Answer:
$25,280 per year
Explanation:
The computation of the revised depreciation for both the second and third years is shown below:
But before that following calculations need to be done
Depreciation for year 1 = [Cost – Salvage Value] ÷Useful Life
= [$65,200 - 2,000] ÷ 5 Years
= $12,640
Now Book Value at point of revision is
= Cost - First year depreciation
= $65,200 - $12,640
= $52,560
Now
Remaining Depreciable Cost = Book Value at the point of revision - Salvage Value
= $52,560 – 2,000
= $50,560
And, finally Depreciation per year for Year 2 and 3 is
= Depreciable cost / Remaining useful life
= $50,560 ÷ 2 Year
= $25,280 per year
Barbur, Inc. reported net income of $20.35 million. During the year the average number of common shares outstanding was 3.7 million. The price of a share of common stock at the end of the year was $5. There were 680,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is non-cumulative.
1A. Use the information above, the EPS is approximately:_____.
a. $0.40.b. $1.76.c. $1.86.d. $2.00.
1B. Use the information above, the Price/Earnings ratio is approximately:_____.a. 2.00.b. 2.50.c. 2.84.d. 12.50.
Answer and Explanation:
The computation is shown below:
a. EPS = Net income ÷ Outstanding shares
= $20,350,000 ÷ 3,700,000 shares
= $5.50 per share
b. Price/Earnings ratio = Price of common stock ÷ EPS
= $5 ÷ $5.50
= 0.9091
Hence, the above represent the answer and the options that are given are incorrect
Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to spend $200 on the 10 scarves. When he arrives at Macy’s at 5:00 A.M. on Black Friday, he discovers that scarves are on sale for $12 each. Hugo buys 10 scarves and uses the remaining $80 to buy himself a some clothes. How much consumer surplus did Hugo receive from the tenth scarf he purchased? A. Consumer surplus from the tenth scarf:____.
B. Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay?
At a price of $12, Huge determined that:_____.
a. buying an eleventh scarf gave him less than $8 in consumer surplus.
b. buying an eleventh scarf gave him less than $12 in benefit.
c. buying an eleventh scarf gave him more than $12 in benefit.
d. the price exceeded his marginal cost.
Answer:
$8
b
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Consumer surplus = willingness to pay per scarf - price per scarf
willingness to pay per scarf = $200 / 10 = $20
price per scarf = 12
$20 - $12 = $8
A rational consumer would stop purchasing at the point where marginal benefit is less than marginal cost .
Because he has 10 friends he wants to give the gift to, buying an extra scarf would yield no benefit to him
On September 1, 2018, ABC signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. In recording the payment of the note plus accrued interest at maturity on March 1, 2019, ABC would
Answer: b. Debit Interest Expense, $1,500.
Explanation:
On the date of maturity in 2019, the journal entry will look something like this:
Date Account title Debit Credit
March 2019 Note Payable $100,000
Interest Payable $3,000
Interest expense $1,500
Cash $104,500
The interest payable is the portion of interest that accrued in the 4 months in 2018 which was in the previous period so would have to be recorded as a liability instead of an expense.
The interest expense is for the interest accrued in 2019 which would be for 2 months and is:
= 100,000 * 9% * 2/12
= $1,500
Keystone, Inc., replaced its truck-and-dolley system of moving inventory around its plant with a computer-controlled conveyor system. The costs associated with this equipment replacement were as follows: Purchase price of conveyor system$1,300,000 Book value of truck-and-dolley system50,000 Installation cost of new conveyor system85,000 The truck-and-dolley system was sold for scrap for $70,000. What value should be capitalized to the balance sheet of Keystone, Inc., as the cost basis of the new conveyor system
Answer: See explanation
Explanation:
The cost basis for the new conveyor system will be:
Purchase price = $1,300,000
Add : Installation cost = $85,000
Therefore, Cost of new conveyor system will be:
= $1,300,000 + $85,000
= $1,385,000
The gain on the sale of old truck will be $70000 - $50000 = $20,000 whcinwill be credited to the income statement.
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
a. Sold merchandise for $645 cash. The cost of goods sold was $375.
b. Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195.
c. Sold merchandise on account for $670. The cost of goods sold was $438.
d. Paid credit card fees for the month of $85.If an amount box does not require an entry, leave it blank.
Answer:
Evans Company
General Journal
Part a.
Debit : Cash $645
Debit : Cost of goods sold $375
Credit : Sales Revenue $645
Credit : Merchandise $375
Part b.
Debit : Cash $432
Debit : Cost of goods sold $195
Credit : Sales Revenue $432
Credit : Merchandise $195
Part c.
Debit : Accounts Receivable $670
Debit : Cost of goods sold $438
Credit : Sales Revenue $670
Credit : Merchandise $438
Part d.
Debit : Credit Card fees $85
Credit : Cash $85
Explanation:
The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.
Classification of Transactions
Below are several transactions that took place in Seneca Company last year:
A. Paid suppliers for inventory purchases.
B. Bought equipment for cash.
C. Paid cash to repurchase its own stock.
D. Collected cash from customers.
E. Paid wages to employees.
F. Equipment was sold for cash.
G. Common stock was sold for cash to investors.
H. Cash dividends were declared and paid.
I. A long-term loan was made to a supplier.
J. Income taxes were paid to the government.
K. Interest was paid to a lender.
L. Bonds were retired by paying the principal amount due.
Required:
Indicate how each of the above transaction would be classified on a statement of cash flows.
Answer:
Classification on the statement of cash flows will be as follows :
A. Cashflow from Operating Activities
B. Cashflow from Investing Activities
C. Cashflow from Financing Activities
D. Cashflow from Operating Activities
E. Cashflow from Operating Activities
F. Cashflow from Investing Activities
G. Cashflow from Financing Activities
H. Cashflow from Financing Activities
I. Cashflow from Financing Activities
J. Cashflow from Operating Activities
K. Cashflow from Operating Activities
L. Cashflow from Financing Activities
Explanation:
There are three categories of classifying Cash flows on the Statement of Cash flows which are : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.
Cross-price elasticity of demand measures how a. the price of one good changes in response to a change in the price of another good. b. the quantity demanded of one good changes in response to a change in the quantity demanded of another good. c. strongly normal or inferior a good is. d. the quantity demanded of one good changes in response to a change in the price of another good
Answer:
d. the quantity demanded of one good changes in response to a change in the price of another good
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Example 1
If the percentage change in good A is 10% and the percentage change in quantity demanded of good B is -20%. Cross price elasticity = -20%/ 10% = -2. the goods are complementary goods
Example 2
If the percentage change in good A is 20% and the percentage change in quantity demanded of good B is 80%. Cross price elasticity = 80%/ 20% = 4. the goods are substitute goods goods
The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nations produce only two goods: smoothies and sandals. Currently, a worker in Lorland can produce 2 smoothies per day or 8 sandals per day, while a worker in Zhangia can produce 1 smoothie per day or 5 sandals per day. Using this information, please match each nation and good to the most accurate description.
Write each item to its matching item .
a. the nation that will specialize in producing smoothies once trading begins
b. the nation that will specialize in producing sandals once trading begins
c. the good that Lorland will import from Zhangia after trading begins
d. the good that Lorland will export to Zhangia after trading begins
Zhangia Sandals Smoothies Lorland
Answer:
Lorland
Zhangia
sandals
smoothies
Explanation:
A country should specialise goods for which it has a comparative advantage in its production.
A country should import goods for which it has no comparative advantage in its production.
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Lorland
Opportunity cost in the production of one smoothie = 8/2 = 4
Opportunity cost in the production of one sandal = 2/8 = 0.25
Zhangia
Opportunity cost in the production of one smoothie = 5/1 = 5
Opportunity cost in the production of one sandal = 1/5 = 0.2
Zhangia has a comparative advantage inn the production of sandals and should specialise in the production of sandals while lorland has a comparative advantage in the production of smoothies specialise in the production of smoothies
Loriland should import sandals and export smoothies
Give me a couple countries that have a low and high quality of life index
Answer:
Countries with have mediocre quality of Life index: Puerto Rico, South Korea, Greece, Bulgaria, Romania
In most restaurants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customers. However, many restaurants receive a 15% tip for parties of eight or more. Using the concept from this chapter, discuss (a) why the practice of tipping has emerged as a major method of compensating the wait staff, (b) why the customer typically decide on the amount of the tip, and (c) why restaurants require tips from large parties
Answer:
a) tipping is seen as a reward for a good service provided. It is also a way of passing labor costs directly to the customer, which increases the restaurants' profits.
b) generally, most restaurant charge a fixed fee for tips. Maybe in the past customers could decide the tip, but that is not true now for most places. Although, customers are better judges of the service that they receive. By the way, the 15% is the minimum tip, customers can choose to increase that amount.
c) if the restaurants did not require tips, their labor costs would increase significantly.
Explanation:
consider ktu as a production system in which the final product is graduate for this
a) define quality form the producers and consumers perspective
b) develop fitness for use description for final product quality
c) give examples of the cost of poor quality ( internal and and external failure cost ) and the cost of quality assurance ( prevention and appraisal) costs.
Pharoah Leasing Company agrees to lease equipment to Novak Corporation on January 1, 2020. The following information relates to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $502,000, and the fair value of the asset on January 1, 2020, is $739,000.
3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000. Novak estimates that the expected residual value at the end of the lease term will be 45,000. Novak amortizes all of its leased equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5. The collectibility of the lease payments is probable.
6. Pharoah desires a 10% rate of return on its investments. Novak's incremental borrowing rate is 11%, and the lessor's implicitrate is unknown.
1. Discuss the nature of this lease for both the lessee and the lessor.
2. Calculate the amount of the annual rental payment required.
3. Compute the value of the lease liability to the lessee.
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Suppose Novak expects the residual value at the end of this lease term to be $40,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement.
Answer:
1. Novak Corporation is the lessee and this is a Capital Lease for it. Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it.
2. Annual rental payment required = $133,683
3. Lease Liability to the lessee = $720,909
4. See the attached excel file.
5. See the attached excel file.
Explanation:
1. Discuss the nature of this lease for both the lessee and the lessor.
Novak Corporation is the lessee and this is a Capital Lease for it. The reason this is a capital lease to Novak Corporation is that the lease of the equipment will be treated as an asset in the books of accounts of Novak Corporation.
Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it. The reason this is an operating lease to Pharoah Leasing Company is that the ownership of the asset is not transferred by Pharoah Leasing Company to Novak Corporation and the useful life of the asset will remains after the lease term expires.
2. Calculate the amount of the annual rental payment required.
Note: See L in the attached excel file for the calculation of the amount of the annual rental payment required.
From the attached excel file, we have:
Annual rental payment required = $133,683
3. Compute the value of the lease liability to the lessee.
Note: See O in the attached excel file for the computation of the value of the lease liability to the lessee.
From the attached excel file, we have:
Lease Liability to the lessee = $720,909
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Mrs Blake is paid a weekly wage of $248. During a certain week she worked 5 hours
overtime. Her total wages were $285.50.
Calculate
her overtime wages
(2 marks)
(11)
the overtime rate of pay.
2 marks)p
285.50 -
248.00
037.50
A) 37.50 Dollars
B) $7.50 per hour overtime
37.50÷5
5_/37.50
07.50
Marigold Company uses the periodic inventory method and had the following inventory information available:
Units Unit Cost Total Cost
1/1 Beginning Inventory 98 $4 $392
1/20 Purchase 490 $5 2,450
7/25 Purchase 98 $7 686
10/20 Purchase 294 $8 2,352
980 $5,880
A physical count of inventory on December 31 revealed that there were 343 units on hand. Answer the following independent questions.
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $____the value of the ending inventory in dollars.
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $____the value of the ending inventory in dollars.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $_____the value of the ending inventory in dollars 4.
A) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $enter the amount of difference 4.
B) Would income have been greater or less?
Answer:
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $2,695.
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $2,058.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $1,617.
A) The difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method is $1,078.
B) The income would have been greater.
Explanation:
Total units available for sale = 980
Total cost of units available for sale = $5,880
Ending inventory units = 343
Units of inventory sold = Total units available for sale - Ending inventory = 980 - 343 = 637
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $____the value of the ending inventory in dollars.
Value of the ending inventory using FIFO method = Total cost of 294 units purchased on 10/20 + Value of remaining 49 (i.e. 343 - 294 = 49) units at $7 cost per unit of 7/25 Purchase = $2,352 + (49 * $7) = $2,695
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $____the value of the ending inventory in dollars.
Average cost per unit = Total cost of units available for sale / Total units available for sale = $5,880 / 980 = $6 per unit
Value of the ending inventory using average cost method = Ending inventory units * Average cost per unit = 343 * $6 = $2,058
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $_____the value of the ending inventory in dollars.
Value of the ending inventory using LIFO method = Total cost of 98 units of 1/1 Beginning Inventory + Value of remaining 245 (i.e. 343 - 98 = 245) units at $5 cost per unit of 1/20 Purchase = $392 + (245 * $5) = $1,617
A) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $enter the amount of difference
This can be determined as follows:
Difference = Value of the ending inventory using FIFO method - Value of the ending inventory using LIFO method = $2,695 - $1,617 = $1,078
B) Would income have been greater or less?
Since the Value of the ending inventory using FIFO method of $2,695 is greater than the Value of the ending inventory using LIFO method of $1,617, this implies that the income would have been greater.
This is because the cost of goods sold to be deducted from the sales revenue would have been lower with the higher Value of the ending inventory using FIFO method of $2,695. This would make the income to be greater.
Surendra’s personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra’s basis for:________.
a. Loss.
b. Depreciation.
c. Gain.
d. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 to hold as rental property?
Answer:
a. Loss
The basis for Loss is the lower of the basis after it is adjusted for its new purpose or the fair market value.
Adjusted = $340,000
Fair market value = $320,000
Loss basis will therefore be the lower value of $320,000
b. Depreciation:
This is the same as the loss basis because the residence was converted from personal use to business use.
= $320,000
c. Gain
= Adjusted basis of the property
= $340,000
d. No.
Because he would be converting to rental property which is a business use, the loss that he would have incurred of $20,000 would have been disallowed and he wouldn't be able to deduct it.
Loss = Cost - fair value = 340,000 - 320,000 = $20,000
:How is a ‘provision for reserve’ in a balance sheet, a liability or an asset. Explain.
Explanation:
A provision is indeed an item freed up from either a company's revenue to cover potential future costs or a probable property price decrease. It shows up as spending on the financial statements and is documented as a current liabilities.
During 2022 Swifty Corporation had sales on account of $765000, cash sales of $312000, and collections on account of $512000. In addition, they collected $8900 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable indicates a $244100 increase. $568000 increase. $565000 increase. $253000 increase.
Answer:
$253,000 increase
Explanation:
With regards to the above, there would be an increase in transaction. See computation below;
Given that;
Sales on account = $765,000
Collections on account = $512,000
Then,
The change in account receivables would be;
= Sales on account - Collections on account
= $765,000 - $512,000
= $253,000 increase.
If your body does not have enough nutrients, it will begin to
a. shut down
b. make its own
C. find others
d.
use energy
Please select the best answer from the choices provided
А
B
Ο Ο Ο Ο
C
Answer:
Its A i just did the test its not D
Explanation:
Alex Karev has taken out a $ loan with an annual rate of percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $ per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $ per month? Use five decimal places for the monthly percentage rate in your calculations.
Answer:
the question is incomplete, so I looked for a similar one:
Alex Karev has taken out a $180,000 loan with an annual rate of 11% compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $4,000 per month?
PVIFA = $180,000 / $3,500 = 51.42857
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
51.42857 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.47143 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.47143 = 0.52857
1 / 0.52857 = (1 + 0.11/12)ⁿ
1.89189 = 1.009167ⁿ
n = log 1.89189 / log 1.009167 = 0.2769 / 0.003963 = 69.87
n = 69.87 months
PVIFA = $180,000 / $4,000 = 45
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
45 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.4125 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.4125 = 0.5875
1 / 0.5875 = (1 + 0.11/12)ⁿ
1.70213 = 1.009167ⁿ
n = log 1.70213 / log 1.009167 = 0.23099 / 0.003963 = 58.29
n = 58.29 months
Natick Industries leased high-tech instruments from Framingham Leasing on January 1, 2021. Natick has the option to renew the lease at the end of two years for an additional three years. Natick is subject to a $45,000 penalty after two years if it fails to renew the lease. Framingham Leasing purchased the equipment from Waltham Machines at a cost of $250,177.
Related Information:
Lease term 2 years (8 quarterly periods)
Lease renewal option for an additional 3 years (12 quarterly periods)
Quarterly lease payments $11,000 at Jan. 1, 2021, and at Mar.
31, June 30, Sept. 30, and Dec. 31
thereafter
Economic life of asset 5 years
Interest rate charged by the lessor. 4%
Required:
Prepare appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly.
Answer:
1-Jan-21
Dr Right- of-use asset $250,177
Cr Lease payable $250,177
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
31-Mar-21
Dr Interest expense $2,392
Dr Lease payable $8,608
Cr Cash $11,000
31-Mar-21
Dr Amortization expense $12,509
Cr Right-of-use asset $12,509
Explanation:
Preparation of the appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021.
Journa Entry- Lease-Natick Industries
1-Jan-21
Dr Right- of-use asset
($11,000 * PVAF at 1%for 0-20)
($11000*22.74336) $250,177
Cr Lease payable $250,177
(To Record Lease at Inception)
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
(To Record First Lease Payment made)
31-Mar-21
Dr Interest expense
[($250,177 - 11000 )*1%] $2,392
Dr Lease payable $8,608
($11,000-$2,392)
Cr Cash $11,000
(To Record Second Lease Payment made)
31-Mar-21
Dr Amortization expense
($250,177/ 20) $12,509
Cr Right-of-use asset $12,509
(To Record Amortisation Expense)
SCENARIO The Forest Stewardship Council (FSC) was formed in 1993 to promote sustainable management of the world’s forests. The FSC quickly began to certify lumber based on whether the forest that it was taken from was managed according to its guidelines. Soon thereafter, several builders in California began to specialize in the construction of "Green" buildings that only used FSC-certified lumber. This was seen as a viable business because some customers were willing to pay a premium to have their projects completed with FSC lumber. These builders have an opportunity to order this lumber once every 3 months because the forests involved must be harvested in accordance with certain restrictions. Consequently, builders who focused on this market were forced to hold large inventories. On the other hand, builders who only used "traditional" wood which was not FSC-certified could order on a just-in-time basis, meaning they did not have to hold any lumber in their own lumberyards. Consider the following 3 scenarios and related questions.
1. A green builder must decide how much FSC lumber to purchase to meet demand for the next 3 months. Demand is normally distributed with a mean of 40,000 board-feet and a standard deviation of 15,000 board feet. (A board-foot is a standard unit for lumber.) The purchase price for the builder is $4.00 per board-foot. At the end of a 3-month period the wood will dry and may warp, reducing its value. Of any lumber remaining in the builder’s lumber yard at the end of the 3-month period, approximately half will be worthless. The builder will use any wood that is not warped in the next period. However, buying the wood now, rather than in the next period incurs a holding cost of 4% of the purchase cost. If the builder has too little FSC certified wood to meet demand, he will be forced to substitute traditional lumber which he can buy for $3.35 per board foot. In addition, the green builder assigns a shortage cost of $2.00 per board foot for the loss of good will and damage to his reputation. How many board feet of FSC certified lumber should the builder purchase?
2. Suppose a lumber-yard (Nice Lumber) agrees to serve as a distributor for a builder. This means Nice Lumber will stock the FSC-certified lumber for one green builder. Nice Lumber will pay $4.00 per board foot for FSC-certified wood and sell it to the builder for $4.20 per board foot. If demand exceeds the inventory, the green builder will buy traditional wood from a different lumber yard to meet the demand at price of $3.20 per board-foot. In addition to the lost sale, Nice assigns a cost of $2.00 per board foot of shortage of FSC lumber. If the inventory of FSC-certified lumber exceeds demand, Nice will immediately substitute the excess FSC certified lumber to meet demand from other customers and reduce its purchases of traditional lumber accordingly. Nice pays $3.20 per board foot for traditional lumber. How many board feet of FSC certified lumber should Nice Lumber purchase?
3. Suppose Nice Lumber will stock the FSC certified lumber for 10 green builders. For each of these builders, demand is normally distributed with a mean of 40,000 board feet and a standard deviation of 15,000 board feet, and each builder’s demand is independent of other builders’ demand. How many board feet of FSC certified lumber should Nice lumber purchase per builder?
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
Board-Feet = Mean + Z*SD
Where SD = Standard Deviation
Mean = 40,000;
SD= 15,000;
Z = NORMSINV(SL); SL (Service Level) = Cu/(Cu + Co)
1.
Solution:
Cu = $(4 - 3.35 + 2)
Since he would gain $4 - $3.35 by substituting lumber for conventional wood, he would lose $2 in goodwill and credibility loss.
Cu = 2.65
And,
Co = (4 - 2 + 4% x 4)
Since half of the lumber becomes scrap after three months and he pays 4% as a holding cost for keeping $4/unit as inventory, he incurs a holding cost of 4%.
Co = 2.16
Service Level SL = Cu/(Cu+Co)
Service Level SL = 2.65/(2.65+2.16)
Service Level SL = 0.550936
Z = NORMSINV(0.550936)
Z = 0.12
Hence,
Board-Feet = Mean + Z*SD
Board-Feet = 41,920.38
2.
Solution:
Cu = $(2 - 4.2 + 3.2)
Since he would gain $4.2-$3.2 by substituting lumber for conventional wood, he would lose $2 in goodwill and credibility loss.
Cu = 1
In the event of overstocking, he does not specify the price at which he will replace FSC lumber with conventional lumber. Only his price, which is $3.2/board-foot for traditional lumber, is issued.
Co = 4 - 3.4
since he'll have to market the excess FSC lumber inventory at conventional wood's price; ASSUMING traditional lumber rate at the rate $3.4/board-feet
Co = 0.6
So,
Service Level SL = Cu/(Cu+Co) = 1/(1+0.6)
SL = 0.625
Z = NORMSINV(0.625)
Z = 0.318639
Board-Feet = 44,779.59
3.
Solution:
Here, everything will be same except the formula for calculate the Board -Feet. New formula is:
Board-Feet = Mean + [tex]\frac{Z * SD}{\sqrt{n} }[/tex]
Here, n = 10
Just plugging in the values, we get:
Board-Feet = 40,000 + [tex]\frac{0.318639 * 15000}{\sqrt{10} }[/tex]
Board-Feet = 41,511.44
22)
If the economy heads into a recession due to a global pandemic, which types of businesses would be less affected by a
decrease in consumer spending due to larger capital investments?
hlight
ime
maining
06:17
le Tools
A)
partnership
B)
corporation
sole trader
D)
sole proprietorship
E)
limited liability partnership
Answer:
A and B
Explanation:
Answer:
its A and B and D
Explanation:
i just took the quiz
53) In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Borden expects returns in the following year to equal 8% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of $6,000, and the unadjusted balance in Sales Refund Payable is a credit of $10,000. The adjusting entry or entries to record the expected sales returns is (are):
Answer: See explanation
Explanation:
The adjusting entry or entries to record the expected sales returns are:
Debit: sales return and allowance = $150,000
Credit: Sales refund payable = $150,000
The above $150,000 was gotten as:
= ($2,000,000 × 8%) - $10,000
= ($2,000,000 × 0.08) - $10,000
= $160,000 - $10,000
= $150,000
Also,
Debit: Inventory returns estimated = $90,000
Credit: Cost of goods sold = $90,000
The above $90,000 was gotten as:
= ($1,200,000 × 8%) - $6,000
= ($1,200,000 × 0.08) - $6,000
= $96,000 - $6,000
= $90,000
Exercise 3-1 Prepare Journal Entries [LO3-1] Larned Corporation recorded the following transactions for the just completed month. $75,000 in raw materials were purchased on account. $73,000 in raw materials were used in production. Of this amount, $59,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $116,000 were paid in cash. Of this amount, $102,000 was for direct labor and the remainder was for indirect labor. Depreciation of $194,000 was incurred on factory equipment.
Answer:
Journal 1
Debit : Raw Materials $75,000
Credit : Accounts Payable $75,000
Journal 2
Debit : Work In Process - Direct Materials $59,000
Debit : Work In Process - Indirect Materials $14,000
Credit : Raw Materials $73,000
Journal 3
Debit : Work In Process - Direct Labor $102,000
Debit : Work In Process - Indirect Labor $14,000
Credit : Cash $116,000
Journal 4
Debit : Work in Process - Depreciation expense $194,000
Credit : Accumulated Depreciation $194,000
Explanation:
All costs incurred during production are recorded on the debit of the work in process account as shown above.
Applying the Cost of Goods Sold Model The following amounts were obtained from Stanwick Company's accounting records. 2019 2020 Net sales $388,600 $427,460 Cost of goods sold: Beginning inventory $36,800 (d) Purchases (a) 296,700 Goods available for sale (b) (e) Ending inventory 42,060 (f) Cost of goods sold (c) 295,390 Gross margin $117,960 (g)
Answer:
See below
Explanation:
2020 Beginning inventory
Beginning inventory
Add: Purchases
$296,700
Cost of goods available for sale
$296,700
Less: Ending inventory
($1,310)
Cos of goods sold
$295,390
2019 Purchases
Purchases = Ending inventory - Beginning inventory
Purchases = $42,060 - $36,800
Purchases = $5,260
In connection with the office use in the home deduction, comment on the following:
a. The exclusive use requirement.
b. The distinction between direct and indirect expenses.
c. The effect on deduction of taxpayer's work status i.e. employed or self employed.
d. The ownership status of residence i.e. owned or rented.
e. The tax treatment of office furnishings i.e. desk, chairs, and file cabinets.
f. The treatment of expenses that exceed the gross income from the business.
Answer:
a. The exclusive use requirement means that office space is used solely for business purpose.
b. Indirect expense are related to business operating costs and distinction must be made wile deductions between business and personal use. Direct expense is solely related to the business and is deducted in full.
c. Employee deductions are allowed and they are deducted from Adjusted Gross Income.
d. The ownership status of resident is criteria for deductions. Resident status is allowed for deducting depreciation.
e. Office furnishing are deductible expense.
f. Any excesses are carried to the next yearly period.
Explanation:
The deductions are required to be distinct between personal and professional use. It is responsibility of the business owner to calculate deductible expenses and then prepare tax status. The income from business are recorded at full and is subject to tax.
Jayden, the vice president of Boxco, is reviewing the development program for the company's middle managers. He notes that management development includes psychological profiles and mentors, as well as lateral moves to positions that give managers a broader view of the company. Jacob would like to add a component of formal education. Which option could be included in this new component? Question 124 options: on-the-job training in the basics of managers' current jobs workshops involving business games and simulations 360-degree feedback opportunities to sign up for sessions with a life coach a program of externships at local charities
Answer:
Opportunities to sign up for sessions with a life coach.
Explanation:
Since he wants to include psychological profiles as well as mentors in the program to raise efficiency. Jacob should use A life coach. A life coach can empower and help in setting and meeting goals. Increasing accountability accept for the personal growth of employee and also for career success.
In the middle level, accountability is important, a life coach would help you develop abilities in managerial duties, improve relationships, business goals.
watch the video " the best stats youve ever seen " then answer the questions.
Answer:
thats a long video I'll pass
Deb has found it very difficult to repay her... Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $91,000. After the loan was discharged, Deb had total assets of $247,000 and her remaining loans totaled $239,000. What amount must Deb include in her gross income
Answer: $8000
Explanation:
The following information can be gotten from the question:
Total assets = $247000
Remaining loans = $239000
The amount that Deb must include in her gross income will be the difference between the total assets and the remaining loans which will be:
= $247000 - $239000
= $8000
=
The short run industry supply curve is the Group of answer choices sum of all of the individual firms' ATC curves above the MC. average of all of the individual firms' marginal cost curves above the AVC. sum of all of the individual firms' marginal cost curves above the AVC. average of all of the individual firms' ATC curves above the MC.
Answer:
sum of all of the individual firms' marginal cost curves above the AVC.
Explanation:
Marginal Cost (MC) can be defined as the cost incurred in the production of one unit of a product.
Average Variable Cost (AVC) can be defined as the total variable cost per unit of production. It is calculated by dividing total variable cost (TVC) by total output of production (Q);
[tex] AVC = \frac{TVC}{Q} [/tex]
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
The short run industry supply curve is the sum of all of the individual firms' marginal cost curves above the average variable cost (AVC). It is typically considered to be marginal cost curve for the industry.
Generally, industries always strive to maximize profits by increasing their level of output, such that P = MC. Also, the firms wouldn't be willing to leave or enter into the market because they are not making any profit, such that P=AC.