Answer:
book value = $13,200 (purchase price) + $4,200 (paint) + $2,300 (accessories) = $19,700
useful life 5 years, salvage value $5,100
assuming the company uses straight line depreciation:
depreciation per year = ($19,700 - $5,100) / 5 years = $2,920 per year
the journal entries to record the purchase of the vehicle and the improvements are:
July 1, 2022, vehicle is purchased
Dr Suburban SUV 13,200
Cr Cash 13,200
July 1, 2022, vehicle's paint and accessories
Dr Suburban SUV 6,500
Cr Cash 6,500
the journal entry to record depreciation expense ($2,920 x 6 months)
December 31, 2022, depreciation expense
Dr Depreciation expense 1,460
Cr Accumulated depreciation - Suburban SUV 1,460
the journal entry to record insurance expense ($2,100 x 6 months)
December 31, 2022, insurance expense
Dr Insurance expense 1,050
Cr Prepaid insurance 1,050
1) The depreciation expense is :
Book Value = Purchase price + Paint + Accessories
Book Value = $13,200+ $4,200 + $2,300
Book Value = $19,700
Selling Value after 5 years = $5,100
Assuming :
Straight Line Depreciation:
Depreciation per year = (Book Value-Selling Value )/5 Years
Depreciation per year = ($19,700 - $5,100) / 5 years
Depreciation per year = $2,920 per year
The journal entries to record the purchase of the vehicle and the improvements are:
July 1, 2022, vehicle is purchasedDr Suburban SUV $13,200
Cr Cash $13,200
July 1, 2022, vehicle's paint and accessoriesDr Suburban SUV $6,500
Cr Cash $6,500
Journal entry to record depreciation expense ($2,920 x 6 months)December 31, 2022,
Dr Depreciation expense $1,460
Cr Accumulated depreciation - Suburban SUV $1,460
Record insurance expense ($2,100 x 6 months)Dr Insurance expense $1,050
Cr Prepaid insurance $1,050
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Suppose disposable income increases by $2,000 . As a result, consumption increases by $1,500 . Answer the questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage.
The increase in savings resulting directly from this change in income is:_______
The marginal propensity to save (MPS) is:_________
Answer:
The increase in savings resulting directly from this change in income is $500
The marginal propensity to save (MPS) is 0.25
Explanation:
In order to calculate The increase in savings resulting directly from this change in income we would have to make the following calculation:
increase in savings resulting directly from this change in income= increase in income - increase in consumption
increase in savings resulting directly from this change in income= $2,000 - $1,500
increase in savings resulting directly from this change in income=$500
The Marginal propensity to save = increase in savings/increase in income =
Marginal propensity to save = $500/$2.000
Marginal propensity to save =0.25
A ___ necessity is a practice that is important for the safe and efficient of the business.
Answer:
business
Explanation:
A business necessity is a practice that is deemed important for the smooth running of business operation. It is a legal concept which can be used to create soft landings for employers regarding their employment decisions which may affect certain group of people. These group of people are unevenly affected or rejected because of certain employment requirements which is premised on the fact that the company has legal backing to do so for the efficient and effective management of the business.
Example is when a large number of people seeking employment are rejected by business owners due to certain criteria used even though they are qualified for the job, such scenario is termed business necessity.
why Estonia is so highly technologically advanced country?
Answer:
in fact, despite its size, Estonia has become one of the world's most technologically advanced countries.
Explanation:
This is largely due to the efforts the Estonian Government made in the 1990s to reform the country and turn it into a digital society, a movement now known as 'e-Estonia'. hope this helps you :)
Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $22,000 in 2018.Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018? Cumlative Non Cumlativepreferred Dividends for 2018 preferred Dividends in arrears for 2017 Remaining Dividends to common stockholders Total Dividens:
Answer:
1.
Preferred stock dividends to be paid in 2018 = $20000
Common stock dividends to be paid in 2018 = $2000
2.
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = $12000
Explanation:
The preferred stock dividends are always paid before the common stock dividends.
Cumulative preferred stock is the stock which accumulates or accrues dividends if the dividends are partially paid or not paid at all in a particular year. These dividends are accrued and are required to be paid by the company whenever it declares dividends.
Non cumulative preferred stock does not accrue or accumulates dividends. Thus, if dividends are not paid in a particular year, the company has no obligation to pay these dividends ever in the future.
1.
If the preferred stock is assumed to be cumulative, then the dividends in arrears for 2017 will be paid in 2018 along with dividends for 2018 on preferred stock before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = 10000 + 10000 = $20000
Common stock dividends to be paid in 2018 = 22000 - 20000 = $2000
2.
If the preferred stock is assumed to be non cumulative, then the dividends in arrears for 2017 will not be paid in 2018. Only the dividends for 2018 on preferred stock will be paid before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = 22000 - 10000 = $12000
Kathryn is looking for ideas on how best to grow her small business. She and her three partners sit down to brainstorm suggestions. Which of the following rules will help ensure a positive brainstorming session?
A. Let everyone jump in to the conversation.
B. Offer criticisms of ideas right away so you don't waste time.
C. Don't be too focused…let your mind wander.
D. Focus on the quality of the ideas…not the quantity.
E. Encourage wild ideas.
Answer:
B
Explanation:
So you dont waste ur time
Encouraging wild ideas of the following rules will help ensure a positive brainstorming session. Thus, option D is correct.
What is brainstorming suggestions?Various teams often employ brainstorming to come up with solutions to definite design issues. Teams address a topic using techniques, and inquiries in a supervised condition and a free-thinking atmosphere.
They generate a wide range of concepts and connect them to identify probable answers. As there is a group in which there are small businesses that is present. Therefore it is important that every idea is validated and looked for.
Also encouraging ideas will help to gain more perspective of the employees and the business as well as the consumer. Therefore, option D is the correct option.
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Postage Corporation acquired 75 percent of Stamp Corporation's common stock on December 31, 20X8, for $300,000. The fair value of the noncontrolling interest at that date was determined to be S100,000. Stamp's balance sheet immediately before the combination reflected the following balances:__________. Cash and Receivables $ 40,000Inventory 70,000Land 90,000Buildings and Equipment (net) 250,000Total Assets $ 450,000 Accounts Payable $ 30,000Income Taxes Payable 40,000Bonds Payable 100,000Common Stock 100,000Retained Earnings 180,000Total Liabilities and Stockholders' Equity $ 450,000 A careful review of the fair value of Stamp's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Postage and the noncontrolling shareholders. 1) Based on the preceding information, what amount of Stamp's inventory will be included in the consolidated balance sheet immediately following the acquisition? A) $0 B) S65,000 C) $70,000 D) $60,000 2) Based on the preceding information, what amount of Stamp's land will be included in the consolidated balance sheet immediately following the acquisition? A) $0 B) $10,000 C) $90,000 D) $100,000 3) Based on the preceding information, what amount of Stamp's buildings and equipment (net) will be included in the consolidated balance sheet immediately following the acquisition? A) $0 B) $50,000
Answer:
LOL i can't read that. pls reformat.
Explanation:
Equipment was acquired for $ 201 comma 000and has accumulated depreciation of $ 95 comma 000.The business exchanges this equipment for new equipment. The new equipment has a market value of $ 309 comma 000and the business pays $ 53 comma 000cash. Assume the exchange has commercial substance. The exchange results in ________.
Answer:
$150,000
Explanation:
The computation of exchange results is shown below:-
Before that we need to do the following calculations
Equipment value after depreciation = Equipment amount - Depreciation
= $201,000 - $95,000
= $106,000
New equipment value = Market value - Paid amount
= $309,000 - $53,000
= $256,000
Gain = New equipment value - Equipment value after depreciation
= $256,000 - $106,000
= $150,000
We simply applied the above formulas
Types of bonds
Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date.
1. Which of the following statements about Treasury bonds is the most accurate?
A. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
B. Treasury bonds are completely riskless.
C. Treasury bonds have a very small amount of default risk, so they are not completely riskless.
Based on the information given in the following statement, answer the questions that follow:
New York City issued a general obligation bond for a canal in 1812. It was the first formal debt instrument with a fixed repayment schedule issued by a city.
2. Who is the issuer of the bonds?
A. The New York City government
B. Bank of New York
C. Federal Reserve Bank of New York
3. What type of bonds are these?
A. Treasury bonds
B. Municipal bonds
C. Corporate bonds
4. Which of the following statements is true about bonds?
A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments.
B. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay federal—but not state—taxes on the bond’s coupon payments.
5. Which of the following types of bonds has the least default risk?
A. Corporate bonds
B. Treasury bonds
C. Municipal bonds
Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
2. A. The New York City government
3. B. Municipal bonds
4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments
5. B. Treasury bonds
Explanation:
1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.
2. The City of New York issued to bonds in question so it is a New York City Government bond.
3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.
4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.
5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.
To be Lean means:
a. to be able to move quickly without significant penalty
b. to decrease economies of scale
c. to do the same things as Agile but modified just a bit
d. to reduce or eliminate waste from the system
Answer:
d. to reduce or eliminate waste from the system
Explanation:
Lean refers in business to generating more benefits to your clients using less resources and a company using lean principles tries to eliminate all the unecessary things that doesn't add value which are considered waste and increase its efficiency. According to this, the answer is that to be lean means to reduce or eliminate waste from the system.
The other options are not right because Agile and Lean are different methodologies and Lean helps to generate cost reductions that can create economies of scale. Also, to be lean it doesn't matter if you move quickly or slow as long as you eliminate the waste to give more value to customers.
While on a hike with a tour group in the mountains, Derek gets mauled by a bear. No previous reports of bears in the area had been made. Derek wants to hold the tour company liable for his injury. Which of the following is most likely true?
A. Derek cannot hold the tour company liable because there is no way to prepare for or avoid a bear attack.
B. The company is not at fault because it does not owe Derek a duty of care.
C. Because most people would not expect something as dangerous as a bear encounter while on a hike, an assumption of risk defense will probably not protect the tour company.
D. Derek assumed the risk of a bear attack by joining the tour group, so he cannot hold the tour company liable.
Answer: D. Derek assumed the risk of a bear attack by joining the tour group, so he cannot hold the tour company liable
Explanation:
Derek has to accept that by joining the tour group, he assumed some the risk of some elements of danger amongst them the bear attack.
Even though there had been no prior attack by bears in the mountain, a mountain hike still has some inherent danger in it and this includes bears. He cannot hold the tour company liable using this reason alone.
Samantha and Adam own a gardening business together. They each pull weeds from flower beds and rake up leaves for their neighbors. If each decides to specialize in what they are best at, Samantha will
Answer:
Samantha and Adam
Gardening Business:
If each decides to specialize in what they are best at, Samantha will be specializing in either pulling weeds or raking up leaves and benefiting from the principle of Division of Labor.
Explanation:
According to britannica.org, division of labour is "the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to systems of mass production."
Division of labor facilitates the deployment of machinery and technology to complete simple tasks, thereby reducing costs of production, developing specialized talents, and increasing profits. It also makes possible the invention of tools and other forms of innovations. This is because workers who are focused on the same task can learn the tasks in details and develop better solutions from their learning experiences.
Chegg "Topper Corporation has 130,000 shares of $1 par value common stock and 92,000 shares of cumulative 8.6%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year. If Topper declares a $1.95 per common share dividend this year, what will be the total amount they must pay their shareholders?"
Answer:
Total divided= $1,761,800
Explanation:
The cumulative preference shares entire the investors to fixed amount of dividend. Where dividends are not paid during an accounting period, the unpaid dividend are carried forward and paid in arrears when profits become available in following accounting period.
Hence, before Chegg would pay common dividend the arrears of preference dividend must first be paid .
Preferred dividend = Dividend rate × Nominal value
Prior year Preferred dividend = 8.6%× 100× 92,000 = $791,200
Current year dividend = 8.6%× 100× 92,000 = $791,200
Common dividend = Div per share × units of common stock
Current year Common dividend = $$1.95 × 130,000 = $179,400
Total dividend = $791,200 +$791,200 + $179,400 =$1,761,800
Total divided= $1,761,800
g Using the Multiplier Model (and assuming the price level is fixed), if the economy is operating at $3,000 billion and the government policymakers have determined that the target level of income to reach is $3,500 billion, by how much must they increase government spending by to eliminate the recessionary gap if the mpe
Answer: a. $200 billion
Explanation:
The Multiplier Effect (MPE) is used to calculate the Multiplier which then shows how much the GDP of the country will increase if a certain amount of money is induced into it.
The formula is;
Multiplier = 1 / ( 1 - MPE)
= 1 / ( 1 - 0.6)
= 2.5
The economy is now operating at $3,000 billion but they would want it to operate at $3,500 billion.
The difference of $500 billion is the amount that policy makers would like to add to the economy.
The Multiplier of 2.5 means that for every $1 spent, $2.5 will be added to the economy.
To get a $500 billion increase therefore, they would need to spend;
= 500 / 2.5
= $200 billion.
If they spend $200 billion, $500 billion will be added to the economy by the Multiplier Effect.
Think of an organization with which you are familiar, perhaps one you have worked for— such as a store, restaurant, office, church, or school. Then answer the following questions. 1. Which contingencies are most important in explaining how the organization is organized? Do you think it is organized in the best way?
Answer:
I considered an Automobile manufacturer of cars in Japan in this case. the company is famous for manufacturing small and medium sized affordable cars in the market in a small lead time of introduction.
The contingencies that are most crucial for the company are the scarcity of low cost labor in its home country Japan, the increased competition in the same segment that is low cost of cars, in every country where the company operates.
The company is organised in the best form because it has a particular custom that has a strong hierarchical structure with little room to flexibility. it is a functional structure.
Explanation:
Solution
Let us consider a major automobile manufacturer of Japan in this context. the company is well established in Japan as well as in global automobile market in the last 30 years.
The company is known for manufacturing small and medium sized affordable cars in the market in a small lead time of introduction. the success of the company is primary on the efficiency improvement, lean operations and economics of scale.
Thus
The contingencies that are most important for this company is shown below:
Scarcity of low cost labor in its home country Japan.The lack of competitive advantages and unique resources to retain the same.The increased competition in the same segment that is low cost of cars, in every country where the company operates.The company has followed a particular custom that has a strong hierarchical structure with little room to flexibility. it is a functional structure.
With the present expansion in different market the functional structure may not be efficient and effective for the company.
Dave Fletcher was able to determine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project completion time and the critical path should also be determined. Here are the activity times: Activity Time (weeks) Immediate Predecessor(s) Activity Time (weeks) Immediate Predecessor(s) A 5 minus E 4 B B 6 minus F 5 B C 4 A G 11 C, E D 2 A H 6 D , F
Answer:
Project completion time: 21 weeksCritical Path: B - E - GES, EF, LS, LF are shown belowExplanation:
The earliest start is the latest of the earliest finish times of the predecessors. The earliest finish is the sum of earliest start and duration.
The latest finish is the earliest of the latest start times of the successors. The latest start is the difference of latest finish and duration.
The slack is the difference between earliest start (or finish) and latest start (or finish).
Project duration is the earliest start of the "Project Done" task. For purposes of computing slack, this (project duration) is taken to be the latest finish of the immediate predecessors.
The critical path is the sequence of tasks with 0 slack.
The amount of minutes you were active during the day is referred to as activity.
It's essentially the total amount of time you spent exercising in a 24-h cycle, and it may be anything from a gym aerobic or prenatal yoga class to brisk strolling.
Time to complete the project: 21 weeks
Below are the Critical Paths: B - E - G ES, EF, LS, LF.
The calculation has been attached below.
The earliest start is the latest of the predecessors' earliest finish times. The combination of the oldest start and endurance represents the earliest conclusion.
The latest finish is the earliest of the successors' latest start timings. The deviation between the newest finish and the length is the latest start.
The slack is the time between the earliest start (or finish) and the latest start (or complete) (or finish).
The beginning of the "Program Complete" task is termed the construction length. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack.
The critical route is a set of jobs with no slack in between them.
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On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $1,000, terms 2/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $300. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley
Answer:
$686
Explanation:
the journal entries necessary to record the sale:
June 15, inventory sold on account to Sunglass Hut, terms 2/10, n/30
Dr Accounts receivable 1,000
Cr Sales revenue 1,000
June 20, partial return of purchase from Sunglass Hut
Dr Sales returns and allowances 300
Cr Accounts receivable 300
June 24, invoice is paid within discount period
Dr Cash 686
Dr Sales discounts 14
Cr Accounts receivable 700
Consider the following transactions for Partytime Toys:
October 8 Partytime Toys buys $141,800 worth of MegoBloack toys on account with credit terms of 2/10, n/30
October 11 Partytime Toys returns $14,100 of the merchandise to MegoBlock due to damage during shipment.
October 15 Partytime Toys paid the amount due, less the return and discount.
Required
1. Journalize the purchase transactions. Explanations are not required.
2. In the final analysis, how much did the inventory cost Partytime Toys?
Answer:
1. Journalize the entries:
October 8:
Dr Purchases $141,800
Cr Account Payable $141,800
October 11:
Dr Accounts Payable $ 14,100
Cr Purchase Return $ 14.100
October 15:
Dr Accounts Payable $114,930 (141,800-14,100)*90%
Cr Cash $ 114,930.
2. The inventory cost $114,930 to Party Time Toys.
Explanation:
First, we have to Journalize the entries;
October 8:
Dr. Purchases $141,800
Cr Account Payable $141,800
October 11:
Dr Accounts Payable $ 14,100
Cr Purchase Return $ 14.100
October 15:
Dr Accounts Payable $114,930 (141,800-14,100)*90%
Cr Cash $ 114,930.
so, The inventory cost $114,930 to Party Time Toys.
What is a Transaction?A transaction is a business event that has a monetary impact on an entity's financial statements and is recorded as an entry in its accounting records. Examples of transactions are as follows:
Paying a supplier for services rendered or goods delivered.
What is a transaction in a bank?A bank transaction is any money that moves in or out of your bank account. Types of bank transactions include cash withdrawals or deposits, checks, online payments, debit card charges, wire transfers, and loan payments.
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Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
Pictech Pricing Pictech Pricing
High Low
Flashfone Pricing High 11,11 3,15
Flashfone Pricing Low 15,3 9,9
For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.
If Flashfone prices high, Pictech will make more profit if it chooses a _____ price, and if Flashfone prices low, Pictech will make more profit if it chooses a _____ price.
If Pictech prices high, Flashfone will make more profit if it chooses a _____ price, and if Pictech prices low, Flashfone will make more profit if it chooses a _____ price.
Considering all of the information given, pricing low _____ a dominant strategy for both Flashfone and Pictech.
If the firms do not collude, what strategies will they end up choosing?
(i) Flashfone will choose a low price, and Pictech will choose a high price.
(ii) Both Flashfone and Pictech will choose a high price.
(iii) Flashfone will choose a high price, and Pictech will choose a low price.
(iv) Both Flashfone and Pictech will choose a low price.
The game between Flashfone and Pictech is an example of the prisoners' dilemma
(i) True
(ii) False
Answer:
A. Low
Low
B. Low
Low
C. Pricing low is a dominant strategy for both firms.
D. (iv) Both Flashfone and Pictech will choose a low price.
E. True
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
If either firm prices high, the best strategy for the other firm is to charge low. This is because the firm that charges low earns a profit of 15 which is the highest amount of profit that can be earned in this case. If the other firm also charges low, it would earn a profit of 9 which is less than 15
If either firm prices low, the best strategy for the other firm is to charge low. Its this strategy that yields the highest profit for the firm in this case. If the other firm a charges high, it would earn a profit of 3 which is less than 9.
If both firms do not collude (they do not agree on the price to sell), the best strategy is to price low because the payoffs of pricing low (15,9) is greater than the payoff of pricing high (3,11).
It is a prisoners dilemma because the nash equilibrium is not the best option for either firms. The best strategy is colluding and keeping the price high. Hence it is a prisoners' dilemma
I hope my answer helps you
Part E14 is used by M Corporation to make one of its products. A total of 22,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials$4.70 Direct labor$9.30 Variable manufacturing overhead$9.80 Supervisor's salary$5.20 Depreciation of special equipment$3.60 Allocated general overhead$8.80 An outside supplier has offered to make the part and sell it to the company for $31.90 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part E14 could be used to make more of one of the company's other products, generating an additional segment margin of $34,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part E14 from the outside supplier should be:
Answer:
(29,800)
Explanation:
The computation of the financial advantage or disadvantage is shown below:
As we know that
Financial disadvantage = Cost of making - Cost of buying
where,
Cost of making is
= [(Direct material per unit + direct labor per unit + variable manufacturing overhead per unit) × units produced] + additional segment margin
= [($4.7 + $9.30 + $9.80 + $5.20) × 22,000 units] + $34,000
= ($29 × 22,000 units ) + $34,000
= $672,000
And, the Cost of buying is
= Units produced × offered price
= 22,000 units × $31.90
= $701,800
So,
Financial disadvantage is
= Cost of making - Cost of buying
= $672,000 - $701,800
= (29,800)
Assume the following cost of goods sold data for a company: 2018$1417000 20171204000 20161018000 If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018
Answer:
39.19%
Explanation:
2018 $1,417,000
2017 $1,204,000
2016 $1,018,000
if 2016 was the base year, then the % from 2016 to 2018 = ($1,417,000 - $1,018,000) / $1,018,100 = 39.19%
we can also calculate the % increase from 2016 - 2017 and from 2017 - 2018 in a similar manner:
2016 to 2017 increase = ($1,204,000 - $1,018,000) / $1,018,100 = 18.27%
2017 to 2018 increase = ($1,417,000 - $1,204,000) / $1,204,100 = 17.69%
Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 620,000 Annual net cash flows $ 86,000 Life of the equipment 10 years Salvage value $ 0 Discount rate 6 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be:
Answer:
7.2 years
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
Amount invested = $620,000
Cash flow = $86,000
Payback period = $620,000 / $86,000 = 7.2 years
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Identify the key elements to incorporate when making a request for a claim or adjustment. Check all that apply. Communicating feelings politely Excessive detail Chronology of details Moderate tone Logical case Sincere praise
Answer:
1. Communicating feelings politely
2. Moderate tone
3. Logical case
4. Sincere praise
Explanation:
In the quest of engaging in business transactions between individuals and businesses, the business might sometimes not meet up to the customer's needs. When customers want to make their claims or request for an adjustment, it is vital that they communicate their feelings in a polite manner, use a moderate tone, build their case logically, and offer sincere praise to the organization in question. In so doing, their claims can be addressed in a civil manner and they would be more likely to get a positive result.
Offering excessive details and bombarding the organization with the chronology of details might lead to confusion as to the real problems to be addressed.
A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 40 quarts per day and a standard deviation of 6 quarts per day. Excess costs run 35 cents per quart. The grocer orders 49 quarts per day.
a. What is the implied cost of shortage per quart?
b.Why might this be a reasonable figure?
Answer:
(a)The implied cost of shortage per quart is = $4.75
(b) This could be viewed as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.
Explanation:
Solution
Given that:
Mean =μ = 40
Standard deviation =σ = 6
Excess cost= Ce =$0.35
The amount ordered =S₀= 49
Thus
Z =(49 -40)/6
=1.5
Now
From the Table Z, we have the service level which is,
P(X <49 ) = P(Z < 1.5)
= 0.9332
Since we know that,
Service level (SL) =Cs/Cs+Ce
So,
0,9332 =Cs/Cs+0.35
Thus
0.9332Cs + 0.35* 0.9332 =Cs
0.0668Cs =0.32662
Hence
Cs = $4.75
(a) The implied cost of shortage per quart is = $4.75
(b) Therefore,this could be regarded as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.
(a) "$4.75" would be the implied cost of shortage per quart.
(b) Just because is equivalent to the loss of strawberry, this could be the reasonable figure.
According to the question,
Mean,
[tex]\mu = 40[/tex]Standard deviation,
[tex]\sigma = 6[/tex]Excess cost,
[tex]C_e = 0.35[/tex]Amount ordered,
[tex]S_o = 49[/tex]Now,
→ [tex]Z = \frac{S_o-\mu}{\sigma}[/tex]
[tex]= \frac{49-40}{6}[/tex]
[tex]= 1.5[/tex]
With the help of Z-table, we get
→ [tex]P(X < 49) = P(Z < 1.5)[/tex]
[tex]= 0.9332[/tex]
As we know,
→ Service level, [tex]SL = \frac{C_s}{C_s+C_e}[/tex]
By substituting the values, we get
[tex]0.9332 = \frac{C_s}{C_s+0.35}[/tex]
[tex]0.9332 C_s +0.35\times 0.9332 = C_s[/tex]
[tex]0.0668 C_s = 0.32662[/tex]
[tex]C_s = \frac{0.32662}{0.0668}[/tex]
[tex]= 4.75[/tex] ($)
Thus the above response is correct.
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Selected financial data regarding current assets and current liabilities for two competing companies, Simon and Garfunkel, are provided as follows:
($ in millions) Simon Garfunkel
Current assets
Cash and cash equivalents $ 620 $ 2,920
Short-term investments 3,690 0
Net receivables 992 1,330
Inventory 510 203
Other current assets 335 477
Total current assets $ 6,147 $ 4,930
Current liabilities
Accounts payable $ 7,220 $ 4,285
Short-term debt 1,270 1,028
Other current liabilities 0 1,306
Total current liabilities $ 8,490 $ 6,619
1-a. Calculate the current ratio for Simon. Then calculate the current ratio for Garfunkel. (Round your answers to 2 decimal places.)
1-b. Which of the two companies has the best current ratio?
Simon
Garfunkel
2-a. Calculate the acid-test (quick) ratio for Simon. Then calculate the acid-test (quick) ratio for Garfunkel. (Round your answers to 2 decimal places.)
2-b. Which of the two companies has the best acid-test ratio?
Garfunkel
Simon
Answer:
Please find the detailed answer in the explanation section
Explanation:
1. Current ratio = Curren assets / Curren liabilities.
For Simon:
Current assets are:
Cash and cash equivalents $ 620
Short-term investments $3,690
Net receivables $992
Inventory $510
Other current assets $335
Total current assets $6,147
Current liabilities are:
Accounts payable $7,220
Short-term debt $1,270
Other current liabilities. $0
Total current liabilities $8,490
So current asset is $6,147/$8,490
0.72:1
For Garfunkel:
Current assets are:
Cash and cash equivalents $2,920
Short-term investments $0
Net receivables $1,330
Inventory $203
Other current assets $477
Total current assets $4,930
Current liabilities are:
Accounts payable $4,285
Short-term debt $1,028
Other current liabilities. $1,306
Total current liabilities $6,619
So current asset is $4,930/$6,619
0.74:1
1b Simon current asset is 0.72 while Garfunkel's own is 0.74
Therefore Garfunkel with 0.74 has a better current ratio
2a. Acid-test ratio = total current assets minus Inventory / total current liabilities
For Simon:
($6,147 - $510) / $8,490
=0.66:1
For Garfunkel:
($4,930 - $203) / $6,619
=0.71:1
2b. Garfunkel with 0.71 has a better acid-test ratio
Momber's Flooring Company
2011 2012
Cash 500 800
Accounts receivable 1,400 1,200
Inventory 3,900 4,400
Net fixed assets 8,200 8,200
Land 1,000 2,000
Total Assets 15,000 16,600
Notes payable 1,000 600
Accounts payable 3,000 2,000
Accruals 500 900
Long-term debt 3,600 5,400
Common Stock 2,500 2,200
Retained earnings 4,400 5,500
Total Liabilities and Equity 15,000 16,600
Given the Balance Sheets for Momber's Flooring Company above for the years ending December 31, 2011 and 2012, find Net Cash Flows from Operating Activities for 2012 assuming the following income statement data:
Net income (2012)= $3,382 and Depreciation (2012) = $810
Round your answer as a whole number and record without a dollar sign and without commas. For example, record $3,204.854 as 3205. To show a negative cash flow (i.e., a net cash outflow), place a negative sign before your answer with no space between the negative sign and the number. Thus, record negative 5,432 as -5432.
Answer:
Net Cash Flows from Operating Activities for 2012 will be $2,082
Explanation:
Prepare the Cash flow from Operating Activities Section to determine the Net Cash Flows from Operating Activities.
Cash flow from Operating Activities :
Net income 3,382
Adjustment for Non-Cash items :
Depreciation 810
Adjustment for Changes in Working Capital items :
Decrease in Accounts Receivables 200
Increase in Inventory -500
Decrease in Notes payable -400
Decrease in Accounts payable -1,000
Increase in Accruals 400
Net Cash Flows from Operating Activities 2,082
Conclusion :
Net Cash Flows from Operating Activities for 2012 will be $2,082
In the early 1980's, 7 people in the Chicago area were poisoned by Tylenol capsules laced with cyanide. Although the company's investigation showed that the tainted capsules had not been tampered with at the factories where they were produced, Johnson & Johnson took immediate action through a massive recall and offered a $100,000 reward for information leading to the arrest of the person or people responsible. Industry experts believe that this led to the brand's ability to recover from the negative publicity surrounding the "Tylenol Murders". Johnson & Johnson's actions illustrate:a) The power of the Food and Drug Administrationb) How managing negative publicity is impossiblec) The importance of sacrificing short-term profits for long-term credibilityd) The need to combat negative publicity with facts in order to maintain sales levelse) The importance of sustainability on public perception and the bottom line
Answer: c) The importance of sacrificing short-term profits for long-term credibility.
Explanation:
The Chicago Tylenol Murders of September–October 1982 shocked the United States and claimed the lives of 7 people and was due to a poisoned Tylenol capsules which is produced under a Johnson and Johnson subsidiary.
Johnson & Johnson have been hailed as heroes for their response to the issue because even though the facts showed that they were in the clear, they still not only sacrificed huge short term profits by recalling thousands of tablets but by also offering a massive reward for anyone who would come forward with information that would lead to the arrest of perpetrators.
This act of Corporate Altruism saved the company's brand because people were humbled by the lengths Johnson & Johnson went to.
This endeared the Johnson & Johnson brand in their hearts as a Credible company and proved infinitely beneficial in the long run.
This proves that sacrificing short term profits for long term credibility is quite beneficial.
The following materials standards have been established for a particular product: Standard labor- hour per unit of output 3.3 hours Standard labor rate $16.15 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,300 hours Actual total labor cost $103,635 Actual output 2,000 units What is the labor rate variance for the month
Answer:
The labor rate variance for the month = $1890
Explanation:
Given values:
Standard labor hour per unit = 3.3 hours
Standard labor rate = $16.15 per hour
Actual hours worked = 6,300
Actual total labor cost = $103,635
Actual output = 2,000 units
Now, we calculate the labor rate variance with the help of given information. Below is the calculation of Labor rate variance.
Labor rate variance = ( Actual labor cost) – (Standard rate × Actual hours)
= 103635 – (16.15 × 6,300)
= $1890
In a persuasive message, an effective introduction of a product, service, or idea: a. describes an anecdote that is likely familiar to the audience. b. is written using a deductive outline. c. is cohesive and action centered. d. uses abstract nouns and passive verbs.
Answer:
d. uses abstract nouns and passive verbs.
Explanation:
A persuasive text can be defined as one written in order to convince someone of something. This text is prepared using some specific techniques and structures to achieve the objective. In a persuasive marketing text, techniques are used that affirm and support a favorable position to convince consumers to purchase a product, for example, supported by facts, evidence, statistics, etc.
Therefore, one of the techniques used in the introduction for a persuasive text to be effective, is to carry out an indirect approach, using resources from abstract nouns and passive verbs, which convey states, qualities, actions and feelings, so that the text is understood generating reciprocity, empathy , commitment, scarcity and several factors that make the consumer be encouraged to purchase a certain product or service.
A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise (its cost is $2,400) to a customer on credit terms of 3/10, n/30. Complete the two journal entries (the first for the revenue part of the transaction and the second for the cost part) to record the sales transaction by selecting the account names and dollar amounts from the drop-down menus. Date Account Title Debit Credit April 4 select select select select select select select select select select select select Slide 3
Answer:
1. Dr Account receivable 5,000
Cr Sales 5,000
2.Cost of goods sold 2,400
Cr Merchandise inventory 2,400
Explanation:
Preparation of the two journal entries
1. The record of the revenue part of the transaction
Since we were told that the seller on April 4, sells $5,000 in merchandise using perpetual inventory system this means we have to record the transaction as :
Dr Account receivable 5,000
Cr Sales 5,000
2.The record of the cost part of the transaction
Since we were told the merchandise cost $2,400 this means we have to record the transaction as:
Cost of goods sold 2,400
Cr Merchandise inventory 2,400
Blake and Ryan each invest $30,000 in a business and are given shares of stock in Jones Industries as evidence of their ownership interests. For this transaction, identify the effect on the accounting equation.
Answer:
Both asset and equity increases
Explanation:
As we are accepting investments from Blake and Ryan in the form of cash and offering our shares in exchange. This will result in our cash(asset) will increase by the value of $60,000 and Equity is also raising by issuing shares of $60,000 value to both Blake and Ryan equally.