Answer:
Annual deposit= $3,729.63
Explanation:
Giving the following information:
Future value (FV)= $20,000
Number of periods (n)= 5 years
Interest rate (i)= 3.5% = 0.035
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (20,000*0.035) / [(1.035^5) - 1]
A= $3,729.63
When the company is hosting an event, managers should assign event preparations to a ________. Preparations include trucking in different kinds of equipment and setting it up over several acres; installing sufficient security, first aid, and portable restrooms throughout the course; and having food and drink delivered, as well as marketing the event and enrolling participants. Hiring team members who are diverse in terms of gender and race is likely to_____________ the team's productivity.
Answer:
Cross functional team / will increase
Explanation:
A cross functional team can be defined as a team formed by people with different areas of expertise, as is the case of a team specialized in the organization of business events.
Cross functional teams have the advantages of making work more effective and more productive by the possibility that each person is responsible for a different area and therefore the work takes place in a much more flexible, dynamic and creative way, since there is greater autonomy, greater capacity to communication and lower hierarchy in these teams, and the greater the diversity of professionals, the more the teams will be innovative and productive.
You have been learning about the accounting equation, debits/credits, and account normal balances. The accounting equation is the foundation of accounting. Understanding debits/credits and the account normal balances are just as important. Sometimes, these concepts are difficult to understand and/or remember. Please research the Internet to find fun and easy ways to remember this information. It could be a song, a mnemonic, phrase, video, etc. It can even be something that you have created. Make sure that the information is college appropriate. Please post your findings and include a link that references the material. Then in a minimum of a paragraph, summarize why you choose this source, how it has helped you remember the material, and why other students would find it helpful.
Answer:
using the word DEALER
since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence
DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts while
LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts
Explanation:
The fundamentals of accounting is based on the ability to distinguish between a Debit and a credit . ability to do this efficiently will help in the process of balancing the ledger at the end of each accounting period. most times the concepts of Debits and credits are not so easy to memorize hence i will such the Fun way of Memorizing them which is;
using the word DEALER
since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence
DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts while
LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts
Mumford Corporation invested $30,000 in marketable securities on December 4. On December 9, it sold some of these investments for $10,000, and on December 18, it sold more of these investments for $5,000. The securities sold on December 9 had cost the company $7,000, whereas the securities sold on December 18 had cost the company $6,000.
a) Record the purchase of marketable securities on December 4.
b) Record the sale of marketable securities on December 9.
c) Record the sale of marketable securities on December 18.
d) Record the necessary fair value adjustment on December 31, assuming that the market value of the company's remaining unsold securities was $20,000.
Answer:
Mumford Corporation
Journal Entries:
a) December 4:
Debit Investment in Marketable Securities $30,000
Credit Cash $30,000
To record the purchase of marketable securities.
b) December 9:
Debit Cash $10,000
Credit Investment in Marketable Securities $7,000
Credit Gain from sale of marketable securities $3,000
To record the sale of investment and the gain arising from the sale.
c) December 18:
Debit Cash $5,000
Debit Loss from sale of securities $1,000
Credit Investment in marketable securities $6,000
To record the sale of marketable securities and the arising loss.
d) December 31:
Debit Investment in Marketable Securities $3,000
Credit Unrealized Gain $3,000
To record the unrealized gain on marketable securities.
Explanation:
a) Investment in marketable securities = $30,000 on December 4
Cost of units sold on December 9 = $7,000; selling price =$10,000
Cost of units sold on December 18 = $6,000; selling price = $5,000
b) Mumford will record an unrealized gain to the value of $3,000 because the value of the marketable securities has increased but the asset is yet to be sold for cash. When the asset is eventually sold, it becomes a realized gain.
By debiting the trade receivables account and crediting the sales account, the journal entry to document such credit value of products and services is passed.
Journal entry based problem:S.no Particular Debit Credit
A. Marketable securities DR 30,000
Cash CR 30,000
B. Cash DR 10,000
Marketable securities CR 7,000
Gain on sale CR 3,000
C. Cash DR 5,000
Loss on sale of Investments DR 1,000
Marketable Securities CR 6,000
D. Marketable Securities DR 3,000
Unrealized holding gain CR 3,000
($30,000 − $7,000 − $6,000 - 20,000)
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Tricia Grey is a salaried, exempt employee with Meganti Incorporated. She is single with one dependent and earns $28,600 per year.
Required:
Complete the payroll register for the biweekly pay period ending June 10, 20XX with a pay date of June 15, 20XX.
Answer:
Earnings per year = $28,600 per year
So, Biweekly Pay = $28,600 *2/52 = $1,100
Summary
Gross Name = Tricia Grey
Martial Status = Single
No. Withholding = 1
Period Salary = $1,100
Regular Earnings = $1,100
Gross Earnings = $1,100
what is a down payment of 20 percent on a purchase price of $215,000
Answer:
$43,000
Explanation:
Question 2 (5 points)
(01.07 MC)
How do we know our current money has value? (5 points)
а
People talk about money a lot.
Ob
It is backed by gold.
Ос. .
People accept it in exchange for goods or services,
od
It has many security measures.
Answer:
It's C
Explanation:
a and d are kind of a result of C but C is still correct
we no longer back our money with gold
December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020 Accounts receivable (net) $ 20 $ 16 Net sales $ 115 $ 100 Cost of goods sold $ 60 $ 55 Net income $ 20 $ 17 Inventory turnover 5.22 Return on assets 10.3 % Equity multiplier 2.36 Dowling's 2021 profit margin is (rounded):
Answer:
17.40%
Explanation:
Profit margin = Net income / Net sales * 100
Profit margin = $20 million / $115 million * 100
Profit margin = 0.1739130 * 100
Profit margin = 17.3913%
Profit margin = 17.40%
So, Dowling's 2021 profit margin is 17.40%
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require 12 direct labor hours (dlh) for manufacture. Each product is budgeted for 250 units of production for the year. When required, round all per-unit answers to the nearest cent.
A. Determine the total number of budgeted direct labor hours for the year.
direct labor hours
Points:
0 / 1
B. Determine the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent.
per dlh
Points:
0 / 1
C. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent.
Speedboat per unit
Bass boat per unit
Answer:
Bardot Marine Company
a) Total number of budgeted direct labor hours for the year is:
= 6,000 DLH.
b) The single plantwide factory overhead rate is:
= $100
c) The factory overhead allocated per unit for each product is:
= $1,200
Explanation:
a) Data and Calculations:
Budgeted factory overhead = $600,000
Types of boats: Speedboat and Bass boat Total
Direct labor hours 12 DLH 12 DLH
Budgeted units 250 250 500
Total DLH 3,000 3,000 6,000
Single plantwide factory overhead rate = $600,000/6,000
= $100
The factory overhead allocated per unit for each product = overhead rate * number of hours for each unit
= 12 * $100
= $1,200
A consumer purchases a lawn mower from a retail store. It contains a tag that says the purchaser should read the instruction book that is included. He reads the book, which contains a warning not to use the mower over gravel or stones or grassy areas mixed with rock or stone. The consumer remembers the warning but when he sees how smoothly the mower operates and how effortlessly it goes over a few small stones mixed in the grass, he decides to continue using the mower in areas filled with loose stones and rocks. One day a rock flies up and shatters the consumers face, causing him to lose an eye and suffer a broken nose and jawbone. He sues the manufacturer for putting out a defective product unreasonably dangerous to the consumer. What defense may give the manufacturer the best chance of having the case dis-missed?
A. Lack of privity.
B. Contributory negligence.
C. Assumption of the risk.
D. Waiver of warranty.
Answer:
B. Contributory negligence
Explanation:
Contributory negligence may be defined as a defense to the tort claim that is based on the negligence of the plaintiff in some law jurisdiction. And if contributory negligence is available defense completely bars the person who files the suit from any recovery if the plaintiff contributes to their own injury and harm from any negligence.
In the context, a person buys a lawn mover form a store. The lawn mover contains a instruction book where it was written that the lawn mover should not be moved over any stones or gravels or areas mixed with grass and stones.
The consumer though remembers the warning but he moves the lawn mover over land filled with loose stones and rocks. Unfortunately, a rock flies and hits him on his face resulting in serious damage of his face. And so the consumer sues the manufacturer for selling a defective lawn mover.
But the court will dis-miss the case as it was a case of contributory negligence of the consumer as the manufacturer warned the consumer with a written instruction not to use the product over areas covered with stones and rocks. Thus the defense that will give the manufacturer the best chance of having dismissing the case by the court is the Contributory negligence of the consumer.
Consider the market for _____.
Suppose the price of increases from $ to $ per . As a result, the demand for decreases from to _____. Using the midpoint formula, what is the cross-price elasticity of demand for ? _____. (Enter a numeric response using a real number rounded to two decimal places. Don't forget the minus sign.) Suppose the cross-price elasticity of demand for with respect to the price of is . In this instance, and are ________ substitutes complements .
Answer:
Note: The full question is attached as picture below
Cross price elasticity of demand = (P1 + P2)/(Q1 + Q2) x (Q2 - Q1)/(P2 - P1)
P1 = $1.5 , P2 = $1.75 (syrup)
Q1 = 292, Q2 = 272 (pancakes)
CPE (pancakes) = 3.25/564 x (-20/0.25)
CPE (pancakes) = -0.46
If the CPE of demand for pancakes w.r.t. the price of syrup is -0.15, pancakes and syrup are complements (complements have negative cross price elasticity).
I have a group of friends. One thing we have in common is that we all want a Tesla Model 3. We can all afford to buy a Tesla Model 3. However, we are all unwilling to pay the current price for a Tesla Model 3. Thus, my group of friends are not this:_______.
a. cool in any sense of the word
b. a market of potential Tesla customers
c. a positioning market group
d. a useful segmenting base
Answer:
b. a market of potential Tesla customers
Explanation:
As given all friend afford to buy a Tesla Model 3 and unwilling to pay the current price so group of friends is a market of potential Tesla customersA potential market is a group of people from the entire population who show some interest in buying a particular product or service. so correct option is b. a market of potential Tesla customersWhich part/phrase in the passage hints at a disadvantage that Gary suffers as a franchisee?
Gary entered a franchise contract with a manufacturing company a year back.
He has to sell the company's products under its trademark. He
has been learning the company's management techniques as per the contract.
He cannot pitch new ideas to his franchisor since the contract
restricts his creativity and independence.
He has to pay royalties and a small percentage of his sales revenue to the franchisor every month.
Answer:
I believe it is "He cannot pitch new ideas to his franchisor since the contract
restricts his creativity and independence." because he can't help his business grow when he can't make new ideas.
Answer:
2nd sentence
Explanation:
Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $144 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $42; postage expenses, $50; and miscellaneous expenses, $102. The petty cashier could not account for a $12 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare:
a. the September 9 entry to establish the fund.
b. the September 30 entry to reimburse the fund
c. An October 1 entry to increase the fund to $395.
Solution :
Date Account Debit Credit
Sept 9 Petty cash $ 350
Cash $ 350
Sept 30 merchandise purchased $ 42
postage expenses $ 50
miscellaneous expenses $ 102
Cash shortage $ 12
Cash (350-42-50-102)=156-144=12 $ 206
Oct 1 Petty cash 45
Cash (395-350) $ 45
Assume for a moment that Sue, the owner of Camp Bow Wow in Colorado, said that she was looking to provide constantly evolving and improving pet care services that no other organization offered. This would be an example of a-----------------------------strategy.
a. specialization by building customer intimacy
b. cost leadership by being operationally excellent
c. differentiation through product innovation
d. expansion and growth to enhance earnings per share by building out new operations
Answer:
c. differentiation through product innovation
Explanation:
This would be an example of a differentiation through product innovation strategy because She is constantly looking for an evolving project and at the same time no other organisation has provided this product, which is an example of differentiations with leadership . so correct option is c. differentiation through product innovationAs per the question the owners of the camp wow is looking to provide a continuously evolving and improving pet care service that has no organization.
This is an example of the product innovation and is a subsequent creation of the product or a good or service. Hence the option C is correct. That is differentiation by the innovationLearn more about the owner of Camp Bow Wow.
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On January 1, 2018, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and also issued 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows:
Moody Osorio
Cash $ 180 $ 40
Receivables 810 180
Inventories 1,080 280
Land 600 360
Buildings (net) 1,260 440
Equipment (net) 480 100
Accounts payable (450 ) (80 )
Long-term liabilities (1,290 ) (400 )
Common stock ($1 par) (330 )
Common stock ($20 par) (240 )
Additional paid-in capital (1,080 ) (340 )
Retained earnings (1,260 ) (340 )
- Note: Parentheses indicate a credit balance. In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60. 9) what amount was recorded as goodwill arising from this acquisition?
a. $230.
b. $120.
c. 520.
d. None, there is an gain on bargain purchase of $230.
e. None. there is a gain on bargain purchase of $265.
Answer:
d. None, there is an gain on bargain purchase of $230.
Explanation:
Total Consideration Paid = Long term liabilities + Common Stock + Excess of fair value of stock over par value
Long-term liabilities = $400, Common Stock (Par Value): $1.00 * 40 shares = $40, Excess of fair value of stock over par value = ($10 - $1) x (40 shares) = $9*40 = $360
Total Consideration: $400 + $40 + $360 = $800
Particulars Amount
Total consideration paid $800
Less: Fair value of asset
Cash $40
A. Receivables $180
Inventory $290
Land $400
Buildings $500
Equipment $100
Long term liabilities -$400
Accounts payable -$80 $1,030
Excess of fair value of acquisition price ($230)
Thus, there is no goodwill but gain on bargain purchase of $230.
School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutors and counselors. The counselors and tutors have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.
a. True
b. False
Answer:
This type of arrangement suggests that School Days is an inverted organization.
a. True
Explanation:
An inverted organization gives the customer-facing employees more flexibility and power to lead the organization, with the center line managers playing a supporting role. This type of organization inverts or reverses the traditional and classical pyramid of hierarchical organizations where leadership is from the top. This implies that the counselors and tutors play more leadership roles, especially in designing suitable programs for their students instead of the organization handling the design of programs and making the front-line employees to comply.
During fiscal 2016, Caleres Inc. (formerly Brown Shoe Company), reported cost of goods sold of $1,517.4 million. Inventory at the start of the year was $546.7 million and at the end of the year was $585.8 million. Which of the following describes the closing entry that the company will make for these accounts?
A. Debit Inventory $39.1 million.
B. Credit Inventory $585.8 million.
C. Credit Cost of goods sold $1,517.4 million.
D. Both A and C.
E. None of the above.
Answer:
Credit Cost of goods sold $1,517.4 million
Explanation:
given data
cost of goods sold = $1,517.4 million
Inventory at the start of the year = $546.7 million
Inventory at the end of the year = $585.8 million
solution
Journal Entry will as
Income Summary DR $1,517.4 million
Cost of goods sold CR $1,517.4 million
so correct option is C. Credit Cost of goods sold $1,517.4 million.
Select the best opening for a letter from a local nonprofit organization that refuses a request for a charitable donation.
A. The services you provide for homeless families in our community are necessary and important.
B. This is to inform you that your kind letter of May 14 has been directed to me for reply.
C. We have received your letter requesting a donation to your annual fund-raiser.
D. Although we admire what your organization does for our community, unfortunately we are unable to donate to your fund-raiser at this time.
Answer:
B. This is to inform you that your kind letter of May 14 has been directed to me for reply.
Explanation:
According to the given options, the option B should be selected for refusing the request for a charitable donation as letter of may 14 would be directed to me for reply as it represent the declination of request made for charitable donation
So the option b is correct
and, the rest of the options are incorrect
As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data:
Item ExistingSituation AfterAdopting JIT
Manufacturing costs as percentage of sales:
Product-level support 15 % 4 %
Variable manufacturing overhead 28 10
Direct materials 30 20
Direct manufacturing labor 20 13
Other financial data:
Sales revenue $ 1,430,000 $ 1,810,000
Inventory of WIP 260,000 46,000
Other data:
Manufacturing cycle time 60 days 30 days
Inventory financing costs (per annum) 10 % 10 %
Required:
As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT. Specifically, what is the estimated change in annual operating income attributable to the JIT implementation?
Answer:
A. $74,100 $954,700
B. $880,600
Explanation:
A. Preparation to estimate the financial benefits associated with the adoption of JIT
Current situation After JIT
Sales 1,430,000 1,810,000
Less costs
Production level support 214,500 72,400
(15%*1,430,000=214,500)
(4%*1,810,000=72,400)
Variable manufacturing overhead 400,400 181,000
(28%*1,430,000=400,400)
(10%*1,810,000=181,000)
Direct material 429,000 362,000
(30%*1,430,000=429,000)
(20%*1,810,000=362,000)
Direct manufacturing labor 286,000 235,300
(20%*1,430,000=286,000)
(13%*1,810,000=235,300)
Inventory financing costs 26,000 4,600
(10%*260,000=26,000)
(10%*46,000=4,600)
Total costs 1,355,900 855,300
Operating profits $74,100 $954,700
(1,430,000-1,355,900)
(1,810,000-855,300)
Therefore the the financial benefits associated with the adoption of JIT will be $74,100 $954,700
B. Preparation for the estimated change in annual operating income attributable to the JIT implementation
Current situation After JIT Change
Sales 1,430,000-1,810,000=-380,000
Less costs
Production level support 214,500-72,400 =142,100
Variable manufacturing overhead 400,400 -181,000=219,400
Direct material 429,000-362,000=67,000
Direct manufacturing labor 286,000- 235,300= 50,700
Inventory financing costs 26,000-4,600 =21,400
Total costs 1,355,900-855,300=500,600
Operating profits 74,100-954,700=880,600
Therefore the estimated change in annual operating income attributable to the JIT implementation will be 880,600
Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 25%. The firm will not be issuing any new common stock. What is Avery's WACC
Answer:
8.15%
Explanation:
The computation of the weighted average cost of capital as follows;
= After Cost of debt × weightage of debt + cost of preferred stock × weight of preferred stock + cost of common equity × weight of equity
= 6.50% × (1 - 0.40) × 35 ÷ 100 + 6% × 10 ÷ 100 + 11.25% × 55 ÷ 100
= 1.37% + 0.60% + 6.19%
= 8.15%
ABC Co. had 600,000 shares of Common Stock, 40,000 shares of Convertible Preferred Stock, and $3,000,000 of 6% Convertible Bonds outstanding during 2021. The Convertible Preferred Stock is convertible into 80,000 shares of Common Stock. During 2021, ABC Co. paid dividends of $4 per share on the Common Stock and $3 per share on the Convertible Preferred Stock. Each $1,000 Convertible Bond is convertible into 80 shares of Common Stock. The Net Income for 2021 was $1,600,000 and the income tax rate was 30%.
Calculate basic earning per year of common stock for the year ended January1 31, 2104.
If company's preferred stock were convertiable into common stock what additional calculation would be required?
Answer:
a. Net income for 2021 $1,600,000
Less: Preferred dividends $120,000 (40000*$3)
Net income for Common Stockholders $1,480,000
Divide by Common Shares outstanding 600,000
Basic Earnings per share for 2021 $2.47
b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.
Varughese incorporated is working on its cash buget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000 and buegeted cash disbursements total $191,000. The desired ending cash balance is $40,000. To attain its desired ending cash balace for March, the company needs to borrow:__.
a. $40,000.
b. $0.
c. $16,000.
d. $64,000.
Answer:
C. $16,000
Explanation:
Beginning cash balance
$33,000
Add cash receipt
$182,000
Less cash disbursement
($191,000)
Ending cash balance
$24,000
Desired ending cash balance
$40,000
Borrowing ($40,000 - $24,000)
$16,000
Therefore, the company needs to borrow $16,000 to attain its desired ending cash balance for March.
Catherine inherited a lot of money and decided to start a business. She has purchased a building, bought tools and machinery, and hired employees. Her main problem is that she has no business experience, no ideas, and no experience creating products. Which category of economic resource does she require?
A.
labor
B.
entrepreneurial ability
C.
land
D.
capital
Catherine inherited a lot of money and decided to start a business. She has purchased a building, bought tools and machinery, and hired employees. Her main problem is that she has no business experience, no ideas, and no experience creating products. The category of economic resource she requires is Entrepreneurial ability.
What is Entrepreneurship?
The process in which a person decides to start a new business or venture with a unique idea is called Entrepreneurship. The person who generates the idea and starts the business is known as Entrepreneur.
Characteristics of Entrepreneur:InnovationPassionSelf ConfidenceCreativityLeadershipRisk TakingDecision makingCommunicationHence option B is the correct answer,
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On April 6, Home Furnishings purchased $37,000 of merchandise from Una's Imports, terms 2/10, n/45. On April 8, Home Furnishings returned $7,800 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15. Required What is the amount that Home Furnishings must pay Una's Imports on April 15
Answer:
the amount that have to be paid is $28,616
Explanation:
The computation of the amount that have to be paid is shown below:
= (Merchandise value - returned goods) × (1 - discount percentage)
= ($37,000 - $7,800) × (1 - 0.02)
= $29,200 × 0.98
= $28,616
Hence, the amount that have to be paid is $28,616
You have just been appointed the product manager of the "Vesuvius" counter top vegetable steamers in a large consumer products company. As part of your new job, you want to develop an understanding of the financial situation for your product. Your brand assistant has provided you with the following facts:
a. Retail selling price $50 per unit
b. Retailer's margin 20%
c. Jobber's margin 15%
d. Wholesaler's margin 23.5%
e. Direct factory labor $2 per unit
f. Raw materials $1 per unit
g. All factory and administrative overheads $2 per unit (if unit volume = 100,000)
h. Salesperson's commissions 10% of manufacturer's selling price
i. Sales force travel costs $215,000
j. Advertising $900,000
k. Total market for counter top vegetable steamers 1 million units
l. Current yearly sales of "Vesuvius" 190,000 units
Questions
1. What is the contribution per unit for the "Vesuvius" brand?
2. What is the break-even-volume in units and in dollars?
3. What market share does the Vesuvius brand need to break even?
4. What is the current total contribution?
5. What is the current before-tax profit of the Vesuvius brand?
6. What market share must Vesuvius obtain to contribute a before tax profit of exactly $3.9 million?
Answer:
Vesuvius
1. The contribution per unit for the "Vesuvius" brand is:
= $25.60.
2. The break-even volume in units and in dollars:
Break-even volume in units = FC/Contribution per unit
= $1,115,000/$25.60
= 43,555 units
Break-even volume in dollars = FC/Contribution margin ratio
= $1,115,000/0.753
= $1,480,745
3. Market share that the Vesuvius brand needs to break-even is:
= 4.36%
4. The current total contribution is:
= $4,864,000
5. The current before-tax profit of the Vesuvius brand is:
= $3,749,000
6. The market share that Vesuvius must obtain to contribute a before tax profit of exactly $3.9 million is:
= 19.59%
Explanation:
a) Data and Calculations:
a. Retail selling price $50 per unit
b. Retailer's margin 20%
c. Jobber's margin 15%
d. Wholesaler's margin 23.5%
e. Direct factory labor $2 per unit
f. Raw materials $1 per unit
g. All factory and administrative overheads $2 per unit (if unit volume = 100,000)
h. Salesperson's commissions 10% of manufacturer's selling price
i. Sales force travel costs $215,000
j. Advertising $900,000
k. Total market for counter top vegetable steamers 1 million units
l. Current yearly sales of "Vesuvius" 190,000 units
Total fixed costs = $1,115,000 ($215,000 + $900,000)
Variable Costs:
Direct materials per unit = $1
Direct labor cost per unit = $2
Total direct costs per unit = $3
Variable overhead costs per unit = $2
Total factory costs per unit = $5
Total factory costs for 100,000 units = $500,000
Wholesaler's selling price = $50 * (100% - 20) * (100% - 15) = $34
Sales commission = 10% of $34 = $3.4
Total variable cost per unit = $8.40 ($5 + $3.40)
Contribution margin per unit = $25.60 ($34 - $8.40)
Contribution margin ratio = $25.60/$34 = 75.3%
Market share to break-even = Break-even units/Market size * 100
= 43,555/1,000,000 * 100 = 4.36%
The current total contribution = $25.60 * 190,000
= $4,864,000
Total fixed costs = $1,115,000
Current before-tax profit = $3,749,000
Market Share to contribute a before-tax profit of exactly $3.9 million:
= (Fixed cost + Target profit)/Contribution per unit
= ($1,115,000 + $3,900,000)/ $25.60
= 195,898/1,000,000 * 100 = 19.59%
Starbucks opened its first store in Seoul, Korea in October 2002. The price of a tall vanilla latte is 3,000 Korean Won. In New York City, the price of a tall vanilla latte is $3.00. The exchange rate between Korean Won and U.S. dollars is Won 1,150/$. According to purchasing power parity, is the Korean Won overvalued or undervalued
Answer:
The Korean Won is undervalued
Explanation:
The Korean Won is undervalued if we determine this measure by comparing the prices of the vanilla latte at a Korean Starbucks and at an American Starbucks.
If purchasing power parity was perfectly equal, the latte at the Seoul Starbucks would be priced at $3,450, because the exchange rate is 1,150/$ and $3 x 1,1150 = 3,450, $3 being the price of the latte in New York City.
We can see that the latte in Seoul only costs 3,000 Won, so, under this comparison, the Won is undervalued by 450 Won.
Spicewood Stables, Inc., was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant controller. The following transactions for April are provided for your review.
1. Received contributions from investors and issued $230,000 of common stock on April 1.
2. Acquired a barn for $180,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance.
3. Provided $18,000 in animal care services for customers on April 3, all on credit.
4. Rented stables to customers who cared for their own animals; received cash of $14,000 on April 4 for rent earned this month.
5. On April 5, received $3,350 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue).
6. Purchased and received hay and feed supplies on account on April 6 for $3,800.
7. Paid $2,600 on accounts payable on April 7 for previous purchases.
8. Received $2,040 from customers on April 8 on accounts receivable.
9. On April 9, prepaid a two-year insurance policy for $4,800 for coverage starting in May.
10. On April 28, paid $1,140 in cash for water and utilities used this month.
11. Paid $14,800 in wages on April 29 for work done this month.
12. Received an electric utility bill on April 30 for $1,560 for usage in April; the bill will be paid next month.
Required:
1. Prepare the journal entry for each of the above transactions.
2. Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations.
3. Prepare an unadjusted trial balance as of April 30.
4-a. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income and net profit margin.
4-b. Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor.
Answer:
Spicewood Stables, Inc.
1. Journal Entries:
April 1:
Debit Cash $230,000
Credit Common Stock $230,000
To record contributions from investors and issuance of stock.
April 2:
Debit Barn $180,000
Credit Cash $90,000
Credit Notes Payable (Long-term) $90,000
To record the acquisition of a barn.
April 3:
Debit Accounts Receivable $18,000
Credit Service Revenue $18,000
To record the provision of animal care services on credit.
April 4:
Debit Cash $14,000
Credit Rent Revenue $14,000
To record the renting of stables to customers for April.
April 5:
Debit Cash $3,350
Credit Deferred Revenue $3,350
To record the receipt of cash from customer in advance.
April 6:
Debit Supplies $3,800
Credit Accounts Payable $3,800
To record the purchase of hay and feed supplies on account.
April 7:
Debit Accounts Payable $2,600
Credit Cash $2,600
To record the payment on account
April 8:
Debit Cash $2,040
Credit Accounts Receivable $2,040
To record the receipt of cash from customers.
April 9:
Debit Prepaid Insurance $4,800
Credit Cash $4,800
To record the prepayment of insurance for 2 years.
April 10:
Debit Utilities Expense $1,140
Credit Cash $1,140
To record the payment for water and utilities.
April 11:
Debit Wages Expense $14,800
Credit Cash $14,800
To record the payment of wages for the month.
April 12:
Debit Utilities Expense $1,560
Credit Utilities Payable $1,560
To record the accrued electric utility bill.
2. T-Accounts:
Cash
Date Account Title Debit Credit
April 1 Common stock $230,000
April 2 Barn $90,000
April 4 Rent Revenue 14,000
April 5 Deferred Revenue 3,350
April 7 Accounts payable 2,600
April 8 Accounts receivable 2,040
April 9 Prepaid Insurance 4,800
April 10 Utilities Expenses 1,140
April 11 Wages Expense 14,800
April 12 Balance $136,050
Totals $249,390 $249.390
Common Stock
Date Account Title Debit Credit
April 1 Cash $230,000
Barn
Date Account Title Debit Credit
April 2 Cash $90,000
April 2 Notes payable 90,000
April 12 Balance $180,000
Notes Payable
Date Account Title Debit Credit
April 2 Barn $90,000
Accounts Receivable
Date Account Title Debit Credit
April 3 Service Revenue $18,000
April 8 Cash $2,040
April 12 Balance $15,960
Service Revenue
Date Account Title Debit Credit
April 3 Accounts receivable $18,000
Rent Revenue
Date Account Title Debit Credit
April 4 Cash $14,000
Deferred Revenue
Date Account Title Debit Credit
April 5 Cash $3,350
Supplies
Date Account Title Debit Credit
April 6 Accounts Payable $3,800
Accounts Payable
Date Account Title Debit Credit
April 6 Supplies $3,800
April 7 Cash $2,600
April 12 Balance $1,200
Prepaid Insurance
Date Account Title Debit Credit
April 9 Cash $4,800
Utilities Expenses
Date Account Title Debit Credit
April 10 Cash $1,140
Wages Expense
Date Account Title Debit Credit
April 11 Cash $14,800
3. Unadjusted Trial Balance as of April 30:
Account Title Debit Credit
Cash $136,050
Common stock $230,000
Barn 180,000
Notes payable 90,000
Accounts receivable 15,960
Service Revenue 18,000
Rent Revenue 14,000
Deferred Revenue 3,350
Supplies 3,800
Accounts payable 1,200
Prepaid Insurance 4,800
Utilities Expenses 1,140
Wages Expense 14,800
Totals $356,550 $356,550
4a.
Service Revenue 18,000
Rent Revenue 14,000
Total revenues $32,000
Utilities Expenses 1,140
Wages Expense 14,800
Total expenses $15,940
Net Income $16,060
Net profit margin = $16,060/$32,000 * 100 = 50.19%
4b. The net profit margin is better than the 30.0% earned by a close competitor.
Explanation:
The adjustment for Electric Utility does not form part of the adjusted trial balance. If we assume that the payment was eventually made on April 30, the Cash Balance will reduce by $1,560 and the total expenses will increase by the same amount with an equal reduction in the net income to $14,500. This will also reduce the net profit margin to 45.31%.
Jane The Virgin Trivia
Jane's son's name is...?
Who is Jane's first husband?
How many seasons of the show are there?
Answer all correctly and you get 10 points and brainliest
Answer:
Mateo.
Michael.
5.
Explanation:
Answer: Mateo Gloriano Rogelio Solano Villanueva
Michael Cordero Jr
5 Seasons
Explanation: as you can see, I LOOOOOVEEEEEE Jane the Virgin! Season 6 rn idc
The gross domestic product (GDP) of the United States is defined as the market value of allfinal goods and services produced within the United States in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2018.
a. An accountant starts a client's 2018 tax return on April 14, 2019, finishing it just before midnight on April 15, 2019. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 5, 2018.
b. An elementary school student buys the chocolate bar on December 24. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 13, 2018. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.)
c. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 9, 2018. It sells the car at a dealership in San Diego on February 24, 2018.
d. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 17, 2018. Athleticus imports the pair of sneakers into the United States on May 21, 2018.
Answer:
Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 5, 2018.
b. An elementary school student buys the chocolate bar on December 24..
c. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 9, 2018. It sells the car at a dealership in San Diego on February 24, 2018.
d. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 17, 2018. Athleticus imports the pair of sneakers into the United States on May 21, 2018.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
The accountant's work would be included in 2019's GDP
The chocolate purchase would be included in GDP as part of consumption expenditure
Tire is an intermediate good in this question and would not be included in GDP
The purchase of the shoe from Vietnam would have no effect on GDP because it decreases net export