Answer: See explanation
Explanation:
a. Consumption = $670 + (30 × $75)
= $670 + $2250.
= $2920
Consumption is $2920
b. Investment = 0
c. Government Purchases = 0
d. Imports = Amount spent on foreign good = 30 × $75 = $2250
e. Exports = Amount of local goods sold to other countries = $100 × $45 = $4500
f. Net Exports = Export - Import
= $4500 - $2250.
= $2250
g. Gross Domestic Product (GDP)
= C + I + G + (X - M)
= 2920 + 0 + 0 + (2250)
= $2920 + $2250.
= $5170
On July 31, 2020, Vaughn Company had a cash balance per books of $6,132.05. The statement from Dakota State Bank on that date showed a balance of $7,748.15. A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank service charge for July was $25.
2. The bank collected $1,720 for Keeds Company through electronic funds transfer.
3. The July 31 receipts of $1,297.50 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to L. Taylor, a creditor, for $391 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $319.
5. Checks outstanding on July 31 totaled $1,866.60.
6. On July 31, the bank statement showed an NSF charge of $576 for a check received by the company from W. Krueger, a customer, on account.
Required:
Prepare the bank reconciliation as of July 31.
Answer and Explanation:
The preparation of the bank reconciliation as of July 31 is presented below;
Cash balance as per bank statement $7,748.15
Add: deposit in transit $1,297.50
Less: outstanding checks $1,866.60
Adjusted cash balance per bank $7,179.05
Cash balance as per books $6,132.05
Add: electronic fund transfer received $1,720
Less: error ($391 - $319) -$72
Less: service charges - $25
Less: NSF charges - $576
Adjusted bank balance per books $7,179.05
Adriana Graphic Design receives $1,500 from a client billed in a previous month for services provided. What general journal entries will Adriana Graphic Design make to record this transaction?
Answer:
Dr Cash $1,500
Cr Account Receivable $1,500
Explanation:
Based on the information given we were told that Adriana receives the amount of $1,500 from a client that was billed in a previous month for services provided which therefore means that the appropriate general journal entries that Adriana Graphic Design will make to record this transaction is:
Dr Cash $1,500
Cr Account Receivable $1,500
A -month call option contract on 100 shares of Home Depot common stock with a strike price of can be purchased for . Assuming that the market price of Home Depot stock rises to per share by the expiration date of the option, what is the call holder's profit? What is the holding period return?
Answer:
Full question is "A six-month call option contract on 100 shares of Home Depot common stock with a strike price of $60 can be purchased for $600. Assuming that the market price of Home Depot stock rises to $75 per share by the expiration date of the option, what is the call holder’s profit? What is the holding period return?"
1. Call holder's profit = Value at expiration - Purchase price
Call holder's profit = [[Underlying stock price-Strike price]*Number of shares] - Purchase price
Call holder's profit = [($75-$60)*100] - $600
Call holder's profit = $900
2. Holding period return = Value at expiration - Purchase price / Purchase price
Holding period return = [[Underlying stock price-Strike price]*Number of shares] Purchase price / Purchase price
Holding period return = [[Underlying stock price-Strike price]*Number of shares] Purchase price [($75-$60)*100] - $600 / $600
Holding period return = $900 / $600
Holding period return = 1.5
Holding period return = 150%
. Define Sales and explain how business use sales and offers to attract customers.
Explanation:
Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales. This strategy is usually brought to use in the following cases – To introduce new products, To sell out existing inventories, To attract more customers, and.
Effect of accruals on the financial statements
Milea Inc. experienced the following events in 2016, its first year of operations:
1. Received $20,000 cash from the issue of common stock.
2. Performed services on account for $56,000.
3. Paid the utility expense of $2,500.
4. Collected $48,000 of the accounts receivable.
5. Recorded $10,000 of accrued salaries at the end of the year.
6. Paid a $2,000 cash dividend to the stockholders.
Required:
Record the events in general ledger accounts under an accounting equation.
Answer:
Assets = Liabilities + Stockholders’ Equity = $71,500
Explanation:
Note: See the attached excel file for how the events are recorded in general ledger accounts under an accounting equation.
From the attached excel file, we can obtain the following:
Assets = Total assets = $63,500 + $8,000 = $71,500
Liabilities = Total liabilities = $10,000
Stockholders’ Equity = Total Stockholders’ Equity = $20,000 + $41,500 = $61,500
Liabilities + Stockholders’ Equity = $10,000 + $61,500 = $71,500
Therefore, the accounting equation holds as follows:
Assets = Liabilities + Stockholders’ Equity = $71,500
Abe's Steakhouse is the largest upscale steakhouse company in the United States, based on total company- and franchisee-owned restaurants. The company's menu features a broad selection of high-quality steaks and other premium offerings. Assume the information below is from a recent annual report:
a. Common stock, $0.01 par value; 100,090,000 shares authorized; 23,563,356 issued and outstanding at the end of the current year, 23,385,356 issued and outstanding at the end of last year.
b. Additional paid-in capital: $194,389,000 at the end of the current year and $169,431,000 at the end of last year.
c. Retained earnings / (accumulated deficit): ($82,397,000) at the end of last year.
d. In the current year, net income was $53,983,000 and a cash dividend of $7,138,000 was paid.
Required:
Prepare the stockholders’ equity section of the balance sheet to reflect the above information for the current year and last year. (Amounts to be deducted should be indicated with a minus sign.)
Balance sheet
current year last year
shareholder equity
Common stock
Additional paid in capital
Accumulated deficit
total stock holder equity
Answer:
Abe's Steakhouse
Abe's Steakhouse
Balance sheet
current year last year
Shareholders' equity:
Authorized share capital:
Common stock, $0.01 par value; 100,090,000 shares
Common stock $235,634 $233,853
Additional paid in capital 194,389,000 169,431,000
Accumulated deficit -35,552,000 -82,397,000
Total stockholder equity $159,072,634 $87,267,853
Explanation:
a) Data and Analysis:
Authorized share capital:
Common stock, $0.01 par value; 100,090,000 shares
Issued and outstanding share capital:
Last year = 23,385,356 at $0.01 $233,853
Current year 23,563,356 at $0.01 $235,634
Total issued 46,9848,712 at $0.01 $469,487
Additional paid-in capital:
Last year = $169,431,000
Current year 194,389,000
Total = $363,820,000
Retained earnings:
Accumulated deficit ($82,397,000)
Net income 53,983,000
Dividend paid (7,138,000)
Accumulated deficit ($35,552,000)
A team member tells you that when his wife was diagnosed with a serious illness, he stole items from work and sold them, using money for her treatment. he has sice paid back the money taken, in ways that kept his theft secret. ethically, what should you do?
A. attempt to gather evidence to determine whether or not the theft in fact occurred.
B. report him to his manager
C. advice the team member to tell his manager
D. talk with a lawyer to see if this can be justified
Answer:
C
Explanation:
I would advice him to tell his manager what he has done
Marigold Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $305000 $504000 Annual net income 30000 46000 Net annual cash inflow 110000 156000 Estimated useful life 5 years 6 years Salvage value 0 0 The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.89 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111
The net present value for Project Nuts is:_______.
a. $84000.
b. $679380.
c. $336316.
d. $175380.
Answer:
d. $175,380.
Explanation:
Net present value for Project Nuts = (Net annual cash inflow*PV of annuity at 10%, 6 period) - Initial investment
Net present value for Project Nuts = ($156000*4.355) - $504,000
Net present value for Project Nuts = $679,380 - $504,000
Net present value for Project Nuts = $175,380
Select the correct answer.
In the United States, which assessment system measures inflation?
OA
demand for goods
ОВ. .
supply of goods
Oc
consumer price index
OD
money supply in the economy
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.
Equivalent Units of Production Direct Materials Conversion
Units Completed and transferred out 56,000 56,000
Units in Ending Work in Process:
Direct Materials (15,000 * 100%) 15,000
Conversion (15,000 * 70%) 10,500
Equivalent Units of Production 71,000 66,500
Cost per Equivalent Unit
Costs of beginning work in process $40,800 $60,100
Costs incurred this period 136,900 184,300
Total costs $177,700 $244,400
Cost per equivalent unit $2.50 per EUP $3.68 per EUP
The total conversion costs transferred out of the Canning Department equals: _________
Answer:
$206,080
Explanation:
Total conversion costs transferred out of the Canning Department:
= Units Completed and transferred out * Cost per equivalent unit
= 56,000 * $3.68
= $206,080
So, the total conversion costs transferred out of the Canning Department equals $206,080
Which education and qualifications are most helpful for Governance careers? Check all that apply
A. Physical Fitness
B. Stress-Management Skills
C. Bachelor’s Degree
D. Apprenticeship
E. Leadership Skills
F. Finance Skills
G. Negotiation Skills
Answer:
B. Stress-Management Skills
C. Bachelor’s Degree
E. Leadership Skills
F. Finance Skills
G. Negotiation Skills
Explanation:
Answer:
BCEG
it is correct i just did it on edge
Explanation:
Pharoah provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation $1,500 per month
Advertising $450 per month
Insurance $3,330 per month
Weed and feed materials $20 per lawn
Direct labor $13 per lawn
Fuel $3 per lawn
Pharoah charges $80 per treatment for the average single-family lawn.
(a) Determine the company's break-even point in number of lawns serviced per month o per Break-even point lawns
(b) Determine the company's break even point in dollars.
Answer:
Results are below.
Explanation:
Giving the following information:
Advertising $450 per month
Insurance $3,330 per month
Total fixed costs= $3,780
Weed and feed materials $20 per lawn
Direct labor $13 per lawn
Fuel $3 per lawn
Total unitary varaible cost= $36
Selling price per unti= $80
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 3,780 / (80 - 36)
Break-even point in units= 86
Now, in dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 3,780 / (44 / 80)
Break-even point (dollars)= $6,873
The team is working through the planning processes. They are using a plan-driven approach to this system-critical change that will impact security and data protection. They are concerned about getting as much information as possible for their work. They are meeting today to begin planning for quality on their project. All of the following are inputs to the Plan Quality Management process except:______.
a. Guidelines and standards and the stakeholder register
b. The project statement and requirements documentation
c. Project work results and lessons learned repository
d. The project charter and the WBS
Answer:
a. Guidelines and standards and the stakeholder register
Explanation:
The correct option is - a. Guidelines and standards and the stakeholder register
Reason -
Project charter consists of a map that contains rules, regulations, policies, procedure and responsibility so it need inputs. It is just like user manual.
WBS is Work Breakdown Structure which is the tool that utilizes the technique and is one of the most important project management documents.
When project starts, eventually it aims for good results.
When some project is not working good, then we have to do that project again with new processes and procedures until we get the desired result.
A comparative balance sheet and income statement is shown for Cruz, Inc.
CRUZ, INC. Comparative Balance Sheets December 31, 2013
2013 2012
Assets
Cash $94,800 $24,00
Accounts receivable, net 41,000 51,000
Inventory 85,800 95,800
Prepaid expenses 5,400 4,200
Furniture 109,000 119,000
Accum. depreciation- Furniture (17,000) (9,000)
Total assess $319,000 $285,000
Liabilities and Equity
Accounts payable $15,000 $21,000
Wages payable 9,000 5,000
Income taxes payable 1,400 2,600
Notes payable long-term 29,000 69,000
Common stock, $5 par value 229,000 179,000
Retained earnings 35,600 8,400
Total liabilities and equity $319,000 $285,000
CRUZ, INC. Income Statement For Year Ended December 31, 2013
Sales $488,000
Cost of goods sold 314,000
Gross profit 174,000
Operating expenses
Depreciation expense $37,600
Other expenses 89,100 126,700
Income before taxes 47,300
Income taxes expense 17,300
Net Income $30,000
Use the above balance sheet and income statement to prepare the cash provided used from operating activities section by direct method. Amounts deducted should be indicated with a minus sign.
The Varone Company makes a single product called a Hom. The company has the capacity to produce 40,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level are: Direct materials $20 Direct labor $10 Variable manufacturing overhead $5 Fixed manufacturing overhead $7 Variable selling expense $8 Fixed selling expense $2 The regular selling price for one Hom is $60. A special order has been received at Varone from the Fairview Company to purchase 8,000 Homs next year at 15% off the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 25%. However, Varone would have to purchase a specialized machine to engrave the Fairview name on each Hom in the special order. This machine would cost $10,800 and it would have no use after the special order was filled. The total fixed costs, both manufacturing and selling, are constant within the relevant range of 30,000 to 40,000 Homs per year. Assume direct labor is a variable cost. If Varone has an opportunity to sell 37,960 Homs next year through regular channels and the special order is accepted for 20% off the regular selling price, the effect on net operating income next year due to accepting this order would be:________
a. $33,320 decrease
b. $35,480 decrease
c. $33,320 increase
d. $35,480 increase
Answer:
$69,200 Increase
Explanation:
Calculation to determine what the effect on net operating income next year due to accepting this order would be:
Incremental revenue $408,000
(8,000 units × $51 per unit)
[$60 × (1 − 15%) = $51]
Less incremental costs:
Direct materials $160,000
(8,000 units × $20 per unit)
Direct labor $80,000
(8,000 unit × $10 per unit)
Variable manufacturing overhead $40,000
(8,000 units × $5per unit)
Variable selling expense $48,000
[$8 × (1 − 25%) = $6]
(8,000 units × $6 per unit)
Special machine $10,800
Total incremental cost $338,800
Incremental net operating income$69,200
($408,000-$338,800)
Therefore the effect on net operating income next year due to accepting this order would be:
$69,200 Increase
Twilight Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 31-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: (1) 3%, (2) 14%, and (3) 37%, respectively. At December 31, 2019, the unadjusted credit balance in the Allowance for Doubtful Accounts was $270. The total Accounts Receivable in each age category were: (1) 1-30 days old, $63,000, (2) 31-90 days old, $12,000, and (3) more than 90 days old, $5,000.
Required:
a. Calculate the estimate of uncollectible accounts at December 31, 2019.
b. Prepare the appropriate adjusting entry dated December 31, 2019
Answer:
a. Acct. receivable % uncollectible Est. uncollectible
1-30 days old $63,000 3% $1,890
31-90 days old $12,000 14% $1,680
> 90 days old $5,000 37% $1,850
Total $5,420
b. Date General journal Debit Credit
Dec 31 Bad debts expenses $5,150
Allowance for doubtful accounts $5,150
($5,420 - $270)
Using the center for gravity method, determine the optimal x-coordinate for a single facility location to serve the following 5 sites (R1-5) with the following given coordinates and daily demands. x* = []
F X Y W
R1 8 7 100
R2 2 4 220
R3 6 8 80
R4 4 7 180
R5 12 15 350
Answer:
7.139
Explanation:
From the given information:
By using the center of gravity method, we can calculate the optimal x-coordinate.
The center of gravity technique evaluates existing facilities, the distances and the length between them, and the amounts of products to be shipped when citing single facilities.
Center of gravity method can be expressed as:
[tex]X - coordinate = \dfrac{\sum X \times W}{\sum W}[/tex]
[tex]\implies \dfrac{(8 \times 100)+(2\times 220) + ( 6\times 80)+(4 \times 180) +(12\times 350)}{100+220+80+180+350}[/tex]
[tex]\implies \dfrac{(800)+(440) + ( 480)+(720) +(4200)}{930}[/tex]
[tex]\implies \dfrac{6640}{930}[/tex]
=7.139
Nick and Rosa are going to a music festival and are debating whether they should buy food at the festival or bring sandwiches. They only have $7 each to spend on food but would prefer the convenience of buying sandwiches at the festival to the task of preparing them beforehand. If they bring sandwiches, they will eat them regardless of how much food costs at the festival (having already expended the effort of preparing the sandwiches), and will get a utility of 10. Alternatively, if they don't bring sandwiches and are able to buy food for $7 or less, they will get utility of 20. However, if food at the festival costs more than $7 and they don't get to eat, they will get a utility of 0. The numbers in the following table reflect the utility Nick and Rosa get under each of the described outcomes.
Food Price
Options More than $7 $7 or less
Try to buy food 0 20
Bring sandwithces 10 10
If the probability that food costs more than $7 is 50%, then the expected value of utility from not preparing food is ________ , and the expected
value of utility from bringing sandwiches is___________ .
NoW, suppose Nick and Rosa a third if food at festival Costs more than $7, buy sandwiches less $7 at a deli and bring them back to the festival. If Nia and Rosa Can Choose to try to buy food at the festival, knowing they have the to buy at the deli, they now get either a utility Of 10 (if food costs more than $7 and they have to leave the festival to go to the deli) or a utility of 20 (if costs $7 or less and they can buy it at festival).
Assuming the same probabilities as before, the expected value of utility from not preparing food (with the option to convert to buying sandwiches at the deli) is ____________ therefore, the value Of the real option is ___________
Answer:
1) 10 , 10
2) 15 , 20
Explanation:
1) P( food > $7 ) = 50% = 0.5
P ( food < $7 ) = 0.5
Expected value of utility for not preparing food
= 0.5( 0 ) + 0.5(20 )
= 10
Expected value of utility from bring sandwiches
= 0.5( 10 ) + 0.5(10)
= 5 + 5 = 10
2) Considering the third option
Value of utility from not preparing food with option to convert to buying sandwiches at deli
= 0.5 ( 10 ) + 0.5(20 )
= 5 + 10 = 15
The Value of the real Option = 20
Answer:
10, 10
15, 20
Explanation:
p (food > $7) = 50% = 0.5
p (food < $7) = 0.5
= 0.5 (0) + 0.5 (20)
=10
=0.5 (10) + 0.5(10)
= 5+5=10
2. 0.5 (10) + 0.5 (20)
= 5+10 = 15
=20
It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true?
A. Working capital will remain the same at $18,964,118
B. Total Assets will rise to $235,535,291
C. Chesters' long-term debt will rise by $9,000,000
D. The total investment for Chester will be $217,192,866
E. Total liabilities will be $139,957,573
Answer:
A. Working capital will remain the same at $18,964,118C. Chesters' long-term debt will rise by $9,000,000E. Total liabilities will be $139,957,573Explanation:
You included no balance sheet for Chester so I will answer based on inference.
Option A is most likely correct because Working capital relates to Current Assets less Current liabilities so Plant and Equipment (fixed assets) and bonds (long term liabilities) will not affect it.
Total assets rising to $235,525,291 is also quite possible if the assets were previously $225,525,291 so just check for that but this is most likely correct.
Option C is wrong because the long term debt should rise by $10,000,000 which is the value of the bonds.
Option D is wrong as well as this relates to long term bonds not investment by shareholders.
Total liabilties rising is probably correct if the current figure on the balance sheet is $129,957,573 because that would mean that it increased by $10,000,000 which is the price of the bond.
So just check your given balance sheet for Options C and E for my notes and if correct, they are your answers as well as A.
You want to invest in a riskless project in Sweden. The project has an initial cost of SKr3.86 million and is expected to produce cash Inflows of SKrl.76 million a year for three years. The project will be worthless after three years. The expected inflation rate in Sweden is 3.2 percent while It is 2.8 percent In the U.S. A risk-free security is paying 4.1 percent In the U.S. The current spot rate is $1 = SKr7.7274. What is the net present value of this project in Swedish krona if the International Fisher effect applies?
a. SKr1, 087, 561
b. SKr958, 029
c. SKr701, 458
d. SKr823, 333
e. SKr978, 177
Answer:
The net present value of this project in Swedish krona if the International Fisher effect applies is:
e. SKr978, 177
Explanation:
a) Data and Calculations:
Initial project cost = SKr 3.86 million
Annual cash inflows = SKr 1.76 million
Project duration = 3 years
Expected inflation rate in Sweden = 3.2%
Expected inflation rate in the U.S. = 2.8%
Risk-free security interest rate in the U.S. = 4.1%
Interest rate in Sweden = 4.5% (4.1% + 3.2% - 2.8%)
Current spot rate = $1 to SKr 7.7274
The present value of the cash inflows = SKr4,838,177.26
The present value of initial outflows = SKr3,860,000.00
Net present value of the project = SKr978,177.26
From an online financial calculator, the present value of the cash inflows:
N (# of periods) 3
I/Y (Interest per year) 4.5
PMT (Periodic Payment) 1760000
FV (Future Value) 0
Results:
PV = SKr4,838,177.26
Sum of all periodic payments = SKr5,280,000.00
Total Interest = SKr441,822.74
Select the correct answer.
According to Peter Drucker, which definition best describes a good entrepreneur?
A.
one who always invents something life altering or ground-breaking
B.
one who always searches for a change, responds to it, and exploits it as an opportunity
C.
one who manages to earn large profits using ethical or unethical business practices
D.
one who ensures availability of his business’s products or services regardless of their quality
Answer:
B(one who always searches for a change responds to it and exploits it
Explanation:
I just took the test
Answer:
B
Explanation:
Plato/edmentum
Does Amit drive a car safely? (into statement)
Answer:
That question in statement form is "Amit drives a car safely"
Explanation:
We know this because it's a response to the question. When asking "Does Amit drive a car safely", we would most likely say "Yes, Amit drives a car safely" or "No, Amit does not drive a car safely". Hope this helps!
PLZ PLZ HELP HELP HELP YALL ITS IMPORTANT ASAP
Answer:
1144.95$
Explanation:
375.40 was given every week so multiply by 3 and I got 1126.20.. now annually is the key work and annually means per month so I divide 22500 by 12 and got 18.75. last, I added 18.75 a d 1126.95 and got 1144.95!! Hoped explained well!!
Explain Maslow's Hierarchy of Needs Theory in detail with examples for each of the needs accordingly. Afterwards, explain Maslow's Hierarchy of Needs Theory by comparing a famous footballer of your choice to a Homeless person as explained in class (How their needs are different according to the Needs Theory).
Answer:
Now let's check some daily life examples of Maslow's hierarchy of needs.
Breathing, Eating, and Drinking. ... Cleansing, Dressing, and Excreting. ... Employment and Job Security. ... Salary and Stable Environment. ... Family and Friends. ... Pensions and Benefits. ... Job Titles and Recognition. ... Academic Results.Explain what nuclear medicine technologists and magnetic resonance technologists have in common.
Many radiologic laboratories utilize hybrid scanning devices that integrate the two technologies, and MRI technologists and nuclear medicine techs have similar expertise. Technologists may examine both structure and cellular health at a single glance by superimposing the two pictures.
Nuclear medicine technologists and MRI technologists share a number of abilities, and many radiologic facilities utilize hybrid scanning devices that integrate the two modalities.
What is nuclear medicine technologists?
Nuclear medicine creates images that demonstrate internal organ activity by using an ionizing radioactive tracer, typically injected into the blood.
High-quality, detailed images of inside body structures are created by MRI using radio waves and a strong magnetic field. By detecting radiation coming from various body areas after the patient receives a radioactive tracer, nuclear medicine imaging is a technique for creating images.
Hence, the significance of the nuclear medicine technologists is aforementioned.
Learn more about on nuclear medicine technologists, here:
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Zouar Computer Corporation currently manufactures the disk drives that it uses in its computers. The costs to produce 5,000 of these disk drives last year were as follows:
Cost per drive
Direct materials $12
Direct labor 2
Variable manufacturing overhead 5
Fixed manufacturing overhead 7
Total $26
Kidal Electronics has offered to provide Zouar with all of its disk drive needs for $27 per drive. If Zouar accepts this offer, Zouar will be able to use the freed up space to generate an additional $40,000 of income each year to produce more of its computer keyboards. Only $3 per drive of the fixed manufacturing overhead cost above could be avoided. Direct labor is an avoidable cost in this decision. Based on this information, would Zouar be financially better off making the drives or buying the drives and by how much?
a. $15,000 better to buy.
b. $20,000 better to buy.
c. $35,000 better to buy.
d. $60,000 better to make.
Answer:
Zouar Computer Corporation
a. $15,000 better to buy.
Explanation:
a) Data and Calculations:
Production capacity = 5,000
Cost per drive
Direct materials $12
Direct labor 2
Variable manufacturing overhead 5 $19
Fixed manufacturing overhead 7
Total $26
Avoidable costs:
Direct materials $12
Direct labor 2
Variable manufacturing overhead 5
Fixed manufacturing overhead 3
Avoidable opportunity cost 8 ($40,000/5,000)
Total avoidable costs $30
It will be financially better off buying the drives:
Make Buy Difference
Total avoidable costs $150,000 $135,000 $15,000 ($150,000 - $135,000)
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
2021 2020
Assets
Cash $ 121 $ 105
Accounts receivable 148 150
Short-term investment 53 18
Inventory 148 145
Land 110 135
Buildings and equipment 725 550
Less: Accumulated depreciation (205) (150)
$ 1,100 953
Liabilities
Accounts payable $ 42 $ 50
Salaries payable 4 8
Interest payable 9 7
Income tax payable 9 12
Notes payable 0 35
Bonds payable 320 250
Shareholders’ Equity
Common stock 420 350
Paid-in capital—excess of par 195 175
Retained earnings 101 66
$ 1,100 $ 953
WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2021
($ in thousands)
Revenues:
Sales revenue $ 620
Expenses:
Cost of goods sold $ 280
Salaries expense 88
Depreciation expense 55
Interest expense 18
Loss on sale of land 5
Income tax expense 94 540
Net income $ 80
Additional information from the accounting records:
Land that originally cost $25,000 was sold for $20,000.
The common stock of Microsoft Corporation was purchased for $35,000 as a short-term investment not classified as a cash equivalent.
New equipment was purchased for $175,000 cash.
A $35,000 note was paid at maturity on January 1.
On January 1, 2021, bonds were sold at their $70,000 face value.
Common stock ($70,000 par) was sold for $90,000.
Net income was $80,000 and cash dividends of $45,000 were paid to shareholders.
Required:
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method.
Answer and Explanation:
The preparation of the cash flow statement is presented below;
WRIGHT COMPANY
Statement of Cash flows
For the Year Ended December 31, 2021 ($ in 000s)
Cash flows from operating activities
Cash inflows:
Cash received from customers $622 ($620 + $150 - $148)
Cash outflows:
To suppliers ($291) ($280 + $50 - $42 + $148 - $145)
To employees ($92) ($88 + $8 - $4)
For interest ($16) ($18 + $7 - $9)
For income tax ($97) ($94+ $12 -$9)
Net cash provided by operating activities $126
Cash flows from investing activities
Purchase of short term investment ($35)
Purchase of equipment ($175)
Sale land $20
Net cash used by investing activities ($190)
Cash flows from financing activities
Sale of bonds payable $70
Sale of common stock $90
Payment of dividends ($45)
Repayment of notes payable ($35)
Net cash provided by financing activities $80
Net Increase in cash and cash equivalents $16
Cash and cash equivalents at beginning of period $105
Cash and cash equivalents at end of period $121
The statement of cash flows of Wright Company for the year ended December 31, 2021 is $121.
Wright Company Statement of cash flows
Cash flow from operating activity:
Net income $80
Adjustments:
Depreciation expense $55
Loss on sale of land $5
Decrease in Account receivable $2
($148-$150)
Increase in short-term investment ($35)
($53-$18)
Increase in inventory ($3)
($148-$145)
Decrease in Accounts payable ($8)
($42- $50)
Decrease in Salaries payable ($4)
($4-$8)
Increase in Interest payable $2
($9-$7)
Decrease in Income tax payable ($3)
($9-$12)
Cash generated from Operating activity $91
Cash flow from investing activity:
Land sold $20
Equipment purchased ($175)
Cash used for investing activity ($155)
Cash flow from financing activity:
Common stock issued $70
Paid in capital in excess of par $20
Bond sold $70
Cash Dividend ($45)
Note payable paid off ($35)
Cash used for financing activity $80
Net increase in cash $16
[$91+($155)+$80]
Beginning cash balance $105
Ending cash balance $121
($16+$105)
Inconclusion the statement of cash flows of Wright Company for the year ended December 31, 2021 is $121.
Learn more about statement of cash flows here:https://brainly.com/question/735261
Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $171,200 of total manufacturing overhead for an estimated activity level of 8,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $172,500 and 8,250 total direct labor-hours during the period.
a. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
b. Assuming the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period?
Answer:
See below
Explanation:
a. Given that the overhead application rate is $21.40 per direct labor hour and total labor hours used during the period are 8,250 hours
Overhead applied = $21.40 × 8,250
Overhead applied = $176,550
Actual overhead incurred = $172,500
Then, the manufacturing overhead is over applied for the period by $4,050
I.e
= Overhead applied - Actual overhead incurred
= $176,500 - $172,500
= $4,050
b. With regards to the above, if the over applied overhead is closed out to cost of goods sold, it means that the cost of goods sold amount would decrease . The reason is that since cost of goods sold is deducted from revenue to determine gross margin, a reduction in cost of goods sold would bring about an increase in the company's gross margin for the period by $4,050
Economics question please help :))
Answer:
c 8 bushes of wheat
Explanation:
____ communication occurs when the downstream throughput is higher than the upstream throughput. in
Answer:
asymmetrical communications
Explanation:
The asymmetric or non-symmetrical means to any system where the speed of the data or the quantity varies in one direction if we compared with the other type of direction
Also in this the downstream would be more than the upstream throughput in
Therefore the above represent the answer