Answer:
ACME Fireworks
Income Statement for the period ended January 31, 2021
Sales revenue $292,000
Cost of goods sold 160,360
Gross profit $131,640
Operating expenses:
Salaries 52,700
Bad debts expense 600 53,300
Net income $78,340
Explanation:
a) Data and Calculations:
ACME Fireworks
Accounts Debit Credit
Cash $25,800
Accounts Receivable 47,600
Allowance for Uncollectible Accounts $4,900
Inventory 20,700
Land 53,000
Equipment 18,500
Accumulated Depreciation 2,200
Accounts Payable 29,200
Notes Payable (68, due April 1, 2022) 57,000
Common Stock 42,000
Retained Earnings 30,300
Totals $165,600 $165,600
Inventory
Account Titles Debit Credit
Beginning balance 20,700
Accounts payable 154,000
Cost of goods sold $77,300
Cost of goods sold 83,000
Sales
Account Titles Debit Credit
Accounts receivable $142,000
Cash 15,000
Accounts receivable 135,000
Income summary $292,000
Cost of goods sold
Account Titles Debit Credit
Inventory $77,360
Inventory 83,000
Income summary $160,360
Salaries $52,700
Allowance for Uncollectible Accounts
Account Titles Debit Credit
Beginning balance $4,900
Bad Debts expense 600
Ending balance $5,500
Transaction Analysis:
January 2 Cash $9,400 Gift Cards Liability $9,400
January 6 Inventory $154,000 Account payable $154,000
January 15 Accounts receivable $142,000. Sales revenue $142,000
Cost of the units sold $77,300 Inventory $77,300
January 23 Cash $126,100 Accounts receivable $126,100
January 25 Accounts payable $97,000 Cash $97,000
January 28 Uncollectible Allowance $5,500 Accounts receivable $5,500
January 30 Cash $15,000 Accounts receivable $135,000 Sales revenue $150,000
Cost of the units sold $83,000 Inventory $83,000
January 31 Salaries expense $52,700 Cash $52,700
Terps Company purchased a plant, including land, building, and machinery, for $110,000. These items were carried on the books of the seller as follows: land, $30,000; building, $80,000, and machinery, $40,000. Immediately after the purchase, the assets were appraised at the following values: land, $24,000; building, $30,000, and machinery, $66,000. What cost should the company record for the land, building and machinery
Answer:
Land = $22,000
Building = $27,500
Machinery = $60,500
Explanation:
Use the appraised values to apportion the Purchase Price ($110,000) to the asset categories.
Total appraised value = $24,000 + $30,000 + $66,000 = $120,000
Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signature Kelly Slater Wave Pool technology.
Option A: Create a private surf club, in which case he would have to invest $10 million today (EOY 0). The club would then generate an annual free cash flow of $2 million in perpetuity starting EOY 1.
Option B: Create a surf resort and hotel open to the public, in which case he would have to invest $50 million today (EOY 0). The resort would then generate an annual free cash flow of $6.5 million in perpetuity starting EOY 1.
Assume Kelly's discount rate is 10% and that he can only invest in one of the two options. Kelly should: ________
a. Accept both options because they both have positive NPV
b. Choose Option A because it has a higher IRR
c. Reject both options because both have an IRR less than 10%
d. Choose Option B because it has a higher NPV
Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
At the end of 2003, Ritzcar Co. fails to accrue sales commissions earned during 2003, but paid in 2004. The error is not repeated in 2004. What was the effect of this error on 2003 ending working capital and on the 2004 ending retained earnings balance
Answer:
The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
The error does not have effect on the 2004 ending retained earnings balance.
Explanation:
Let the amount of the commission expense be xxxx.
At the end of 2003, the journal entries should have been as follows:
Debit Commission expense for xxxx
Credie Commission payable for xxxx
Also, we have:
Working capital = Current assets – Current liabilities ………… (1)
From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.
1. A location’s risks can make a difference in premium costs. Think about two houses, one built on a mesa (a high desert plateau) in Arizona and the other built on the Louisiana coast (below sea level). Which location is more likely to experience flooding? Which house would have lower premiums for flood insurance?
Answer:
House with lower premiums for flood insurance -- house built on Mesa in Arizona.
Location more likely to experience flooding --- Louisiana coast which is below sea level.
Explanation:
Insurances provides a protection in exchange for a amount of fee known as a premium. An insurance is a policy or an agreement where the person availing the policy gets a financial protection against the calamities or losses that occurs to the person as promised by the other party. But for that the person needs to a pay a fee called as the premium to the other party.
In the context, the house which is built on the mesa, which is a high desert plateau in Arizona is less prone to floods. Since the location of the house is in a high altitude place, it is less likely to experience floods as compared to the other place in Louisiana coast which is below sea level and is more likely to experience flooding because of its location near the coast and elevation.
Therefore, the house located in Arizona will have to pay lower premiums for flood as there will be less likely to occur flood in the region of the high elevation of the place.
And since house built on Louisiana coast is below sea level, it will more likely to experience floods.
Which option identifies the most likely basic requirement in the following scenario?
A developing country needs to shift from smallholding to modern state-of-the-art agribusiness-style farming, and wants to do this in a fully independent, self-sustainable manner.
A) access to advanced chemical supplements and pesticides
B) a substantial body of skilled, traditional subsistence farmers
C) an infrastructure providing educated workers and advanced machines
D) an infrastructure providing cheap, unskilled labor
Answer: C. an infrastructure providing educated workers and advanced machines
Explanation:
Since the developing country needs to shift from smallholding to a modern state-of-the-art agribusiness-style farming, it's vital for the country to have an infrastructure providing educated workers and advanced machines. The educated workers will help in handling the technical know-how of the.machines used for the modern agribusiness.
An infrastructure that's providing cheap
and unskilled laborr isn't ideal in this case. Also, traditional subsistence farming won't help since the country is moving to a modern style.
Which of the following examples demonstrate common education and qualifications for Transportation Operations careers? Check all that apply.
Page has a special license for driving large tractor-trailer trucks.
Margarita is good at figuring out what is wrong with computer equipment.
Stan is good at staying calm and handling stressful situations.
Ernie is good at leading and supervising other workers.
Daisy is in good physical health.
Murray is persuasive, which makes him good at selling products.
Answer:
1
3
5 is correct
Explanation:
The examples below show typical school requirements and credentials for professions in transportation operations. For operating huge tractor-trailer trucks, Page has a specific license.
Stan does a superb job at handling pressure and remaining composed. Daisy has a strong physical condition. Hence, (A), (C), and (E) are accurate.
What is meant by Transportation Operations?Operations related to transportation include tasks including route planning and optimization, vehicle dispatch, supply chain management, security standards, customer service, driver training, and cost management.
Transportation provides the crucial service of connecting a business to its suppliers and customers by moving items from locations where they are sourced to locations where they are wanted.
It supports the economic utilities of place and time and is a crucial logistics function activity. The four main forms of transportation used in logistics are truck, ship, train, and plane shipments, commonly referred to as road, marine, rail, and air shipments.
Choosing the best means of transportation for your company involves careful thought, even if each of these options offers particular advantages.
Learn more about Transportation Operations, from :
brainly.com/question/30884900
#SPJ3
The US government has been running a deficit budget since 2001, one of the reasons
attributed to this dilemma is tax cuts. Do you think it is right for government to raise taxes to cut
the deficit? Discuss why you choose the answer that you have chosen and also discuss other measures government can use to eliminate the deficit.
Answer: See explanation
Explanation:
A budget deficit occurs when the expenditure that the government incurs is more than the revenue. I believe it's right for the government to raise taxes to cut the deficit.
One vital reason for the increase in the government spending can be attributed to the cut in taxes. Government typically generates majority of their revenue from the tax. So once tax is increased, this will bring about a reduction in the deficit.
Another way to eliminate the deficit is for the government to reduce its expenditure. An example is the reduction in the amount that the government spends on defense. When the government reduces its spending, this can also help in reducing the deficit incurred.
Finally, another way to eliminate government deficit is through economic growth. Once there is an increase in the Gross domestic product of an economy, then this can also help in checkmating the deficit.
The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $56,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Year Cash Flow
1 $23,000
2 23,000
3 25,000
4 28,000
5 16,000
Required:
a. If the cost of capital is 10 percent, what is the net present value of selecting a new machine?
b. What is the internal rate of return?
Answer and Explanation:
The computation is shown below;
a. the net present value is
Year cash flow factor at 10% Discounted cash flows
0 -$56,000 1 $56,000
1 $23,000 0.9091 $20,909.09
2 $23,000 0.8264 $19,008.26
3 $25,000 0.7513 $18,782.87
4 $28,000 0.6830 $19,124.38
5 $16,000 0.6209 $9,934
Net present value $31,759.34
b. The internal rate of return is
Here we apply the formula
= IRR()
After this, the irr is 30.75%
Brief Exercise 22-07 Sunland Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,020 in the first quarter, and $5,140 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $41,120 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020.
Answer:
So whats the question???
Explanation:
The risk-free rate is 3%. MCD currently prices at $25. The Delta of a 1-year at-the-money European call on MCD is 0.5. John has a portfolio made of the following: (1) One bond maturing in 1 year paying $1000. (2) Three 1-year at-the-money European MCD calls. (3) Two 1-year at-the-money European MCD puts. How many shares of MCD should John long (or short) to make his portfolio delta-neutral
Answer:
Short 1.5 shares
Explanation:
Given data :
Risk free rate = 3%
current price ( market price ) = $25
Delta of 1-year at money European call on MCD = 0.5
Determine how many shares of MCD John should either Long or short to achieve a delta-neutral
use the relation below
4 * 0.5 + 1 ( 0.5 - 1 ) + x = 0
x ( number of shares ) = - [ 4 * 0.5 + 1 ( 0.5 - 1 ) ]
= - 1.5 shares
negative ( - ) means MCD should short 1.5 shares
Good Investments Company forecasts a $2.44 dividend for 2017, $2.62 dividend for 2018 and a $2.77 dividend for 2019 for Mountain Vacations Corporation. For all years after 2019, Good Investments Company forecasts that Mountain Vacations will pay a $2.94 dividend. Using the dividend discount valuation model determine the intrinsic value of Mountain Vacations Corporation, assuming the company's cost of equity capital is 7%. Select one:
a. $18.12
b. $24.48
c.$29.37
d. $27.91
Answer:
c.$29.37
Explanation:
First and foremost, it should be borne in mind that the intrinsic value of Mountain Vacations Corporation is the present value of its future dividends for the forecast period(2017-2019) plus the present value of dividend terminal value beyond the forecast period as shown thus:
Year 1 (2017) dividend $2.44
Year 2 (2018) dividend $2.62
Year 3 (2019) dividend $2.77
the terminal value of dividend=expected dividend per year after 2019/ cost of equity capital
expected dividend per year after 2019= $2.94
cost of equity capital =7%
terminal value=$2.94 /7%=$42.00
PV of future dividend=dividend/(1+cost of equity capital)^n
n is the year in which the future dividend is expected, it is 1 for 2017, 2 for 2018 , 3 for 2019 dividend and the terminal value(since the terminal value is already stated in 2019 terms)
intrinsic value of share=$2.44/(1+7%)^1+$2.62/(1+7%)^2+$2.77/(1+7%)^3+$42.00/(1+7%)^3
the intrinsic value of share=$41.11
It is obvious that the options are not correct
The question's inputs are wrong
2017 dividend should have been $1.74
2018 dividend should have been $1.87
2019 dividend should have been $1.98
dividend beyond 2019 should have been $2.10
terminal value=$2.10/7%=$30.00
intrinsic value of share=$1.74/(1+7%)^1+$1.87/(1+7%)^2+$1.98/(1+7%)^3+$30.00/(1+7%)^3
intrinsic value of share=$29.36(closest to c.$29.37)
The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Month Total Maintenance Costs Total Machine Hours
January $2,700 300
February $3,000 350
March $3,600 500
April $4,500 690
May $3,200 500
June $5,500 700
1. Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.)
Variable cost per machine hour $ _
2. Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.)
Total fixed costs $ _
Answer:
Results are below.
Explanation:
Giving the following information:
January $2,700 300
February $3,000 350
March $3,600 500
April $4,500 690
May $3,200 500
June $5,500 700
To calculate the variable and fixed costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,500 - 2,700) / (700 - 300)
Variable cost per unit= $7
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 5,500 - (7*700)
Fixed costs= $600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,700 - (7*300)
Fixed costs= $600
When a supplying profit center is operating at full capacity, the minimum transfer price should be:____.
A. Enough to cover all fixed and variable per-unit costs.
B. Enough to cover all variable per-unit costs and any contribution margin lost by dropping customers.
C. Enough to cover all variable per-unit costs.
D. Enough to generate a reasonable gross profit.
Answer:
B. Enough to cover all variable per-unit costs and any contribution margin lost by dropping customers.
Explanation:
As the supplying profit center would be run at the full capacity and earn the profit from selling outside to the customer at full capacity so here the supplying center would have to provide the unit to the other center so it would involve the profit because of the internal transfer and the same should be involved in the transfer price as it would be worked on the full capacity
Therefore the option b is correct
Rise Against Corporation is comparing two different capital structures: an all equity plan (Plan A) and a levered plan (Plan B). Under Plan A, the company would have 210,000 shares of stock outstanding. Under Plan B, there would be 150,000 shares of stock outstanding and $2.28 million in debt outstanding. The interest rate on the debt is 8%, and there are no taxes.
a. If EBIT is $500,000, what is the EPS for each plan? (Round your answers to 2 decimal places.(e.g., 32.16))
EPS
Plan I $
Plan II $
b. If EBIT is $750,000, what is the EPS for each plan? (Round your answers to 2 decimal places.(e.g., 32.16))
EPS
Plan I $
Plan II $
c. What is the break-even EBIT? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)
Break-even EBIT $
Answer:A)Plan I = $2.38; Plan II,= $2.12
B) Plan I = $3.57; Plan II = $3.78
C)The Break-even EBIT IS $638,400
Explanation:
earning per share is given as
Earning per share = (Net income - interest ) ÷ (Number of shares)
and
a. if EBIT is $500,000
For Plan I when there is no interest on debt, we have that
EPS = ($500,000) / (210,000 shares) = $2.38
For Plan II, when interest rate on debt is 8%, We have that interest becomes
$2.28 million in debt outstanding x interest rate on debt of 8%
= $182,400
So thta the EPS on Plan II becomes
= ($500,000 - $182,400) / (150,000 shares) = $2.12
From the computation above we can see that Plan I has higher EPS
b.if EBIT is $750,000
For Plan I
EPS = ($750,000) /(210,000 shares) = $3.57
For Plan II, Using the interest as obtained from the solving above
EPS = ($750,000 - $182,400) / (150,000 shares) = $3.78
Here, Plan II has higher EPS
c. Break-even EBIT
This occurs when EPS (Plan 1) = EPS (Plan II)
(EBIT) /(Number of shares) = (EBIT - Interest) / Number of shares
(EBIT) /(210,000) = (EBIT - $182,400) /$150,000
(EBIT) = (EBIT - $182,400) /$150,000 X 210,000)
(EBIT) = (EBIT - $182,400) 1.4
(EBIT) = 1.4 EBIT-2553360
255360= 1.4 EBIT - EBIT
2553360= 0.4 EBIT
EBIT =2553360/0.4
EBIT =$638,400
The Break-even EBIT IS $638,400
Hamby transfers a capital asset in exchange for a one-half interest in Hartsville LLC. The asset has an adjusted basis to Hamby of $20,000 and a fair market value of $55,000.
Hamby has a $_____________ realized gain on the exchange. Hamby's basis for his LLC interest is $______. The LLC's holding period for the capital asset carries over from Hamby . The LLC’s basis for the contributed property is $____________.
Answer: a. $35000
b. $20000
c. $20000
Explanation:
a. The realized gain will be:
= Fair market value - Adjusted basis
= $55000 - $20000
= $35000
b. The basis for LLC Interest will be will be thesame as the adjusted basis which will be $20000
c. The LLC basis for the contributed property will be $20000 as it's the cost of the adjusted basis .
=
Japan has the ability to produce either 10,000 televisions or 5,000 cars in a day. The United States has the ability to produce 20,000 televisions or 15,000 cars in a day. Japan has the lower opportunity cost of producing televisions, while the United States has the lower opportunity cost of producing cars.
1. The United States has the comparative advantage in: _________.
a.) neither cars nor televisions.
b.) televisions.
c.) cars.
d.) both cars and televisions.
2. Which of the following statements about comparative advantage is true? (please explain)
a.) A country that produces a good the fastest will always have the comparative advantage.
b.) The country with the highest opportunity cost has the comparative advantage.
c.) Comparative advantage will determine the patterns and terms of trade.
d.) Comparative advantage is only relevant to international trade, not local or national trade.
Answer:
the production of cars
Comparative advantage will determine the patterns and terms of trade.
A country should engage in the production of the product for which it has a comparative advantage. it should import the good for which it does not have a comparative advantage
in this question, US should produce cars and import tvs from Japan
the opportunity cost determines the rate of exchange of goods among countries (the terms of trade)
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Opportunity cost of Japan in producing :
TV = 5,000 / 10,000 = 0.5
CARS = 10,000 / 5,000 = 2
Opportunity cost of US in producing :
TV = 15,000 / 20,000= O,75
Cars = 20,000 / 15,000 = 1.33
US has a lower opportunity cost in the production of cars and thus it has a comparative advantage in this production
In a large company, a small team of employees is tasked with conducting monthly tests of security controls. Each month, they select a small number of controls, attempt to exploit vulnerabilities, and report results to management. This is an example of:
Answer:
Vulnerability scanning
Explanation:
Vulnerability scanning is aimed at identifying and classifying system weaknesses that can be exploited in a computer network or a company system.
The vulnerabilities are reported to management and this will guide countermeasures to prevent future security breaches.
So in the scenario where a small team of employees is tasked with conducting monthly tests of security controls by selecting a small number of controls and attempting to exploit vulnerabilities, they are doing vulnerability scanning.
Answer:
The question is incomplete, the options are missing. The options are the following:
a) Vulnerability scanning.
b) Red team exercises.
c) Penetration testing.
d) Risk analysis.
And the correct answer is the option B: Red team exercises.
Explanation:
To begin with, in the area of cybersecurity and business management the term known as "Red Team" refers to method or technique used by the larges companies in the world whose main purpose is to complete exercises of cybersecurity breaches in where the "red team" has to attack the company in order to reach for the vulnerabilities of the organization's most important systems. In that situation, a blue team is the one in charge of defending the business' information. And it is all done with the purpose of getting feedback about what the real danger could be in a situation in the reality.
All of the following are criticisms of the payback period criterion EXCEPT Group of answer choices time value of money is not accounted for. it deals with accounting profits as opposed to cash flows. None of the above; they are all criticisms of the payback period criteria. cash flows occurring after the payback are ignored.
Answer:
I dont know
Explanation:
Dman
A profit is the money a business:
oooo
CCC
earns.
spends.
earns after paying expenses.
pays in wages or salaries.
Answer:
A profit is the money a business:
earns after paying expenses.
Explanation:
For a business entity, the profit is the excess of the money that the entity earns after deducting all of the expenses incurred in running the business from its revenue. There are many levels at which profit can be ascertained. For example, the gross profit is the excess of revenue over costs of goods sold. It is not the same as contribution margin, which the excess of revenue over variable costs. We also have operating profit as another level of profit. It is the profit generated from operating activities only. Another important level of profit is the net income or profit. This is mostly determined after paying company income taxes. It is the profit which can be distributed to stockholders and other stakeholders.
A "Narrow bank" is a bank that only holds cash for its depositors -- specifically, in our example from class, a narrow bank would take the 1000 deposits of $1,000 each and simply deposit $1,000,000 in its Federal Reserve account. 1. Would this kind of bank be immune to bank runs and financial crises? 2. Why or why not?
Answer:
Theoretically, the bank should be immune to bank runs and financial crises. A narrow bank just receivers deposits and manages them. It does not borrow money, so the deposits should be safe and available when required by the customers. The problem with this type of banks is that the only way they can make a profit is by charging depositors a fee instead of paying interest rates.
Explanation:
Andrew and Brianna are married and live in Texas, a community-property state. For their birthdays this year Andrew gave cash gifts of $20,900 to each of his two daughters, and Brianna gave $35,200 to her niece. What is the amount of Andrew's taxable gifts
Answer: $2,600
Explanation:
Because Andrew is married, the gift tax on him is split in half between him and his wife. This means that to each of his daughters, the gift tax will be on:
= 20,900 / 2
= $10,450
This amount is less than the gift exclusion limit of $15,000 so Andrew will not be charged taxes on the gifts to his daughters.
On the gift to Brianna's niece, Andrew's gift tax will be based on:
= 35,200 / 2
= $17,600
This is above the gift exclusion limit of $15,000 by:
= 17,600 - 15,000
= $2,600
The above would therefore be Andrew's taxable gift amount.
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
Fordman Company
Schedule of Equivalent Units
For the month of December
Direct Materials Conversion Costs Transferred In
Units completed
Ending WIP:
x
%
x
%
Total equivalent units
2. Compute the unit cost for the month. If required, round your answer to the nearest cent.
$ per equivalent unit
Answer:
Fordman Company
1. Fordman Company
Schedule of Equivalent Units
For the month of December
Direct Materials Conversion Costs Transferred In
Units completed 16,000 16,000 20,000
Ending WIP: 4,000 4,000
(8,000 * 50%) (8,000 * 50%)
Total equivalent units 20,000 20,000 20,000
2. Cost per equivalent unit:
Direct Materials Conversion Costs Transferred In
Total costs of production $37,000 $56,000 $48,000
Total equivalent units 20,000 20,000 20,000
Cost per equivalent unit $1.85 $2.80 $2.40
Explanation:
a) Data and Calculations:
Transferred in units = 20,000
Cost of units transferred in = $40,000
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started 20,000
Total units to account for 24,000
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed 16,000
Units accounted for 24,000
Materials Conversion Transferred in
Beginning work in process $5,000 $6,000 $8,000
Costs added during month 32,000 50,000 40,000
Total costs of production $37,000 $56,000 $48,000
What is a downside of receiving a tax
refund?
Answer:
It's a free loan to the government.
Explanation:
you're essentially giving the government a free loan with no interest.
According to the results of the 2019 expatriate survey, which of the following most accurately describes he current state of HRM efforts o staff international operations?
A. more women are accepting international assignments
B. people without family or kids are less successful in international assignments.
C. third-country nationals are quickly being replaced y localized expatriates.
Answer:
Option A is the accurate option.
Explanation:
Employers would be assigned to foreign employment, and therefore more women than ever are being sent overseas.The trend has always been rising throughout the Asia-Pacific region especially Northern America has been seeing substantial growth throughout this phenomenon or development.The other choices aren't related to the given scenario. So the above is the appropriate solution.
McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth.
Required:
a. Prepare a schedule showing the distribution Of net income, assuming net income is $67,000.
b. Prepare a schedule showing the distribution of net income, assuming net income is $24,000.
Answer and Explanation:
The preparation of the schedule for the following cases are
a.
Particulars McGill Smyth Total
Salary allowance $16,000 $20,000 $36,000
Interest allowance $6,000 $4,800 $10,800
Total salaries &
interest $22,000 $24,800 $46,800
Left income or
deficiency $12,120 $8,080 $20,200
Total division of
Net income $34,120 $32,880 $67,000
b.
Particulars McGill Smyth Total
Salary allowance $16,000 $20,000 $36,000
Interest allowance $6,000 $4,800 $10,800
Total salaries &
interest $22,000 $24,800 $46,800
Left income or
deficiency -$13,680 -$9,120 -$22,800
Total division of
Net income $8,320 $15,680 $24,000
Max is considering an investment proposal that requires an initial investment of $91,100, has predicted cash inflows of $30,000 per year for four years and no salvage value. At a discount rate of 10 percent the projects net present value is
Answer:
$3,995.96
Explanation:
Cash flow summary for the project as entered in financial calculator is :
- $91,100 CF0
$30,000 CF1
$30,000 CF2
$30,000 CF3
$30,000 CF4
i/yr = 10 %
therefore,
Shift NPV gives a net present value of $3,995.96
thus,
At a discount rate of 10 percent the projects net present value is $3,995.96
Gillstrap Promotions has projected the following values for the next three months:
January February March
Sales $352,000 $379,000 $404,077
Purchases on Trade Credit $218,000 $240,000 $260,000
Cash Expenses $88,000 $91,000 $94,000
Taxes, interest, and dividends$18,000 $20,000 $41,000
Capital Expenditures $50,0000 $25,000
All sales are credit sales with 40% collected in the month of sale, 50% collected the following month, and the remainder collected in the second month after the sale. Credit purchases are paid in 30 days and all other items require immediate payment.
Compute the net cash inflow for March.
Answer:
1.9058n n=15x x=17g g=5L
Explanation:
he Glowing company could produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project will be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 15.2 percent
Answer:
-$18,375
Explanation:
The computation of the net present value is shown below;
In the case when the operating cash flow is $56,200 for 5 years and the rate of return is 15.2% so the present value is $187,502 by using the financial calculator
In the case when the net after tax salvage value is $67,000 for the 5 year and the rate of return is 15.2% so the present value is $33,023 by using the financial calculator
Now the net present value is
= $18,7502 + $33,023 - $238,900
= -$18,375
explain the EU's objectives on their economic actions?
Answer:
The objective is to ensure Europe's sustainable and steady development. It means balanced economic growth and stable prices. The European Union seeks to create a competitive market economy which takes into account people's wellbeing and social needs. An
The concept of economic profit is used for making a decision between your two _______ options. Earning zero economic profit is not bad. It means that your two best options make you equally well off so you are indifferent between the two. For example, I am indifferent between teaching microeconomics and macroeconomics because they make me equally well off (I get paid the same).
If economic profit is positive. you should choose the _______ option because it will make you _______ off. If economic profit is negative, you should choose the ________ option because it will make you better off.
Answer:
The concept of economic profit ....... alternative two options.
If economic profit is positive .......... Current option.
If economic profit is negative............ Other option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two alternative options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose Current option, as it will make Better off , having more benefit than other option
Negative Economic Profit implies - one should choose Other option, as it wil make better off, having more benefit than the former considered option.