units completed and transferred out=25300 units
beginning work-in process is 8800 units
ending work-in process is 5000 units
units started=25300 units-8800 units+5000 units=21500 units
Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income $ 87,100
Depreciation expense 13,800
Gain on sale of land 6,500
Increase in merchandise inventory 3,850
Increase in accounts payable 7,950
Answer:
The answer is $98,500
Explanation:
There are two ways to cash provided or used by operating activities - Direct method and indirect method. In direct method, the first line item is Net income or net loss.
Net income------------------------ $87,100
Depreciation expense---------- 13,800
Gain on sale of land------------ ($6,500)
Increase in merchandise inventory-------------------------------------------------($3,850)
Increase in accounts payable $7,950
Net cash provided or used by operating activities---------------$98,500
Sag manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%
The question is incomplete. The following is the complete question.
Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs?
Answer:
Fixed costs are $480000
Explanation:
The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.
Break even in sales = Fixed cost / Contribution margin ratio
Plugging in the available values we can calculate the value of fixed cost. We know that the break even in units is at 400000 units. Thus, its value in sale will be 400000 * 6 = 2400000
2400000 = Fixed cost / 0.2
2400000 * 0.2 = Fixed cost
Fixed costs = $480000
Jewelcorp just began trading securities. The company is a closely-held corporation that is not trading stock on a national securities exchange. It has several dozen shareholders and $9 million in assets. Which of the following is true concerning the company’s requirement to report to the SEC?Not required to report information to the SEC. Required to report major business developments and must file annual and quarterly financial reports. Must file annual and quarterly financial reports Requirement to file depends on the company’s assets and shareholder base.
Answer:
Jewelcorp
Requirement to report to the SEC:
Not required to report information to the SEC.
Explanation:
Jewelcorp is not required to report information to the SEC. It is only publicly traded companies that are required to file their financial reports with the SEC.
The SEC Act of 1934 does not require private companies to file financial reports with the Security Exchange Commission. However, a private company can be required to file financial reports with SEC if it has over 500 common stockholders and $10 million in assets, which Jewelcorp does not possess.
An evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or termination is called an A. employment assessment. B. a performance appraisal. C. a job specification. D. a job analysis.
Answer:
B. a performance appraisal
Explanation:
A performance appraisal is the regular review of an employee's performance to analyze his level of personal development and contribution to the progress of the company. Companies carry out a performance appraisal so as to know which employees are deserving of a pay raise, salary cut, promotion, more training, and even termination of the job in cases where the employee's performance is way below acceptable standards. Some types of performance appraisal include;
1. The 360-degree feedback appraisal where opinions about the employee's performance are sourced from the employee's subordinates, his peers, and seniors in the organization.
2. Peer assessment where opinions about the employee's performance are gotten from his peers.
3. Self-assessment where the employee gives his own personal opinion about his performance level.
The correlation between the fund returns is 0.1560. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds?
Answer:
The answer is given below
Explanation:
The question is not complete. Given that:
[tex]E(r_s)=11\%,E(r_b)=8\%, \sigma(r_s)=33\%,\sigma(r_b)=25\%[/tex], ρ = 0.1560
From the covariance matrix, Cov (B, S) = [tex]\rho*\sigma_b*\sigma_s=0..1560*33*25=128.7[/tex]
The minimum-variance portfolio is gotten using the formula:
[tex]w_{min}(S)=\frac{\sigma_B^2-Cov(B,S)}{\sigma_S^2+\sigma_B^2-2Cov(B,S)}=\frac{(25^2)-128.7}{33^2+25^2-2(128.7)}=\frac{625-128.7}{225+1089-257.4}=0.4697\\\\w_{min}(B)=\frac{\sigma_S^2-Cov(B,S)}{\sigma_S^2+\sigma_B^2-2Cov(B,S)}=\frac{(33^2)-128.7}{33^2+25^2-2(128.7)}=\frac{1089-128.7}{225+1089-257.4}=0.9089[/tex]
the expected return for the minimum-variance portfolio is:
[tex]E(r_{min})=w_{min}S*E(r_s)+w_{min}B*E(r_b)=11*0.4697+0.9089*8=12.44\%[/tex]
the standard deviation for the minimum-variance portfolio is:
[tex]\sigma_{min}=[w_S^2\sigma_s^2+w_B^2\sigma_B^2+2w_Bw_SCov(B,S)]^\frac{1}{2} =[0.4687^2*33^2+0.9089^2*25^2+2*0.9089*0.4687*128.7]^\frac{1}{2}=29.41\%[/tex]
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 20,000 portable grills, 50,000 stationary grills, and 5,000 smokers. Information on the three models is as follows:
Portable Stationary Smokers
Price $90 $200 $250
Variable cost per unit 45 130 140
Total fixed cost is $2,128,500.
Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
Answer:
1.
Sales mix
Portable grills = 20000/75000 = 4/15 or 26.67%
Stationary grills = 50000/75000 = 2/3 or 66.67%
Smokers = 5000/75000 = 1/15 or 6.67%
2.
Break even in units
Overall = 2128500 / 66 = 32250 units
Portable = 32250 * 4/15 = 8600
Stationary = 32250 * 2/3 = 21500
Smokers = 32250 * 1/15 = 2150
Explanation:
1.
The sales mix is the proportion of sales in units that each product holds in the in relation to the total overall sales in units of all products. The sales mix is calculated as follows,
Sales mix proportion of Product A = Sales in units Product A/Total number of sales in units of all products
The total number of sales in units of all products is,
Total sales in units = 20000 + 50000 + 5000 = 75000 units
Sales mix
Portable grills = 20000/75000 = 4/15 or 26.67%
Stationary grills = 50000/75000 = 2/3 or 66.67%
Smokers = 5000/75000 = 1/15 or 6.67%
2.
We will compute the overall break even point in units in then divide it according to the sales mix to calculate the break even in units of each product.
To calculate the overall break even in units, we need to determine the weighted average contribution per unit.
Weighted average contribution per unit = 4/15 * (90 - 45) + 2/3 * (200 - 130) + 1/15 * (250 - 140)
Weighted average contribution per unit = 66
Break even in units
Overall = 2128500 / 66 = 32250 units
Portable = 32250 * 4/15 = 8600
Stationary = 32250 * 2/3 = 21500
Smokers = 32250 * 1/15 = 2150
A company has net income of $199,000, a profit margin of 9.50 percent, and an accounts receivable balance of $106,108. Assuming 74 percent of sales are on credit, what is the company's days' sales in receivables
Answer:
Receivables days = 25 days
Explanation:
The receivable days is the average length of time it takes a business to receive cash from customers in respect of credit sales made.
It is calculated as follows:
Receivables days = Receivables / Credit sales × 365 days.
The credit sales is missing , hence we need to work it out as follows:
Net income =profit margin × total sales revenue
let sales value be represented by "y"
199,000 = 9.50% × y
y = 199,000/0.095
y= 2,094,736.84
Total sales revenue = 2,094,736.84
Credit sales = 74% × total sales revenue
= 74% × 2,094,736.84=1,550,105.263
Receivables days =106,108/1,550,105.26× 365 days= 24.98
Receivables days = 25 days
If a corporation purchases a lot and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on
Answer: the intention of management for the property when the building was acquired.
Explanation:
From the question, we are informed that if a corporation buys a lot and building and then tears down the building and then uses the property as a parking lot.
It should be noted that based on the above situation, the proper accounting treatment of the cost of the building would depend on the management's intention regarding the property when they bought the building.
All automobile makers around the world are in the same strategic group because they manufacture automobiles.
a) true
b) false
Answer:
The answer is False.
Explanation:
False, all automobile maker of the world does not form the same strategic group on the basis of manufacturing the automobiles because the strategic group refers to the process to follow the same strategy. Since all around the world different automobile maker work in different economies with a different set of strategies that varies according to the economic situations. For example, the strategy to work in a developed economy will be different from the developing economy. Therefore, all automobile makers will not follow the same strategy so it will not be in the same strategic group.