Answer and Explanation:
The Preparation of cost of goods manufactured is shown below:-
Statement of Cost of Good Manufactured
Particulars Amount
Direct Material
Beginning Inventory a $40,000
Purchases b $290,000
Direct material available $330,000
(c = a + b)
Ending direct material
inventory d $10,000
Direct Material used $320,000
(e = c - d)
Direct Labor $398,000
($683,000 - $285,000 - $320,000)
Factory Overhead $285,000
Total Manufacturing Cost $683,000
Add: Beginning WIP Inventory $42,000
($690,000 + $35,000 - $683,000)
Less: Ending WIP Inventory $35,000
Cost of goods manufactured $690,000
b and c The Preparation of schedule of cost of goods sold and income statement for the year is prepared below:-
Schedule of cost of goods sold
Income statement for the year
Particulars Amount
Sales $915,000
($270,000 + $645,000)
Cost of goods sold
Beginning inventory of
finished product $50,000
Cost of goods manufactured $690,000
Cost of goods available
for sales $740,000
Less:Ending finished good
inventory $80,000
($740,000 - $660,000)
Cost of goods sold
(Unadjusted) $660,000
Over-applied Overhead $15,000
($285,000 - $270,000)
Cost of goods sold (Adjusted) $645,000
($660,000 - $15,000)
Gross profit $270,000
($30,000 + $100,000 + $140,000)
Less: Selling & Administrative Expenses
Selling Expenses $140,000
Administrative expenses $100,000 $240,000
Operating income $30,000
a. The schedule of cost of goods manufactured is $690,000
b. The schedule of cost of goods sold is $645,000
c. The income statement for the year is $30,000
a. Superior Company Schedule of cost of goods manufactured
For year ended December 31
Direct materials:
Beginning inventory of raw materials $40,000
Raw material purchases $290,000
Raw materials available for use $330,000
($40,000+$290,000)
Less Ending inventory of raw materials ($10,000)
Direct materials used $320,000
($330,000-$10,000)
Direct labor $78,000
Manufacturing overhead applied $285,000
Total manufacturing costs $683,000
($320,000+$78,000+$285,000)
Add beginning WIP $42,000
Total cost of work in process $725,000
($683,000-$42,000)
Less Ending WIP ($35,000)
Cost of goods manufactured $690,000
($725,000-$35,000)
b. Superior Company Schedule of cost of goods sold For year ended December 31
Beginning finished goods inventory $50,000
Add Cost of goods manufactured $690,000
Cost of goods available for sale $740,000
($50,000+$740,000)
Less Ending finished goods inventory ($80,000)
Unadjusted Cost of goods sold $660,000
($740,000-$80,000)
Less Over applied overhead ($15,000)
Adjusted cost of goods sold $645,000
($660,000-$15,000)
c. Superior Company Income Statement
For year ended December 31
Sales revenue $915,000
Less Cost of goods sold $645,000
Gross profit $270,000
($915,000-$645,000)
Less Selling Expenses ($140,000)
Less Administrative Expenses ($100,000)
Operating Income $30,000
($270,000-$140,000-$100,000)
Inconclusion The schedule of cost of goods manufactured is $690,000; The schedule of cost of goods sold is $645,000 and The income statement for the year is $30,000.
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Sandpiper Inc. has a division that manufactures a component that sells for $ 160$160 and has a variable cost of $ 30$30. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 20$20. What is the minimum transfer price if the division is operating at capacity?
Answer:
If the division is operating at full capacity and selling all the units that it produces, then it must treat the other division as a normal customer, so the selling price should be the same ($160 per unit). The company is currently making $110 in profits per unit sold (= $160 - $30 - $20 = $110).
If the division sold their products at a lower price, they would be losing money, and no division wants to lose money in order to benefit another division and make them earn higher profits.
If the division was operating below full capacity, then it could sell their products at a lower value.
Changes in real GDP reflect Group of answer choices only changes in prices. only changes in the amounts being produced. both changes in prices and changes in the amounts being produced. neither changes in prices nor changes in the amounts being produced.
Answer:
Only changes in the amounts being produced is the correct answer to this question.
Explanation:
Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.
Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.
uppose an industry consists of five equal-sized firms. Two of the firms plan to merge. The merger ______________ raise anti-trust concerns at the Justice Department given that the Herfindahl index before the merger was _____________ and the merger would cause the Herfindahl index to rise by __________. Group of answer choices
The available options are:
a. would; between 1,000 and 1,800; more than 100
•b. would; greater than 1,800; more than 100
•c. would not; less than 1,000; less than 300
•d. would not; between 1,000 and 1,800; less than 100
Answer:
•b. would; greater than 1,800; more than 100
1. Would
2. Greater than 1,800
3. More than 100
Explanation:
Given that, Herfindahl-Hirschman Index (HHI) is a term that describes the measure of market concentration and is often used to assess the market competitiveness, most specifically during the pre- and post Mergers and Acquisitions transactions.
Also, it should be noted that, as a general rule, mergers that increase the HHI by more than 200 points in highly concentrated markets raise antitrust concerns.
Thus, a 100% market share, equates to Herfindahl-Hirschman Index (HHI) 10,000. However, since all the five firms are of equal sizes of Market shares then, the HHI is calculated as:
= 100%/ 5 firms = 20% each
= 20² + 20² + 20² + 20² + 20²
= 400 + 400 + 400 + 400 + 400
= 2000 (this is greater than 1800)
Then, since it is two firms that are merging,
The HHI is calculated as:
= 20² + 20²
= 400 + 400
= 800 ( an increase of 400, which is more than 100)
Hence, suppose an industry consists of five equal-sized firms. Two of the firms plan to merge. The merger WOULD raise anti-trust concerns at the Justice Department given that the Herfindahl index before the merger was GREATER THAN 1800 and the merger would cause the Herfindahl index to rise by MORE THAN 100.
A push strategy will be used by a company that wants to Multiple Choice emphasize personal selling. focus on mass media advertising. reach as many people as possible very quickly. require very little involvement of a sales force. rely heavily on online advertising.
Answer:
Emphasize personal selling
Explanation:
The push strategy emphasizes personal selling. It consists on bringing the product to the final customer, and making sure that most of the potential customers end up buying the product.
The push strategy is specially used by new companies, or by companies that sell goods that are complex. For this type of products (for example, some consumer electronics), emphasizinig personal selling by having the seller interact directly with the customer, in order to explain to the customer the product well, is very important.
How can leaders create a climate of trust and facilitate relationships among people in a work team? What can a leader do to show others he/she is trustworthy? What can a leader do to demonstrate he/she trusts others?
Explanation:
The creation of a positive relationship that conveys reliability in the workplace must be one of the main organizational values.
The creation of an organizational culture based on trust, should be based on policies and procedures that guarantee ethical and respectful behavior, where employees feel valued and protected, in an environment that has as principles the mutual respect and incentive to personal growth a professional.
The leader is a figure who should inspire trust in employees, for this it is necessary that the leader has personal relationship skills and clear, direct and objective communication. He must inspire employees by taking their own attitudes and behaviors as an example, always willing to help, listen, receive feedback, monitor work and institute programs and rewards that encourage employees to value the company and their work, increasing motivation and general reliability.
Fig Newton Industries is considering a project and has developed the following estimates: unit sales = 7,525, price per unit = $149, variable cost per unit = $91, fixed costs = $216,400. The depreciation is $94,700 a year and the tax rate is 43 percent. What effect would an increase of $1 in the selling price have on the operating cash flow
Answer:
Effect on income= 4,289.25 increase
Explanation:
Giving the following information:
Units sold= 7,525
Tax rate is 43 percent.
Increase in the selling price= $1
If all costs remain constant, we need to calculate the increase in contribution margin and the tax effect.
Effect on income:
Contribution marin= 7,525*1= 7,525
Tax= 7,525*0.43= (3,235.75)
Effect on income= 4,289.25 increase
a coupon is an example of:
-inflation
-an incentive
-consumerism
-macroeconomics
Answer:
an incentive
Explanation:
A coupon is an example of an incentive. A coupon is usually a piece of paper that states a costumer can get a discount on a certain product. When someone finds a coupon that allows them to save money on a desired product, they will be encouraged to buy it. Therefore, the coupon acts as incentive to get costumers to buy more products.
When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is the maximum amount that the inventory can be valued at
Answer:
Net realizable value
Explanation:
Net realizable value is the value gotten after taken out purchases from the estimated selling price of an inventory. This means that the net realizable value on an inventory at disposal is higher than the cost when it was originally purchased. It is to be noted that an increase in the value of inventory are recognized at the point of sale.
However, with regards to the above, inventory may be recorded at net realizable value if there are no tangible costs associated with disposal, there exist a controlled market with a price that is already quoted or the inventory is made up of gold, silver or general precious metals and agricultural products.
On May 10, Paige Corporation issues 2,500 shares of $5 par value common stock for cash at $13 per share.
Journalize the issuance of the stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
May 10
Answer:
Please refer to the below for the journal entries.
Explanation:
Journal entry is as seen below;
Cash account Dr $32,500
Common stock Cr $12,500
Capital in excess of common stock Cr $20,000
(To record issuance of the stock)
Workings per above journal entries.
Cash
=2,500 shares × $13 per share
= $32,500
Common stock
= 2,500 shares × $5 per share
= $12,500
Paid in capital in excess of common stock
= 2,500 shares × $8 per share ($13 - $5)
= $20,000
Big Byte Inc. sold 15,000 computers to the government of India. Instead of receiving cash, the company received refined petroleum as payment. This is an example of
Answer:
This is an example of barter
Explanation:
Barter in trade, is a term used to describe a system of exchange where goods and services are exchanged for other goods or services directly. It is used most often in international trading, when there is a financial crisis, or when currency is unstable.
Barter is advantageous when money is in short supply, and when traders cannot afford to store a short supply of money, especially during hyperinflation.
However, there are some challenges with barter, which includes:
that both parties might not have what each other need in goods (double coincidence of wants), there is no common measure of value and indivisibility of certain goods when only half the worth is to be exchanged.
Education is a good investment for an individual if
a. the discount rate is above zero.
b. workers with higher levels of education tend to earn higher wages.
c. given the individual’s discount rate, the present value of the benefits of the investment are greater than or equal to the present value of the costs of the investment.
d. None of these answers is correct.
e. All of these answers are correct.
Answer:
The correct answer is the option E: All of these answers are correct.
Explanation:
On the one hand, the discount rate is the name given to the interest rate charged to the commercial banks and also to other financial institutions for the loans they take from the Federal Reserve Bank of The United States.
On the other hand, the education is always a good investment for the individuals in the cases where the workers with higher levels of education tend to earn higher wages and that obviously stimulates the action of study for one's future and also in the cases where the discount rate is favourable to the person and that will happen when is above zero or the number it releases shows that the present value of the benefits are equal or higher than the present value of the costs of the investment.
When a key part of performance management, the performance appraisal, is used to punish employees, _____.
Answer:
Performance management is ineffective.
Explanation:
Performance management is a very effective tool in the organization to measure and evaluate the performance of employees in carrying out their functions in the company. Through this management, the company seeks to assess whether the employee's performance is meeting the company's expectations or whether it is necessary to develop action plans to align the employee's performance with that expected.
Therefore, evaluating performance effectively does not correspond to punishing an employee for unwanted performance. An effective assessment consists of monitoring the activities and behavior of the employee, identifying the problems encountered and seeking a solution to the problems so that there is the development of the employees' skills and competences, encouraging them to improve making their work more developed, monitored and creating an environment conducive to the productivity necessary to achieve organizational objectives and goals.
The Supplies account had a balance at the beginning of year 3 of $8,000 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $50,000 and were recorded as expense. A physical count at the end of year 3 revealed supplies costing $14,500 were on hand. Reversing entries are used by this company. The required adjusting entry at the end of year 3 will include a debit to:
Answer:
The required adjusting entry at the end of year 3 will include a debit to:
Supplies Expenses Account of $43,500 ($8,000 + 50,000 - 14,500), and a credit to Supplies Account in the sum of $43,500.
Explanation:
Adjusting entries are made at the end of an accounting period to bring the accounts in line with the accrual concept, which requires that expenses and revenue should be recognized in the period they are incurred or earned.
This implies that transactions should not be based solely on when cash is received or payment made. Expenses incurred but not yet paid should be recognized in the accounts of the period. Revenue earned but not yet received in cash should be accounted for in the period when the revenue is earned. Expenses paid in advance should not be recognized in determining net income. Revenue collected but not yet earned should not be included in the period's accounts for determining net income. Finally, non-cash expenses (depreciation) should be recognized in the period they are incurred.
Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category
Answer:
income elasticity is less than one - water
income elasticity is greater than one - designer handbag
Explanation:
Normal goods are goods whose demand increases when income increases and falls when income falls.
When income elasticity is less than one it is known as inelastic demand and when income elasticity is greater than one, it is known as elastic demand,
necessity goods are examples of goods with inelastic demand. for example, water. one cant do without water as it is needed for survival. if income increases, there would be little or no change in quantity demanded
luxury goods typically have an elastic demand. as income increases, more of the good would be demanded. an example of a luxury good is a designer handbag
A Production Facility has produced 515,000 products and would like to allocate these products to their customers. Given the following requested customer demand, calculate how much of the EXCESS product should be sent to Customer 1.
Customer 1 Demand 115,000
Customer 2 Demand 110,000
Customer 3 Demand - 95,000
Customer 4 Demand - 170,000
Customer 5 Demande 10.000
A. 2.300
B. 400.000
C. 25.000
D. 3,450
E. 15.000
Answer:
D
Explanation:
To allocate the excess , a ratio formula shall be used to allow fairness and accuracy .
Workings
Customer 1 demand - 115,000
Customer 2 demand- 110,000
Customer 3 demand - 95,000
Customer 4 demand- 170,000
Customer 5 demand- 10,000
Total 500,000
Excess production = (515000 -500000) = 15,000
Share allocated to customer 1 = Customer 1 demand / total demand * Excess production
115,000/500000*15000= 3,450
The number of Excess product that should be sent to Customer 1 is 3,450 product.
Here, we are to calculate the number of Excess product that should be sent to Customer 1.
Now, to be able to allocate the excess to Customer 1, we will use a ratio formula allow fairness and accuracy .
Details
Customer 1 Demand - 115,000
Customer 2 Demand - 110,000
Customer 3 Demand - 95,000
Customer 4 Demand- 170,000
Customer 5 Demand - 10,000
Total 500,000
The excess production = 515,000 - 500,000
The excess production = 15,000
Calculation of shares to be allocated to Customer 1
Share allocated to customer 1 = (Customer 1 demand / Total demand) * Excess production
Share allocated to customer 1 = (115,000/500,000) * 15,000
Share allocated to customer 1 = 0.23 * 15,000
Share allocated to customer 1 = 3,450
Therefore, the number of Excess product that should be sent to Customer 1 is 3,450 product.
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Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the contribution margin per unit.
Answer:
Contribution margin per unit = $180
Explanation:
The contribution margin per unit is the amount that each unit contributes towards covering the fixed costs of the company after the variable cost of each unit has been covered. It is calculated by deducting the variable cost per unit from the selling price per unit.
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = 450 - 270
Contribution margin per unit = $180
In the multiple-step income statement, cost of merchandise sold is subtracted from a.selling expenses. b.sales. c.gross profit. d.operating expenses.
Answer:
b.sales
Explanation:
As we know that
Income statement refers to the statement in which the revenues and the expenses incurred should be recorded
While on the other hand the multiple-step income statement refer to the statement in which there are various level like gross profit, total operating expenses etc
Plus we also know that
Gross profit = Sales - cost of goods sold
Therefore the cost of merchandise should be deducted from sales so that we can find out the gross profit
The Acme Aircraft Seat Company produces aircraft seats and is able to assemble 10 seats in 30 minutes using four workers. The single-factor productivity of the firm is ____ seats per labor hour.
Answer:
The productivity of the firm = 5
Explanation:
Total number of seats that is assembled in 30 min = 10 seats
Therefore total number of seats assembled in 1 hr = 10 x (60/30) = 20 seats
Total labor hours required for 20 seats = 4 workers x 1hr = 4hrs
The Single-factor productivity = output / labor hours
The Single-factor productivity = 20 seats / 4 hrs
The Single-factor productivity = 5 seats per labor hr
Which of the following generate the type of externality described? Check all that apply. Your roommate, Kate, has bought a puppy that barks all day while you are trying to study economics. A leading software company has decided to increase its research budget for inventing new open-source technologies. Clancy has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the autumn foliage season. The local airport has doubled the number of runways, causing additional noise pollution for the surrounding residents.
Answer:
A negative externality is a cost that a third party incurs from someone else's economic activity. When the third party experiences a beneficial effect, it is called a positive externality.
Requires the government to impose a tax.
EX:
Your roommate, Dmitri, has bought a bird that keeps you up at night with its chirping.
The local airport has doubled the number of runways, causing additional noise pollution for the surrounding residents.
Explanation:
Based on the information provided, what rental rates would you include in your forecast/proforma model from the tenants?
Select the answer and briefly explain your rationale
Contract rental rates
Market rental rates
A blend of contract and market rental rates
Insufficient information to determine
Answer:
Insufficient information to determine
Explanation:
The question makes reference to information provided as a basis for making a decision. But, there is no information provided. This makes it impossible to select any rental rates, whether Contract rental rates, Market rental rates, or a blend of contract and market rental rates, to include in the forecast or proforma model from the tenants. So, the conclusion is that there is insufficient information to determine.
North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be:
D= 77 +0.43Q
where Q refers to the sequential quarter number and Q=1 for winter of year 1. In addition, the multiplicative seasonal factors are as follows:
Quarter Factor (index)
winter .8
spring 1.1
summer 1.4
fall .7
Find the forecast of for the four quarters of year of 17.
Answer:
The demand forecast for the four quarters of the year of 17 is
Demand for winter of year 17 = 83.96 million kWh
Demand for spring of year 17 = 115.92 million kWh
Demand for summer of year 17 = 148.13 million kWh
Demand for fall of year 17 = 74.37 million kWh
Explanation:
The North Dakota Electric Company estimates its demand trend line by the following equation.
[tex]D = 77 + 0.43Q[/tex]
Where Q is the sequential quarter number.
The multiplicative seasonal factors are as follows:
winter = 0.8
spring = 1.1
summer = 1.4
fall = 0.7
We are asked to find the forecast for the four quarters of the year of 17.
Since the quarter numbers are sequential,
Q = 1 + 16×4
Q = 65 for winter of year 17
Q = 66 for spring of year 17
Q = 67 for summer of year 17
Q = 68 for fall of year 17
Demand Winter year 17:
[tex]D = 77 + 0.43(65) = 104.95 \times 0.8 = 83.96[/tex]
Demand Spring year 17:
[tex]D = 77 + 0.43(66) = 105.38 \times 1.1 = 115.92[/tex]
Demand Summer year 17:
[tex]D = 77 + 0.43(67) = 105.81 \times 1.4 = 148.13[/tex]
Demand Fall year 17:
[tex]D = 77 + 0.43(68) = 106.24 \times 0.7 = 74.37[/tex]
Therefore, the demand forecast for the four quarters of the year of 17 is
Demand for winter of year 17 = 83.96 million kWh
Demand for spring of year 17 = 115.92 million kWh
Demand for summer of year 17 = 148.13 million kWh
Demand for fall of year 17 = 74.37 million kWh
Given these observed times (in minutes) for four elements of a job, determine the observed time (OT) for each element. Note: the second element only occurs every other cycle.
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1 4.1 4.0 4.6 4.1 4.1 4.1
2 - 1.5 - 2.4 - 1.4
3 3.2 3.2 3.8 3.2 3.3 3.3
4 2.7 3.0 2.7 2.8 2.8 2.8
Answer:
Element 1 = 4.17 Observed time
Element 2 = 1.77 Observed time
Element 3 = 3.33 Observed time
Element 4 = 2.8 Observed time
Explanation:
Calculation to determine the observed time (OT) for each element
Based on the information given we have 4 Element and 6 Cycle for Element 1,3 and 4 while Element 2 has 3 cycle
First step is sum up each element cycle i.e addition of cycle 1 to cycle 6
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8
Now let find the Observed time by dividing the figure that was sum up for each of the element by the numbers of cycle that each element has.
OBSERVED TIME
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25/6= 4.17 Observed time
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3/3=1.77 Observed time
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20/6= 3.33 Observed time
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8/6=2.8 Observed time
The question is about the observed time cycles of 4 given elements.
OT of each cycles will be added together for each element. and divided by total number of cycles for each element.
1 4.1+4.0+4.6+4.1+4.1+4.1 = 25 / 6 = 4.17
2 -1.5 -2.4 -1.4 = 5.3 / 3 = 1.77
3 3.2+3.2+3.8+3.2+3.3+3.3 = 20 / 6 = 3.33
4 2.7+3.0+2.7+2.8+2.8+2.8 = 16.8 / 6 = 2.8
Each elements total cycle OT is added and then it is divided with each elements relevant number of cycles and this as a result provides the answer to the question
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Treasury bills are currently paying 4.7 percent and the inflation rate is 2.2 percent. a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a.
2.5%
b.
2.45%
Explanation:
The approximate real rate of return can be derived from nominal rate of return formula given below:
nominal rate of return=real rate of return+inflation rate
real rate of return=nominal rate of return-inflation rate
real rate of return= 4.7%-2.2%=2.5%
The exact real rate of return can be derived from exact real rate of return formula given below
real rate of return=(1+nominal rate of return)/(1+inflation rate)-1
real rate of return=(1+4.7%)/(1+2.2%)-1
real rate of return=1.02446184 -1=2.45%
Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture?
A. Identify aspects of the present culture that pose problems.
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
C. Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.
D. Make a concerted effort to turn the company's core competencies into distinctive competencies.
E. Empower employees to adopt whatever new work practices they believe will be an improvement.
Answer:
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
Explanation:
Culture of a company are the accepted ways of doing things on a daily basis with a view of achieving organisational goals. It includes the way employees interact with one another and their customers, procedures carrying out tasks, and so on.
The management of the company are the drivers of company culture, so a substantiative culture-changing action that can be taken to solve a problem culture will include replacing senior executives who are resisting and obstructing needed organizational and cultural changes, and revising policies and procedures in a way that will drive culture change
Assume that taxes are constant. If the government borrows $17 billion in new funds and has a budget deficit of $35 billion, then the central bank has to:
Answer:
increase the money supply by $18 billion.
Explanation:
Data provided in the question
The Borrowed amount by the Government = $17 billion
Budget deficit = $35 million
Based on the above information
The central bank has to raise the money supply by $18 million i.e come form
= Budget deficit - the borrowed amount
= $35 million - $17 million
= $18 million
Hence, the supply is increased by $18 million
Q 7.39: In a small-town retail store, the sales clerk is responsible for counting the cash in the cash register and comparing it to the cash register tape. The clerk then takes the cash and tape to the accountant, who verifies the count, prepares the deposit slip for the bank, and records the entry in the journal. Which cash receipt control is the company most in violation of with their current system
Answer: b.segregation of duties
Explanation:
Segregation of duties as an internal control ensures that there are multiple people doing activities that if left to one person can leave the company at the risk of fraudulent activity. It also helps to reduce the incidence of errors in reporting because more than one person will be cross-checking transactions.
There should be more segregation of duties in this small-town retail store. For instance, the sales clerk should not be responsible for both the counting and comparison to the cash register tape because they could have omitted sales from the machine and then simply taken the money from the cash when counting. A different person should count the cash to see if it tallies with the cash register tape.
Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $150,000 on sales of $2,780,000. Division B is able to make only $28,400 on sales of $307,000. a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.) b. Based on the profit margins (returns on sales), which division is superior
Answer:
(a) Profit margin for A = 5.40%, For division B =9.25% (b) Division B has a superior higher profit margin
Explanation:
Solution
Given that
Division A has a profit = 150,000
sales = $2,780,000
Division B profit = $28,400
Sales =$307,000
Now
(a)We compute for the margin profit for each division which is giving below:
Profit margin=Profit/Sales
Profit margin for A=(150000/2,780,000)
=5.40%
Profit margin for B = (28400/307000)
=9.25%
(b The division B is superior having higher profit margin.
A plant manager wants to know how much he should be willing to pay for perfect market research. Currently there are two states of nature facing his decision to expand or do nothing. Under favorable market conditions the manager would make $100,000 for the large plant and $5,000 for the small plant. Under unfavorable market conditions the large plant would lose $50,000 and the small plant would make $0. If the two states of nature are equally likely, how much should he pay for perfect information?
Answer:
$25,000
Explanation:
Decision pay off matrix
Plant Favourable market Unfavourable market equally likely
Large 100,000 (50,000) 25,000
Small 5000 0 2500
EVPI =?
EVPI = EVwPI - EVwoPI
EVPI = 50,000 - 25,000
EVPI = $25000
Workings
EVPI = Expected value of Perfect Information
EVwPI = Expected value with Perfect Information
EVwoPI = Expected value without Perfect Information
EVwPI = (100,000+0)/2
EVwPI = 50,000
EVwoPI = 25,000 equally likely
For the years ending December 31, 2011 and 2012
2011 2012
Cash 800 300
Accounts receivable 3,700 3,000
Inventory 8,400 10,200
Current assets 12,900 13,500
Net fixed assets 34,500 42,600
Total assets 47,400 56,100
Notes payable 1,600
Accounts payable 1,000 800
Accruals 600 700
Current liabilities 1,600 3,100
Long-term debt 10,700 10,000
Common stock 6,000 8,000
Capital surplus 18,900 24,100
Retained earnings 10,200 10,900
Total liabilities and equity 47,400 56,100
In its 2011 income statement, Jefferson Inc. reported net income of $1,150 and depreciation expense of $290. On its 2012 income statement, the company reported net income of $2,080 and depreciation expense of $370. Based on this information (and given the company's balance sheets for 2011 and 2012 in the table above), compute Net Cash Flows from Operating Activities for Jefferson in 2012. Record your answer as a dollar rounded (if necessary) to the nearest whole dollar, but do not include a dollar sign or any commas in your answer. Also, if your answer is a negative value, place a hyphen (i.e., -) before your answer with no space between the - and the number. For example, record -$23,426.9234 as -23427.
Answer:
Jefferson Inc.
Cash flows from operating activities
Net income $2,080
Adjustments to reconcile net income to net cash
flow from the operating activities
Depreciation expenses $370
Decrease in accounts receivable $700
(3700-3000)
Increase in inventory -$1800
(8,400-10,200)
Decrease in account payable -$200
(800-1000)
Increase in accruals $100 -$830
(700-600)
Net cash flow from operating activities $1,250
Determining whether a firm's financial position is improving or deteriorating requires analyzing more than the ratios for a given year. Trend analysis is one method of examining changes in a firm's performance over time.
a. True
b. False
Answer:
The answer is true.
Explanation:
It is true. Trend analysis can be used to examine changes in a firm's performance over time.
Trend analysis is a method adopted in technical analysis which tends to predict the future stock price movements based on recently observed trend data. Trend analysis is based on past occurrences. And traders or investors used this past experience to predict the future price