Answer:
$125,000
Explanation:
total assets $160,000 = total liabilities $90,000 + total equity $70,000
income statement:
revenues $210,000
expenses $120,000
net income $90,000
- dividends $35,000
retained earnings $55,000
stockholders' equity at end of the year = $70,000 + $55,000 = $125,000
PROBLEM 1–22 Cost Terminology; Contribution Format Income Statement LO1–2, LO1–4, LO1–6 Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. Required: 1. What is the total manufacturing overhead cost? 2. What is the total direct materials cost? 3. What is the total manufacturing cost? 4. What is the total variable selling and administrative cost? 5. What is the total variable cost? 6. What is the total fixed cost? 7. What is the total contribution margin?
Answer and Explanation:
a. The computation of the total manufacturing overhead cost is
= Conversion cost - direct labor cost
= ($15,000 ÷ 0.30) - $15,000
= $50,000 - $15,000
= $35,000
b. The compuattion of the direct material cost is
= Conversion cost - direct labor cost
= ($15,000 ÷ 0.40) - $15,000
= $37,500 - $15,000
= $22,500
c. The total manufacturing cost is
= direct material cost + direct labor cost + manufacturing overhead cost
= $22,500 + $15,000 + $35,000
= $72,500
d. The total variable selling and administrative cost is
= Sales × commission percentage
= $120,000 × 5%
= $6,000
e. The total variable cost is
= direct material cost + direct labor cost + variable selling and administrative cost
= $22,500 + $15,000 + $6,000
= $43,500
f. The fixed cost is
= Manufacturing overhead + fixed selling and admin expenses
= $35,000 + ($18,000 - $6,000)
= $47,000
g. The total contribution margin is
= Sales - variable expenses
= $120,000 - $43,500
= $76,500
We simply applied the above formulas
An important distinction between the classical and Keynesian view of the economy is that Select one: a. Keynes stressed the supply side of an economy while classical economists stressed the demand side of the economy. b. classical economists argued that output gaps were caused by shifts in the long-run aggregate supply while Keynes’ maintained that output gaps were created by shifts in aggregate demand. c. Keynes stressed the demand side of an economy while classical economists stressed the supply side of the economy. d. classical economists argued that output gaps were caused by shifts in the long-run aggregate supply while Keynes’ maintained that output gaps were created by wage and price rigidities
Answer:
C. Keynes stressed the demand side of an economy while classical economists stressed the supply side of the economy.
Explanation:
The significant distinction between the classical and Keynesian view of the economy is that Keynes lays emphasis on the demand side of the economy while classical economists focus more on demand-oriented evaluation and correction of imbalances in the economy.
Classical theorists assert that 'supply has the ability to produce its own demand.' It says that 'the production will generate sufficient income to purchase all the output produced in the economy' while Keynes claims that demand is the key driving force that drives the economy. Thus, the former relied on monetary policy while the latter on fiscal policy.
The senior management of Dramos Films, a motion picture production company, holds a meeting to decide whether the company should acquire one of the smaller production houses and whether or not expanding to the overseas markets will be a profitable move. In this case, the management of Dramos Films is engaged in _____.
Answer: Strategic planning
Explanation: Strategic planning marks a very important aspect of a business project or organizational development. Strategic planning involves making decisions, plans and structuring how a company intends to pursue or explore an opportunity or identified market. It involves liaising with relevant stakeholders and planners who would proffer probable plans to pursue the identified strategy, including which resources are required, the amount of allocation needed and the inherent risk attached with different proferred strategies.
If you invest 50 percent of your funds in a stock with beta=1.5, 30 percent in a stock with beta=0.9 and 20 percent in a stock with beta=0.3, your portfolio beta will be
Answer:
1.08
Explanation:
The computation of the portfolio beta is shown below:
Portfolio beta is
= Invested stock percentage × beta of the stock + Invested stock percentage × beta of the stock + Invested stock percentage × beta of the stock
= 0.50 × 1.50 + 0.30 × 0.90 + 0.20 × 0.30
= 1.08
We simply applied the above formula so that the portfolio beta could come and the same is to be considered
An individual client purchased his residence 5 years ago for $200,000. For 3 of the last 5 years, the client rented out the property for income, and lived in the house of 2 of those years. The client sells the house for $500,000. How much of the gain is taxable
In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of following a federal regulation. lowering prices for customers. reducing the risk for consumers. creating a new or better product.
Answer:
The answer is reducing the risks for customers.
Explanation:
Businesses in a competitive market do many things to outshine their competitors. One of such things is offering a warranty to help pay for future damages. A warranty is simply an assurance that the business would be willing to help if a customer experiences challenges from use of the product sold by the business outfit. The business would either get the product fixed or give a new one to the customer with no additional cost.
Customers/consumers love warranty because it gives them full assurance and sense of security. As such, any business which offers warranties on their products would be seen as prepared to help reduce the risk for consumers of ther products.
Answer:
C
Explanation:
Smith Company's inventory cost is $100. The expected sales price is $110, estimated selling costs are $6. The normal gross profit ratio is 20% of selling price. The replacement cost of the inventory is $95. Smith Company uses the LIFO inventory method so must use the lower of cost or market approach and this inventory item should be valued at
$95, NRV=$110-6=$104 is the ceiling. The floor is NRV less the typical 20% profit or $104 – 22 = $82. $95 is the replacement cost. Market value is between these three values, therefore it equals $95 as opposed to $100 in cost. Because the cost is smaller, record at cost.
What is NRV?A valuation approach called net realizable value (NRV), which is popular in inventory accounting, takes into consideration the total amount of money an asset can bring in through sales minus an estimate of the charges, fees, and taxes related to that sale or disposal
When determining an asset's value for inventory accounting, the NRV technique is frequently utilized. Accounts receivable and inventory are two of the biggest assets that a firm may disclose on a balance sheet. Both of these asset classes are valued using the NRV method. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards both employ the NRV valuation approach (IFRS).
The application of the principle of conservatism to accounting work is mandated by GAAP for certified public accountants (CPAs). When selecting an accounting approach, there is often room for discretion or judgment. Accounting professionals must always take a more cautious course of action in accordance with the conservatism principle. This indicates that the accountant ought to choose an accounting technique that makes less money and doesn't inflate the worth of assets.\
To learn more about NRV follow the link.
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Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container’s cost. They receive a refund when the container is returned. During 2018, deposits collected on containers shipped were $916,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2018, represented deposits of $546,000. In 2018, $804,000 was refunded and deposits forfeited were $43,750. Required: 1. Prepare the appropriate journal entries for the deposits received and returned during 2018. 2. Determine the liability for refundable deposits to be reported on the December 31, 2018, balance sheet.
Answer: Please see answer in the explanation column
Explanation:
a) To record Deposit Collected
Account Debit Credit
Cash $916,000
Liability—refundable deposits $916,000
b) To record Deposit Returned
Account Debit Credit
Liability—refundable deposits $804,000
Cash $804,000
c) Deposits Forfeited-- To record forfeited deposits
Account Debit Credit
Liability—refundable deposits $43,750.
Revenue—sale of containers $43,750.
d) To record adjustment of inventory on deposits forfeited
Account Debit Credit
Cost of goods sold $43,750.
Inventory of containers $43,750.
2)liability for refundable deposits to be reported on the December 31, 2018, balance sheet.
Balance on January 1 $546,000
Deposits received +$916,000
Deposits returned -$804,000
Deposits forfeited - $43,750
Balance on December 31 $614,250
Why is a stock exchange like NASDAQ considered a secondary market? A. It trades the second largest volume of shares in the world. B. NASDAQ is called a secondary market because NYSE is considered a primary market. C. The exchange has rules that attempt to ensure that bid and ask prices do not get too far apart. D. Shares sold on it are exchanged between investors without any involvement of the issuing corporation.
Answer:
D. Shares sold on it are exchanged between investors without any involvement of the issuing corporation.
Explanation:
Secondary markets are markets in which stocks , bonds, options, futures and shares are sold or bought by investors without any direct involvement with investors. The brokers serve as a link between the investors and the companies. Normally the transactions that occur in the secondary markets is between investors themselves who are linked by the broke. Example of secondary market is the New York stock exchange, NASDAQ, e.t.c.
The supply chain network is designed to maximize total profits, taking into account the expected margin and demand in each market, various logistics and facility costs, and the taxes and tariffs at each location. True or False
Explanation:
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Whirlpool Corporation has an agreement with IBM for the HR outsourcer to handle Whirlpool's workforce administration, compensation, recruitment, training, and performance reporting. This type of outsourcing is known as ________.
Answer: business process outsourcing
Explanation:
From the question, we are informed that Whirlpool Corporation has an agreement with IBM for the HR outsourcer to handle Whirlpool's workforce administration, compensation, recruitment, training, and performance reporting.
This is an example of business process outsourcing. It simply means when some operations that are related to a business are contracted out to
third-party provider. Such services can include human resources, payroll, customer care center etc.
Jose and Jan have inherited $200,000 from their parents. They are glad that their money in this financial institution is insured by the FDIC. They know that they have physical access to their financial institution when they travel since it is many states all over the nation. What financial institution have they chosen
Answer: Bank
Explanation:
From the question, we are told that Jose and Jan have inherited $200,000 from their parents and that they are happy that their money in this financial institution is insured by the FDIC and they have physical access to their financial institution when they travel since it is many states all over the nation.
Based on this explanation, they have chosen a bank. A bank is a financial institution that collects deposit from the public, make loans, keep valuables etc. Banks also provide functions such as currency exchange, and wealth management.
A European chocolate manufacturer received several complaints from customers about the quality of its products when it began selling them in a tropical country. The firm had to repackage its chocolate bars with an extra plastic wrapper to protect it from the heat and dust. Which factor in the local market is most likely to have dictated the company's product adaptation in this scenario?
climatic requirements
Which of the following pairs illustrates the two extreme examples of market structures? a. perfect competition and oligopoly b. perfect competition and monopoly c. monopoly and monopolistic competition d. oligopoly and monopolistic competition
Answer:
option B
Perfect competition and monopoly
Explanation:
A perfect competition market describes an arrangement where there exists man buyers and sellers trading an identical goods for which neither the buyers nor the seller can exercise significant market power. The buyers cannot influence the price and the sellers also cannot influence the price .
On the contrary , a monopoly is a market structure where there exist a singe seller/producer of product, with many buyers, for which there is no substitute product. Therefore the seller or producers exist a significant market power.
Perfect competition and monopoly
1 , what are the agent of socialization
Answer:
Agents of socialization, or institutions that can impress social norms upon an individual, include the family, religion, peer groups, economic systems, legal systems, penal systems, language, and the media.
Explanation:
Corporate bond A has a 6 percent coupon and matures in 3 years. Corporate bond B has a 6 percent coupon and matures in 15 years. The current interest rate is 6 percent. By how much will Bond A and Bond B change in price if the market rate increases to 6.5 percent
Answer:
New price of bond A = $986.76, this means that the price decreased by $13.24 or 1.32%.
New price of bond B = $952.99, this means that the price decreased by $47.01 or 4.7%.
Explanation:
Since the current market interest is 6%, then both coupons A and B are sold at face value. If the market interest increases to 6.5%, then
New price of bond A:
PV of face value = $1,000 / (1 + 6.5%)³ = $827.85
PV of coupon payments = $60 x 2.64848 (PV annuity factor, 6.5%, 3 periods) = $158.91
New price of bond A = $986.76, this means that the price decreased by $13.24 or 1.32%.
New price of bond B:
PV of face value = $1,000 / (1 + 6.5%)¹⁵ = $388.83
PV of coupon payments = $60 x 9.40267 (PV annuity factor, 6.5%, 3 periods) = $564.16
New price of bond B = $952.99, this means that the price decreased by $47.01 or 4.7%.
match each type of area with the correct level of housing prices?
URBAN
EXURBAN
SUBURBAN
LOW HOUSING PRICES
MEDIUM HOUSING PRICES
HIGH HOUSING PRICES
Answer and Explanation:
The matching of the area with the level of housing prices is as follows
Urban = High housing prices
As urban refers to that area in which there is a large population so of course the prices of the houses are high
Exurban = Low housing prices
The exurban is located in the rural areas in which there are less populations as compared to sub
Suburban = Medium housing prices
In this the population is more than the exurban
What are the 3 Building Blocks of Debt
Answer: Earning, saving, and spending
Explanation:
Answer:
The three building blocks of debt are:
EarningSpendingSaving
Toby is the commissioner of environmental matters for State X, the state with the cleanest air in the nation. U.S. Pollution Company wants to move into State X. Unfortunately, State X has had a severe economic downturn. Many of the citizens are ready to trade some environmental cleanliness for jobs. Toby is on the hot seat. The governor and others say that State X has done well and has always beaten all other states in meeting national ambient air quality standards. In fact, State X is so far in compliance that Pollution Company could operate for many years before there was a problem. What would you suggest to Toby regarding compliance with the Clean Air Act?
Answer:
- Toby should not disregard the Clean Air Act because it requires that air quality in those areas that meet the national ambient air quality standards not be allowed to deteriorate.
Explanation:
As per the given details, Toby should be suggested not to disregard the Clean Air Act as 'it needs that air quality in the areas meeting the national ambient air quality standards not be allowed to deteriorate.' Thus, Toby must take his decision regarding the movement of 'U.S. POllution Company' to state X accordingly as he can not let the quality of air that state X has managed for years to deteriorate and go against the compliance he has towards the 'Clean Air Act.' Some other options can be used to cope with the economic slowdown faced by the people of this state.
On May 1, 20Y6, Dean Company purchased $200,000 of Horton Company's 12% bonds at 100 plus accrued interest of $8,000. On June 30, 20Y6, Dean Company received its first semiannual interest. On February 1, 20Y7, Dean Company sold $160,000 of the bonds at 103 plus accrued interest. The journal entry Dean Company will record on February 1, 20Y7, will include a
Answer:
Credit to gain on sale of investment for 4,800
Explanation:
Preparation of the journal entry Dean Company will record on February 1, 20Y7
Based on the information given we were told that the company made purchased of the amount of $200,000 of Horton Company's at 12%, while On February 1, 20Y7, we were told that the Company sold the amount of $160,000 of the bonds , this mean the journal entry Dean Company will record on February 1, 20Y7 will be recorded as;
Credit to gain on sale of investment for 4,800
(12%*200,000)=$24,000
(12%*160,000)=$19,200
Hence
$24,000-$19,200=$4,800 which is the credit amount of the gain on sale of the investment.
Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both Amy and Jack must move through each stage in the marketing funnel before becoming loyal customers.
Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also keen to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.
a. aware
b. open to trial
c. most often used
d. nonrejecter
e. regular user
Answer: B) Open to Trial
Explanation:
Production Volume4,000 Units5,000 UnitsDirect Materials$85.80 per unit$85.80 per unitDirect Labor$56.10 per unit$56.10 per unitManufacturing overhead$73.60 per unit$62.10 per unitThe best estimate of the total cost to manufacture 4,300 units is closest to:
Answer:
4300 units would cost $ 898461 or $ 208.9 ≅ $ 209 per unit
Explanation:
Production Volume 4,000 Units 5,000 Units
Direct Materials $85.80 per unit $85.80 per unit
Direct Labor $56.10 per unit $56.10 per unit
Manufacturing overhead $73.60 per unit $62.10 per unit
Total Manufacturing Costs $ 215.5 per unit $ 203.7 per unit
The best estimate of the total cost to manufacture 4,300
4000 units at $ 215.5 = $ 862,000
5000 units at $ 203.7= $1018500
9000 units would Cost = $ 862,000+$1018500= $ 1880500
We have taken the total of the two costs and then divided with the number of 9000 units to get an average price as the fixed costs are decreasing as the number of units increase from 4000 to 5000.
4300 units would cost = $ 1880500/ 9000 * 4300= $ 898461 or $ 208.9 ≅
$ 209 per unit
Wavetel, a hardware company based in Europe, acquires Telior, its competitor in a neighboring country. Identify the market-entry strategy that best describes Wavetel's move. Joint venture Direct foreign investment Franchising Indirect exporting
Answer:
Direct foreign investment.
Explanation:
A foreign direct investment commonly used by abbreviation FDI refers to a cross border investment in a business venture by a firm or individual of the country. In a broad sense, FDI occurs when a stockholder establishes overseas business activities or possesses foreign stock holdings in a foreign firm. FDI is a crucial component of global economic development since it establishes secure and long term trade linkages. FDI is an essential factor for the transfer of technology and infrastructure development and between different nations of the world. As per the question, Wavetel acquires a business firm in a neighboring country and it is a classic example of FDI.
which bear is best? Beets. Bears. Battlestar galactica.
Answer:
black bear
Explanation:
I've watched the office 10 times
Answer:
N/A
Explanation:
That's a ridiculous question.
A _______ is an organization that is NOT presently in a task environment but has the resources to enter if it so chooses. potential supplier potential competitor distributor supplier competitor
Answer: Potential competitor
Explanation:
Potential competitor is a competitor
who offers the same product and works in the field.
who has the potential to compete with you.
they could be a direct competitor, but either they don't try or don't have infrastructure.
Hence, A potential competitor is an organization that is NOT present in a task environment but has the resources to enter.
On the other hand, as a supplier is a party or organization that provides a product or service and distributor distributes them.
Which of the following steps, if taken by Walmart, would be characterized as a strategic, rather than tactical, action? a. Aggressively pricing school-related items in the back-to-school season b. Aggressively pricing toys and electronics during the holiday season c. Aggressive pricing to ensure it is a price leader d. Entering a new foreign market
Answer:
The answer is D.
Explanation:
Strategy is set of goals. Strategic action can be done but not quickly. Tactics are the specific actions one undertake to actualize the strategy.
Also, Strategy defines long-term goals and how you're planning to achieve them. Mission statement, vision statement are all part of a firm's strategy. For example, entering a new foreign market is a strategic action/plan. Tactics are specific and are short-term goals.
Robert wants to start an independent recording studio. In order to finance his start-up, Robert seeks help from Esther, a successful business magnate. Esther agrees to fund Robert's venture as long as she receives a 20% share of the profits made by Robert. In the given scenario, Robert receives the financial resources to start his business:
Answer:
from an angel investor
Explanation:
Based on this information it can be said that Robert receives the financial resources to start his business from an angel investor. An angel investor is an individual that has a large amount of money and decides to provide financial backing to a specific small startup business or entrepreneur in order for them to get their vision up and running, in exchange for a percentage of the company. In this specific scenario the Angel Investor was Esther, who supplied Robert with the resources necessary in exchange for a 20% cut of the business.
A customer, age 69, has never invested in securities. She is retired with no dependents, living on a fixed pension of $35,000 per year. She has a savings account with $160,000 and her home is fully paid. She desires to supplement her retirement income, assuming minimal risk. The BEST recommendation would be for the customer to invest $100,000 of her cash savings into a(n):
Answer:
5000
Explanation:
Took the test
Synergistic benefits can arise from a number of different sources, including operating economies of scale, financial economies, and increased managerial efficiency.
a) True
b) False
Answer:
A. True.
Explanation: Synergistic Benefits is a term used to describe and show that the combined performance and worth of a combined entity or two Businesses will be greater than the sum of the individual Business worth/value or performance.
It helps to ensure that Organisations work in synergy or combined efforts towards achieving excellence.
An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, and significant noncash investing and financing activity.
(a) Payment of interest on notes payable.
select an option Investing Activity Financing Activity Operating Activity Noncash Investing and Financing Activity
(b) Exchange of land for a patent.
select an option Noncash Investing and Financing Activity Investing Activity Financing Activity Operating Activity
(c) Sale of the building at book value.
select an option Financing ActivityInvesting Activity Noncash Investing and Financing Activity Operating Activity
(d) Payment of dividends.
select an option Noncash Investing and Financing Activity Operating Activity Financing Activity Investing Activity
(e) Depreciation.
select an option Operating ActivityNoncash Investing and Financing Activity Investing Activity
(f) Conversion of bonds into common stock.
select an option Financing Activity Investing Activity Noncash Investing and Financing Activity Operating Activity
(g) Receipt of interest on notes receivable.
select an option Investing Activity Financing Activity Noncash Investing and Financing Activity Operating Activity
(h) Issuance of capital stock.
select an option Financing Activity Investing Activity Operating Activity Noncash Investing and Financing Activity
(i) Amortization of patent.
select an option Operating Activity Financing Activity Noncash Investing and Financing Activity Investing Activity
(j) Issuance of bonds for land.
select an option Operating Activity Noncash Investing and Financing Activity Investing Activity
(k) Purchase of land.
select an option Financing Activity Investing Activity Operating Activity Noncash Investing and Financing Activity
(l) Receipt of dividends on investment in stock.
select an option Investing Activity Financing Activity Operating Activity Noncash Investing and Financing Activity
(m) Loss on disposal of plant assets.
select an option Noncash Investing and Financing Activity Investing Activity Financing Activity Operating Activity
(n) Retirement of bonds.
select an option Financing Activity Investing Activity Operating Activity Noncash Investing and Financing Activity
Answer:
Item - Type of Activity
(a) Payment of interest on notes payable - Operating
(b) Exchange of land for a patent - Non cash investing and Financing
(c) Sale of the building at book value - Investing
(d) Payment of dividends - Financing
(e) Depreciation - Operating
(f) Conversion of bonds into common stock - Operating
(g) Receipt of interest on notes receivable - Operating
(h) Issuance of capital stock - Financing
(i) Amortization of patent - Operating
(j) Issuance of bonds for land - Non-cash Investing and financing
(k) Purchase of land - Investing
(l) Receipt of dividends on investment in stock - Operating
(m) Loss on disposal of plant assets - Operating
(n) Retirement of bonds - Financing