Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Wayne ($ in millions) Corporation Enterprises Current assets: Cash and cash equivalents $ 407 $ 165 Current investments 6 463 Net receivables 706 86 Inventory 10,653 7,409 Other current assets 1,215 135 Total current assets $ 12,987 $ 8,258 Current liabilities: Current debt $ 7,421 $ 4,229 Accounts payable 1,687 941 Other current liabilities 1,193 2,375 Total current liabilities $ 10,301 $ 7,545 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) 1-b. Which company has the better ratio

Answers

Answer 1

Answer:

1-a. ACME corporation is 1.26

Wayne corporation is 1.09

1-b. ACME corporation

Explanation:

                                     ACME ($ in millions)               Wayne ($ in millions)

Total current assets          $ 12,987                                 $ 8,258

Total current liabilities      $ 10,301                                  $ 7,545

1-a) Formula for calculating current ratio: Current ratio = Current assets ÷ Current liabilities

ACME corporation, current ratio = $ 12,987 million ÷ $ 10,301 million  = 1.26

Wayne corporation, Current ratio = $ 8,258 million ÷ $7,545 million = 1.09

1-b. The higher the current ratio, the better the liquidity position. ACME corporation has the better ratio.

Answer 2

1-The current ratio of. ACME corporation is 1.26 and Wayne corporation is 1.09.

1-b. ACME corporation

Calculation of the current ratio:

                                    ACME ($ in millions)               Wayne ($ in millions)

Total current assets          $ 12,987                                 $ 8,258

Total current liabilities      $ 10,301                                  $ 7,545

1-a) The Formula for calculating current ratio is

Current ratio = Current assets ÷ Current liabilities

For ACME corporation

= $ 12,987 million ÷ $ 10,301 million  

= 1.26

And,

Wayne corporation

= $ 8,258 million ÷ $7,545 million

= 1.09

1-b. The higher the current ratio, the better should be the liquidity position. ACME Corporation has the better ratio.

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Related Questions

Horgen Corporation manufactures two products: Product M68B and Product H27T. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products M68B and H27T.

Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $299,000 13,000 MHs
Machine setups Number of setups $240,000 400 setups
Product design Number of products $80,000 2 products
Order size Direct labor-hours $290,000 10,000 DLHs


Activity Measure Product Product
Machine-hours M68B H27T
Number of setups 6,000 7,000
Number of products 250 150
Direct labor-hours 4,000 6,000

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H27T?
a. $291,000
b. $174,000
c. S465,000
d. $454,500

Answers

Answer: $465,000

Explanation:

The activity-based costing (ABC) is used to know the total cost of activities that is vital to make a product. In ABC system, for every activity which goes into production, a cost will be assigned.

Based on the figures in the question, the following can be deduced:

Machining:

= 299,000/13,000 × 7,000

= 23 × 7,000

= $161,000

Machine set up:

= 240,000/400 × 150

= 600 × 150

= $90000

Product design:

= 80,000/2

= $40,000

Order size:

= 290,000/10,000 × 6,000

= 29 × 6,000

= $174,000

Total = $161,000 + $90,000 + $40,000 + $174,000

= $465,000

The total manufacturing overhead cost that would be assigned to Product H27T is $465,000.

The total manufacturing overhead cost that would be assigned to Product H27T is $465,000.

Product H27T Machining = $299,000/13,000 × 7,000

Product H27T Machining = $23 × 7,000

Product H27T Machining = $161,000

Product H27T Machine set up = $240,000/400 × 150

Product H27T Machine set up = $600 × 150

Product H27T Machine set up = $90000

Product H27T Product design = $80,000/2

Product H27T Product design = $40,000

Product H27T Order size = $290,000/10,000 × 6,000

Product H27T Order size = $29 × 6,000

Product H27T Order size = $174,000

Total manufacturing overhead cost = $161,000 + $90,000 + $40,000 + $174,000

Total manufacturing overhead cost = $465,000

In conclusion, the total manufacturing overhead cost that would be assigned to Product H27T is $465,000.

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Assume that you have a company that assembles final products from a large variety of components that are supplied by factories located in various parts of the world. In the past you have experienced disruptions in the flow of your supply of components as the result of bad weather, such as a strong El Niño phenomenon, as well as other uncontrollable events. You have back-up suppliers, but each have different capacities and delivery schedules. So you created a model that includes sets of assumptions about changes in suppliers and delivery times in the event of unusual disruptive events. The Excel tool specifically designed for your use in this case is:________

Answers

Answer:

Sensitivity analysis

Explanation:

The excel tool that is fit for this task is a sensitivity analysis

Sensitivity analysis is a financial modelling tool that illustrates how a set of input variables impacts the dependent output variable under a certain specific condition , useful for making predictions concerning a range of variables.

It helps in identifying key variables that are of high influence on a project to facilitate a more precise forecasting , and also to help in ranking projects.

Other key benefits are that it considers the time value of money and cash flow.

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $18,000 of cash and land with an FMV of $63,000. Her basis in the land is $28,000. Andrew contributes equipment with an FMV of $20,000 and a building with an FMV of $41,000. His basis in the equipment is $16,000, and his basis in the building is $28,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew

Answers

Answer:

$0

Explanation:

Given that

Sue contributed amount = $18,000

FMV of land = $63,000

Basis in land = $28,000

Andrew contributed amount = $20,000

FMV of Building = $41,000

Basis in equipment = $16,000

Basis in building = $28,000

Based on the above information, the gain that would be recognized is $0 as Partnerships recognize no gain on receiving contributed valued property. At the disposal of the asset, the constructed-in benefit or constructed-in loss will be revealed. For this, the partnership basis property i.e being acquired should be based on a carryover basis.

Price ceilings may be imposed if: A. suppliers can make strong moral or political arguments for higher prices. B. demanders can make strong moral or political arguments for higher prices. C. demanders can make strong moral or political arguments for lower prices. D. suppliers can make strong moral or political arguments for lower prices.

Answers

Answer:

C. Demanders can make strong moral or political arguments for lower prices.

Explanation:

This explained as a legal price limit set by the government on the sellers in a way to be a protection means to the buyers. This will general control some serial hike and outrageous price on some goods and services.

Its effects are of different types; firstly, price ceiling can create huge market efficiencies in a long run and also causes hoarding of products and springing up of black markets and other hook and crook forms of marketing and this is known to cause unrest in the supply side. When these keeps pulling on, it has a negative effect on the economy of the said nation.

Use the 2012 segment information provided by BMW and Volkswagen to an- swer the following questions: a. Which company is more multinational? b. Which company is more internationally diversified? c. In which region(s) of the world did each company experience the greatest growth from 2011–2012? the greatest decline?

Answers

Answer with its Explanation:

a). The total revenue of Volkswagen and BMW in the 2012 segment given shows that the revenue is $192,676 and BMW which is $76,848. As the revenue of Volkswagen is more than the BMW hence Volkswagen is more multinational.

b). The regional sales section shows that the Volkswagen is more internationally recognized as per the regional sales which is substantially higher than the regional sales of BMW. So its crystal clear that Volkswagen is the one which more internationally diversified.

c). The 2012 segment information shows that the BMW greatest growth was in China then in USA and then greatest growth was in Rest of the Europe and the greatest decline was in Rest of the America.

For Volkswagen, the greatest growth was in North America then in Asia and then in South America. The greatest decline wasn't seen in the segment information but lowest increase was seen in Germany and then in the European countries.

The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 65,000 $ 55,000 $ 96,000 Cost of goods sold 35,000 26,000 65,000 Depreciation expense 10,000 2,000 26,000 Salaries and wages expense 5,000 13,000 8,000 Net income (loss) 15,000 14,000 (3,000) Accounts receivable increase (decrease) (1,000) 4,000 3,000 Inventory increase (decrease) 2,000 0 (3,000) Accounts payable increase (decrease) 0 2,500 (1,000) Salaries and wages payable increase (decrease) 1,500 (2,000) 1,000 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Cash Collected from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities $ 0 $ 0 $ 0

Answers

Answer:

                                                                        Case A        Case B        Case C

Cash Collected from Customers                  $66,000      $51,000    $93,000

Cash Payments to Suppliers                        ($37,000)    ($23,500)  ($63,000)

Cash Payments for Salaries and Wages       ($3,500)     ($15,000)  ($7,000)

Net Cash Provided by Operating Activities   $25,500    $12,500    $23,000

Explanation:

                                                                        Case A       Case B        Case C

Sales revenue                                                  65,000     55,000       96,000

Cost of goods sold                                          35,000     26,000       65,000

Depreciation expense                                    10,000        2,000        26,000

Salaries and wages expense                          5,000       13,000         8,000

Net income (loss)                                            15,000       14,000        (3,000)

Accounts receivable increase (decrease)      (1,000)       4,000          3,000

Inventory increase (decrease)                         2,000          0              (3,000)

Accounts payable increase (decrease)              0            2,500         (1,000)

Salaries and wages payable increase

(decrease)                                                          1,500       (2,000)         1,000

Cash Collected from Customers = Sales revenue - Accounts receivable increase (decrease)

Cash Payments to Suppliers = Cost of goods sold + Inventory increase (decrease) + Accounts payable increase (decrease)

Cash Payments for Salaries and Wages = Salaries and wages expense - Salaries and wages payable increase

(decrease)

The following information is available for a company's maintenance cost over the last seven months.
Month Maintenance Hours Maintenance Cost
June 9 $5,200
July 18 $6,650
August 12 4,850
September 15 5,750
October 21 6,650
November 24 6,950
December 6 3,350
Using the high-low method, estimate both the fixed and variable components of its maintenance cost.
High-Low method Calculation of variable cost per unit
Total cost at the high point ____
Variable costs at the high point
Volume at the high point: ____
Variable cost per unit ____
Total variable costs at the high point ____
Total fixed costs ____
Total cost at the low point ____
Variable costs at the low point
Volume at the low point ____
Variable cost per unit
Total variable costs at the low point
Total fixed costs ____

Answers

Answer:

Variable cost per unit= $240

Fixed costs= $1,910

Explanation:

Giving the following information:

June 9 $5,200

July 18 $6,650

August 12 4,850

September 15 5,750

October 21 6,650

November 24 6,950

December 6 3,350

To calculate the variable and fixed costs under the high-low method, 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= (6,950 - 3,350) / (21 - 6)

Variable cost per unit= $240

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 6,950 - (240*21)

Fixed costs= $1,910

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 3,350 - (240*6)

Fixed costs= $1,910

Kahn of Portland Oregon sent a letter to Lischner of Los Angeles inquiring whether Kushner’s property in Humboldt County was for sale. Lischner replied that he was interested in selling and asked Kahn about the fair market value. Kahn wrote that it was difficult to make an offer without a legal description of the property and asked for it and the annual taxes. These were provided by Lischner. Subsequently, Kahn wrote, "I hesitate to place a value on someone else’s property, but I can tell you that I have been offered a similar track of property for $2,000. Since your property is closer to mine, I would prefer to buy yours, and offer a four-year term contract at a total price of $2,500." The two parties ultimately agreed on a cash price of $2,500. Shortly after contracting with Kahn, Lischner went to Humboldt county and readily learned, upon the most superficial inquiry that the property was worth more than $2,500. He sold the property to Pacoima Lumber Sales, Inc. for $7,500. Thereupon, Kahn sued Lischner for $5,000. Lischner responded that he had been induced to contract by a fraudulent misrepresentation as to the value of the property by Kahn and therefore could rescind their contract of sale.What are the elements that must be present for fraudulent misrepresentation? Did Kahn commit fraud? Why, or why not.

Answers

Answer:

Misrepresentation & Fraud:

a) Elements for Fraudulent Misrepresentation:

1) A representation was in fact made:  This means that it was not just a mere opinion expressed by the party misrepresenting.

2) That particular representation was false: The statement made was untrue.

3) The defendant had knowledge that the representation was false:  The misrepresentation was intentional on the party of the defendant.

4) The statement was made with the intention that the other party rely on it and enter into a contract or agreement:  The defendant was out to induce the other party to enter the contract.

b) Kahn committed a fraud since he intentionally induced Lischner to contract on the basis of fraudulent misrepresentation.  The remedy available for Lischner is to rescind the contract.

Explanation:

a) Fraudulent misrepresentation is the presentation of false facts by someone who attempts to persuade another into action with the intent to deceive.  The remedy available to the deceived party is to rescind the contract or to plea for damages.

b) According to the  britannica.com, "Fraud, in law, is the deliberate misrepresentation of fact for the purpose of depriving someone of a valuable possession."

Assume that the cost of money is 10% per year. The initial cost of a small personal aircraft is $35,000, the annual repair and maintenance cost is $20,000 and the salvage value is $10,000. The aircraft is kept for 2 years. The present worth of the aircraft is :__________

Answers

Answer:

The present worth of aircraft = $29137.82

Explanation:

Given the cost of money (r ) = 10%

The initial cost of small aircraft = $35000

Annual repair and maintenance costs (A) = $20000

Salvage valaue = $10000

Now calculate the present value of aircraft by adding the initial cost of annual maintenance and salvage value and subtracting the initial cost.

[tex]Present worth = initial cost + \frac{A[1-(1+r)^{-n}]}{r} - \frac{Salvage \ value}{(1 + r)^{n}} \\= 35000 + \frac{20000 [1 – (1+ 0.01)^{-2}]}{0.01} - \frac{10000}{(1 + 0.01)^{2}} \\= $29137.82[/tex]

Which of the following could be considered a cost driver? Select one: a. A service provided by an architecture firm b. A product produced by a manufacturer c. A tax return prepared by a local CPA firm d. All of the above

Answers

Answer: d. All of the above

Explanation:

A cost driver refers to the activity that causes an actual change in the cost of a transaction and by extension it's local cost.

For example, cost driver of labor would be the number of people working or cost driver of Electricity paid would be the actual number of units consumed.

In the above, the products and services mentioned are the integral activities for those firms so they are cost drivers to those firms.

QUESTION 12 For a strategic alliance, firms should seek partners that are: a. known for being opportunistic. b. radically different when it comes to strategic goals. c. willing to share costs and risks of new-product development. d. different in terms of vision and agendas. e. similar when it comes to capabilities.

Answers

Answer:

c. willing to share costs and risks of new-product development.

Explanation:

A strategic alliance is when two companies come together to carry out a project that benefits both companies while both companies still retain their independence.

If strategic alliance is carried out with a company that is opportunistic, the company might take advantage of the other company or take certain actions that would not benefit the other company.

strategic alliance has to be mutually beneficial to both companies, so, strategic goals and visions have to align.

Capabilities don't have to be the same for a strategic alliance.

I hope my answer helps you

Nuzum Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: Total Company Division M Division N Sales $557,000 $254,000 $303,000 Variable expenses 144,910 81,280 63,630 Contribution margin 412,090 172,720 239,370 Traceable fixed expenses 273,000 128,000 145,000 Segment margin 139,090 44,720 94,370 Common fixed expenses 94,690 43,180 51,510 Net operating income $ 44,400 $ 1,540 $ 42,860 Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to:

Answers

Answer:

$ 183,544.30 = $ 183,544

Explanation:

Nuzum Corporation

                                       Total             Division M         Division N          

Sales                              $557,000          $254,000      $303,000

Variable expenses          144,910             81,280             63,630

Contribution margin        412,090            172,720          239,370

Traceable fixed expenses 273,000        128,000          145,000

Segment margin                139,090          44,720            94,370

Common fixed expenses 94,690           43,180               51,510

Net operating income    $ 44,400          $ 1,540           $ 42,860

First we find the Segment CM ratio by the following formula:

Segment Contribution Margin Ratio= Segment Sales- Segment Variable Expenses/ Sales

Segment Contribution Margin Ratio= 303,000 -63630/303000

Segment Contribution Margin Ratio= 239370/303000=0.79

Then we find the break even sales in dollars.

Break Even Sales in Dollars= Traceable Fixed Expense/ Segment Contribution Margin Ratio

Break Even Sales in Dollars =145,000/0.79=  $ 183,544.303

Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis team is busy comparing the benefits of increased wood production to the costs of deforestation and resulting environmental conditions. The company is using the _____ approach to make this ethical decision.

Answers

Answer:

Jaxon Furnishings Company Vs Logging Opportunities in Alaska

Comparison of the benefits of increased wood production to the costs of deforestation:

The company is using the __environmental sustainability___ approach to make this ethical decision.

Explanation:

According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."

An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done.  Short-termism selfishly considers the immediate gains from a transaction.  It lacks a futuristic appetite for the good of future generations.

The systematic process of selecting, supporting, and managing a firm's collection of projects is called: Profile management. Heavyweight project management. Project portfolio management. Matrix project organization.

Answers

Answer:

Project portfolio management

Explanation:

Project portfolio management refers to managing the portfolios of the project i,e used by the project managers and the management who manages the project.

This is useful to analyze the risk and return in each project

Moreover, it is a process of choosing, supporting and managing the collection of firm projects in a systematic way

Hence, the third option is correct

On January 1, ABC sold $30,000 in products to a customer on account. Then on January 10, ABC collected the cash on that account. What is the impact on ABC's accounting equation from the collection of cash on January 10?

Answers

Answer:

Collection of Cash on January 10

The Impact on ABC's accounting equation:

The Assets (Cash) will increase by $30,000 and another type of Assets (Accounts Receivable) will decrease by $30,000.

The collection of cash on January 10 does not affect the other side of the accounting equation.

Explanation:

The accounting equation shows that for every transaction, the Assets will be equal to the Liabilities + Owners' Equity.  The explanation is that the financial resources which an entity owns actually belong to either creditors or equity owners in the form of financial obligations (liabilities) or contributed capital plus some parts of the net income over the years which the entity has reinvested in its business.

The accounting equation is the fulcrum of the double-entry accounting system.  On a company's balance sheet, the accounting equation shows that assets equal the sum of the company's liabilities and shareholders' equity.

Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $42,600 and $88,200, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $77,700. What amount of loss on realization should be allocated to Alpha

Answers

Answer:

The amount of loss to Alpha is $17700.

Explanation:

Given income sharing ratio = 1:2

The capital balance of Alpha = $42600

The capital balance of Beta = $88200

Total capital balance (Alpha + Beta) [tex]= $42600 + $88200 = $130800[/tex]

The cash balance available = $77700

Loss = 130800 – 77700 = $ 53100

The share of loss allocated to Alpha:

[tex]= 53100 \times \frac{1}{3} \\= $17700[/tex]

Therefore, the amount of loss to Alpha is $17700.

Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000). Information about the company's two products is as follows:

Product A1 Product B1 Total
Number of setups 7 33 40
Machining hours 2,800 2,200 5,000
Orders packed 280 220 500
Number of products manufactured 560 440 1,000
If machining hours are used as a base under traditional costing, how much overhead is assigned to Product A1?

Answers

Answer:

Allocated MOH= $89,600

Explanation:

Giving the following information:

Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000).

Product A1 Product B1 Total

Number of setups 7 33 40

Machining hours 2,800 2,200 5,000

Orders packed 280 220 500

Number of products manufactured 560 440 1,000

Under the traditional costing system, the company applies overhead based on a single plantwide predetermined overhead rate.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 160,000/ 5,000

Predetermined manufacturing overhead rate= $32 per machine hour

Now, we can apply overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 32*2,800= $89,600

A truck was purchased 3 years ago for $50,000 and can be sold today for $25,000. The operating costs are $9,000 per year, and it is expected to last 4 more years with a $5,000 salvage value. A new truck, which will perform that same service, can be purchased for $55,000, and it will have a life of 10 years with operating costs of $28,000 per year and a $10,000 salvage value. What is the value that should be used as P for the presently owned vehicle in a replacement study

Answers

Answer:

P = $25,000

Explanation:

Cost price of truck = $50,000

Present value = $25,000

Operating costs = $9,000 per year

Salvage value = $4,000

Find remaining amount for old truck:

Amount remaining = $50,000 - $25,000 = $25,000

Total amount, since it has a salvage value of $5,000:

Total = $25,00 + $5,000 = $30,000

For new truck:

Cost price = $55,000

Operating costs = $28,000 per year

Salvage value = $10,000

To find the value that should be used as P for the presently owned vehicle in a replacement study:

P = Cost of new truck - Total amount remaining from old truck

P = $55,000 - $30,000

P = $25,000

Therefore, the value that should be used as P for the presently owned vehicle in a replacement study is $25,000

_____ do NOT have the authority to make decisions. a. Self-managing teams b. Semi-autonomous work groups c. Employee involvement teams d. Self-designing teams e. Autonomous work groups

Answers

Answer:

C. Employee involvement teams

Explanation:

Employee involvement teams do not have the authority to make decisions but They can offer advice and suggestions to management regarding particular issues.

Employee involvement teams has

employees directly involved in helping an organization achieve its vision and meet its objectives by offering their ideas, skills, support and efforts towards solving problems.

For​ 2018, Rest-Well Bedding uses​ machine-hours as the only overhead​ cost-allocation base. The direct cost rate is​ $6.00 per unit. The selling price of the product is​ $21.00. The estimated manufacturing overhead costs are​ $275,000 and estimated​ 40,000 machine hours. The actual manufacturing overhead costs are​ $350,000 and actual machine hours are​ 50,000. Using job​ costing, the 2018 actual​ indirect-cost rate is​ ________.

Answers

Answer:

Predetermined manufacturing overhead rate= $6.875 per machine-hour

Explanation:

Giving the following information:

The estimated manufacturing overhead costs are​ $275,000 and an estimated​ 40,000 machine hours.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 275,000/40,000

Predetermined manufacturing overhead rate= $6.875 per machine-hour

Suppose the following selected condensed data are taken from a recent balance sheet of Bob Evans Farms (in millions of dollars).
Cash $ 31.9
Accounts receivable 21.0
Inventory 28.1
Other current assets 23.0
Total current assets $104.0
Total current liabilities $200.0

Answers

Answer:

The answer is

1. -$96 million

2. 0.52:1

Explanation:

1. Working capital = total current assets - total current liabilities

Current assets:

Cash. $ 31.9 million

Accounts receivable $21.0 million

Inventory $28.1 million

Other current assets. $23.0 milllion

Total current assets $104.0 million

And current liabilities is$200.0 million

Therefore, working capital is:

$104 - $200

= -$96 million

2. Current ratio = current assets/current liabilities

$104 million / 200 miliion

=0.52:1

Your friend, Jonathon Fain, is an engineering major with an entrepreneurial spirit. He wants to start his own corporation and needs your accounting expertise. He has no idea what the following definitions mean:

1. Authorized stock.
2. Issued stock.
3. Outstanding stock.
4. Preferred stock.
5. Treasury stock.

Required:
Write a note to Jonathon carefully explaining what each term means and how they are different from each other.

Answers

Answer:

Please find the detailed explanation below.

Explanation:

1. Authorized stock:

This is the total(maximum) number of shares a corporation can issue. This can be found in its articles of incorporation or memorandum of association.

2. Issued stock:. This is the summation of all company's shares that have been sold and are held by shareholders.

3. Outstanding stock:

Outstanding stock or shares are all shares of a corporation that have been authorized, issued and purchased by shareholders and are held by them.

4. Preferred stock:

This share is an hybrid stock i.e it has a feature of both the equity and debt in it. Holders of this shares are entitled to fixed dividend payment and are usually paid before common shareholders if the company liquidates.

5. Treasury stock.:

Treasury shares are the shares that are repurchased by the corporation issuing them and thereby, reducing the total number of outstanding shares.

Agent Jennings makes a presentation on Medicare advertised as an educational event. Agent Jennings distributes materials that are solely educational in nature. However, she gives a brief presentation that mentions plan-specific premiums. Is this a prohibited activity at an event that has been advertised as educational?

Answers

Answer:

Yes it is

Explanation:

Yes. When an event has been advertised as educational, going ahead to discuss plan-specific premiums is impermissible

The event for which Mary made the presentation is clearly an educational event so she should have concentrated fully on only educational contents that pertains to the event. Giving a presentation that mentions plan-specific premiums no matter how brief is a deviation from the main focus of the event. Therefore it is impermissible for her to do so.

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.Raw Materials Inventory 7/1/16 $51,100Factory Insurance $4,700Raw Materials Inventory 6/30/17 46,000Factory Machinery Depreciation 19,000Finished Goods Inventory 7/1/16 98,200Factory Utilities 29,100Finished Goods Inventory 6/30/17 26,100Office Utilities Expense 9,350Work in Process Inventory 7/1/16 26,800Sales Revenue 564,000Work in Process Inventory 6/30/17 22,300Sales Discounts 4,700Direct Labor 147,750Plant Manager’s Salary 65,600Indirect Labor 26,560Factory Property Taxes 9,810Accounts Receivable 27,100Factory Repairs 1,600Raw Materials Purchases 97,500Cash 35,600A) Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct materials).B) Prepare an income statement through gross profitC) Prepare the current assets section of the balance sheet at June 30,2017

Answers

Answer:

A) cost of goods manufactured schedule

Factory Insurance                                                  4,700

Factory Utilities                                                    29,100

Factory Machinery Depreciation                        19,000

Direct Labor                                                        147,750

Plant Manager`s Salary                                       65,600

Indirect Labor                                                      26,560

Factory Property Taxes                                         9,810

Factory Repairs                                                      1,600

Add Beginning Work in Process Inventory       26,800

Less Closing Work in Process Inventory          (22,300)

Cost of Goods Manufactured                         $308,620

B) income statement through gross profit

Sales Revenue                                                                   564,000

Less Sales Discounts                                                            (4,700)

Net Sales                                                                            559,300

Less Cost of Goods Sold :

Finished Goods Inventory                                98,200

Add Cost of Goods Manufactured                 308,620

Less Closing Finished Goods Inventory         (26,100)   (380,720)

Gross Profit                                                                         178,580

C) current assets section of the balance sheet at June 30,2017

Current Assets

Raw Materials Inventory      46,000

Work in Process Inventory   22,300

Finished Goods Inventory    26,100

Accounts Receivable            27,100

Cash                                      35,600

Total Current Assets           157,100

Explanation:

Raw Materials Consumed in Production Calculation

Open a Raw Materials T - Account as follows :

Debit :

Opening Balance                                                      $51,100

Purchases                                                                $97,500

Totals                                                                      $148,600

Credit :

Closing  Balance                                                      $46,000

Requisitioned for Production  (Balancing figure) $102,600

Totals                                                                      $148,600

The effect is A. more likely if inflation is unanticipated because workers would not seek higher nominal wages. B. more likely if inflation is unanticipated because workers would seek higher nominal wages. C. less likely if inflation is unanticipated because workers would not seek higher nominal wages. D. less likely if inflation is unanticipated because workers would seek higher nominal wages.

Answers

Answer:

more likely if inflation is unanticipated because workers would not seek higher nominal wages.

Explanation:

Here is the full question:

The effect of the sudden unanticipated spurt of inflation:

A. less likely if inflation is unanticipated because workers would not seek higher nominal wages.

B. less likely if inflation is unanticipated because workers would seek higher nominal wages.

C. more likely if inflation is unanticipated because workers would seek higher nominal wages.

D. more likely if inflation is unanticipated because workers would not seek higher nominal wages.

Inflation is a presistent rise in general price level.

Workers compensate for expected inflation by asking for an increase in nominal wages.

Nominal wages = real wages + inflation

If there's an unanticipated rise in inflation, workers would be at a disadvantage because their wages would most likely not reflect this unexpected rise in inflation.

I hope my answer helps you

Answer:  A. more likely if inflation is unanticipated because workers would not seek higher nominal wages.

Explanation:

An Unanticipated Spurt in Inflation could lead to rapid Economic growth and this effect is more likely if it was unanticipated because workers would not seek higher nominal wages.

This is because if the workers do not expect prices to rise and hence do not negotiate better wages, the cost of Production for producers will remain the same even though profitability has increased due to the higher prices.

The producers will therefore produce more goods to take advantage of the situation which will further aid Economic growth.

On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 1 Sales $9,600,000.00 2 Variable cost of goods sold: 3 Variable cost of goods manufactured $5,376,000.00 4 Inventory, December 31 (336,000.00) 5 Total variable cost of goods sold 5,040,000.00 6 Manufacturing margin $4,560,000.00 7 Total variable selling and administrative expenses 1,150,000.00 8 Contribution margin $3,410,000.00 9 Fixed costs: 10 Fixed manufacturing costs $1,664,000.00 11 Fixed selling and administrative expenses 890,000.00 12 Total fixed costs 2,554,000.00 13 Income from operations $856,000.00 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Production= 25,600 units

Units sold= 24,000

Variable cost of goods sold= $5,376,000

Fixed manufacturing costs= $1,664,000

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Variable costing method:

Unitary product cost= 5,376,000/25,600= $210

Absorption costing:

Unitary product cost= 210 + (1,664,000/25,600)= $275

An uninterruptible power system used in a small production facility at Acme Manufacturing has a basis of $56,000 and is expected to have $5750 salvage value after 125,000 hours of use. Calculate the depreciation rate per hour of use and the book value after 77,000 hours of operation.

Answers

Answer:

The depreciation rate per hour is 0.402

The Book value is $25,046

Explanation:

In order to calculate the depreciation rate per hour of use we would have to calculate the following:

depreciation rate per hour=(basis- salvage value)/hours of use

depreciation rate per hour=($56,000-$5750)/125,000

depreciation rate per hour=0.402

To calculate the book value we would have to make the following calculation:

Book value=basis-(depreciation rate per hour*77,000 hours of operation)

Book value=$56,000-(0.402*77,000)

Book value=$25,046

Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals? Group of answer choices functional planning system annual HR benchmarks high performance work system HR Scorecard

Answers

Answer:

HR scorecard

Explanation:

This is all done within a company using an HR scorecard. HR scorecards are used by the human resources department in order to manage individual employee performance as well as making sure all the employees are aligned with the firm's current objective and strategic goals. These scorecards give managers the ability to assign financial and non-financial goals, monitor and assess performances, and even make necessary changes both quickly and effectively.

The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is Group of answer choices

Answers

Answer:

Supplies expense to be recorded = $2,850

Explanation:

Beginning account balance = $1,200

debit during the year = $2,300. This  means that a transaction of $2,300 was used for supply purchase during the year

balance on hand = $650

difference between beginning and ending inventory = 1200 - 650 = $550

This means that an expense of $550 was carried out during the year.

Therefore, total expense during year = 550 + purchase expense

= 550 + 2300 = $2,580

Alternatively, the supply expense reported can be calculated with the formula:

Supplies expense = beginning inventory + supplies purchased - ending inventory

Supplies expense = 1200 + 2300 - 650 = $2,850

Based on the supplies opening balance, the supplies purchased and other details, the supplies expense must be $2,850

The supplies expense can be calculated as:

= Beginning balance + Supplies purchased - Closing balance

Solving would give:

= 1,200 + 2,300 - 650

= $2,850

In conclusion, the supplies expense in the income statement will be $2,850

Find out more at https://brainly.com/question/14313516.

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $115 million, a coupon rate of 7 percent, and sells for 93 percent of par. The second issue has a face value of $100 million, a coupon rate of 6 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 8 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. What are the company’s capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

Answers

Answer:

Book value weight of equity is  0.2007  

Book value weight of debt is  0.7993  

Market value weight of equity is  0.6883  

Market value weight of debt is 0.3117  

Explanation:

The book value of the two bonds=$115 million+$100 million=$215 million

The book value of equity =6 million *$9=$54 million

weight of debt=$215/($215+$54)= 0.7993  

weight of equity=$54/($215+$54)= 0.2007  

Market value approach:

market value of equity=6 million*$78=$468  million

market of the first bond=$115 million*93%=$106.95  million

market value of the  second bond=$100 million*105%=$105 million

total market value of bonds=$106.95 million+$105 million=$ 211.95 million

weight of debt=$211.95/($211.95+$468 )= 0.3117  

weight of equity=$468/($211.95+$468 )= 0.6883  

 

 

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