Answer:
True. Peggy has been invited to participate to a focus group.
Explanation:
A focus group is a meeting of a small group of people, for a moderate amount of time (usually 1 or 2 hours), with the goal of discussing a specific subject.
Focus groups have a moderator, and the participants know the objective of the focus group.
In this case, Peggy will be participating in a focus group, with 9 other people, and the subject that they will discuss is the concept of the new health and fitness magazine.
The question of if Peggy accepts the invitation, she will be participating in a focus group is:
True
According to the given question, we are asked to find out if Peggy accepts the invitation, whether she will be participating in a focus group or not.
With this in mind, we know that a focus group is one which has a moderator and a set number of participants where they discuss different topics amongst themselves.
Therefore, the correct answer is True
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https://brainly.com/question/14282675
The food and beverage manager should always expect that the fresh produce delivered to his or her establishment will be the same quality and degree of ripeness that they were when first harvested in the field. True or False
Answer:
False.
Explanation:
The food and beverage manager shouldn't always expect that the fresh produce delivered to his or her establishment will be the same quality and degree of ripeness that they were when first harvested in the field.
The produce delivered wouldn't be as fresh, same quality and degree of ripeness that they were when first harvested because of changes in environmental conditions such as temperature and relative humidity. Also, a change in its biochemical composition would go a long way to affect the quality of fresh produce.
Hence, this would result in a change in taste, texture, degree of ripeness, nutritional value, smell etc.
However, the farmer or supplier of this food products could mitigate the change in quality by transporting them as soon as possible after harvesting, transporting at a required cold temperature, humidity and ensuring they're well packaged in a safe container during shipment.
2. On January 1, 2021, Legion Company sold $250,000 of 8% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $218,844, priced to yield 10%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2021, in the amount of: (Round your answer to the nearest dollar amount.)
Answer:
$10,942.20
Explanation:
The computation of the bond interest expense for the six month is shown below:
= Carrying value of the bond × effective interest rate × number of months ÷ total number of months in a year
= $218,844 × 10% × 6 months ÷ 12 months
= $10,942.20
By multiplying the carrying value of the bond with the effective interest rate and the number of months we can get the bond interest expense and the same is to be considered
The total cost schedule for a competitive firm is given by: OutputTotal Cost 0$10 160 280 3110 4165 5245 If market price is $60, how many units of output will the firm produce
Answer: 4 units.
Explanation:
A firm should produce at the rate where Marginal Cost is equal to Marginal Revenue or at a point where they are at their closest.
From the above question, the Marginal Revenue is the Market Price of $60 because that is the extra amount made per sale.
The closest Marginal Cost to $60 is at 4 units. Here the cost of producing is $165 and the cost of producing 3 units is $110. The cost of producing the 4th unit,
= 165 - 110
= $55
The marginal cost of the 5th unit is $80 so it cannot be here.
At the 4th unit the profit made is,
= (Selling price * units) - cost
= (60 * 4) - 165
= $75
This will be the highest profit the company can make.
Ski Master Company pays weekly salaries of $18,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Wednesday.
Answer and Explanation:
The journal entries are shown below:
Wages expense ($18,000 × 3 days ÷ 5 days) $10,800
To Wages payable $10,800
(Being the accrued wages is recorded)
For recording this we debited the wages expense as it increased the expenses and credited the wages payable as it also increased the liabilities
Haymitch Global Industries is a world leading producer of loudspeakers and other electronics products, which are sold under brand names like JRH, Excelsior, and Haymitch/Krug. The company reported the following amounts in its financial statements (in millions)
2013 2012
Net Sales $ 6,000 $ 6,060
Cost of Goods Sold 4,900 4,700
Beginning Inventory 550 470
Ending Inventory 660 550
Required:
Determine the inventory turnover ratio and average days to sell inventory for 2013 and 2012. (Use 365 days in a year. Round your intermediate and final answers to 1 decimal place.)
2013 2012
Inventory Turnover Ratiotimes per yeartimes per year
Days to Selldaysdays
Answer:
1.Inventory Turnover ratio 2013= 8.09 Times
Inventory Turnover ratio 2012= 9.21 Times
2.Days to sell 2013= 45.11 Days
Days to sell 2012= 39.63 Days
Explanation:
Calculation for Determining the inventory turnover ratio and average days to sell inventory for 2013 and 2012.
Haymitch Global Industries
A. The Inventory Turnover Ratio times per year times per year
Using this formula
Inventory Turnover = Cost of Goods Sold /Average inventory
2013
Inventory Turnover ratio= 4,900/[(550+660)/2]
Inventory Turnover ratio=4,900/(1,210÷2)
Inventory Turnover ratio=4,900/605
Inventory Turnover ratio 2013= 8.09 Times
2012
Inventory Turnover ratio= 4,700/[(470+550)/2]
Inventory Turnover ratio=4,700/(1,020÷2)
Inventory Turnover ratio=4,700/510
Inventory Turnover ratio 2012= 9.21 Times
Calculation for Days to Sell days
Days to sell
Using this formula
Days to sell = 365/Inventory Turnover
2013
Days to sell= 365/8.09
Days to sell 2013= 45.11 Days
2012
Days to sell = 365/9.21
Days to sell 2012= 39.63 Days
Lockheed Martin is increasing its booster thrust power in order to win more satellite launch contracts from European companies interested in new global communications markets. A piece of earth-based tracking equipment is expected to require an investment of $13 million. Annual operating costs for the system are expected to start the first year and continue at $0.9 million per year. The useful life of the tracker is 8 years with a salvage value of $0.5 million. Calculate the Annual Worth for the system if the corporate MARR is currently 12% per year.
Answer:
Lockheed Martin needs to make $3,476,250 per year (during 8 years) to cover their costs and investment required for the project if their MARR is 12%.
Explanation:
required investment -$13,000,000
operating costs per year = -$900,000
8 years useful life, salvage value of $500,000
to calculate the annual worth we need to determine capital recovery of the project:
capital recovery = [-$13,000,000 x annuity factor PV (A/P, 12%, 8)] + [$500,000 x annuity factor (A/F, 12%, 8)] = (-$13,000,000 x .2013) + ($500,000 x .0813) = -$2,616,900 + $40,650 = -$2,576,250
this means that Lockheed Martin would need to earn $2,576,250 during 8 years just to recover their investment.
since the company will also incur in yearly operating costs, they must include them to determine the total annual worth of the project:
annual worth = -$2,576,250 - $900,000 = -$3,476,250
Greenville Cabinets received a contract to produce speaker cabinets for a major speaker manufacturer. The contract calls for the production of "4,700" bookshelf speakers and "5,500" floor speakers over the next two months, with the following delivery schedule:
Model Month 1 Month 2
Bookshelf 2,800 1,900
Floor 2,200 3,300
Greenville estimates that the production time for each bookshelf model is 0.8 hour and the production time for each floor model is 1 hour. The raw material costs are $17 for each bookshelf model and $19 for each floor model. Labor costs are $29 per hour using regular production time and $40 using overtime. Greenville has up to 3,100 hours of regular production time available each month and up to 1,700 additional hours of overtime available each month. If production for either cabinet exceeds demand in month 1, the cabinets can be stored at a cost of $12 per cabinet.
Required:
For each product, determine the number of units that should be manufactured each month on regular time and on overtime to minimize total production and storage costs. If required, round your answers to the nearest whole number.
Answer:
see attached
Explanation:
The total hours required to produce each month's order are ...
Month 1: 0.8(2800) +1(2200) = 4440
Month 2: 0.8(1900) +1(3300) = 4820
That is, orders for Month 2 require 20 more hours than are available. Both months require significant overtime.
__
From this brief analysis, we learn that we must store a minimum of 20 hours worth of labor. We can minimize the storage cost by maximizing the hours of labor in each item stored. Floor models require 1 hour each, which is more than the labor requirement of a Bookshelf model. So, we should store 20 Floor models.
__
Overtime is required in both months to fulfill the orders, so it doesn't really matter how the regular hours are spent. We can, for example, produce one entire order on regular time, and the other on overtime; or, we can split the hours so the product mix approximates the order mix. Either way, the labor cost will be the same.
We choose to spend the 3100 regular hours producing 1575 Bookshelf models, and 1840 Floor models.
Then the overtime hours can be spent making up the difference from the total for the month.
The attachment shows the allocation of quantities, hours, and labor dollars. The total (minimized) production and storage cost is shown at lower right.
Black Cable Company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($600 per year) or two years in advance ($960). In September 2019, the company collected the following amounts applicable to future services: October 2019 - September 2021 services (200 two-year contracts) $192,000 October 2019 - September 2020 services (200 one-year contracts) 120,000 Total $312,000As a result of this, Black Cable should report gross income for 2020:a. $54,000 b. $78,000 c. $258,000 d. $312.000
Answer:
c. $258,000
Black cable should report $258,000 as gross income for 2020
Explanation:
One-eighth (3/24) of the payments on the two-year contracts were earned (1/8 of $192,000 =24,000)
One-fourth (1/4 of $120,000 = $30,000) of the payment on the one-year contracts were earned in 2019 and is included in 2019 gross income.
The balance of the payment = $312,000 - $24,000-$30,000 = $258,000. $258,000 must be included in 2020 Black Cable gross income
DasGute, a not-for-profit (NFP) organization located in Frankfurt, Germany, directly solicited CoolSchool, an NFP university located in Westport, CT, to enter into an agreement to establish a branch campus of CoolSchool in Frankfurt called CoolNewSchool. CoolNewSchool is not a separate legal entity and will operate as adegree-granting branch campus of CoolSchool in Frankfurt with the intent to provide students the same level of undergraduate education that it provides to students enrolled at its main campus in Westport. DasGute has entered into similar agreements with other U.S. universities in fulfillment of its mission to develop human resources through highquality education and research in Frankfurt. The boards of directors for both DasGute and CoolSchool require that CoolNewSchool prepare stand-alone financial statements in accordance with U.S. GAAP to demonstrate that revenue and expenses of CoolNewSchool have been generated and incurred inaccordance with the operating budgets described below.Eddie V., the new controller of CoolNewSchool isn’t sure how to account for its formation under U.S. GAAP but has knowledge of NFP accounting principles, specifically whether an agreement should be accounted for as an exchange transaction or a contribution within the stand-alone financial statements.Case FactsResponsibilities of CoolSchoolThe agreement requires that CoolSchool be responsible for the following activities:(1) hiring and terminating of personnel (including the dean, who will function as the CEO of CoolNewSchool) (2) recruiting, admitting, and enrolling students; (3) designing and delivering the academic curriculum; (4) establishing and implementing operational policies and procedures (including compensation for employees and tuition rates for students); and (5) authorizing expenditures once a budget is approved.Responsibilities of DasGuteThe agreement requires that DasGute be responsible to (1) construct, own, furnish, and maintain the site; (2) bear the costs of the joint advisory board; and (3) fund all necessary expenditures for CoolNewSchool, as stipulated by the annual budget.Shared Responsibilities of CoolSchool and DasGuteA nine-member joint advisory board will be established, consisting of three appointed members by CoolSchool, three appointed members by DasGute, and three jointly appointed members. The joint advisory board does not have decision-making authority but will provide guidance on CoolNewSchool’s operations and final approval of the annual budget.Operating BudgetEach year, CoolNewSchool will develop an operating budget that is subject to approval by the joint advisory board. If an agreement is not reached on a proposed budget, the operating budget for the fiscal year in question will be based on the previous year’s budget. Any unresolved issue, whether related to the budget or any other matter, will be settled by arbitration.• Once the annual budget has been approved, CoolSchool has full expenditure authority for CoolNewSchool’s operating expenses. DasGute will reimburseCoolSchool for all expenditures incurred in accordance with the annual budget. In addition, DasGute will pay an annual management fee to CoolSchool.• While CoolSchool is responsible for tuition billing, DasGute is required to fundany shortfall between the tuition rates established for CoolNewSchool and theactual amounts paid by the students, to cover the annual budgeted operatingexpenses.Required:1. Determine whether CoolNewSchool represents an extension of DasGute orCoolSchool by identifying which entity exercises control of CoolNewSchool(analogous to the idea of control if consolidated financial statements wererequired) and from whose perspective (DasGute or CoolSchool) the controllingentity’s agreement should be analyzed as either an exchange transaction or acontribution.2. Does the agreement represent an exchange transaction (and therefore all tuitionamounts should be recorded as "Tuition Revenue") or a contribution (andtherefore the amounts received from DasGute in the form of tuition subsidiesshould be recorded as "Cont?
Answer:
DasGute, a not-for-profit (NFP), Frankfurt / CoolSchool, Westport, CT, and CoolNewSchool, Frankfurt
1. Determination of Control:
DasGute exercises control over CoolNewSchool. CoolSchool is just in a management consultancy position.
It is from DasGute's perspective that the controlling entity's agreement should be analyzed as a contribution transaction. It is not an exchange transaction.
2. Determination of Exchange and Consideration Transactions: In an exchange transaction, there will be consideration for the parties, especially DasGute and CoolSchool. The facts do not support an exchange transaction. The IFAC definition do not support an exchange transaction. The FASB ASC 958-605 rules and FASB ASU 2018-08 update do not support an exchange transaction.
3. Therefore, the amount received from DasGute in the form of tuition subsidies should be recorded as "Contribution Revenue."
Explanation:
a) International Federation of Accountants (IFAC) define exchange transactions, thus: "Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange."
b) The FASB ASC 958-605 provides guidance for contribution and exchange transactions. "The indicators to use to determine whether a contribution should be recorded as a contribution transaction or an exchange transaction are:
1. What is the recipient nonprofit’s intent in soliciting the asset?
a) Soliciting the asset as a contribution – contribution transaction
b) Seeking resources in exchange for specified benefits – exchange transaction
2. What is the resource provider’s expressed intent about the purpose of the asset to be provided by the recipient nonprofit?
a) Provider is making a donation to support the nonprofit’s programs – contribution
b) Provider is transferring resources in exchange for specific benefits – exchange
3. What is the method of delivery by recipient nonprofit to third-party recipients?
a) At the discretion of the recipient nonprofit – contribution
b) Specified by the resource provider – exchange
4. What is the method of determining the amount of the contribution?
a) Resource provider determines amount – contribution
b) Amount contributed equals the value of the assets to be provided by the recipient nonprofit, or the assets’ cost plus markup – exchange
5. Are there penalties assessed if the nonprofit fails to make timely delivery of assets?
a) Recipient nonprofit not penalized for nonperformance – contribution
b) Recipient nonprofit penalized for nonperformance – exchange
6. To whom will the recipient nonprofit deliver the assets?
a) Delivered to individuals or organizations other than the resource provider – contribution
b) Delivered to the resource provider or to individuals or organizations closely connected to the resource provider – exchange"
c) FASB ASU 2018-08 update, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, explains clearly when revenue is exchange versus contribution:
"The first step in determining the accounting is determining who is paying the money and who, if anyone, is getting goods or services from the transaction.
If the nonprofit gets funds from a payor and provides that payor direct, commensurate value in return, that is an exchange transaction. An example would be when you purchase a training class from your membership organization; you are paying the value of what you are receiving.
If the nonprofit gets funds from a payor and no value is paid out to anyone at that time, that is clearly a contribution.
If the nonprofit gets funds from a payor, such as the federal government, with the purpose of the nonprofit providing the goods and services to a third party, the general public or a subsegment thereof, that is also a contribution. When the general public, or someone other than the payor, receives the goods or services, it is a contribution."
How to calculate gross margin Description AmountNumber of units sold 800 unitsSelling price per unit $500 per unitCost of goods sold per unit (all variable) $250 per unitVariable selling expense per unit $45 per unitFixed selling expense $22,100Variable administrative expense per unit $32 per unitFixed administrative expense $15,400
Answer:
$200,000
Explanation:
The computation of the gross margin is shown below:
As we know that
Gross margin = Sales - cost of goods sold
= (800 units × $500 per unit) - (800 units × $250 per unit)
= $400,000 - $200,000
= $200,000
We simply applied the above formula so that the gross margin could come
And the other items which are mentioned in the question are to be ignored as they are not relevant
Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch.
2,400 ounces of grape concentrate at $0.01 per ounce
54 pounds of granulated sugar at $0.50 per pound
60 lemons at $0.80 each
100 yeast tablets at $0.21 each
100 nutrient tablets at $0.14 each
3,700 ounces of water at $0.005 per ounce
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
Compute the standard cost of the ingredients for one gallon of wine.
Answer:
total $3.36
Explanation:
required for producing 50 gallons of wine:
2,400 ounces of grape concentrate at $0.01 per ounce = $24 / 50 = $0.48 x 1.04 = $0.50
54 pounds of granulated sugar at $0.50 per pound = $27 / 50 = $0.54 x 1.1 = $0.59
60 lemons at $0.80 each = $48 / 50 = $0.96 x 1.25 = $1.20
100 yeast tablets at $0.21 each = $21 / 50 = $0.42
100 nutrient tablets at $0.14 each = $14 / 50 = $0.28
3,700 ounces of water at $0.005 per ounce = $18.50 / 50 = $0.37
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
total standard cost per gallon:
grape concentrate = $0.50granulated sugar = $0.59lemons = $1.20yeast tablets = $0.42nutrient tablets = $0.28water = $0.37total $3.36Depreciation for Partial Periods Hathaway Company purchased a copying machine for $8,700 on October 1, 2019. The machine's residual value was $500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $ 2020 $ Sum-of-the-years'-digits method 2019 $ 2020 $ Double-declining-balance method 2019 $ 2020 $ Next Level Which method produces the highest book value at the end of 2020
Answer:
straight line method
2019: $4102020: $1,640sum of digits method
2019: $683.332020: $2,596.67double declining method
2019: $8702020: $3,134Which method produces the highest book value at the end of 2020?
the straight line method because the deprecation expense is lowest, book value at Dec. 31, 2020 = $6,650Explanation:
copying machine purchased October 1, 2019 at $8,700
residual value $500
expected life 5 years
depreciation using straight line method:
depreciation expense per year: ($8,700 - $500) / 5 = $1,640
2019: $1,640 x 3/12 = $410
2020: $1,640
sum of digits method:
depreciation first year = 5/15 x $8,200 = $2,733.33
2019: $2,733.33 x 3/12 = $683.33
2020: $2,733.33 x 9/12 = $2,050
$8,200 x 4/15 x 3/12 = $546.67
total 2020: $2,596.67
double declining balance:
depreciation year 1 = 2 x 20% x $8,700 = $3,480
2019: $3,480 x 3/12 = $870
2020: $3,480 - $870 = $2,610
2 x 20% x ($8,700 - $3,460) x 3/12 = $524
total 2020 = $2,610 + $524 = $3,134
Cabell Products is a division of a major corporation. Last year the division had total sales of $11,440,000, net operating income of $686,400, and average operating assets of $2,402,400. The company's minimum required rate of return is 13%. The division's residual income is closest to:Cabell Products is a division of a major corporation. Last year the division had total sales of $11,440,000, net operating income of $686,400, and average operating assets of $2,402,400. The company's minimum required rate of return is 13%. The division's residual income is closest to:
Answer:
Residual income=$374,088
Explanation:
Calculation for Cabell Products division's residual income
Formula for Residual income is:
Residual income = Net operating income - ( Average operating assets * Minimum required rate of return )
Residual income= $686,400-($2,402,400*13%)
Residual Income=$686,400-$312,312
Residual income=$374,088
Therefore the division's residual income is closest to:$374,088
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $60,000 Sales tax 5,250 Shipment of machine 850 Insurance on the machine for the first year 550 Installation of machine 1,700The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine.
Answer:
Debit Equipment 67,800
Debit Prepaid Insurance 550
Credit Cash 3,100
Credit Accounts Payable 65,250
Explanation:
Orion Flour Mills Record of expenditure for the new machine.
Purchase price$60,000
Sales tax 5,250
Shipping 850
Installation 1,700
Total cost$ 67,800
Theb annual insurance of 550 was not included.
Therefore each of the expenditures which is been listed above are important to help bring the machine to its conditions as well as the location for use.
Since Orion will initially report the $550 of the insurance amount as the prepaid insurance and expense over the first year of coverage will have to:
Debit Equipment 67,800
Debit Prepaid Insurance 550
Credit Cash 3,100
Credit Accounts Payable 65,250
( To record Purchase of equipment)
Calculation for Cash
Shipment of machine 850
Insurance on the machine for the first year 550
Installation of machine 1,700
Total =3,100
Grayille Financial Consultants, Inc. is planning to reduce the number of days it allows its clients to pay their bills from 45 days to 30 days. Grayille believes that this policy change will have no effect on either sales or costs. Any asset changes resulting from this new policy will be offset by a corresponding and equal change in equity. All else constant, this new collection policy should be expected to (circle all that apply - if the correct answer is a and b and you circle any letter(s) other than a and b, you will receive no credit - that is, no partial credit will be awarded for your answer to this question):
Answer: c. Lower the firm's quick ratio.
d. Lower the firm's current ratio.
Explanation:
Reducing the amount of time that clients have to pay will reduce the amount of Account Receivables as clients will no longer have long outstanding due dates. This reduction in Accounts Receivables will be felt by the Quick and Current ratios.
Quick Ratio formula
= [tex]\frac{Current Assets - Inventory}{Current Liabilities}[/tex]
Current Ratio Formula
= [tex]\frac{Current Assets}{Current Liabilties}[/tex]
As is evident from the formulas, Current Assets are integral to both ratios and as Accounts Receivables is a current asset that will be reduced, the current assets will be reduced and by extension both the Current and Quick Ratios will be reduced as well.
If a purchase is a new buy for a manufacturer, the seller should be prepared to act as a consultant to the buyer, expect a long time for a buying decision to be reached, and:__________
a. expect to have to do some favors for the decision makers.
b. anticipate a great deal of conflict.
c. accommodate unlimited specification change before the buy is completed.
d. work with technical personnel.
e. avoid making concessions or compromises.
Answer:
d. work with technical personnel.
Explanation:
In the given scenario a manufacturer is making a new buy from a seller. This is a risky investment for the buyer because of uncertainty on how the product will perform and lack of technical know-how in operating the product.
The buyer therefore will require the seller to act as a consultant in case of issues arising from the use of the product, buying decision will take a long time because the buyer will want a good fit for their operations, and more work will be done with technical personnel to train them on how to use the product
What is the age distribution of promotion-sensitive shoppers? A supermarket super shopper is defined as a shopper for whom at least 70% of the items purchased were on sale or purchased with a coupon.
Answer:
The distribution of probability is valid if sum of all the probabilities equals to 1.
Explanation:
Age Range Midpoint Percent of super shopper
18-28 23 7%
29-39 34 44%
40-50 45 24%
51-61 56 14%
61 and over 67 11%
∑p(x) = P (x1)
The distribution of the shoppers is valid as the sum of all the probabilities equals to 1.
∑p(x) : 0.7 + 0.44 + 0.24 + 0.14 + 0.11 = 1
Moss County Bank agrees to lend the Ivanhoe Company $365000 on January 1. Ivanhoe Company signs a $365000, 6%, 9-month note. The entry made by Ivanhoe Company on January 1 to record the proceeds and issuance of the note is
Answer:
Ivanhoe Company on January 1 would record the proceeds and issuance of the note as follows:
Debit Cash $365,000
Credit Notes payable $365,000
(To recognize notes payable to Moss County Bank)
Explanation:
Note payable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest expense on the notes is calculated as: Principal x Interest Rate x Time
In this case, the total interest expense to Ivanhoe Company is $365,000 x 6%/12 x 9 months = $16,425.
Monthly interest expense to the Company over the 9-month period is therefore $16,425 / 9 months = $1,825.
On December 31, Strike Company sold one of its batting cages for $219,597. The equipment had an original cost of $258,350 and has accumulated depreciation of $38,753. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction
Answer:
Gain/loss= 0
Explanation:
Giving the following information:
On December 31, Strike Company sold one of its batting cages for $219,597. The equipment had an original cost of $258,350 and has accumulated depreciation of $38,753.
First, we need to determine the book value:
Book value= original cost - accumulated depreciation
Book value= 258,350 - 38,753= 219,597
The gain or loss from selling an asset depends on selling it for a higher or lower value than the book value.
Gail/loss= 219,597 - 219,597
Gain/loss= 0
Crowding out occurs when deficit spending increases interest rates. decreases interest rates. increases consumer spending. decreases consumer spending. increases investment spending.
Answer: increases interest rates
Explanation:
Crowding out occurs when an increase in the involvement of the government in a particular sector of the market economy affects the other sectors of the market.
An example is when an expensionary policy such as government spending leads to the rise in interest rates and which will also reduce the investment spending as investors won't like.to invest in such economy with high interest rates.
On November 1. Bahama Cruise Lines borrows $2.6 million and issues a six-month. 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.
Answer and Explanation:
The journal entries are shown below:
1. Cash Dr $2,600,000
To Note payable $2,600,000
(Being the issuance of the note is recorded)
For recording this we debited the cash as it increased the assets and credited the note payable as it also increased the liabilities
2. Interest expense $26,000
To interest payable $26,000
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the note payable as it also increased the liabilities
The computation is shown below:
= $2,600,000 × 6% × 2 months ÷ 12 months
= $26,000
Company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, ________ units will need to be produced in the second quarter.
Answer:
509 units
Explanation:
The expected sales in the present quarter is 500 units (for second quarter) and we have 46 units on hand.
We want a reserve of 10% during the next quarter.
The expected sales in next quarter is 550 units so reserve of 10% is
Reserve = 0.10 * 550= 55 units
Balance to produce this quarter= 500 - 46= 454 units
Total to produce= Balance produced + Reserve
Total to produce= 454 + 55= 509 units
Projects S and L both have normal cash flows, and the projects have the same risk, hence both are evaluated with the same WACC, 10%. However, S has a higher IRR than L. Which of the following statements is CORRECT?
A. Project S must have a higher NPV than Project L.
B. If Project S has a positive NPV, Project L must also have a positive NPV.
C. If the WACC falls, each project's IRR will increase.
D. If the WACC increases, each project's IRR will decrease.
E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.
Answer:
E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:
Answer:
Estimated Over head applied = ($112500 / $125000) *100 = 90% of Direct labor cost.
Thus, Actual Over Head applied = 90% of $120000 = $108000
Moreover, Actual Over Head incurred = $107400
Therefore, Overhead Over-applied is to be applied as the Actual Overhead applied is higher than the Actual Overhead Incurred
Overhead Over-applied = $108000 - $107400
Overhead Over-applied = $600
The entry to close the over-applied overhead at year-end would include:
i. Over-head A/c will be debited for $600
ii. Cost of goods sold will to be credited for $600
The Board of Governors of the Federal Reserve a. members are appointed to four-year terms by the President and confirmed by the Senate. b. is made up of seven members. c. is a group of advisers reporting to the President. d. is located in New York City.
Answer:
Option B
Explanation:
In simple words, The seven board members shall be selected by the president of the usa for a phased period of 14 years. The governing board regulates the operation of the federal reserve system and imposes a wide range of financial and consumer lending rules.
Through statute, the president of the usa may select the Board of Directors to have "equal reflection of the political , economic, manufacturing and business concerns and the regional sections of the nation." The country is split into 12 Federal Reserve constituencies and no two administrators may come from the very same Region.
The difference between the small business owner and the entrepreneur is that the entrepreneur:_________
a) assumes the risk of the business manages
b) the business is responsible for the profits of the business
c) is accurately described by all of the above files taxes for the business
Answer:
Option A
Explanation:
The difference between the small business owner and the entrepreneur is that the entrepreneur "assumes the risk of the business manages" or option A. A entrepreneur is a person who manages and runs a business or businesses taking on more risks as the financial advisor so if we are talking differences of a business owner and a entrepreneur, a entrepreneur understands and takes on the risk of managing the business or businesses while a business owner manages one business not knowing the risk of managing one.
Hope this helps.
When the U.S. dollar is strong, Select one: a. U.S. manufacturers tend to make more purchases from foreign sources. b. U.S. manufacturers tend to limit purchases from foreign sources. c. U.S. manufacturers do not change standard business practices. d. U.S. manufacturers are more likely to close plants abroad.
Answer:
a. U.S. manufacturers tend to make more purchases from foreign sources
Explanation:
The US dollar is high producers in the US prefer to make more purchases from international sources, according to the provided scenario.
Therefore the correct option is a which indicates that when the US dollar is strong then the manufacturer of the united states prefer to buy as much from international entities in order to capture the market at the maximum level so that they could able to achieve their sales targets
Jagadison Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease and the leases do not contain purchase options. Jagadison desires a return of 8% interest on a eight-year lease of equipment with a fair value of $961,930. The present value of an annuity due of $1 at 8% for eight years is 6.206. What is the total amount of interest revenue that Jagadison will earn over the life of the lease
Answer:
$278,070
Explanation:
we must first calculate the annual payments:
annual lease payment = $961,930 / 6.206 = $155,000
Jagadison will receive a total of $155,000 x 8 annual lease payments = $1,240,000
total interest revenue = total lease payments - present value of the equipment = $1,240,000 - $961,930 = $278,070
If a company uses a predetermined rate for absorbing manufacturing overhead, the volume variance is the: Group of answer choices a. Underapplied or overapplied variable cost element of overhead. b. Underapplied or overapplied fixed cost element of overhead. c. Difference in budgeted costs and actual costs of fixed overhead items. d. Difference in budgeted costs and actual costs of variable overhead items.
Answer: c. Difference in budgeted costs and actual costs of fixed overhead items.
Explanation:
If a company uses a Predetermined rate for Manufacturing Overhead this means that they have budgeted a certain cost of overhead that they believe will be sufficient for production. This is usually possible for fixed overhead items.
The Variance therefore would be the difference between this budgeted figure and the actual figure for the fixed Overhead items.
Larned Corporation recorded the following transactions for the just completed month.
$72,000 in raw materials were purchased on account. $70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor. Depreciation of $193,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer:
Larned Corporation
Journal Entries
Sr. No Account Debit Credit
1 Materials $72,000
Accounts Payable $72,000
$72,000 in raw materials were purchased on account.
2 Work in Process $62,000
Materials Inventory $62,000
$70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials
3 Manufacturing Overheads $8000
Materials Inventory $ 8000
$70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
4 Work In Process $ 102,000
Payroll ( Direct Labor ) $102,000
$102,200 was for direct labor
5 Manufacturing Overheads $3800
Payroll (Indirect Labor) $3800
Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor.
6 Depreciation $193,000
Factory Overhead Control Account $193,000
Depreciation of $193,000 was incurred on factory equipment.