Answer and Explanation:
The journal entries are shown below:
On June 15
Account receivable Dr $2,150
To sales revenue $2,150
(Being product sold on credit is recorded)
Here account receivable is debited as it increased the assets and credited the sales revenue as it also increased the revenue
On June 15
Cost of goods sold Dr $1,470
To Inventory $1,470
(Being the cost of the inventory is recorded)
Here cost of goods sold is debited as it increased the expense and credited the inventory as it decreased the assets
On July 15
Cash Dr $2,150
To Account receivable $2,150
(Being cash receipt is recorded)
Here cash is debited as it increased the assets and credited the account receivable as it decrease the assets
The following is the ending balances of accounts at June 30, 2021, for Excell Company.
Account Title Debits Credits
Cash $ 93,000
Short-term investments 75,000
Accounts receivable (net) 290,000
Prepaid expenses (for the next 12 months) 42,000
Land 85,000
Buildings 330,000
Accumulated depreciation—buildings $ 165,000
Equipment 270,000
Accumulated depreciation—equipment 125,000
Accounts payable 178,000
Accrued liabilities 50,000
Notes payable 110,000
Mortgage payable 240,000
Common stock 150,000
Retained earnings 167,000
Totals $ 1,185,000 $ 1,185,000
Additional information:
The short-term investments account includes $23,000 in U.S. treasury bills purchased in May. The bills mature in July, 2021.
The accounts receivable account consists of the following:
a. Amounts owed by customers $ 232,000
b. Allowance for uncollectible accounts—trade customers (18,000 )
c. Nontrade notes receivable (due in three years) 70,000
d. Interest receivable on notes (due in four months) 6,000
Total $ 290,000
The notes payable account consists of two notes of $55,000 each. One note is due on September 30, 2021, and the other is due on November 30, 2022.
The mortgage payable is a loan payable to the bank in semiannual installments of $4,800 each plus interest. The next payment is due on October 31, 2021. Interest has been properly accrued and is included in accrued expenses.
Eight hundred thousand shares of no par common stock are authorized, of which 300,000 shares have been issued and are outstanding.
The land account includes $55,000 representing the cost of the land on which the company's office building resides. The remaining $30,000 is the cost of land that the company is holding for investment purposes.
Answer:
Total Assets $895,000
Total liabilities and stockholders'equity $895,000
Explanation:
Preparation of a classified balance sheet for the Excell Company at June 30, 2021
EXCELL COMPANY Balance Sheet At June 30, 2021
ASSETS
Current assets:
Cash and cash equivalents $116,000
($93,000+$23,000)
Short-term investments $52,000
($75,000-$23,000)
Accounts receivable, net of allowance for uncollectible accounts $214,000
($232,000-$18,000)
Interest receivable $6,000
Prepaid expenses $42,000
Total current assets $430,000
($116,000+$52,000+$214,000+$6,000+$42,000)
Investments:
Note receivable $70,000
Land held for sale $30,000
$100,000
($70,000+$30,000)
Property, plant, and equipment:
Land $55,000
Buildings $330,000
Equipment $270,000
($55,000+$330,000+$270,000)
$655,000
Less: Accumulated depreciation ($290,000)
Net property, plant, and equipment $365,000
($655,000-$290,000)
TOTAL ASSETS $895,000
($430,000+$100,000+$365,000)
LIABILITIES AND STOCKHOLDERS'S EQUITY
Current liabilities:
Accounts payable $178,000
Accrued expenses $50,000
Note payable $55,000
Current maturities of long-term debt $9,600
(4800*2)
Total current liabilities $292,600
($178,000+$50,000+$55,000+$9,600)
Long-term liabilities:
Note payable $55,000
Mortgage payable $230,400
($240,000-$9,600)
Total long-term liabilities $285,400
($55,000+$230,400)
Shareholders’ equity:
Common stock, no par value; 800,000 shares
authorized; 300,000 shares issued and outstanding $150,000
Retained earnings $167,000
Total shareholders ’equity $317,000
($150,000+$167,000)
TOTAL LIABILITIES AND STOCKHOLDERS'S EQUITY $895,000
($292,600+$285,400+$317,000)
Therefore the classified balance sheet for the Excell Company at June 30, 2021 will be :
Total Assets $895,000
Total liabilities and stockholders'equity $895,000
(1 point) The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 300 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 2 dollar increase in rent. Similarly, one additional unit will be occupied for each 2 dollar decrease in rent. What rent should the manager charge to maximize revenue
Answer:
$270
Explanation:
If the rent is $300 then 110 units will be occupied. The manager of the apartment complex should set a price which will maximize the revenue. When the rent is increased by $2 then one additional unit will be left vacant. This will reduce the revenue of the apartment manager. The equation to find the best possible rent which maximizes the total revenue is:
Profit = 110 (p - 300)
P = 110p - 330
P = 270.
The rent for the apartment should be 270 so the total revenue will be maximized.
People come to different decisions using cost-benefit analysis even under the
same conditions because costs and benefits are both what?
A. Subjective
B. Non-monetary
C. Utilities
D. Absolute
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation.
Production:
10,000 units started which is comprised of 7,000 units finished and transferred out and 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.
Manufacturing costs:
Materials $33,000
Labor $21,000
Overhead $36,000
Required:
Prepare a production cost report.
Answer:
Quick Furniture Company
The Sanding Department
Production Report
For the month of March 2017:
Production Cost Report:
Materials Conversion Total
Manufacturing costs $33,000 $57,000 $90,000
Cost per equivalent unit:
Manufacturing costs $33,000 $57,000
Equivalent units 10,000 7,600
Cost per equivalent unit $3.30 $7.50
Cost assigned to:
Units transferred out $23,100 $52,500 $75,600
Ending Work in Process $9,900 $4,500 14,400
Total costs assigned $33,000 $57,000 $90,000
Explanation:
a) Data and Calculations:
Materials Conversion
Units started 10,000
Units completed 7,000 7,000 7,000
Ending WIP 3,000 3,000 600
Equivalent units 10,000 7,600
Production Cost Report:
Materials Conversion Total
Manufacturing costs $33,000 $57,000 $90,000
Cost per equivalent unit:
Manufacturing costs $33,000 $57,000
Equivalent units 10,000 7,600
Cost per equivalent unit $3.30 $7.50
Cost assigned to:
Units transferred out $23,100 $52,500 $75,600
($3.30 * 7,000) ($7.50 * 7,000)
Ending Work in Process $9,900 $4,500 14,400
($3.30 * 3,000) ($7.50 * 600)
Total costs assigned $33,000 $57,000 $90,000
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.
Job 102 Job 103 Job 104
Direct materials $ 37,000 $ 48,000 $ 57,000
Direct labor 20,000 28,700 43,000
Overhead 8,200 11,767 17,630
Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $9,000; direct labor, $3,500; and overhead, $1,505. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)
Question Completion:
1. What is the cost of the raw materials requisitioned in June for each of the three jobs?
2. How much direct labor cost is incurred during June for each of the three jobs?
3. What predetermined overhead rate is used during June?
4. How much total cost is transferred to finished goods during June?
Answer:
Racing Wheels, Inc.
Job 102 Job 103 Job 104
1. Direct materials $ 37,000 $ 48,000 $ 57,000
2. Direct labor 20,000 28,700 43,000
3. The predetermined overhead rate = $0.41 per direct labor cost.
4. The total cost transferred to Finished Goods Inventory in June
= $167,672
Explanation:
a) Data and Calculations:
The total costs accumulated on three custom jobs.
Job 102 Job 103 Job 104 Total
Beginning WIP: $14,005
Direct materials $9,000
Direct labor 3,500
Overhead 1,505
Direct materials $ 37,000 $ 48,000 $ 57,000 $ 142,000
Direct labor 20,000 28,700 43,000 91,700
Overhead 8,200 11,767 17,630 37,597
Total costs $ 79,205 $ 88,467 $ 117,630 $285,302
Predetermined overhead rate = total overhead/total direct labor
= $37,597/$91,700
= $0.41
Finished goods in June:
Job 102 $ 79,205
Job 103 $ 88,467
Total cost $167,672
Carey Company owns a plot of land on which burried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Carey wishes to sell the land now. It has located two potenital buyers. Buyer A, who is willing to pay $480,000 for the land now, or Buyer B, who is willing to make 20 annual payments of $75,000 each, with the first payment to be made 5 years from today. Assuming that the appropraite rate of interest is 9%, wo whom should Carey sell the land. Show calculations.
Answer:
Carey should accept buyer A's offer
Explanation:
we need to compare the present values of both proposals:
Present value of proposal A = $480,000
Present value of proposal B:
present value of annuity in 5 years = $75,000 x 9.1285 (PVIFA, 9%, 20 periods) = $684,637.50
present value (today) = $684,637.50 / (1 + 9%)⁵ = $444,967.40
At May 31, Metlock, Inc. has net sales of $340,000 and cost of goods available for sale of $278,500. Compute the estimated cost of the ending inventory, assuming the gross profit rate is 36%. Estimated cost of ending inventory
Answer:
$60,900
Explanation:
The computation of the closing inventory is shown below:
As we know that
Gross profit = Sales - cost of goods sold
($340,000 × 36%) = $340,000 - cost of goods sold
$122,400 = $340,000 - cost of goods sold
So, the cost of goods sold is
= $217,600
Now the ending inventory is
= Cost of goods sold available for sale - cost of goods sold
= $278,500 - $217,600
= $60,900
Marigold Corp. incurs the following costs to produce 10100 units of a subcomponent: Direct materials $8484 Direct labor 11413 Variable overhead 12726 Fixed overhead 16200 An outside supplier has offered to sell Marigold the subcomponent for $2.85 a unit. If Marigold could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $838. $(3364). $6838. $(5929).
Answer:
The effect on net income is an increase by $6838.
Explanation:
Analysis of Accepting Special Offer
Savings :
Direct materials $8,484
Direct labor $11,413
Variable overhead $12,726
Fixed Overheads $3,000 $35,623
Total Savings
Costs :
Purchase Price ( $2.85 x 10,100 units) ($28,785)
Effect on Net Income $6,838
Note : We have considered the avoidable component of fixed costs in this calculation. Ignore common fixed costs (unavoidable) since they are irrelevant for decision making.
Conclusion :
The effect on net income is an increase by $6838.
a company acquired a truck for 130,000 residual value was estimated to be $20,000 the truck can be driven for 50,000 miles or a useful life of four years. Actual usage of the truck was recorded as 10,000 miles for the first year. What is the amount of depreciation expesne for the first year calculated by the double
Answer:
$65,000
Explanation:
Depreciation Expense = 2 x SLDP x BVSLDP
where,
SLDP = 100 ÷ 4 = 25 %
BVSLDP = $130,000 (FIRST YEAR)
therefore,
Depreciation Expense = 2 x 25 % x $130,000 = $65,000
Compare and contrast the three most common types of healthcare indemnity plans PLEASE I NEED THIS ANSWER BY MIDNIGHT
Answer:
Health maintenance organizations (HMOs)
Exclusive provider organizations (EPOs)
Point-of-service (POS) plans.
Preferred provider organizations (PPOs)
Explanation:
Two-Stage ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities:
Activity Activity Cost
Machine setup $75.00 per batch
Movement 22.00 per batch
0.10 per pound
Drilling 3.00 per hole
Welding 6.00 per inch
Shaping 32.00 per hour
Assembly 18.00 per hour
Inspection 2.00 per unit
Filling an order for a batch of 50 fireplace inserts that weighed 150 pounds each required the following:
Three batch moves .
Two sets of inspections .
Drilling five holes in each unit
Completing 80 inches of welds on each unit .
Thirty minutes of shaping for each unit .
One hour of assembly per unit
Determine the activity cost of converting the raw materials into 50 fireplace inserts
Fireplace Inserts
Activity Cost
Set-up $
Movement
Batch 60V
Weight
Inspection
Drilling
Welding
Shaping
Assembly
Total
Answer:
$27,541
Explanation:
Calculation to Determine the activity cost
Activity Cost
Set-up $75.00
Movement:
Batch 60V $66
(Three batch moves *22.00 per batch)
Weight $750
(150 pounds*0.10 per pound*50)
Inspection $200
(Two sets of inspections*50*2.00 per unit)
Drilling $750
(3.00 per hole*five holes in each unit*50)
Welding $24,000
(6.00 per inch*80*50)
Shaping $800
(32.00 per hour*(30 minutes/60)*50)
Assembly $900
(18.00 per hour*1*50)
Total $27,541
Therefore the activity cost is $27,541
According to the rule of 70, if a country's real GDP per capita grows at a rate of 2% instead of at a rate of 3%, it would take _____ for that country to double its level of real GDP per capita. a. 35 additional years b. 11.67 additional years c. 23.3 additional years d. 30 additional years e. 15 additional years.
Answer:
b. 11.67 additional years
Explanation:
Lake Corp., a newly organized company, reported pre-tax financial income of $100,000 for Year 1. Among the items reported in Lake's Year 1 income statement are the following: Premium on officer's life insurance with Lake as owner and beneficiary $15,000 Interest received on municipal bonds 20,000 The enacted tax rate for Year 1 is 30% and 25% thereafter. In its December 31, Year 1 balance sheet, Lake should report a deferred income tax liability of
Answer: $0
Explanation:
A deferred income tax is simply referred to as the liability that's being recorded in the balance sheet when there's a difference in the income that's recognized by the company and the tax laws.
First, we should note that the premium on officer's life insurance will make no difference to the taxable income. Also, the interest received on municipal bonds which is $20,000 are usually exempted from the federal income tax and should not be taxable as well.
Therefore, based on the above explanation, Lake should report a deferred income tax liability of $0.
Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Estimated Expected Activity Activity Cost Pools Overhead Cost Product A Product B Total Activity 1 $ 24,000 200 800 1,000 Activity 2 $ 36,900 750 150 900 Activity 3 $ 63,000 1,000 800 1,800 The overhead cost per unit of Product A under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Results are below.
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
Activity 1= 24,000 / 1,000= $24 per activity unit
Activity 2= 36,900 / 900= $41 per activity unit
Activity 3= 63,000 / 1,800= $35 per activity unit
Now, we can allocate costs to product A:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Activity 1= 24*200= $4,800
Activity 2= 41*750= $30,750
Activity 3= 35*1,000= $35,000
Total allocated costs= $70,550
Finally, the unitary cost:
Unitary cost= 70,550 / 5,000= $14.11
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 22 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.20 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
Answer:
1.$92.4million
2. January 1, 2021
No journal entry
3. December 31, 2021
December 31, 2022
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
4. December 31, 2022
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
5. December 31, 2023
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
6. December 31, 2023
Dr Paid in capital -restricted stock $92.4million
Cr Common stock $22 million
Cr Paid in capital-excess of par $70.4 million
Explanation:
1. Calculation to determine the total compensation cost pertaining to the RSUs
Total compensation cost =$4.20 fair value per share × 22 million shares represented by RSUs granted
Total compensation cost=$92.4million
Therefore the total compensation cost pertaining to the RSUs is $92.4million
2. Preparation of the appropriate journal entry to record the award of RSUs on January 1, 2021
January 1, 2021
No journal entry
3.Preparation of the appropriate journal entry to record compensation expense on December 31, 2021
December 31, 2021
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
($92.4million/3 years)
4. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022
December 31, 2022
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
($92.4million/3 years)
5. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.
December 31, 2023
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
($92.4million/3 years)
6. Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
December 31, 2023
Dr Paid in capital -restricted stock $92.4million
Cr Common stock $22 million
Cr Paid in capital-excess of par $70.4 million
($92.4million-$22 million)
4. Suppose GDP is $15 million, private saving is $3 million, consumption is $8 million, public saving is $2 million. Assume the economy is closed.
(a) Calculate taxes minus transfer payments (T), government purchases (G), national saving (S), and investment (I).
(b) Is the government running a deficit or a surplus.? Explain
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits.
Cooking Canning
Beginning work in process $0 $4,710
Materials 22,030 10,200
Labor 8,740 8,020
Overhead 32,760 28,340
Costs transferred in 55,850
ournalize the April transactions.
Answer and Explanation:
The journal entries are shown below:
On April 30
WIP-cooking Dr $22,030
WIP- Canning $10,200
To Raw material inventory $32,230
(Being material used is recorded)
WIP-cooking Dr $8,740
WIP- Canning $8,020
To Factory labor $16,760
(Being assigned of factory labor to production is recorded)
WIP-cooking Dr $32,760
WIP- Canning $28,340
To Manufacturing overhead $61,100
(Being assigned of overhead to production is recorded)
WIP Canning $55,850
To WIP cooking $55,850
(being cost transferred in recorded)
Use Annual Cost Analysis to determine whether Alternative A or B should be chosen. The analysis period is 5 years. Assume an interest rate of 6% per year, compounded annually Alternative A Alternative B Initial Cost 2800 6580 Annual Benefit 450 940 Salvage Value 500 1375 Useful Life (yrs) 5 5 Group of answer choices Alternative A should be chosen, because its initial cost is lower than Alternative B's Alternative A should be chosen, because its equivalent annual cost is $252.15 lower than Alternative B's Alternative B should be chosen, because its annual benefit is higher than Alternative A's Alternative B should be chosen, because its equivalent annual cost is $252.15 higher than Alternative A's
Answer:
A should be chosen, because its equivalent annual cost is $252.15 lower than Alternative B's.
Explanation:
a) Data and Calculations:
Interest rate = 6% per year
Alternative A Alternative B
Initial Cost 2800 6580
Annual Benefit 450 940
Salvage Value 500 1375
Useful Life (yrs) 5 5
Annuity factor = 4.212 for 5 years at 6%.
Present value factor = 0.747 for 5 years at 6%.
Alternative A Alternative B
Present value of
annual benefits $1,895.40 $3,959.28
PV of salvage value 373.50 1,027.12
Total present value
of benefits $2,268.90 $4,986.40
Initial Cost 2,800 6,580
Net present value $531.10 $1,593.60
The equivalent annual cost
= NPV/PV annuity factor
($531.10/4.212) ($1,593.60/4.212)
Equivalent annual cost $126.09 $378.35
Difference:
Alternative B = $378.35
Alternative A = $126.09
Difference = $252.26
Presented below is information for Cullumber Co. for the month of January 2022.
Cost of goods sold $201,500
Rent expense $33,900
Sales discounts 10,000
Freight-out 6,300
Insurance expense 13,400
Sales returns and allowances 17,000
Salaries and wages expense 61,200
Sales revenue 400,000
Income tax expense 5,300
Other comprehensive income (net of $400 tax) 2,000
Prepare a comprehensive income statement.
Answer:
Cullumber Co.
Comprehensive income statement for the month ended January 2022.
$
Sales revenue 400,000
Less Sales returns and allowances (17,000)
Net Sales 383,100
Less Cost of goods sold (201,500)
Gross Profit 181,500
Less Expenses
Rent expense 33,900
Sales discounts 10,000
Freight-out 6,300
Insurance expense 13,400
Salaries and wages expense 61,200
Income tax expense 5,300 (130,100)
Profit for the Year 51,400
Other comprehensive income 2,000
Total Comprehensive income 53,400
Explanation:
The Comprehensive income statement for the month ended January 2022 has been prepared above.
On April 1, Townsley Company sold merchandise with a selling price of $10,000 on account to Trout Company, with terms 3/10, n/30. On April 5, Trout Company returned merchandise with a selling price of $1,000. Trout Company paid the amount due on April 9. What journal entry did Townsley Company prepare on April 9 assuming the gross method is used
Answer and Explanation:
The journal entry is shown below:
Cash $8,730
Sales Discount ($9,000 × 3%) $270
To Accounts receivable $9,000 ($10,000 - $1,000)
Here cash and sales discount is debited as it increased the assets and discount while on the other hand the account receivable should be credited as it reduced the assets
Organizations with low turnover and satisfied employees tend to perform better. On the other side of the coin, organizations have to act when an employee's performance consistently falls short. Based on these concepts, organizations may distinguish between involuntary and voluntary turnover, recognize their effects on the organization, develop measures to encourage top performers to stay, and develop ways to manage the separation process fairly. Any organization wants to retain good performers and encourage or force low-performing employees to leave. There are two types of employee turnover. Involuntary turnover occurs when the employer requires employees to leave, often when they would prefer to stay. This action may potentially result in lawsuits and violence. Voluntary turnover occurs when employees initiate the turnover, often when the organization would prefer to keep them. These employees may retire or leave to work with different organizations. Both types of turnovers are costly because of subsequent needs to recruit, hire, and train replacements.
Roll over each of the following items, read the statements, and place them in the appropriate columnin the chart. Each category has three statements.
1. Any reason
2. Workplace violence
3. Better job
4. Retirement
5. Refusing
6. Violating
7. Promise
8. Careers
9. Employee layoff
A. Voluntary Turnover
B. Involuntary Turnover
C. Employee at Will Doctrine
Answer:
Answer is explained in the explanation section below.
Explanation:
Voluntary Turnover:
Better Job: If an employee is offered a better job, he may choose to quit his current position.
Careers: If an employee is career-oriented and wishes to pursue higher education, he will willingly leave his employment.
Retirement: When an employee reaches the legal working age, he retires, which is referred to as voluntary retirement.
Involuntary Turnover:
Workplace Violence: An employer may decide to fire an employee who engages in workplace violence. This is what is known as spontaneous turnover.
Violating: If an employee is found to be in breach of the company's rules, he will be dismissed, resulting in involuntary turnover.
Employee layoffs: Forced turnover occurs when a company's employees are laid off in large numbers.
Employment at-will doctrine:
For some reason: This allows the employer to fire an employee for any cause.
Promise: Neither the employer nor the employee has made any commitments to each other.
Refusing to state the reason for the employee's termination: If the employer refuses to state the reason for the employee's termination,
eight business functions
Macroeconomic factors that influence interest rate levels
1. T or F: During the credit crisis of 2008, investors around the worls were fearful about the collapse of real estate markets, shaky stock markets, and illiquidity of several securities in the US and several other nations. The demand for US treasury bonds increased, which led to a rise in their price and a decline in their yields.
2. T or F: When the ecnomy is weakening, the Fed is likely to increase short-term interest rates.
3. T or F: When the Fed increses the money supply, short-term interest rates tend to decline.
4. T of F: the Federal Reserve Board has significant influence over the level of economic activity, inflation, and interest rates in the US.
Answer:
1. True
2. False
3. False
4. True
Explanation:
Federal excise duty is the government rate which is set to control the money supply in an economy. When Fed rises the interest rate decline while money supply increases.
The crisis during 2008 led the world towards declining their economic growth. The shaky stock market runs fear in the investors and they withdrew their money from the stock and other risky and invested their earning and savings in safe and secure treasury bonds. This led the government to raise the prices of treasury bonds and the returns of the bonds declined.
Portfolio Returns i. stock has mean of 8% and stdev of 20%; ii bond has mean of 6% and stdev of 15%; iii correlation b/w stock and bond of -0.3; iv. Risk free rate for cash lending and borrowing is at 1%. a. What is the mean and stdev of a portfolio of that is 60% in stock and 40% in bond (3 points)
Answer:
Portfolio Mean = 7.2%
Portfolio Stdev = 0.1169615 or 11.69615% rounded off to 11.70%
Explanation:
The mean return of a portfolio consisting of two securities can be calculated by multiplying the weight of each security in the portfolio by the mean return of that security and adding the products for each security. The formula for two asset or security portfolio return (mean) can be written as follows,
Portfolio Mean = wA * rA + wB * rB
Where,
w represents the weight of each securityr represents the mean return of each securityPortfolio Mean = 60% * 8% + 40% * 6%
Portfolio Mean = 7.2%
The standard deviation is a measure of the total risk. The standard deviation of a portfolio consisting of two securities can be calculated using the attached formula.
Portfolio Stdev = √(0.6)² (0.2)² + (0.4)² (0.15)² + 2(0.6) (0.4) (-0.3) (0.2) (0.15)
Portfolio Stdev = 0.1169615 or 11.69615% rounded off to 11.70%
American Chemical Company manufactures a chemical compound that is sold for $57 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $81 per gallon. American expects the market for the new compound variant to be 8,100 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $162,000. Required: a. What would be the effect on total profit if American produces the new compound variant
Answer:
Effect on income= $32,400 increase
Explanation:
Giving the following information:
Difference in selling price= 81 - 57= $24
Number of units= 8,100
Increase in costs= $162,000
To calculate the effect on income, we need to use the following formula:
Effect on income= Increase in revenue - increase in costs
Effect on income= 24*8,100 - 162,000
Effect on income= $32,400 increase
Consider the following situations. What is the effect on consumption for each of the four scenarios? Either move the consumption function when appropriate or move the point along the consumption function to illustrate the impact of each scenario. You should move only the point or only the line in each part of the question. a. The federal government raises taxes. Consumption Income b. Housing prices increase. Consumption Income c. Consumer incomes rise. Consumption Income d. Consumer expectations of their future income plummet. Consumption Income
Answer:
Hello the graphs related to your question is missing attached below are the graphs
answer: attached below
Explanation:
a) Federal government raises taxes : this will reduce the disposable income of employees hence there will be a shift downwards
b) Housing prices increase; this will lead to a shift upwards
c) Consumer income increases will cause a movement upwards along the curve
d) consumer expectations of their future income plummet will cause a downward shift in the curve
Reid Company is budgeting production of 100,000 units of product R for the month of September this year. Production of one unit of product R requires three units of material B. For material B, the actual inventory units at September 1 were 22,000 units and budgeted inventory units at September 30 are 24,000. How many units of material B is Reid planning to purchase during September?
Answer:
Purchases= 302,000 units
Explanation:
Giving the following information:
Production= 100,000 units
Production of one unit of product R requires three units of material B.
For material B:
Beginning inventory= 22,000
Desired inventory= 24,000
To calculate the purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 100,000*3 + 24,000 - 22,000
Purchases= 302,000 units
The following data relate to Department no. 3 of Winslett Corporation: Segment contribution margin$540,000 Profit margin controllable by the segment manager 310,000 Segment profit margin 150,000 On the basis of this information, Department no. 3's variable operating expenses are: Multiple Choice Not determinable. $160,000. $80,000. $390,000. $230,000.
Answer:
$230,000
Explanation:
The Profit margin controllable by the segment manager contains only items directly controllable by the manager and this consists of variable costs. So deduct the profit margin controllable by the segment manager from segment contribution margin to arrive at Variable operating expenses.
Calculation of Variable operating expenses
Segment contribution margin $540,000
Less Profit margin controllable by the segment manager ($310,000)
Variable operating expenses $230,000
Suppose you are the money manager of a $5.21 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 320,000 1.50 B 780,000 (0.50) C 1,260,000 1.25 D 2,850,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 5%, what is the fund's required rate of return
Answer: 8.65%
Explanation:
First find the weights of the stocks:
Total = 320,000 + 780,000 + 1,260,000 + 2,850,000
= $5,210,000
Stock A:
= 320,000 / 5,210,000
= 6.14%
Stock B:
= 780,000 / 5,210,000
= 14.97%
Stock C:
= 1,260,000 / 5,210,000
= 24.18%
Stock D:
= 2,850,000 / 5,210,000
= 54.70%
Then calculate Portfolio Beta.
Portfolio beta = (6.14% * 1.50) + (14.97% * - 0.5) + (24.18% * 1.25) + (54.72% * 0.75)
= 0.7299
Required rate of return using Capital Asset Pricing Model (CAPM)
= Risk free rate + Beta * (Market return - risk free rate)
= 5% + 0.7299 * (10% - 5%)
= 8.65%
Item4 3 points eBookHintPrintReferencesItem 4 Spotter Corporation reported the following for June in its periodic inventory records. Date Description Units Unit Cost Total Cost June 1 Beginning 12 $ 8 $ 96 11 Purchase 38 9 342 24 Purchase 20 11 220 30 Ending 24 Required: Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Answer:
a. FIFO
cost of ending inventory = $256
cost of goods sold = $402
b. LIFO
cost of ending inventory = $204
cost of goods sold = $454
c. Weighted average cost
cost of ending inventory = $225.60
cost of goods sold = $432.40
Explanation:
Periodic method means cost of sales and inventory balance are determined at the end of the period.
Step 1 : Units Sold
Units Sold = Units available for Sale - Units in Inventory
= (12 + 38 + 20) - 24
= 46
Step 2 : FIFO
FIFO assumes that the units to arrive first, will be sold first.
cost of ending inventory = 20 x $11 + 4 x $9 = $256
cost of goods sold = 12 x $8 x 34 x $9 = $402
Step 3 : LIFO
LIFO assumes that the units to arrive last, will be sold first.
cost of ending inventory = 12 x $9 + 12 x $8 = $204
cost of goods sold = 20 x $11 x 26 x $9 = $454
Step 4 : Weighted average cost
Weighted average cost method calculates a new unit cost with every purchase made. this unit cost is then used to calculated cost of sale and ending inventory.
Unit Cost = Total Costs ÷ Units available for sale
= (12 x $8 + 38 x $9 + 20 x $11 ) ÷ (12 + 38 + 20)
= $9.40
cost of ending inventory = Units in Inventory x Unit Cost
= 24 x $9.40
= $225.60
cost of goods sold = Units Sold x Unit Cost
= 46 x $9.40
= $432.40