On July 1, 2020, Bonita Inc. made two sales.
1. It sold land having a fair value of $904,970 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,423,984. The land is carried on Bonita's books at a cost of $596,000.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $409,570 (interest payable annually).
Bonita Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.
Record the two journal entries that should be recorded by Bonita Inc. for the sales transactions above that took place on July 1, 2020.
Answers
Answer:
Date Account Title Debit Credit
July 1, 2020 Notes receivable $1,423,984
Land $596,000
Discount on notes receivable $519,014
Gain on disposal $308,970
Working
Gain on disposal = 904,970 - 596,000 = $308,970
Discount on notes receivable = 1,423,984 - 596,000 - 308,970 = $519,014
Date Account Title Debit Credit
July 1, 2020 Notes receivable $409,570
Discount on Notes receivable $183,115
Service revenue $226,455
Working
Maturity value of Note = 409,570 / ( 1 + 12%)⁸ = $165,418
Interest payable = 3% * 409,570 = $12,287.10
Present value of interest payable = Interest * PVIFA, 12% , 8 years
= 12,287.10 * 4.9676 = $61,037
Service revenue = Maturity value of note + Present value of interest
= 165,418 + 61,037
= $226,455
Related Questions
Where do charts get the data series names?
data entries
row labels
column labels
worksheet title
Answers
Answer:
Row labels
Explanation:
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply.
a. The quality of goods available to consumers.
b. The value of baby-sitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.
c. The parts of a car manufactured in the United States that are produced in Canada.
d. The loss of enjoyment people incur when scenic land is converted to commercial use.
Answers
Answer:
a
b
d
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. quality of goods and services
7. externalities
The car parts produced in the US would be added to GDP as parts of exports
John Jones owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as follows:
Expense - Amount
Labor $2,000
Food and drink 500
Electricity 100
Vehicle lease 150
Rent 500
Interest on loan for equipment 1,000
a. Calculate John's annual accounting profit. $____ .
b. Suppose John could earn $1,000 per year as a recycler of aluminum cans, but he prefers to run the café. In fact, he would be willing to pay up to $275 per year to run the café rather than to recycle. Is the café making an economic profit?
(Yes/No) the café is making an economic (profit/loss) of $ ___ per year.
Should John stay in the café business? __
c. Suppose the café's revenues and expenses remain the same, but recyclers' earnings rise to $1,100 per year. Is the café making an economic profit?
(Yes/No), the café is making an economic (profit/loss) of $____ per year
Should John stay in the café business?
d. Suppose John had not had to get a $10,000 loan at an annual interest rate of 10 percent to buy equipment, but instead had invested $10,000 of his own money in equipment.
Calculate John's annual accounting profit. $
e. As in part b, suppose John could earn $1,000 per year as a recycler and he has to pay $1,000 per year in interest on his loan, but, unlike part b, suppose John likes recycling just as well as running the café.
How much additional revenue would the café have to collect each year to earn a normal profit? $____
Answers
Answer:
a.) $750
b.) Yes, the café is making an economic profit of $25 per year.
Yes, he should stay in the café business.
c.) No, the café is making an economic loss of $75 per year
No, he should not stay in the café business.
d.)$3,250
e.) $250
Explanation:
a) John's accounting profit is his revenue minus his explicit costs:$5,000 - $4,250 = $750
b) In this case, John's opportunity cost of running the café is $725 per year ($1,000 − $275 = $725). Thus, the café is making an economic profit of $25 per year ($5,000 − $4,250 − $725 = $25). Since the café is earning an economic profit, John should stay in the café business.
c) In this case, John's opportunity cost of running the cafe is $825 per year ($1,100 − $275 = $825). Thus, the cafe is earning an economic loss of $75 per year ($5,000 − $4,250 − $825 = −$75). Since the café is earning an economic loss, John should not stay in the café business.
d) John's accounting profit equals his revenue minus his explicit costs. If he doesn't need a loan, then his explicit costs equal $3,250. So, his accounting profit equals $1,750 (= $5,000 − $3,250).
e) To earn a normal profit, the café would have to cover all its implicit and explicit costs. The opportunity cost of John's time is $1,000 per year while the café's accounting profit is only $750 per year. Thus, the café would have to earn additional revenues of $250 per year in order for John to make a normal profit.
What is the best way for an accountant to begin networking?
A. By going to local accounting firms and making inquiries
B. By contacting professional accounting organizations
C. By communicating with professors and fellow students
D. By meeting other people in the field on a social basis
Answers
The best way for an accountant to begin networking is By contacting professional accounting organizations. Option B
What are professional accounting organizations.?
Generally, A professional that conducts accounting and organizes the financial data that are necessary to operate a company, such as profit and loss statements, balance sheets, and other financial documents, is referred to as an accountant.
They do an audit of your records, generate reports for use in tax preparation, and simplify all of the complicated financial jargon that comes with operating a company.
The members of Professional Accounting Organizations (PAOs), which are organizations to which professional accountants belong, get support from these organizations in the form of continuous training, advice, and tools designed to assist them to maintain their professional competence. PAOs also give prospective partners in regulation to authorities, such as audit Public Oversight Bodies (POBs), which are provided by PAOs.
In conclusion, Getting in touch with several professional accounting groups is the most effective technique for an accountant to launch their networking career. Alternative B
Read more about professional accounting organizations.
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Monica consumes only goods A and B. Suppose that her marginal utility from consuming good A is equal to 0.25/Qa, and her marginal utility from consuming good B is 0.75/Qb. If the price of A is $0.50, the price of B is $4.00, and Monica's income is $120.00, how much of good A will she purchase
Answers
Answer:
120
Explanation:
Calculation for how much of good A will she purchase
First step is to calculate Qa
1 / 0.5Qa = 1 / 4Qb
0.5Qa = 4Qb
Qa = 4 / 0.5 Qb
Qa = 8Qb
Second step is to calculate Qb
Qb = 120/8
Qb = 15
Now let calculate how much of good A will she purchase
Using this formula
Good A=Qa* Qb
Good A= 15 * 8
Good A = 120
Therefore how much of good A will she purchase is 120
Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton rises substantially. The demand for labor among cotton-producing firms in Texas will ________. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will_________ . The temporary unemployment resulting from such sectoral shifts in the economy is best described as ____________ unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal?
a. Establishing government-run employment agencies to connect unemployed workers to job vacancies
b. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks
c. Increasing the benefits offered to unemployed workers through the government's unemployment insurance program
Answers
Answer:
increase
decrease
frictional unemployment
a, b
Explanation:
Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
As a result of the increase in price of cotton, the profit of making cotton would increase. So the production of cotton would increase and more labour would be needed
the cost of production for cotton producing firms would increase and this would discourage production. The demand for labour would increase
the government can reduce frictional unemployment by having policies that reduce the job search period and would incentivise labour to get employed quickly
Desert Rose, Inc., a prominent consumer products firm, is debating whetherto convert its all-equity capital structure to one that is 30 percent debt. Currently, there are 6,500 sharesoutstanding, and the price per share is $45. EBIT is expected to remain at $29,000 per year forever. Theinterest rate on new debt is 8 percent, and there are no taxes.a) Allison, a shareholder of the firm, owns 100 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate 100%?B) What will Allison's cash flow be under the proposed capital structure of the firm? Assume she keeps all 100 of her shares.C) Suppose the company does convert, but Allison prefers the current all-equity capital structure. Show how she could unlever her shares of stock to re-create the original structure.D) Using your answere to part(c), explain why the company's choice of capitl structure is irrelevant. Show work and explain.
Answers
Answer:
A. $450
B. $480
C. $540
D. The choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.
Explanation:
a) Calculation to determine her cash flow under the current capital structure
First step is to calculate the earnings per share
EPS = $29,000 / 6,500 shares
EPS = $4.5
Now let calculate the cash flow under the current capital structure
Cash flow = $4.5*(100 shares)
Cash flow = $450
Therefore her cash flow under the current capital structure will be $450
b) Calculation to determine What will be the cash flow be under the proposed capital structure of the firm
First step is to calculate the earnings per share
First step is to calculate the MV of the firm
MV of the firm= $45(6,500)
MV of the firm= $292,500
Second step is to calculate the Debt
Debt = .30 x ($292,500)
Debt= $87,750
Third step is to calculate the Interest
Interest =8% x $87,750
Interest = $7,020
Fourth step is to calculate the repurchase shares
Repurchase shares =$87,750 / $45
Repurchase shares= 1,950
Fifth step is to calculate the Shrout new
Shrout new =6,500 - 1,950
Shrout new=4,550
Therefore, under the new capital structure,
EPS = (EBIT - Interest) / shares outstanding new
EPS = ($29,000 -$7,020) / 4,550shares
EPS =$21,980/4,550 shares
EPS =4.8
The shareholder will receive = $4.8*(100 shares) = $480
Therefore What will be the cash flow be under the proposed capital structure of the firm is $480
c) Calculation to Show how she could unlever her shares of stock to re-create the original structure.
Now she owns a total of 200 shares
Her payoff =[ (100 shares+100 shares) x $4.5 ]- [8% x $(100 shares x $45)]
Her payoff =(200shares×$4.5)-(8%×$4,500)
Her payoff =$900-$360
Her payoff= $540
Therefore Based on the above Calculation Allison did not successfully replicate the payoffs (b) under the proposed capital structure
d).Based on the above Calculation the choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.
At year-end (December 31), Chan Company estimates its bad debts as 1.00% of its annual credit sales of $917,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $459 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.Prepare Chan's journal entries for the transactions.
Answers
Answer:
Dec 31
Dr Bad debts expense 9,170
Cr Allowance for doubtful accounts 9,170
Feb 01
Dr Allowance for doubtful accounts $459
Cr Accounts receivable—P. Park $459
Jun 05
Dr Accounts receivable—P. Park $459
Cr Allowance for doubtful accounts $459
Jun 05
Dr Cash $459
Cr Accounts receivable—P. Park $459
Explanation:
Preparation of Chan's journal entries for the transactions.
Dec 31
Dr Bad debts expense 9,170
Cr Allowance for doubtful accounts 9,170
(1.00%*$917,000)
Feb 01
Dr Allowance for doubtful accounts $459
Cr Accounts receivable—P. Park $459
Jun 05
Dr Accounts receivable—P. Park $459
Cr Allowance for doubtful accounts $459
Jun 05
Dr Cash $459
Cr Accounts receivable—P. Park $459
On January 2, 2019, Shank Co. issued at par $300,000 of 9% convertible bonds. Each $1,000 bond is convertible into 60 shares. No bonds were converted during 2019. Shank had 100,000 shares of common stock outstanding during 2019. Shank 's 2019 net income was $340,000 and the income tax rate was 30%. Shank's diluted earnings per share for 2019 would be (rounded to the nearest penny) Group of answer choices $3.04. $2.19. $3.26. $3.40. $2.29
Answers
Answer:
Shank's diluted earnings per share for 2019 would be $3.04.
Explanation:
This can be calculated as follows:
Amount of increase in net income if bonds are converted = Total value of convertible bonds * Bond rate * (100% - Tax rate) = $300,000 * 9% * (100% - 30%) = $18,900
Total earnings available to Equity Shareholders = Net income + Amount of increase in net income if bonds are converted = $340,000 + $18,900 = $358,900
Number of common shares obtainable from convertible bonds = (Total value of convertible bonds / $1,000) * 60 = ($300,000 / $1,000) * 60 = 18,000
Total number of shares outstanding = Number of shares of common stock outstanding during 2019 + Number of common shares obtainable from convertible bonds = 100,000 + 18,000 = 118,000
Diluted earnings per share = Total earnings available to Equity Shareholders / Total number of shares outstanding = $358,900 / 118,000 = 3.04
Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Inc. (WFI). After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet: FMV Adjusted Basis Appreciation Cash $ 225,000 $ 225,000 Building 45,000 22,500 22,500 Land 180,000 90,000 90,000 Total $ 450,000 $ 337,500 $ 112,500 Under the terms of the agreement, Shauna will receive the $225,000 cash in exchange for her 50 percent interest in WFI. Shauna's tax basis in her WFI stock is $56,250. Danielle will receive the building and land in exchange for her 50 percent interest in WFI. Danielle's tax basis in her WFI stock is $112,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) a. What amount of gain or loss does WFI recognize in the complete liquidation
Answers
Answer:
A. Building $22,500
Land $90,000
B. Recognizes gain of $180,000
C. Recognizes gain of $112,500
D. Building $45,000
Land $180,000
Explanation:
A. Based on the information given since WFI has a taxable transaction which means that WFI will recognizes gain of the amount of 22,500 on the transfer of the building and gain of the amount of 90,000 on the transfer of the land
b. Calculation for What amount of gain or loss does Shauna recognize in the complete liquidation
Based on the information given Shauna
will recognizess gain of $180,000 on the transfer of her stock to WFI ($ 225,000 - $45,000) in complete liquidation of WFI.
c. Calculation of the amount of gain or loss that Danielle recognize in the complete liquidation
Based on the information given Danielle will recognizes gain of the amount of $112,500 on the transfer of her stock to WFI ($ 225,000 - $112,500) in complete liquidation of WFI.
d. Based on the information given Danielle’s tax basis in the building will be $ 45,000 and land will be $180,000 after the complete liquidation
Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year Junior:
Personally stayed in the home for 19 days.
Rented it to his favorite brother at a discount for 11 days.
Rented it to his least favorite brother for twelve days at the full market rate.
Rented it to his friend at a discounted rate for fourteen days.
Rented the home to third parties for 72 days at the market rate.
Did repair and maintenance work on the home for two days.
Marketed the property and made it available for rent for 156 days during the year (in addition to the days mentioned above).
How many days of personal use and how many days of rental use did Junior experience on the property during the year?
Days of personal use ?
Days of rental use ?
5. In year 1, Peter and Shaline Johnsen moved into a home in a new subdivision. Theirs was one of the first homes in the subdivision. In year 1, they paid $2,700 in real property taxes to the state government, $1,490 to the developer of the subdivision for an assessment to pay for the sidewalks, and $1,430 for real property taxes on land they hold as an investment. What amount of property taxes are the Johnsens allowed to deduct assuming their itemized deductions exceed the standard deduction amount before considering any property tax deductions?
Deductible tax amount?
Answers
Answer:
1. a. Days of Personal Use:
= Days stayed personally + Days rented at a discount + Days rented to family
= 19 + 14 + 11 + 12
= 56 days
b. Days of rental use:
= Days rented to third parties at full rate + Days taken for repairs and maintenance
= 72 + 2
= 74 days
2. Deductible tax amount:
= Real property taxes to state government + Property taxes on land held as investment
= 2,700 + 1,430
= $4,130
The Johnsens may not deduct the amount paid for the assessment for the sidewalks as they are considered local benefits much like streets and these are not tax deductible.
Accounts Receivable from sales to customers amounted to $80,000 and $70,000 at the beginning and end the year, respectively. Income reported on the income statement for 2022 was $252,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answers
Answer:
$332,000
Explanation:
Cash flow from operating activities
Net Income $252,000
Adjust for changes in working capital items :
Decrease in Accounts Receivable ($80,000 - $70,000 $80,000
Net Cash Provided by Operating Activities $332,000
Conclusion
the cash flows from operating activities to be reported on the statement of cash flows is $332,000
Information for two companies in the same industry, Skysong Corporation and Sheridan Corporation, is presented here. Skysong Corporation Sheridan Corporation Cash provided by operating activities $166,000 $166,000 Net earnings 240,000 240,000 Capital expenditures 71,000 97,000 Dividends paid 6,800 27,000 Compute the free cash flow for each company. Skysong Corporation Sheridan Corporation Free cash flow
Answers
Answer:
See below
Explanation:
Fee cash flow computation for SKYsong corporation.
Free cash flow
Net earnings
$240,000
Cash provided by operating activities
($166,000)
Capital expenditures
($71,000)
Dividends
($6,800)
Cash flow balance
($3,000)
Free cash flow computation for Sheridan Corporation
Free cash flow
Net earnings
$240,000
Cash provided by operating activities
($166,000)
Capital expenditures
($97,000)
Dividends
($27,000)
Cash flow balance
($50,000)
On January 1, 2021, Desert Company announced their intent to build a new headquarters building. Construction began on February 1st. On March 1st, Desert took out a loan from Cactus Capital for $500,000 at 8% interest over 3 years and at that time made their first expenditure. Construction was complete on December 1st. What is the date on which they can begin capitalizing interest costs? Group of answer choices
Answers
Answer:
Desert Company
The date on which Desert Company can begin capitalizing interest costs is March 1, 2021.
Explanation:
This is the date it obtained the construction loan for 3 years. Desert should only capitalize interest during the construction period. This is the period when the asset is being prepared for its future use. Interest can only be capitalized when the related asset will yield future economic benefits. Otherwise, it should be expensed.
Which of the following statements are true?
a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
d. Pellegrini Southern Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving.
Answers
Answer:
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening. TRUE
higher liabilities respect to current assets, decrease the company's ability to meet its short term payments
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. TRUE
the current ratio = current assets / current liabilities
the quick ratio = (current assets - inventory) / current liabilities
the difference between both shows the dependence on selling inventory to pay off debts.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving. TRUE
Metropolitan Water Utilities purchases surface water from Elephant Butte Irrigation District at a cost of $100,000 per month in the months of February through September. Instead of paying monthly, the utility makes a single payment of $800,000 at the end of each calendar year for the water it used. The delayed payment essentially rep- resents a subsidy by Elephant Butte Irrigation Dis- trict to the water utility. At an interest rate of 0.25% per month, what is the amount of the subsidy
Answers
Answer:
The amount of the subsidy is $6,000.
Explanation:
Since the payment is made at the end of each calendar year and the months of usage are the months of February through September, this implies the payment was due at the end of September but dalayed for 3 months from the end of September to the end of December.
The amount of subsidy can therefore be calculated as follows:
Subsidy amount = Total utility bill * Interest rate per month * Number of months the payment is delayed = $800,000 * 0.25% * 3 = $6,000
Therefore, the amount of the subsidy is $6,000.
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 1,200 units and of Product N0 is 200 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:Expected Production Direct Labor-Hours Per Unit Total Direct Labor-HoursProduct R3 1,200 4.0 4,800Product N0 200 2.0 400Total direct labor-hours 5,200The direct labor rate is $26.20 per DLH. The direct materials cost per unit is $228.00 for Product R3 and $300.00 for Product N0.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Estimated Expected ActivityActivity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 TotalLabor-related DLHs $ 40,536 4,800 400 5,200Production orders orders 60,270 1,300 200 1,500Order size MHs 432,975 3,900 3,500 7,400$ 533,781The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Answers
Answer:
Unitary cost= $926.52
Explanation:
First, we need to calculate the activities rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Labor-related= 40,536 / 5,200= $7.8 per direct labor hour
Production orders= 60,270 / 1,500= $40.18 per order
Order size= 432,975 / 7,400= $58.51 per machine hour
Now, we can allocate costs to product R3:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Labor-related= 7.8*4,800= 37,440
Production orders= 40.18*1,300= 52,234
Order size= 58.51*3,900= 228,189
Total allocated costs= $654,863
Finally, the unitary cost:
Direct material= $300
Direct labor= 20.2*4= $80.8
Overhead= 654,863 / 1,200= $545.72
Unitary cost= $926.52
A company produces a single product. Variable production costs are $12.70 per unit and variable selling and administrative expenses are $3.70 per unit. Fixed manufacturing overhead totals $43,000 and fixed selling and administration expenses total $47,000. Assuming a beginning inventory of zero, production of 4,700 units and sales of 3,950 units, the dollar value of the ending inventory under variable costing would be:
Answers
Answer:
$9,525
Explanation:
Given the above information, first we need to calculate ending inventory
Ending inventory
= Beginning inventory + Units produced - Units sold
= 0 + 4,700 - 3,950
= 750
Therefore, the value of the ending inventory under variable costing would be;
= Ending inventory × Variable cost per unit
= 750 units × 12.70 per unit
= $9,525
The demand for spring water at the SLC WalMart is 600 liters per week. The setup cost for placing an order to replenish inventory is $25. The order is delivered by the supplier which charges WalMart $0.10/liter for the cost of transportation from the Rocky Mountains to SLC. This transportation cost increases the cost of water to $1.25/liter. The water loses its freshness while stored at the SLC WalMart. To account for this, the WalMart charges an annual holding cost of $2.6/liter.
Required:
a. Determine the WalMart's Economic Order Quantity (in liters)?
b. How often should WalMart order for water (in weeks) ?
Answers
Answer:
Results are below.
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
Since:
D= 600*52= 31,200
S= $25
H= $2.6
Replacing:
EOQ= 2√[(2*31,200*25) / 2.6]
EOQ= 775 units
To calculate the time between orders, we need to use the following formula:
Time between orders= EOQ / Weekly demand
Timer between orders= 775 / 600
Time between orders= 1.3 weeks
Identify the reasons why the quantity demanded of a product increases as the price of that product decreases. a. as the price declines, the real income of the consumer increases b. as the price of product A declines, it makes it more attractive than product B c. as the price declines, the consumer will always demand more on each successive price reduction d. a and b e. a and c
Answers
Answer:
D) A and B
Explanation:
a. as the price declines, the real income of the consumer increases
b. as the price of product A declines, it makes it more attractive than product B
Hope this helps!
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Have a good day!
Presented below is information for Blossom Co. for the month of January 2022. Cost of goods sold $200,750 Rent expense $32,000 Freight-out 6,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 17,000 Salaries and wages expense 60,000 Sales revenue 390,000 Income tax expense 3,150 Other comprehensive income (net of $400 tax) 2,000Prepare a comprehensive income statement.BLOSSOM CO. Comprehensive Income Statement .
Answers
Answer:
Blossom Co.
Comprehensive Income Statement for the month ended January 2022.
Sales revenue 390,000
Less Sales returns and allowances (17,000)
Net Sales Revenue 373,000
Less Cost of goods sold (200,750)
Gross Profit 172,250
Less Expenses
Rent expense 32,000
Freight-out 6,000
Sales discounts 8,000
Insurance expense 12,000
Salaries and wages expense 60,000
Income tax expense 3,150 (121,150)
Net Profit for the Year 51,100
Other comprehensive income 2,000
Total Comprehensive Income 53,100
Explanation:
The Comprehensive Income Statement shows the Total Profit (including other comprehensive Income) resulting from the trading period.
IF IT'S RITE I WILL REWARD BRAINLIEST. Someone who works in quality assurance would spend their days meeting with customers and convincing them to buy the company’s products.
A.
True
B.
False
Answers
Answer: True
Explanation:
Quality assurance is assuring the customer that the product will work and that they will even offer a warranty if it some how breaks for free.
Answer:
True
Explanation:
A business wants to maximize its tax savings in an economy with declining costs. It should choose the ___ method.
O A. weighted average
O B. LIFO
O c. gross profit
O D. FIFO hi
Answers
Answer:
I think it's D
Explanation:
sorry if wrong
Simon lost $5,700 gambling this year on a trip to Las Vegas. In addition, he paid $2,220 to his broker for managing his $222,000 portfolio and $1,505 to his accountant for preparing his tax return. In addition, Simon incurred $3,480 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).
Answers
Answer:
12,885
Explanation:
5700 lost of gambling
2,220 to his broker
1,505 for his accountant
3,480 for his transportation costs
Otto is planning for his son's college education to begin ten years from today. He estimates the end-of-the-year tuition, books, and living expenses to be $10,000 per year for a four-year degree. How much must Otto deposit today, at an interest rate of 12 percent, for his son to be able to withdraw $10,000 per year for four years of college
Answers
Answer:
$30,373.49
Explanation:
The amount to be deposited today can be determined by finding the present value of the annuity
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 4 = $10,000
I = 12%
PV = $30,373.49
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
What is an example of a commercial bank?
Answers
Answer:
For example, Bank of Baroda, State Bank of India (SBI), Dena Bank, Corporation Bank and Punjab National Bank.
Answer:
Bank of Amercia
Explanation:
1-When would high Do you think making employees happier at work is a good way of motivating people? When would high satisfaction not be related to high performance?
2-In your opinion, what are the three most important factors that make people dissatisfied with their job? What are the three most important factors relating to organizational commitment? satisfaction not be related to high performance
Answers
Answer:
DAYTON, Ohio -- For decades, employees and employers alike have followed the motto that job satisfaction determines job performance. Not so, according to a new study by Wright State University.
Nathan Bowling, an assistant professor who specializes in industrial and organizational psychology, said three decades of data derived from thousands of employees in a cross-section of jobs -- blue collar and white collar -- prove that although job satisfaction and job performance do correlate, one does not cause the other.
Even researchers, Bowling said, get confused about how the two things connect.
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"On days when ice cream sales are high, the number of crimes committed will also tend to be high, but this doesn't mean that ice cream sales cause crime," he said. "Rather, ice cream sales and crime are related because each is the result of the outdoor temperature. Similarly, satisfaction and performance are related because each is the result of employee personality."
By personality, Bowling pointed to such characteristics as self-esteem, emotional stability, extroversion and conscientiousness.
Studies, Bowling said, show that employees who have an overall negative attitude to all things in life likely won't find job satisfaction, regardless of performance, because of their personality characteristics.
"Emotional stability matters a lot," he said. "People who are neurotic, those who tend to be anxious, depressed ... typically won't find satisfaction no matter how many jobs they try."
The same goes for those with low self-esteem, he added. Studies show that employees with high self-esteem tend to be more satisfied with their jobs than those who do not have that level of confidence.
"Simply put, workplace interventions designed to improve performance by exclusively targeting employee satisfaction are unlikely to be effective," Bowling said.
So how can you have both?
"There are ways to select employees who will be successful," Bowling said. "Studies show that intelligence is one of the things that drives the performance."
He said solid performing employees also exhibit a high level of conscientiousness -- those who are detail-oriented and hard workers and who set goals.
An apparel manufacturing plant has estimated the variable cost to be $4.20 per unit. Fixed costs are $1,300,000 per year. Forty percent of its business is with one preferred customer and the customer is charged at cost. The remaining 60% of the business is with several different customers who are charged $20 per unit. If 200,000 total units are sold in a year, compute the unit cost per item.
Answers
Answer:
$10.7
Explanation:
Variable cost ($4.2 × 200,000)
$840,000
Fixed cost
$1,300,000
Total cost
= Fixed cost + variable cost
= $1,300,000 + $840,000
= $2,140,000
Therefore,
Unit cost per item
= Total cost / Total units sold
= $2,140,000 / 200,000
= $10.7
While Charles and Esther Kveragas were in a rented motel room at the Scottish Inns, Inc., in Knoxville, Tennessee, three intruders kicked open the door, shot Charles, and injured Esther. The intruders also took $3,000 belonging to the Kveragases. The Kveragases brought an action against the motel owners, claiming that the owners had been negligent in failing to provide adequately for the safety of the motel s guests. At trial, the evidence showed that the door had a hollow core and that it fit poorly into the door frame. There was no deadbolt lock on the door, although such locks were easily available and commonly used in motels. The only lock on the door was one fitted into the door handle, which was described as a grade three lock, although a security chain was attached to the door. The Kveragases had both locked and chained the door, but still, a single kick on the part of the intruders was all that was necessary to open it. Evidence at trial also indicated that a deadbolt lock would have withstood the force that was applied to the door.
Required:
Did the motel owners have a duty to protect their guests from criminal acts on the motel premises, and if so, did the owners breach that duty of care by failing to provide more secure locks on the doors of the motel rooms?
Answers
Answer:
yes they had a duty of protection to guests and they breached this duty
Explanation:
Did this motel have the duty to protect the Kveragas from this kind of activity?
The answer is yes under the tort law. This motel has a duty of care to safeguard the life, security and properties of others. This is a law obligation and the motel has to take necessary actions to follow through.
The kveragas were occupants of this motel, during ther stay here, this question has made us to understand that they were attacked by intruders and they also lost their properties in this attack. The motel did not fulfill its duty of care to the kveragas because the room they rented was not properly secured. The door did not have proper lock. An Insufficient and bad lock system is what gave this criminals entry and brought the occupants to harm.
Therefore it is evident that the motel owners breached there duty of care by not having a secure lock system.
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that_____ beliefs and values are more open to change in India. Select one:
a. core
b. traditional
c. primary
d. secondary
Answers
The correct answer is B) traditional.
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that traditional beliefs and values are more open to change in India.
When a multinational company is planning on initiating operations in another country, it has to be very sensible of the traditional values of that country. The company is getting into a new market and people could have different belief systems, different culture, traditions, and customs, that need to be carefully assessed by the multinational company if they are about to be successful in the new country.
This is the case of India, which has always have very strict traditional values, although younger generations are relaxing those values in recent years.