Answer:
Diffused ownership of the company is more the exception than the rule.
Explanation:
Outside the United States and the United Kingdom, diffused ownership is more the exception than the rule mostly because the forms of diffuse corporate ownership tend to have an American or British origin, and from the U.S. and the U.K., they expand to other countries with time.
For example, Limited Liability Companies is a type of company with diffused ownership, and has been exported with different names to other countries, becoming more popular with time.
The income elasticity for most staple foods, such as wheat, is known to be between zero and one. As incomes rise over time, what will happen to the demand for wheat? What will happen to the quantity of wheat purchased by consumers? What will happen to the percentage of their budgets that consumers spend on wheat? All other things equal, are farmers likely to be relatively better off or relatively worse off in periods of rising incomes?
Answer and Explanation:
a. As it is given that the income elasticity of wheat is between zero and one that reflects inelastic and less than unity condition.
So in this, when the income is increased the demand for wheat is also increased but it would be less proportionally
And, the percentage increase in demand for wheat is lower than the increase in income
b. The quantity of wheat purchased is increased as there is an increase in income which increased the demand for all goods
c. The percentage of their budget will go decline as the income elasticity is between zero and one that results into an increase in income and they can switch more expenditure for other goods
d. The farmer condition does not affect overall as if the income increased the demand for other goods is also increased but it is more than the wheat
Describe a problem you face in your everyday life or at work. How might you use hypothesis testing to find a solution or improvement to that problem? Would you conduct a one-sample or two-sample test? What would be your null and alternative hypotheses?
Answer:
The common problem i encounter mostly is the statistical modelling problem.
In this scenario we choose best combination of independent variables for the hypothesis testing. the independent variable shows the significant effect on dependent variable so we keep it in modelling.
My null hypothesis would be that there is no significant effect of independent variable on dependent variable. for my alternative hypothesis there exist is significant effect of independent variable on dependent variable.
Explanation:
Solution
The common problem I face daily is the statistical modelling problem which is the selection of relevant independent variable for prediction modelling.
In this example to select the best combination of independent variables we use hypothesis testing. if the independent variable has significant effect on dependent variable then the independent variable shows the significant effect on dependent variable so we keep it in modelling. In this way the model gets improved.
Since there are always two variables or two categories. hence it has a two sample test.
The Hypothesis can be shown below:
Null hypothesis:
H0:There is no significant effect of independent variable on dependent variable.
Alternative hypothesis:
Ha: There is significant effect of independent variable on dependent variable.
Entry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 103 Plastic 400 $ 2,800 104 Steel 402 24,000 105 Glue Indirect 1,620 106 Rubber 403 3,200 107 Titanium 404 31,600 Journalize the entry to record the issuance of materials. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
Details below
Explanation:
For issuance of an entry a single transaction is recorded that is work in process account is debited and materials inventory account is credited. In subsidiary ledgers job numbers are debited. For indirect Materials factory overhead is debited.
The given data is as follows.
Requisition No. Material Job No. Amount
103 Plastic 400 $ 2,800
104 Steel 402 24,000
105 Glue Indirect 1,620
106 Rubber 403 3,200
107 Titanium 404 31,600
The entry for materials requisitioned will be
A compound entry can be passed. In this the subsidiary ledger is not included.
Sr. No Particulars Debit Credit
Work In Process 61600
Factory Overhead 1620
Materials Inventory 63200
The one with a subsidiary ledger would look like this.
Sr. No Particulars Debit Credit
(Subsidiary)
1 Work In Process 61600
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Factory Overhead 1620
Materials Inventory 63200
This is combined entry but separate entries can be passed as well .
Sr. No Particulars Debit Credit
Work In Process 61600
Materials Inventory 61600
Sr. No Particulars Debit Credit
Factory Overhead 1620
Materials Inventory 1620
Sr. No Particulars Debit Credit
(Subsidiary ledger)
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Materials Inventory Plastic 2800
Materials Inventory Steel 24000
Materials Inventory Titanium 3200
Materials Inventory Rubber 31600
In each of the entries above materials inventory is credited.
Holten Farm sells new tractors and pays each salesperson a commission of $1,000 for each tractor sold. During the month of August, a salesperson, Fred, sold 3 new tractors. Jacob pays Jason on the 10th day of the month following the sale. Fred operates on the cash basis; the tractor dealer operates on the accrual basis. Which of the following statements is true?
A) Fred will recognize commission revenue earned in the amount of $3,000 in August.
B) Jacob will recognize commission expense in the amount of $3,000 in August.
C) Fred will recognize commission expense in the amount of $3,000 in September.
D) Fred will recognize revenue in the same month that the tractor dealer recognizes expense.
Answer:
B.Jacob will recognize commission expense in the amount of $3,000 in August
Explanation:
Jacob will recognize commission expense in the amount of $3,000 in August for the 3 tractors that was sold and Jacob was the salesperson who pays Jason the amount of cash realized on the 10th day of the month following the sale of the tractors.
The Commission expenses can be calculated as:
(commission of $1,000× Number of tractor 3)
=$3,000
Who is following the law when it comes to protecting investors’ funds?
Answer:
A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds
Explanation:
Answer:B (a mutual fund advisor who informs investors about risks)
Explanation:
Claudia feels strongly against a law that was recently passed in her hometown. She proceeds to write letters to the local newspaper criticizing the effect of the law. She also marches up and down the sidewalk in front of city hall loudly publicizing her opinion. Which law or principle of law which is most relevant to this situation?
a. Procedural Due Process
b. First Amendment
c. Equal Protection Laws
d. Substantive Due Process
Answer:
Option(b) is the correct answer to the given question
Explanation:
The main objective of the first amendment says that freedom and rights regarding to the correct to the protest, religious faith, appearance as well as assembly.This law is all about the freedom to all the region of the person .
The first amendment prohibits Congress both from supporting yet another religious belief over the other and prohibiting the religious beliefs of even a person as well.As claudia writing the letters to the news paper supportive of the law's effect. She also protests upwards the sidewalk, noisily promoting her viewpoint in front of town hall it is similar to first Amendment law.All the other option are not related to the given scenario that's why these are incorrect option .Consider the following alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 11 % per year. b. What is your ranking if the interest rate is 1 % per year? c. What is your ranking if the interest rate is 20 % per year?
Answer and Explanation:
The computation is shown below:
The formula is
= Amount ÷ (1 + interest rate)^number of years
a) Rate = 11%
Value of $140 in 1 year = $140 ÷ (1 + 11%) = $126.13
Value of $240 in 5 years = $240 ÷ (1 + 11%)^5 = $142.43
Value of $350 in 10 years = $350 ÷ (1 + 11%)^10 = $123.26
Now Ranking
Opotion 2 > Option 3 > Option 1
b) Rate = 1%
Value of $140 in 1 year = $140 ÷ (1 + 1%) = $138.61
Value of $240 in 5 years = $240 ÷ (1 + 1%)^5 = $228.35
Value of $350 in 10 years = $350 ÷ (1 + 1%)^10 = $316.85
Now Ranking
Option 3 > Option 2 > Option 1
c) Rate = 20%
Value of $140 in 1 year = $140 ÷ (1 + 20%) = $116.67
Value of $240 in 5 years = $240 ÷ (1 + 20%)^5 = $96.45
Value of $350 in 10 years = $350 ÷ (1 + 20%)^10 = $56.53
Now Ranking
Option 1 > Option 2 > Option 3
The journal entry to record the use of utilities in a factory could include which two of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A. Debit to Factory Overhead unanswered
B. Credit to Factory Overhead unanswered
C. Debit to Factory Utilities Payable unanswered
D. Credit to Factory Utilities Payable unanswered
E. Credit to Raw Materials unanswered
F. Credit to Factory Wages Payable unanswered
Answer:
The correct options are:
A. Debit to Factory Overhead
D. Credit to Factory Utilities Payable
Explanation:
The debit entry of the use of utilities in a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.
However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to the supplier of the service being enjoyed by the factory in order to run on daily basis
Answer:
The correct options are:
A. Debit to Factory Overhead
D. Credit to Factory Utilities Payable
Explanation:
The debit entry of the use of utilities in a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.
However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to the supplier of the service being enjoyed by the factory in order to run on daily basis
TB MC Qu. 05-112 Eastview Company uses a perpetual... Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales: January 1 150 units were purchased at $9 per unit. January 17 120 units were sold. January 20 160 units were purchased at $11 per unit. January 29 150 units were sold. What is the value of cost of goods sold
Answer:
$2,730
Explanation:
The computation of the cost of goods sold using the LIFO perpetual inventory system is shown below:
Since 120 units and 150 units are sold
So, the same is to be considered
Therefore the cost of goods sold is
= 120 units × $9 per unit + 150 units × $11 per unit
= $1,080 + $1,650
= $2,730
We take the 120 units at $9 per unit and 150 units at $11 per unit so that the cost of goods sold is recorded
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
The reporting statement of fixed asset account is shown. The transactions are listed as follows:
Date Item Debit Credit Debit Credit
Jan. 1 Balance 885,000
Mar. 12 Purchased for cash 274,000 1,159,000
Oct. 4 Sold fo $151,000 129,000 1,030,000
Item Section of Statement of Cash Flows Added or Deducted Amount
Mar. 12: Purchase of fixed asset $
Oct. 4: Sale of fixed asset $
Gain on sale of fixed asset (assume the indirect method) $
Answer and Explanation:
The computation of the purchase of fixed assets is shown below:-
March 12 Purchase of fixed assets = $274,000. This same is shown in the investing activities section of the cash flow statement in the negative sign
October 4 Sale of fixed assets = $151,000. This same is shown in the investing activities section of the cash flow statement in the positive sign
Gain on sale of the fixed asset is
= Sales Value - Cost of asset
= $151,000 - $129,000
= $22,000
This amount is shown in the operating activities section of the cash flow statement in the negative sign
During its first year of operations, Mack’s Plumbing Supply Co. had sales of $420,000, wrote off $6,700 of accounts as uncollectible using the direct write-off method, and reported net income of $46,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible.
Answer:
The net income would have been $45,550
Explanation:
In order to calculate the amount the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible, we would have make the following calculation:
Net income would have been if the allowance method had been used = $46,200 + $6,700 – ($420,000 × 1 3/4%)
Net income would have been if the allowance method had been used= $45,550
The net income would have been $45,550
The Stationery Company purchased merchandise on account from a supplier for $9,100, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $1,100 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? $
Answer:
$7,840
Explanation:
The terms 2/10, n/30 means that if the amount is paid in maximum 10 days, the client will receive a 2% discount. If he/she doesn't make the payment in this period, the total amount has to be paid within 30 days.
As Stationary Company returned merchandise with an invoice amount of $1,100, you have to subtract this amount from the initial value of the merchandise they purchased:
$9,100-$1,100= $8,000
Then, you have to calculate the 2% discount they will get from the $8,000 for paying the invoice within the discount period:
$8,000*2%= $160
$8,000-$160= $7,840
According to this, the answer is that the amount of cash required for the payment is $7,840.
Item 3Item 3 Manufacturing overhead was estimated to be $385,700 for the year along with 20,300 direct labor hours. Actual manufacturing overhead was $423,400, and actual labor hours were 21,600. The amount debited to the Manufacturing Overhead account would be:
Answer:
$423,400
Explanation:
The Overhead applied to Product Costs are Credited in the Overhead Account whilst the Overheads Actually incurred are Debited. The difference between the debit and credit will represent the amount of overheads under-applied or overheads over applied.
Actual Overheads incurred = $423,400
Applied Overheads = $385,700/20,300 × 21,600
= $ 410,400
Answer:
Debit manufacturing overhead with actual overhead incurred-$423,400
Explanation:
Absorbed overhead = Overhead absorption rate (OAR) × actual direct labour hours
OAR = Budgeted overhead / Budgeted labour hours
= $385,700/20,300 hours=
Absorbed overhead = $19 × 21,600 =$410,400
Absorbed overhead = $410,400 .
In accounting for overhead the following entries would be observed
Debit manufacturing overhead with actual overhead incurred-$423,400
And credit manufacturing overhead with absorbed overhead- $410,400
The difference of $13000 is the over absorbed overhead
Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,053,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2012
2,413,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2013
241,300
3. Shares issued for cash on March 31, 2014
2,136,000
Number of common shares issued and outstanding at December 31, 2014
4,790,300
4. A 2-for-1 stock split of Newton’s common stock took place on March 31, 2015
Compute the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement
Compute the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement.
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement.
Answer:
1. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. The weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
Explanation:
1. To calculate the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement we would have to ake the following calculation:
Jan1.2013-Sep30.2013(2,413,000*9/12)=1,809,750
retroactive adjustment for stock dividend ×1.10
Jan1.2013-Sep30.2013 adjusted= 1,990,725
Oct.2013-Dec31.2013(2,654,300*3/12)= 663,575
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. To calculate the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement we would have to make the following calculation:
Jan1.2014 -Mar31.2014(2654300*3/12) 663575
April1.2014 -Dec31.2014 (4790300*9/12) 3592725
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement we would have to make the following calculation:
2014 weighted average no of shares 4256300
Retroactive adjustment for stock split ×2 =8512600
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement we would have to make the following calculation:
Jan1.2015-Mar31.2015 (4790300*3/12)=1197575
Retroactive adjustment for stock split ×2
Jan1-Mar31.2015 adjusted. 2395150
Mar1.-Dec31.2015 (9580600*9/12)= 7185450
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $100. Determine the money multiplier and the money supply for each reserve requirement listed in the following table.
Reserve Requirement Simple Money Multiplier Money Supply
(Percent) (Dollars)
25
10
A lower reserve requirement is associated with a money supply.
Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to worth of U.S. government bonds.
Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to to . Under these conditions, the Fed would need to worth of U.S. government bonds in order to increase the money supply by $100.
Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply? Check all that apply.
The Fed cannot control the amount of money that households choose to hold as currency.
The Fed cannot prevent banks from lending out required reserves.
The Fed cannot control whether and to what extent banks hold excess reserves.
Answer: The answers are provided below
Explanation:
A. Total Reserve = $100
Money supply = Total reserve × multiplier
When the reserve requirement is 25%,
Simple money multiplier = 100/25 = 4
Money supply = 100 × 4 = $400
When the reserve requirement is 10%,
Simple money multiplier = 100/10 = 10
Money supply = 100 × 10 = $1000
B. A lower reserve requirement is associated with a (larger) money supply. This is done when the government wants more money to be in circulation. It is an expansionary policy.
C. Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to (purchase 100 × 10% = $10) worth of United States government bonds.
D. Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to (fall to 100 ÷ 20=5). Under these conditions, the Fed would need to (purchase 100 × 20% = $20) worth of U.S. government bonds in order to increase the money supply by $100.
E. The statements that help to explain in the real world why the Fed cannot control the money supply are:
• The Fed cannot control the amount of money that households choose to hold as currency.
• The Fed cannot control whether and to what extent banks hold excess reserves
The Money Multiplier denotes how an initial deposit can result in a larger final increase in the total money supply.
What do you mean by money multiplier?The money multiplier is a term in the financial economy that is the act of generating money in the economy through credit creation, based on a fractional banking system.
Money multiplication is also known as cash multiplication.
[tex]\rm\,Total\; Reserve = \$100\\\\Money\; supply = Total \;reserve \; \times \rm\, multiplier\\\\When \;the\; reserve \;requirement \;is \;25\%\\\\Simple\; money \;multiplier\; = \dfrac{1}{25\%} = 4\\\\Money \;supply = 100 \times 4 = \$400\\\\When\; the \;reserve\; requirement\; is \;10\%,\\\\Simple\; money \;multiplier = \dfrac{1}{ 10\%} = 10\\\\Money \;supply = 100 \times 10 = \$1000[/tex]
In the real world why the Fed cannot control the money supply are:
• The Fed cannot control the amount of money that households choose to hold as currency.
• The Fed cannot control whether and to what extent banks hold excess reserves.
Hence, the Fed cannot control the amount of money that households choose to hold as currency and the Fed cannot control whether and to what extent banks hold excess reserves are the correct statements.
To learn more about money multiplier, refer:
https://brainly.com/question/14182201
Lock Division of Morgantown Corp. sells 80,000 units of part Z-25 to the outside market. Part Z-25 sells for $40, has a variable cost of $22, and a fixed cost per unit of $10. The Lock Division has a capacity to produce 100,000 units per period. The Cabinet Division currently purchases 10,000 units of part Z-25 from the Lock Division for $40. The Cabinet Division has been approached by an outside supplier willing to supply the parts for $36. What is the effect on Morgantown's overall profit if the Lock Divisi
Answer:
The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits
Explanation:
In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:
Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18
Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000
Cost per unit saved by Cabinet division = $40 - $36 = $4
Total cost saved by cabinet division = $4 * 10,000 = $40,000
Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000
Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.
If the price of a six-pack of Pepsi falls from $4 to$3 and the quantity purchased increases 80 percent, then demand is
Answer:
low
Explanation:
If the price decreases and the quantity increases, the demand is low.
If the price increases and the quantity decreases, the demand is high.
Hope this helps!!! PLZ MARK BRAINLIEST!!!
Akwamba made this statement organization cannot be successful if managers fail to pay attention to the forces in the external environment. Do you agree or not. Justify using practical examples
Answer:
I agree A firm cannot be successful if it does not pay attention to external and force environments
TerraLoc competes in the market for global positioning devices and services. The company manufactures its own GPS units, which are smaller than those of any other competitor and include a proprietary battery that lasts 200% longer than any other competitor's battery and that TerraLoc manufacturers on-site. TerraLoc also has developed proprietary software that is much faster and more precise than that of any competitor. When developing the proprietary battery, TerraLoc decided to manufacturer the battery in-house to reduce the possibility that the company it outsourced the battery manufacturing to might reverse engineer the battery and sell a similar product to competitors. This possibility was especially troubling given that the company expected a significant increase in demand due to the improved battery life. Additionally, TerraLoc sells its products and services through its own direct sales force to ensure that its representatives highlight the longer battery life of TerraLoc's units.
TerraLoc's decsion to manufacture the battery in-house is most consistent with which theory(s) of vertical integration?
a. Firm capability-based explanations
b. Alliance-based explanation
c. Opportunism-based explanations
d. Flexibility-based explanations
Answer:
The correct answer is the option A: firm capability-based explanations.
Explanation:
To begin with, given the fact that the company decided to manufactured the battery in-house in order to reduce the possibility of helping other competitors when using an outsourced manufacturer then the company is using its firm capability in order to achieve the goal of manufacturing that component of the final product. Therefore that if the company would not have the resources and capability of doing it then it would necessary outsourced the manufactured of it.
Which best describes the role the applicants can fill in the company? Applicants 1 and 3 are best suited to work in network systems, while Applicant 2 could work in programming, information support, or interactive media. Applicants 2 and 3 are best suited to work in network systems, while Applicant 1 could work in programming, information support, or interactive media. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media. Applicant 3 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Incomplete question, however I made interferences from an employer perspective.
Answer:
Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
From a performance point of view the programming, information support and interactive media roles of the company would be better handled by more than one individual since this roles involve more responsibilities that could not be handled by one individual.
The network systems role can better be managed by Applicant 1 only as it is a task that could be handled by a single employee.
Answer:
C. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
Took The TestA company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Second purchase $67; Third purchase $64. If the company sold two units for a total of $209 and used FIFO costing, the gross profit for the period would be
Answer:
$82
Explanation:
As company Uses FIFO system, it will sell first two products
The cost price =($60 + $67 = 127).
So Gross profit = Selling Price-Cost Price
Gross Profit = 209-127
= $82
The gross profit for the period is $82
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 44 $ 36 $ 1,584 Apr. 7 Purchase 124 38 4,712 Jul. 16 Purchase 194 41 7,954 Oct. 6 Purchase 104 42 4,368 466 $ 18,618 For the entire year, the company sells 413 units of inventory for $54 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Answer:
TRC Corporation
Calculations, using FIFO:
a) Ending Inventory:
Ending Inventory in units = Units available for sale minus Units sold
Ending Inventory in units = 466 - 413 = 53 units
Ending Inventory value = Units x FIFO cost of last purchase = 53 x $42 = $2,226
b) Cost of goods sold:
Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
Cost of goods sold = $1,584 + 17,034 - 2,226 = $16,392
c) Sales Revenue:
Sales Revenue = Units sold x Selling price = 414 x $54 = $22,302
d) Gross Profit:
Gross Profit = Sales Revenue minus Cost of goods sold
Gross Profit = $22,302 - $16,392 = $5,910
Explanation:
a) Summary of Inventory Transactions:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 44 $ 36 $ 1,584
Apr. 7 Purchase 124 38 4,712
Jul. 16 Purchase 194 41 7,954
Oct. 6 Purchase 104 42 4,368
b) Cost of goods available 466 $ 18,618
c) Sales 413 $ 54 $ 22,302
d) Dec. 31 Ending Inventory 53 42 $ 2,226
e) The FIFO (First-in, First-out) inventory method assumes that goods sold are from earlier inventory units, unlike Last-in, First-out (LIFO). This means that beginning and earlier purchased inventory units are sold first before the latest purchases. Using the FIFO method, the ending inventory is valued at the cost of the most recent inventory purchases.
Franchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number of company-owned stores. In 2014 Starbucks had over 7,000 company- owned stores in the United States. How do you explain this difference
Answer with its Explanation:
Their are following differences that enabled Starbucks to grow its business successfully with excellent customer feedback.
The franchising has enabled Starbucks to control the franchises to manage its business in far much better way than other methods of traditional growing businesses. The method helps in amendments of operations, processes and policies at very face pace and implementation is similar to the traditional company owned stores.
The second difference is that the product of Starbucks includes standardized and customer tailored products which makes it choice of every person. The differentiated strategy makes the business offerings a symbol of quality and taste and this standardization of services and products was very easy to implement at very lower cost than traditional company owned stores business.
If your uncle borrows $69,000 from the bank at 11 percent interest over the nine-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. How much of his first payment will be applied to interest? To principal? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
c. How much of his second payment will be applied to each? (Do not round intermediate calculations Round your final answers to 2 decimal places.)
Answer:
a. The annual payment to be made is $12,461.51
b. On first installment interest portion is $7,590 and principal portion is $4,871.51
c. The Interest portion in the second installemnt is $7,054.13 and Principal portion is $5,407.38.
Explanation:
a. According to the given data we have the following:
Loan Amount (Present Value) = $69,000.
Nper = 9 years
Rate = 11%.
Future value = 0
You would have to Compute annual payment using excel function as follows:
Pmt = Pmt(11%,9,-69000,0)
= $12,461.51.
Therefore, annual payment to be made is $12,461.51.
b. To calculate the amount of his first payment to be applied to interest and To principal we would have to make the following calculation:
Interest = $69,000*11% = 7,590.
Installement amount = 12,461.51.
Principal portion = 12,461.51-7590 = $4,871.51.
Therefore, On first installment interest portion is $7,590 and principal portion is $4,871.51.
c. To calculate How much of his second payment will be applied to each we would have to make the following calculations:
Principal Balance at the beginning of the second is $69,000 -$4871.51 = $64128.49.
Interest portion in the second installemnt = $64,128.49 * 11% = $7,054.13.
Principal portion = $12461.51-$7054.13 = $5,407.38.
An expansionary fiscal policy will Question 4 options: always result in a budget deficit. always result in a budget surplus. sometimes result in a budget deficit. never result in a budget surplus. More information is necessary to answer this question.
Answer:
always result in a budget deficit.
Explanation:
Expansionary fiscal policy are policies undertaken by the government to increase the supply of money in the economy.
Tools of Expansionary fiscal policy are :
tax cuts
increased government spending
transfer payments.
A budget deficit occurs when government spending exceeds income.
If taxes are cut, revenue of the government would fall and this can lead to a budget deficit.
Also if the government increases its spending, spending can exceed income and this would lead to a deficit.
I hope my answer helps you
Bell expects to produce 1 comma 800 units in January and 2 comma 155 units in February. The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 4 comma 950 pounds. Bell desires the ending balance in Raw Materials Inventory to be 20% of the next month's direct materials needed for production. Desired ending balance for February is 4 comma 860 pounds. Prepare Bell's direct materials budget for January and February.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Production:
January= 1,800 units
February= 2,155 units
The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound.
Beginning inventory= 4,950 pounds.
Desired ending inventory= 20% of the next month's direct materials needed for production.
Desired ending balance for February is 4,860 pounds.
To calculate purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
January (in pounds):
Production= 1,800*3= 5,400
Desired ending inventory= (2,155*3)*0.2= 1,293
Beginning inventory= (4,950)
Total= 1,743
Total cost= 1,743*10= $17,430
February (in pounds):
Production= 2,155*3= 6,465
Desired ending inventory= 4,860
Beginning inventory= (1,293)
Total= 10,032
Total cost= 10,032*10= $100,320
Pekoe sold stock to his sister Rose for $12,000, its fair market value. Pekoe bought the stock 5 years ago for $16,000. Also, Pekoe sold Earl (an unrelated party) stock for $6,500 that he bought 3 years ago for $9,500. What is Pekoe's recognized gain or loss?
Answer:
The answer is $3000
Explanation:
Solution
Given that:
Pekoe sold stock to his sister rose for the amount = $12,000
The stock cost 5 years ago for Pekoe = $16,000
Pekoe sold earl stock for =$6,500
Previous stock for earl 3 years ago = $9,500
Now we have to find the recognized loss of Pekoe
THus,
The sale of stock to rose will be a loss of $ 4000
which is
($12,000 -$16,000) =$4000 loss
Thus,
The sale of stock to Earl will result to the following loss which is state below:
$6,500 - $9,500 = a loss of $3000
Therefore the recognized loss of pekoe is $3000 or -$3000
Note: A loss was recognized here, no gain earned
Answer:
Pekoe would recognize the loss of $3,000.
Explanation:
The sale of stock to Rose would result in a loss of $3,000 ($12,000 (FMV) - $16,000 (cost) = $4,000 loss).
Under the tax law, "losses from sale or exchange of property ... directly or indirectly" are disallowed between related parties. When the property is later sold to an unrelated party, any disallowed loss may be used to offset gain on that transaction.
The sale of stock to Earl (an unrelated party) also results in a loss ($6,500 (FMV) - $9,500 (cost) = $3,000 loss). This is considered an arms-length transaction.
Pekoe would recognize the loss of $3,000.
Prepare Journal Entries in a Revenue Journal Horizon Consulting Company had the following transactions during the month of October: Oct. 2 Oct. 3 Oct. 14. Oct. 24 Oct. 29 Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $380 Issued Invoice No. 322 to Armor Inc. for services rendered on account, $540. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $190. Issued Invoice No. 324 to Rose Co. for services rendered on account, $790 Collected Invoice No. 321 from Pryor Corp.
a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format revenue journal Accounts Rec. Dr DATE Invoice No. Account Debited Post. Ref Fees Earned Cr Oct. 2 Oct. 3 Oct. 14 Oct. 24 Oct. 31
b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? Accounts receivable Fees earned c. What is the October 31 balance of the Pryor Corp, customer account assuming a zero balance on October 1?
Answer and Explanation:
The recording and the computations are as follows
a. The recording of the October revenue transactions are shown below:
DATE INVOICE NO. ACCOUNT DEBITED POST.REF.
ACCOUNT REC. DR. FEES EARNED CR.
Oct 2 321 Pryor Co.
380
Oct 3 322 Armor Co.
540
Oct 14 323 Pryor co.
190
Oct 24 324 Rose co.
790
Oct 31 1900
b) Now the total amount for account receivable and fees earned is
Account receivable = 1900
Fees earned = 1900
c) The October 31 balance is
October 31 balance
= $380 + $190 - $380
= $190
Below is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of $1,000 Par Bond (Zero-Coupon) 1 $ 943.40 2 873.52 3 816.37 a. An 8.5% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be
Answer:
6.997%
Explanation:
To find the answer, we use the Yield to Maturity (YTM) for a Zero Coupon Bond:
YTM = [(F/PV)^1/n] - 1
Where:
F: Face/Par value (the question is telling us that the par value of a 3-year bond is $816.367)
PV: Present Value (which is the same as the price: $1,000)
n: number of periods (in this case 3 years because the coupon is annual)
Now, we plug the amounts into the formula:
YTM = [($1,000/$816.37)^1/3]-1
YTM = 6.997%
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
Account Balance
Cash $29,400
Accounts receivable 21,600
Accounts payable 12,000
Common stock 28,300
Retained earnings 10,700
The following events apply to Oak Consulting for Year 2:
Provided $68,400 of services on account.
Incurred $3,100 of operating expenses on account.
Collected $47,400 of accounts receivable.
Paid $31,100 cash for salaries expense.
Paid $13,590 cash as a partial payment on accounts payable.
Paid a $8,500 cash dividend to the stockholders.
Required:
a. What is the amount of net income for the year?
b. What is the amount of change in retained earnings for the year?
Answer:
a. What is the amount of net income for the year?
$34,190b. What is the amount of change in retained earnings for the year?
increased by $25,690Explanation:
net income:
total service revenue $68,400salaries expense -$31,100operating expenses -$3,100net income = $34,190change in retained earnings = net income - dividends = $34,190 - $8,500 = $25,690
Revenue and expenses are recorded on the periods that they occur, regardless of when they are collected or paid respectively.