Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the net income of the investor under the Fair Value Method and the Equity Method, respectively?

Answers

Answer 1

Answer:

Under the equity method, cash dividends reduce the carrying value of the investment account (asset account), they are not considered income. For e.g.

Journal entry to record investment

Dr Investment in Santo Corporation 100,000

    Cr Cash 100,000

Journal entry to record cash dividend

Dr Cash 5,000

    Cr  Investment in Santo Corporation 5,000

Under the fair value method, cash dividends are considered income, therefore, they increase net income. For e.g.

Journal entry to record investment

Dr Investment in Santo Corporation 100,000

    Cr Cash 100,000

Journal entry to record cash dividend

Dr Cash 5,000

    Cr Dividend income 5,000


Related Questions

Warehouses have many functions. One of them is to:a. Reduce the response time on a customer's order.b. Reduce the inventory carrying costs of the company.c. Reduce duty rates for the company.d. Increase the response time to a customer's order.

Answers

Answer:

The correct answer is the option A: Reduce the response time on a customer's order.

Explanation:

To begin with, the warehouses are the places that the organizations use in order to accumulate inventory near the places of sale so the primary purpose of them is to increase the amount of available stock that could be quickly send to the place of sale and therefore to reduce the response time on a customer's order when they want to buy something that is not currently in stock in the place where the sale is taking place. And that is why that one of the many functions of the warehouse is to achieve that goal of reducing that wait time that the customer might suffer.

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 37,000 shares authorized, 19,200 shares issued, and 14,800 shares of common stock outstanding. The journal entry to record the dividend declaration is:
A. Debit Common Dividends Payable $7,400; credit Cash $7,400.
B. Debit Retained Earnings $9,600; credit Common Dividends Payable $9,600.
C. Debit Common Dividends Payable $9,600; credit Cash $9,600.
D. Debit Retained Earnings $18,500; credit Common Dividends Payable $18,500.
E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.

Answers

Answer:

E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.

Explanation:

The Journal entry is shown below:-

Retained earnings Dr, $7,400 (14,800 × $0.50)

             To Common dividend Payable $7,400

(Being dividend declaration is recorded)

Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability

So the correct option is D.

Terrell and hi parents live in a home near San Francisco. Terrell has a Visa card, which he is using to pay for car insurance today. Write a short paragraph telling ways Terrell and his family are making use of the U.S. monetary systems and policies.

Answers

Answer:

Terrell is using credit, which is a US regulated monetary system.

Explanation:

When you use credit (I also study finance along with investing) your borrowing money and paying it back later. This is a system that banks and government agencies make lots of money from, and they make money long term, while Terrell gets to pay his insurance in the short term. (I would advise against putting more than 10% of your credit limit of your credit card. Yes I know about credit cards lml) *edit- Credit is a form of small loans unless its secured or prepaid*

Assume that an investor owns 35% of an investee, and accounts for its investment using the equity ethod. At the beginning of the year, the Equity investment was reported on the investor's balance sheet at $360,000. During the year, the investeee reported net income of $110,000 and paid dividends of $20,000 to he investor. In addition, the investor sold inventory to the investee, realizing a gorss profit of $36,000 on the sale. At the end of the year, 15% of the inventory remained unsold by the investee.
a) How much equity income should the investor report for the year?
b) What is the balance of the Equity Investment at the end of the year?
c) Assume that the inventories are all sold in the following year, The investeee reports $160,000 of net income. How much equity income will the investor report for the following year?

Answers

Answer:

a. Investors shares in Net Income = Net Income * Share percentage

= $110,000 * 35%

= $38,500

Share of unrealized gain = Gross profit * Percentage of remaining inventory * Share percentage

= $36,000 * 15% * 35%

= $1,890

Hence, Equity Income = Investors share in Net income - Investor share in unrealized gain on ending inventory

= $38,500 - $1,890

= $38,610

b. Equity investment balance at year end = Equity Investment in the beginning during the time+ Equity income to be reported - Dividend paid

= $360,000 + $36,610 - $20,000

= $376,000

c. Investor share in Net Income = Net income * Share percentage

= $160,000 * 35%

= $56,000

Share of unrealized gain = Gross profit * Percentage of remaining inventory * Share percentage

= $36,000 * 15% * 35%

= $1,890

Hence, Equity Income = Investor share in Net Income + Investor share in unrealized gain on beginnging inventory

= $56,000 + $1,890

= $57,890

A(n) ____ focuses on the need for service providers to build strong bonds with customers.

Answers

Answer:

Interpersonal relationship

Explanation:

Took business

Answer:

interpersonal relationship

Mike says, "The possibility that my house may burn isa pure risk for me, but if I buy insurance, it is a speculativerisk for the insurance company." Do you agree? Why or

Answers

Answer:

I agree with Mike because pure risks involve only possible losses. Since he owns his house, the possibility of it burning down would represent only a loss to him.

But if he buys insurance, he will pay an insurance premium which means that if the house burns down, the company will lose money, but if the hose doesn't burn down, the insurance company will make a profit. This represents speculative risk because the possibility of a gain and a loss exist.

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a a.rate variance b.variable variance c.quantity variance d.volume variance

Answers

Answer:

a.rate variance

Explanation:

The labor rate variance arises when the rate is paid for the labor is different as compared with the standard rate

Also the variance could be favorable or unfavorable that based whether it is below the standard rate or higher standard rate as compared with the actual rate

hence, in the given situation, the correct answer is a. rate variance

If the company is using the payback period method and it requires a payback of three years or less, which project(s) should be selected?

Answers

Answer: Project X

Explanation:

The Payback period is the amount of time it would take for the cash inflows accruing from an investment to payoff the cost of the investment.

Project X has a constant cashflow of $24,000 for 3 years and a cost of $68,000 for the Payback period is;

= 68,000/24,000

= 2.83 years

Project Y has an uneven cash flow with a cost of $60,000. Payback is calculated as;

= Year before payback + Amount left to be paid/cashflow in year of payback

Year before payback = 4,000 + 26,000 + 26,000

= $56,000

This means that the third year is the year before payback.

60,000 - 56,000 = $4,000

Payback period = 3 + 4,000/20,000

= 3.2 years

Based on a Payback period of 3 years, only Project X should be chosen as it pays back in less than 3 years.

How is your opportunity cost of taking this course online different than taking it on-campus?

Answers

Answer:

Online classes is new trend now these days. Both ways have their own advantage and disadvantages.

Explanation:

Now these days the trend of online classes are on top. This is not a longer novelty. This mode of learning changes the structure and experience of the class.

It is not necessary that the changes could be right for all. There are some advantage of online classes.

Flexible scheduleFaster completionTo study anytimeTo login from anywhereTo access the more collegesNo commute

It has potentially lower cost

But in traditional classroom in campus, you have to attend the classes at campus. You will meet new people. Students get socialize with another students and new people

Both way of taking course have advantage and disadvantage.

Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?

Answers

Answer: Interest rate can vary

Explanation: Based on the description of Greg's and Joyce's mortgage loan, the key term is the adjustable nature of the loan used to finance the mortgage. Being adjustable simply means not fixated. Hence, the interest on the loan is bound to change throughout the entire period of the loan. This type of mortgage loans are called ADJUSTABLE RATE MORTGAGE or FLOATING mortgage. The change in the interest rate applied on the outstanding balance of is usually at intervals which could be annually, semianually or monthly basis as the case may be.

The percentage of homes in a given area that are watching television during a specific time period is referred to as:__________. A. households using television. B. ratings point. C. program rating. D. share of audience. E. total audience.

Answers

Answer:

A. households using television

Explanation:

Households using television is a term used by Nielson Media Research to represent the total number of households that have their televisions on in a particular area compared to the total number of houses with televisions.

For example this can be calculated in a one hour period to see the percentage of households that watch television within that time frame.

Rating on the other hand calculates number of households watching a particular programme.

The formula for this is

Household using television = Rating ÷ Share

QUESTION 3 Project governance does NOT include Setting standards for project selection. Overseeing project management activities. Centralization of project processes and practices. Options for continuous improvement. Allowing project managers to plan the project the way they see fit.

Answers

Answer: Allowing project managers to plan the project the way they see fit.

Explanation: Project governance may be described as collectively adopted and designated framework or structure which is employed to serve as a guide or model during the entire process of project planning and development. The project governance model is often in tandem with the organizational management framework and provides the necessary guidance and protocol for project management. Hence, it includes setting standard benchmarks, continuous monitoring of project activities and Options for standard incorporation and continuous improvement.

Project governance does not include allowing project managers to plan the project the way they see fit.

What is project governance?

Project governance can be described as the management framework that allows for the making of decisions that regards projects.

The main objective of the project governance is to allow decision making that would be:

LogicalRepeatable Robust

Read more about project governance on

https://brainly.com/question/4404879

Levine, Inc., has a total debt ratio of 0.48. What is its debt-equity ratio?

Answers

Answer:Debt equity ratio= 0.92

Explanation:

Debt equity ratio is a company's  liquidity ratio that compares its total debt to total equity showing how  the proportion  of the  finance of the company proceeds from its  creditors and investors.

its formulae is given by

Debt equity ratio= Total liabilities /Total shareholder's equity

 = Debt/ total asset - debt

let the total asset = 100% = 1

Therefore,

Debt equity ratio=Debt/ total asset - debt

= 0.48/ 1 -0.48 = 0.48 /0.52 = 0.9231

Wolverine, Inc. began operations on January 1 of the current year with a $12,400 cash balance. 45% of sales are collected in the month of sale; 55% are collected in the month following sale. Similarly, 15% of purchases are paid in the month of purchase, and 85% are paid in the month following purchase. The following data apply to January and February:
January February
Sales $ 39,000 $ 59,000
Purchases 32,000 44,000
Operating expenses7,400 9,400
If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,900, determine the change in Wolverine's cash balance during February.
a) $4,800 increase.
b) $7,700 increase.
c) $10,550 increase.
d) $13,450 increase.
e) Some other amount.

Answers

Answer:

$7,700 increase

Explanation:

We can determine the change in Wolverine's cash balance by deducting the cash disbursement and operating expenses from the cash receipts.\

Change in cash balance = Cash receipts - Cash disbursement - Operating expense

Change in cash balance = $48,000 - $33,800 -$6,500

Change in cash balance = $7,700

WORKING:

Cash Receipts

Sales

February ( 59,000 x 45%)            $26,550

January ( 39,000 x 55%)              $21,450  

Total                                               $48,000

Cash disbursement

Purchases

February ( 44,000 x 15%)            $6,600

January ( 32,000 x 85%)             $27,200  

Total                                              $33,800

Operating expenses

Incurred                                        $9,400

Depreciation                                ($2,900)

Net                                                 $6,500

You haven't been able to spend much time talking with your team lately, but your workload should be back to normal soon. When you checked in with your team today, several associates joked about being surprised to see you. Assuming all options are possible, what would you be most and least likely to do? 1. Explain the issue to team members and praise them for their work while you've been out. Let them know that you will soon have more time. 2. Talk to your manager to explain the situation. Propose that you ease some of your commitments so that you can spend more time with your team. 3. Keep your other commitments and try to be more strategic about when you interact with your team, picking the best times to maximize impact. 4. Immediately start spending more time with your team, even though this requires additional hours, in order to keep your other commitments. Most Least

Answers

Answer & Explanation: Team bonding is an important part of work as it helps to build morale and improve productivity.

In this scenario, I will most likely 'Explain the issue to team members and praise them for their work while you've been out. Let them know that you will soon have more time". This will help the team members to be involved and understand the intention.

However, I will least likely 'Immediately start spending more time with your team, even though this requires additional hours, in order to keep your other commitments'. This will mean pleasing the team at my expense and may lead to breakdown.

For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. In addition, determine the measurement scale a. Number of cellphones in the household b. Whether there is a high-speed Internet connection in the household c. Distance (in miles) from a person's house to the nearest store d. Number of text messages exchanged per month e. Time in hours spent exercising per week a. Number of cellphones in the household is what kind of variable? A. This variable is a categorical variable that is ordinal-scaled. B. This variable is a discrete numerical variable that is interval-scaled. C. This variable is a continuous numerical variable that is interval-scaled. D. This variable is a continuous numerical variable that is ratio-scaled. E. This variable is a categorical variable that is nominal-scaled. F. This variable is a discrete numerical variable that is ratio-scaled. b. Whether there is a high-speed Internet connection in the household is what kind of variable? A. This variable is a discrete numerical variable that is interval-scaled. B. This variable is a continuous numerical variable that is interval-scaled. C. This variable is a categorical variable that is ordinal-scaled. D. This variable is a categorical variable that is nominal-scaled. E. This variable is a continuous numerical variable that is ratio-scaled. F. This variable is a discrete numerical variable that is ratio-scaled. c. Distance (in miles) from a person's house to the nearest store is what kind of variable? A. This variable is a continuous numerical variable that is interval-scaled. B. This variable is a categorical variable that is ordinal-scaled. C. This variable is a categorical variable that is nominal-scaled. D. This variable is a discrete numerical variable that is interval-scaled. E. This variable is a continuous numerical variable that is ratio-scaled. F. This variable is a discrete numerical variable that is ratio-scaled. d. Number of text messages exchanged per month is what kind of variable? A. This variable is a discrete numerical variable that is interval-scaled. B. This variable is a continuous numerical variable that is interval-scaled. C. This variable is a categorical variable that is ordinal-scaled. D. This variable is a continuous numerical variable that is ratio-scaled. E. This variable is a discrete numerical variable that is ratio-scaled. F. This variable is a categorical variable that is nominal-scaled. e. Time in hours spent exercising per week is what kind of variable? A. This variable is a continuous numerical variable that is interval-scaled. B. This variable is a discrete numerical variable that is ratio-scaled. C. This variable is a categorical variable that is ordinal-scaled. D. This variable is a categorical variable that is nominal-scaled. E. This variable is a discrete numerical variable that is interval-scaled. F. This variable is a continuous numerical variable that is ratio-scaled.

Answers

Answer:

A. This variable is a discrete numerical variable that is ratio scaled

b..This variable is a categorical variable that is nominal scaled

C. This variable is a continuous numerical variable that is interval scaled

D. This variable is a discrete numerical variable that is ratio scaled

E.This variable is a continuous numerical variable that is ratio scaled

Explanation:

This is because we know that

Interval scale has the variable that has ordering that is its is scaled with respect to who comes first and has e measure of the distance between different categories

While

Ratio scale is similar to interval scaled but with a reference equal same as zero.

"A customer has an existing short margin account with credits of $16,000 and a short position in ABC stock worth $12,000. The SMA in the account is $1,000. If the market value of ABC falls to $8,000, the equity is:"

Answers

Answer:

$8,000

Explanation:

Short sale is a transaction involving an investor who borrows shares to sell in the market in anticipation of buying back the shares in the future when the market prices decreases. Where there is a proceed in short sale transaction, such will be deposited in a short margin account.

With regards to the above, if the market value of ABC shares falls to , then the equity would be;

Equity = Short margin account credits -Short market value

Equity = $16,000 - $8,000

Equity = $8,000

The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted back upstream. True/False

Answers

Answer:

The given statement is "True".

Explanation:

The bullwhip effect has been characterized as either the production disruption that flows upstream again from supplier to something like the wholesaler as well as a distributor throughout the production process, given the differences of shipments that might have been broader than those of revenues. Because these, upstream advertisers usually experience a reduction in prediction performance while the gap between some of the consumer as well as the supplier grows.

Which of the following is true?a. Currently, the food and fiber sector accounts for about 12% to 15% of gross domestic product (GDP). b. Off-farm income is important to agricultural producers today. c. Twenty percent of farmers produce 80% of the agricultural output in the food and fiber industry. d. The food and fiber industry is responsible for one out of every ten jobs.

Answers

Answer:

b. Off-farm income is important to agricultural producers today.

c. Twenty percent of farmers produce 80% of the agricultural output in the food and fiber industry.

Explanation:

The food and fiber industry is divided into 4 main sectors:

suppliers of farm inputs (including services and materials)farmers themselves (producers)processing and manufacturing of farm and fiber productsmarketing and distribution (wholesalers and retailers)

In the US, the food and fiber industry represents approximately 5.4% of GDP. It employs roughly around 21 million workers (including direct and indirect employment). The food and fiber industry is a net exporter, since it exports more than it imports. Currently, most farming value is concentrated on large farms, where smaller farms generally produce more livestock output while larger farms produce crops.

After WW2, there has been a tendency to substitute labor for capital, and to have more larger farms and less smaller ones.

(True/False) An employee code of conduct will list illegal behaviors, but it will not list unethical behaviors.

Answers

Answer:

False

Explanation:

An employee code of conduct is a legal document that provides guidelines on acceptable behaviours of individuals in an organisation.

It contains what is deemed illegal, values and ethical conducts

Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock of Pale Co. How would the investment be classified?a. Significant interest investmentb. Trading investmentc. Held-to-maturity investmentd. Controlling interest investment

Answers

Answer:

Option b (trading investment) is the correct choice.

Explanation:

Usually, the word 'trade investment' becomes interpreted as another expenditure undertaken by a corporation in certain company's securities or debentures towards supporting the initial company's transaction either business.Trading securities involve commodities or assets which are already intended by the administrators to start buying to generate money initially.

Which of the following is not a function of Public Accounting firms?
A. Register public accounting firms that prepare audit reports of publicly traded companies.
B. Conduct inspections of registered public accounting firms.
C. Promulgate accounting principles.
D. Establish or adopt auditing standards.

Answers

Answer:

C. Promulgate accounting principles.

Explanation:

The public company accounting is a non profit organization, established by an act, which provides regulatory roles for auditors of firms who trade on the stock exchange market.

They are responsible for establishing standards for audits of financial company, sanction registered audit firms and to establish independence standards for auditors of public companies.

Therefore, option 'C' is odd because Financial Accounting Standards Board(FASB) is the only body responsible for promulgating accounting principles.

when comparing companies in different industries a higher profit margin always indicates which company has better management

Answers

Answer: B. When comparing companies in different industries, a higher profit margin always indicates which company has better management performance

Explanation:

The profit margin refers to how much profit the company is making given the amount of sales it makes. It is therefore very dependant on the expenses incurred by the company.

This is why comparing management in different industries by using the Profit margin is like comparing apples and oranges. Industries are different and so are their methods of operation. One industry might require more expenses than another and still only make less sales which would impact it's profit margin negatively.

Profit Margin is best used for companies in the same industry.

For the coming year, Crane Inc. is considering two financial plans. Management expects sales to be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 25%. Under Plan A it would use 25% debt and 75% common equity. The interest rate on the debt would be 8.8%, but the TIE ratio would have to be kept at 4.00 or more. Under Plan B the maximum debt that met the TIE constraint would be employed. Assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the ROE change in response to the change in the capital structure

Answers

Answer:

increase in ROE due to plan B = 26.44% - 20.55% = 5.89%

Explanation:

currently EBIT = $301,770 - $266,545 = $35,225

TIE ratio = EBIT / interest expense

Plan A:

interest expense = ($200,000 x 25%) x 8,8% = $4,400

TIE ratio = $35,225 / $4,400 = 8

net income (assuming no taxes) = $30,825

ROE = $30,825 / $150,000 = 20.55%

Plan B:

TIE ratio = 4 = $35,225 / interest expense

interest expense = $35,225 / 4 = $8,806.25

total debt = $8,806.25 / 8.8% = $100,071

equity = $99,929

net income = $35,225 - $8,806.25 = $26,418.75

ROE = $26,418.75 / $99,929 = 26.44%

increase in ROE due to plan B = 26.44% - 20.55% = 5.89%

You find a certain stock that had returns of 16 percent, −9 percent, 23 percent, and 24 percent for four of the last five years. The average return of the stock over this period was 14.4 percent. a. What was the stock’s return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What is the standard deviation of the stock’s returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

stock's returns = (0.16 - 0.09 + 0.23 + 0.24 + x) / 5 = 0.144

0.16 - 0.09 + 0.23 + 0.24 + x = 0.144 x 5

0.54 + x = 0.72

missing return (x) = 0.72 - 0.54 = 0.18 = 18%

variance = [(0.16 - 0.144)² + (-0.09 - 0.144)² + (0.23 - 0.144)² + (0.24 - 0.144)² + (0.18 - 0.144)²] / 5 = (0.000256 + 0.054636257 + 0.007396 + 0.009216 + 0.001296) / 5 = 0.014560051

standard deviation = √0.014560051 = 0.1207 = 12.07%

What is the monthly payment on a $110,000 mortgage? Assume a standard 30-year, 5.4% mortgage with monthly payments.

Answers

Answer:

the monthly payment on a $110,000 mortgage is $617.68.

Explanation:

The Monthly payments, PMT on the mortgage can be determined using a Financial Calculator as follows :

Pv = $110,000

n = 30 × 12 = 360

r = 5.4 %

P/yr = 12

Fv = $ 0

PMT = ?

Using a Financial Calculator, the Monthly payments, PMT on the mortgage is $617.68

Kzinski warrants the mixers to be free of defects in material and workmanship for 1 year from the date of original purchase. If the mixer has such a defect, Kzinski will repair or replace the mixer free of charge for parts and labor. The product must be shipped prepaid to an authorized Kzinski service center. The consumer pays the cost to ship the mixer. The cost to return the product to the consumer is paid by Kzinski.
The authorized service center is located in Boston. Because Cookie Creations values serving its customers, it pays the shipping to Boston for any mixers needing repair under Kzinski’s warranty terms. Based on past experience, Kzinski has found that approximately 10% of mixers are returned for repair or replacement. The average cost to ship a mixer to Boston is $60.
The following transactions take place in 2020 and 2021.
A total of 30 mixers are sold in 2020.
Four of the mixers sold in 2020 are returned for repair in 2021. The total shipping cost for returning these four mixers to Boston is $210.
A total of 40 mixers are sold in 2021.
Two of the mixers sold in 2021 are returned for repair in 2021. The total shipping cost for returning these two mixers to Boston is $55.
1. Calculate Cookie Creations’ warranty liability for the shipping costs at December 31, 2020.
2. Record the estimated warranty liability at December 31, 2020.
3. Prepare the summary journal entry (or entries) to record the shipment of the six mixers (four from the 2020 sales and two from the 2021 sales) for warranty repair in 2021.
4. Calculate Cookie Creations’ warranty liability at December 31, 2021.

Answers

Answer:

1. Calculate Cookie Creations’ warranty liability for the shipping costs at December 31, 2020.

warranty liability = 30 x 10% x $60 = $180

2. Record the estimated warranty liability at December 31, 2020.

Dr Warranty expense 180

    Cr Warranty liability 180

3. Prepare the summary journal entry (or entries) to record the shipment of the six mixers (four from the 2020 sales and two from the 2021 sales) for warranty repair in 2021.

Dr Warranty liability (= $210 + $55) 265

    Cr Cash 265

4. Calculate Cookie Creations’ warranty liability at December 31, 2021.

warranty expense = ($210 - $180) + [(40 x 10% x $60) - $55] = $30 + $185 = $215

Dr Warranty expense 215

    Cr Warranty liability 215

Company has a division that manufactures a component that sells for and has variable costs of and fixed costs of . Another division wants to purchase the component. What is the minimum transfer price if the division is operating at​ capacity?

Answers

Complete Question:

Palmo Company has a division that manufactures a component that sells for $66 and has variable costs of $29 and fixed costs of $19. Another division wants to purchase the component. What is the minimum transfer price if the division is operating at capacity?

A. $48

B. $66

C. $19

D. $29

Answer:

Option D. $66 per unit

Explanation:

The transfer price can be calculated using the following Formula if the division is working at full capacity:

Lowest Transfer Price = Variable cost per unit + Contribution lost Per unit

Here

Variable cost per unit  is $29

Contribution lost Per unit = $66 - $29 = $37

By putting values in the above equation, we have:

Lowest Transfer Price = $29 + $37 = $66 per unit which is the market price of the company. If the company wasn't operating at full capacity then the minimum transfer price would be variable cost only because we will not have any contribution lost losses. This means that if the division is operation at full capacity the transfer price would be market price.

Controls that prevent, detect, and correct transaction errors and fraud in application programs are called: A. Application controls B. General controls C. Preventive controls D. Detective controls

Answers

Answer:

A. Application controls

Explanation:

Application control refers to the practice that looks in the security issues that lingers over the data. It helps in restricting or blocking the applications that are unauthorized to become a threat to data security. When the data is transferred or shared among different applications, the application control helps in performing the function of a safeguard.

Best's Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the Mountain Monger. Given the information in the table, calculate the required capacity for this year's production. Note that the times are given for assembly lines, so capacity calculations should be in terms of the number of lines necessary. Assume that Best Bicycles operates three shifts, each with 2,000 hours per year.Bike Demand Forecast Processing Time Lot Size (# of bikes) Setup Time (units/year) (minutes/unit) (minutes/setup)Tiny Tike 14,000 8 15 50Adult Aero16,000 10 18 80Mountain 19,000 12 25 40Mongera. Determine the total setup timeb. Determine the total operating time availablec. Determine the number of assembly lines

Answers

Answer:

A.148,177.78

B.360,000 hours

C. 2.89

Explanation:

A. Calculation to Determine the total setup time

Determine the total setup time for each of the three different types of bikes

Tiny Bike= (14,000/15)×50

=933.3333×50

=46,666.67

Adult Aero (16,000/18)×80

=888.889×50

=71,111.11

Mountain Monger (19,000/25)×40

=760×40

=304,00

Total Setup Time=

Tiny Bike 46,666.67+Adult Aero 71,111.11+Mountain Monger 30,400

Total Setup Time=148,177.78

Therefore the total setup time will be 148,177.78

b. Calculation to Determine the total operating time available

Total Operating Time=3×2,000×60

Total Operating Time=360,000 hours

Therefore the total operating time be 360,000 hours

c. Calculation to Determine the number of assembly lines

Number of assembly lines=(532,000+148,178)/360,000)+1

Number of assembly lines=(680,178/360,000)+1

Number of assembly lines=1.88938333+1

Number of assembly lines=2.89

Therefore the number of assembly lines will be 2.89

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