Complete question:
The Pillar Division of the Gothic Building Company produces basic pillars which can be sold to outside customers or sold to the Lantern Division of the Gothic Company. Last year, the Lantern Division bought all of its 25,000 pillars from Pillar at $2.00 each. The following data are available for last year's activities of the Pillar Division:
Capacity in units 320,000 pillars
Selling price per pillar to outside customers $2.05
Variable costs per pillar $1.20
Fixed costs, total $155,000
The total fixed costs would be the same for all the alternatives considered below.
Suppose the transfers of pillars to the Lantern Division cut into sales to outside customers by 20,000 units. Further suppose that an outside supplier is willing to provide the Lantern Division with basic pillars at $1.92 each. If the Lantern Division had chosen to buy all of its pillars from the outside supplier instead of the Pillar Division, the change in net operating income for the company as a whole would have been:
$2,000 decrease.
$14,000 increase.
$1,000 decrease.
$18,000 decrease.
I tried my best to find the question but was unable to find the exact question, instead I found a symmetry question and its solution is as under:
Answer:
Option D. $18,000 decrease
Explanation:
The decrease in the net operating income that would occur due to purchase of all of the pillars from the outside supplier would cost the additional cost to the company which is opportunity cost per pillar and is calculated by using the following formula:
Opportunity Cost = Variable Cost - Purchasing Cost
Here, the variable cost to manufacture the pillar within the factory is $1.2 per pillar whereas the purchasing cost of pillars from outside supplier is $1.92 per pillar.
By putting values, we have:
Opportunity Cost = $1.2 - $1.92 = $0.72
Now for purchasing 25,000 units from the supplier, the total opportunity cost would be:
Total Opportunity Cost = $0.72 * 25,000 Units Purchased from Outside Supplier = - $18,000
The minus sign shows the decrease in the net operating income.
Ms. Jones, the CEO of First Bank, is hoping that her employees will buy into a new performance review system. Which of the following statements would be most likely to help Ms. Jones achieve buy-in?
1. I would like the new performance system im plemented by Monday. Please see that it is done.
2. The new performance system starts on Tuesday of next week. Be prepared to use it.
3. We are implementing a new performance system effective Monday.
4. We will have a meeting Friday with HR to learn how to use it We need to continue to work on the new performance system.
Answer:
The correct answer is the option 4: We will have a meeting Friday with HR to learn how to use it. We need to continue to work on the new performance system.
Explanation:
To begin with, if Ms. Jones is looking forward to get her employees to buy the new system then she must tell them that they are going to use and it is important for the company and even more for them to have it in order to use it later because that will bring more benefits for everyone. Therefore that when she tells them that there is a meeting soon that will focus in the fact of learning how to use it and that it will show the importance of using it, the employees will feel the necessity of acquiring it for that reason.
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 each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Present Value Years Interest Rate Future Value $ 2,250 11 13 % $ 8,752 7 9 76,355 14 12 183,796 8 6
Answer:
1. $8,630.69
2. $15,999
3. $373,155.46
4. $292.942.90
Explanation:
The formula for calculating future value = P(1 + r)^n
P = Present value
R = interest rate
N = number of years
1. $ 2,250 (1 + 0.13)^11 = $8,630.69
2. 8,752 (1 + 0.09)^7 = $15,999
3. 76,355 (1 + 0.12)^14 = $373,155.46
4. 183,796(1 + 0.06)^8 = $292.942.90
I hope my answer helps you
For each of the following, the future value can be computed as:
1. $8,630.69
2. $15,999
3. $373,155.46
4. $292.942.90
The worth of a present asset at some point in the future based on an estimated rate of growth is known as future value (FV). For investors as well as financial planners, the future value is crucial because they use it to predict the amount an investment made now is going to be worth throughout the future. Investors may make wise investment choices based on their projected demands by knowing the future worth.
future value = P(1 + r)^n
P = Present value
R = interest rate
N = number of years
1. $ 2,250 (1 + 0.13)^11 = $8,630.69
2. 8,752 (1 + 0.09)^7 = $15,999
3. 76,355 (1 + 0.12)^14 = $373,155.46
4. 183,796(1 + 0.06)^8 = $292.942.90
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Sondra was expecting a shipment of food from one of her suppliers and it didn't come. When she called the supplier the phone was disconnected. Later Sondra read that the supplier had gone out of business because it couldn't pay its debts. The supplier likely declared Chapter __________ bankruptcy.
Answer: Chapter 7 bankruptcy
Explanation:
Sondra was expecting a shipment of food from one of her suppliers and it didn't come. When she called the supplier the phone was disconnected. Later Sondra read that the supplier had gone out of business because it couldn't pay its debts. The supplier likely declared Chapter 7 bankruptcy.
It should be noted that chapter 7 bankruptcy is a very common form of bankruptcy and does not involve filing of a repayment plan.
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
Year 2 Year 3
First Second Third Fourth First
Budgeted production, in bottles 60,000 90,000 150,000 100,000 70,000
Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarters production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.)
Answer:
1. Direct Materials Budget Units( bottles) 66,000 102,000 140,000 94,000 Total 452,000
2. Costs Raw Materials $ 297,000 $ 459,000 $ 630,000 $ 423,000
Total 2034,000
Explanation:
Direct Materials Budget in Bottles & Grams
Year 2 Year 3
First Second Third Fourth First
Budgeted production, 60,000 90,000 150,000 100,000 70,000
Desired Ending Inventory
20 % 0f the Production 18,000 30,000 20,000 14,000
Less Beginning Inventory
36,000/ 3 12,000 18,000 30,000 20,000 14,000
D. Materials Budget 66,000 102,000 140,000 94,000
Grams in a Bottle 3 3 3 3
Raw Materials gms 198,000 306,000 420,000 282,000
Costs $1.50 $1.50 $1.50 $1.50
Costs Raw Materials $ 297,000 $ 459,000 $ 630,000 $ 423,000
We add the desired ending inventory to the budgeted production and subtract the beginning inventory to get the direct materials budget in bottles. This is again multiplied with 3 gms and the cost per gram to get the total costs of the total grams. Each bottle contains 3 grams.
Direct Materials Budget in Bottles & Grams
Year 2
First Second Third Fourth Total
Budgeted production, 60,000 90,000 150,000 100,000 450,000
Add Desired Ending Inventory
20 % 0f the Production 18,000 30,000 20,000 14,000 82,000
Less Beginning Inventory
36,000/ 3 12,000 18,000 30,000 20,000 80,000
D. Materials 66,000 102,000 140,000 94,000 452,000
Grams in a Bottle 3 3 3 3 3
Raw Materials 198,000 306,000 420,000 282,000 1356,000
Costs $1.50 $1.50 $1.50 $1.50 1.50
Costs Raw Materials $ 297,000 $ 459,000 $ 630,000 $ 423,000
Total $ 2034,000
Part 1:
Direct Materials Budget in Bottles & Grams
Year 2
First Second Third Fourth Total
Budgeted production, 60,000 90,000 150,000 100,000 450,000
Add Desired Ending Inventory
20 % 0f the Production 18,000 30,000 20,000 14,000 82,000
Less Beginning Inventory
36,000/ 3 12,000 18,000 30,000 20,000 80,000
D.
Materials 66,000 102,000 140,000 94,000 452,000 Grams in a Bottle 3 3 3 3 3 Raw Materials 198,000 306,000 420,000 282,000 1356,000 Costs $1.50 $1.50 $1.50 $1.50 1.50 Costs Raw Materials $ 297,000 $ 459,000 $ 630,000 $ 423,000
Total Cost of Raw Material = $ 2,034,000
Part 2:
"Unit cost of raw materials"Direct Materials Budget in Bottles & Grams
Year 2 Year 3
First Second Third Fourth First
Budgeted productionProduction = 60,000 90,000 150,000 100,000 70,000
Desired Ending Inventory
20 % of the Production = 18,000 30,000 20,000 14,000
Less Beginning Inventory
Musk oil 36,000/3 = 12,000 18,000 30,000 20,000 14,000
D.
Materials Budget = 66,000 102,000 140,000 94,000
Grams in a Bottle = 3 3 3 3
Raw Materials gms = 198,000 306,000 420,000 282,000
Costs(given) = $1.50 $1.50 $1.50 $1.50
Costs Raw Materials for 4 years is = $ 297,000 $ 459,000 $ 630,000 $ 423,000
Therefore, the correct answer are :
Total Cost of Raw Material = $ 2,034,000
Cost of Raw Materials for 4 years is = $ 297,000 $ 459,000 $ 630,000 $ 423,000
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Pro forma income statement
Austin Grocers recently reported the following 2016 income statement (in millions of dollars):
Sales $700
Operating costs including depreciation 500
EBIT $200
Interest 40
EBT $160
Taxes (40%) 64
Net income $96
Dividends $32
Addition to retained earnings $64
For the coming year, the company is forecasting a 20% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant.
What is Austin's projected 2017 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places.
$ million
What is the expected growth rate in Austin's dividends? Do not round your intermediate calculations. Round your answer to two decimal places.
%
Answer:
Austin Grocers
1. Projected 2017 Net Income
= $102 million
2. Expected Growth Rate in Dividends
= 6.25% (2/32 x 100)
Explanation:
a) Income statement (in millions of dollars):
2016 2017
$'millions $'millions
Sales $700 $840
Operating costs
including depreciation 500 630
EBIT $200 $210
Interest 40 40
EBT $160 $170
Taxes (40%) 64 68
Net income $96 $102
Dividends $32 $34
Addition to
retained earnings $64 $68
b) Sales for 2017 = $840 million ($700 x 1.2)
c) Operating costs for 2017 = $630 million ($840 x75%)
d) Taxes for 2017 = $68million ($170 x 40%)
e) Dividend payout ratio = Dividend/Net Income = 33.33%
f) Growth Rate in Dividends = Dividend Increase/Previous year's dividend x 100 = 6.25% (2/32 x 100)
The Dean Company has sales of $500,000, and the break-even point in sales dollars of $300,000. What is the company’s margin of safety percentage? _________________________
Answer:
40%
Explanation:
The Dean company have a sales of $500,000
The break-even point in sales dollar is $300,000
Therefore, the company's margin of safety can be calculated as follows
Margin of safety= Sales-break-even sales/sales
= $500,000-$300,000/$500,000
= $200,000/$500,000
= 0.4×100
= 40%
Hencethe company's margin of safety percentage is 40%
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
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 185,000 lbs. at $6.00 183,200 lbs. at $5.80 Direct labor 18,500 hrs. at $16.50 18,930 hrs. at $16.90 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.10 $56,780 variable cost Fixed cost, $4.90 $94,619 fixed cost Each unit requires 0.25 hour of direct labor. Required:
Answer:
You are missing the requirements. I looked them up and found the following:
Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Standard Costs Actual Costs
Direct materials 185,000 lbs. at $6.00 183,200 lbs. at $5.80
Direct labor 18,500 hrs. at $16.50 18,930 hrs. at $16.90
Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.:
Variable cost, $3.10 $56,780
variable cost Fixed cost, $4.90 $94,619 fixed cost
Each unit requires 0.25 hours of direct labor
direct materials price variance = AQ x (AP - SP) = 183,200 x ($5.80 - $6) = -$36,640 favorable variance
direct materials quantity variance = SP x (AQ - SQ) = $6 x (183,200 - 185,000) = -$10,800 favorable variance
total direct materials cost variance = (AQ X AP) - (SQ X SP) = (183,200 X $5.80) - (185,000 X $6) = $1,062,560 - $1,110,000 = -$47,440 favorable variance
or
total direct materials cost variance = direct materials price variance + direct materials quantity variance = -$36,640 - $10,800 = -$47,440 favorable variance
On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $310,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Inventory Cost Index December 31 Year-End Costs (Relative to Base Year) 2021 $ 408,450 1.05 2022 420,740 1.09 2023 478,500 1.10 2024 513,585 1.13 Required: Calculate inventory amounts at the end of each year
Answer:
Avondale Lumber
Calculation of Inventory Amounts at the end of each year:
= Inventory cost divided by the Index:
2021: = $408,450/1.05 = $389,000
2022: = $420,740/1.09 = $386,000
2023: = $478,500/1.10 = $435,000
2024: = $513,585/1.13 = $454,500
Explanation:
a) Data and Calculations:
Year Ended Inventory Cost Index Year-End Costs
(Relative to Base Year)
2021 $ 408,450 1.05 $389,000 (408,450/1.05)
2022 420,740 1.09 $386,000 (420,740/1.09)
2023 478,500 1.10 $435,000 (478,500/1.10)
2024 513,585 1.13 $454,500 (513,585/1.13)
b) The conversion of the ending inventory cost to the base year with an index is obtained by dividing the inventory cost by the index. This gives a cost that is relative to the base year.
A company issued 120 shares of $100 par value common stock for $14,200 cash. The total amount of paid-in capital in excess of par is:
Answer:
The answer is simply $2,200.
Explanation:
Par value of common stock means the price of the stock as stated in the company's charter.The amount paid-in capital in excess of par connotes that the actual cash received for the common stock purchased by subscribers is more than the par value by a certain amountBased on the information provided in the question, the total amount of paid-in capital in excess of par is: $14,200 - (120 shares x $100) = $2,200.
Target profit a.are when sales and costs are exactly equal. b.can be calculated by modifying the break-even equation. c.equals differential costs. d.cannot be calculated in cost-volume-profit analysis.
Answer:
b. can be calculated by modifying the break-even equation.
Explanation:
As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.
It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.
Adjust the contribution margin per unit and units sold based on an expected sales promotion.
Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.
Alter the contribution margin for the effects of changing to a just-in-time production system.
If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,
Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.83 and Kr 5.98, respectively. The annual risk-free rate in the United States is 3.63 percent, and the annual risk-free rate in Norway is 5.33 percent.
The six-month forward rate on the Norwegian krone would have to be Kr/$ ........... to prevent arbitrage.
Answer:
The six-month forward rate on the Norwegian krone would have to be Kr/$ 5.93 to prevent arbitrage
Explanation:
In order to calculate the six-month forward rate on the Norwegian krone we would have to calculate the following formula:
six-month forward rate = S (1+id) / (1+if)
According to the given data we have the following:
S=5.83
id=5.33%
if=3.63%
Therefore, six-month forward rate =5.83 (1+5.33%) / (1+3.63%)
six-month forward rate =6.14/1.04 = 5.93
The six-month forward rate on the Norwegian krone would have to be Kr/$ 5.93 to prevent arbitrage
The range for daily sales for the week, $89,000, $75,000, $98,000, $66,000, and $99,000, is ________. a. $33,000. b. $85,400. c. $427,000. d. $89,000.
Answer:
$33,000
Explanation:
The daily sales for a particular week is given as follows: $89,000, $75,000, $98,000, $66,000, $99,000
Range can be defined as the difference between the highest value and the lowest value within a particular set of number
From the question above;
The highest value is $99,000
The lowest value is $66,000
Therefore, the range for the daily sales for the week can be calculated as follows
Range= Highest value-Lowest value
= $99,000-$66,000
= $33,000
Hence the range is $33,000
When consumers purchase cell phones, they also often purchase a protective case to take care of the cell phone. As the price of a cell phone rises, the demand for a protective case shifts to the left. This means cell phones and a protective case are
Answer:
Complement
Explanation:
Complementary goods are goods that are consumed together. if the price of a good rises, the quantity of the other good falls and if the price of a good falls, the demand for the complement would rise.
If the price of a cell phone rises, the demand for a protective case shifts to the left, it means that the demand for protective cases fell. so, when the price of cell phones rose, the demand for protective cases fell.
Which of these countries has a command economy?
A. Cuba
B. France
C. United States
D. India
Answer:
A. Cuba
Explanation: Command economy , simply means planned economy
Some other countries with command economies are;
North KoreaThe former Soviet UnionA drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the __________________ . Group of answer choices
Answer:
supply curve to the right.
Explanation:
A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the supply curve to the right. Drought refers to a period characterized by little or no rainfall in a geographical location over a specific period of time. When there's a drought, the production of agricultural products will be very much affected, thereby causing a decrease in the quantity of farm products.
On the other hand, a good weather would cause an increase in the quantity of farm products and as a result of this, the supply curve would shift rightward because there's enough product to meet the customer's demands or needs.
Sheridan Corp.’s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 550,500 units of product: sales $2,752,500, total costs and expenses $2,855,400, and net loss $102,900. Costs and expenses consisted of the amounts shown below.
Total Variable Fixed
Cost of goods sold $2,140,000 $1,590,000 $550,000
Selling expenses 250,000 92,000 158,000
Administrative expenses 210,000 68,000 142,000
$2,600,000 $1,750,000 $850,000
Management is considering the following independent alternatives for 2018.
1. Increase unit selling price 20% with no change in costs, expenses, and sales volume.
2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales.
Required:
a. Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)
b. Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places.)
Answer and Explanation:
a. Here we will follow some steps to reach break-even point in dollars for 2017 is shown below:-
Step 1
Selling price per unit = Sales ÷ Number of units
= $2,752,500 ÷ $550,500
= $5
Step 2
Variable cost per unit = Total of variable ÷ Number of units
= $1,750,000 ÷ $550,500
= $3
Step 3
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($5 - 3) ÷ $5
= 0.4
and finally
Break even point in dollars = Fixed cost ÷ Contribution margin ratio
= $850,000 ÷ 0.4
= $2,125,000
b. As per the situation the solution of contribution margin under each of the alternative courses of action is below:-
According to the 1 alternative
Selling price per unit = $5 × 1.20
= $6
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($6 - 3) ÷ $6
= 0.5
or
= 50%
According to the 2 alternative
Variable cost per unit = $3 + $5 × 5%
= $3.25
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($5 - $3.25) ÷ $5
= 0.35
or
= 35%
Pocahontas School District, an independent public school district, financed the acquisition of a new school bus by signing a note for $90,000 plus interest on the unpaid balance at 6%. Annual principal payments of $30,000, plus interest, are due each July 1. Assuming that the District maintains its books and records in a manner that facilitates the preparation of the fund financial statements, the appropriate entry in the General Fund at the date of acquisition is:_________.
A) Debit Expenditures $90,000; Credit Notes Payable $90,000.
B) Debit Fixed Assets $90,000; Credit Notes Payable $90,000.
C) Debit Expenditures $90,000; Credit Other Financing Sources $90,000.
D) Debit Fixed Assets $90,000; Credit Other Financing Sources $90,000.
Answer:
C) Debit Expenditures $90,000; Credit Other Financing Sources $90,000
Explanation:
A General fund can be defined as the primary fund which are often used by a government entity and they are used to help record all inflows and outflows of resources that are not associated with funds which are for special purpose.
Therefore ,the entry in the General Fund at the date of acquisition will be :
Debit Expenditures $90,000
Credit Other Financing Sources $90,000
Reason been that the acquisition of the new school bus was been financed by signing a note for $90,000 in which the $90,000 is an expenditure which was debited while Other Financing Sources of $90,000 was been credited.
Mark writes a check to Sally, intending to use it to pay Sally for babysitting Mark's daughter next week. Sally arrives at Mark's house for a visit, and while Mark is in the bathroom, Sally discovers the check on Mark's desk and takes it. She endorses the check over to Bob in exchange for a used tennis racket. Mark ends up not hiring Sally to babysit. When he discovers the check is missing, he stops payment on it. Bob sues Mark to enforce payment of the check. Which of the following statements is true? a. Mark must pay Bob the amount of the check b. Mark could assert the defense of fraud in the inducement against Bob c. Mark can assert the defense of lack of delivery against Bob d. Mark can assert the defense of failure of consideration against Bob
Answer:
Bob sues Mark to enforce payment of the check
d. Mark can assert the defense of failure of consideration against Bob.
Explanation:
Failure of consideration means that there was no consideration since intended contract between Mark and Sally which would have established the consideration upon Sally's performance was frustrated. The contract did not take effect. It is an established point in contract law that there must be consideration for a contract to be valid and enforceable. Since the contract was not finalized and no performance of consideration was carried out by Sally, she had no legal right to collect Mark's check and endorse it to Bob.
Moreover, any potential contract would have been between Bob and Sally and not Mark. So, Mark can plead failure of consideration in the relationship between him and Sally, thus rendering the check's endorsement to a third party, null and void.
There is demand for and supply of dollars and a demand for and supply of pesos. Under a flexible exchange rate system, if income growth in the United States is greater than income growth in Mexico, then the
Answer:
There is demand for and supply of dollars and a demand for and supply of pesos. Under a flexible exchange rate system, if income growth in the United States is greater than income growth in Mexico, then the dollar would increase its value over the peso.
Explanation:
Given that in the situation in question the quantities supplied and demanded of both currencies remain stable, in principle there should be no valuation of one over the other for reasons of supply and demand.
Now, since the economic growth in the United States that sustains the value of the dollar is greater than that growth in Mexico that sustains the value of the peso, the greater the value of the dollar in international markets. This will necessarily imply a higher valuation of the American currency, which will widen the gap in the exchange rate with respect to the peso, which instead will remain stable in global markets.
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017. Garcia Company issues 9.00%, 15-year bonds with a par value of $400,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.00%, which implies a selling price of 115 3/4.
Answer:
Journal Entries for jan 1, 2017
Explanation:
Face value of bond = 400,000
Proceeds = 400,000 X 1.1575 = 463,000
Premium = 463,000 - 400,000 = 63,000
Jan 1, 2017
Debit Credit
Cash 463,000
Premium 63,000
Bond payable 400,000
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.
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour. The alleged sexual harassment included kissing, touching her breasts and leg, persistent requests to have a drink outside work hours despite an ongoing refusal, asking for cuddles, telephoning her at home and making repeated unsolicited sexual remarks. Based on any four ethical theories, explain how these acts constitute unethical behaviours at the workplace
Answer:
Sexual harassment is an unethical behavior both at or outside workplace and this can be explained using these ethical theories; DEONTOLOGY, UTILITARIANISM, INDIVIDUAL CHARACTER ETHICS, WORKPLACE INDIVIDUAL ETHICS
1. DEONTOLOGY: This ethical theory states that a person's actions are either bad or good depending on sets of rules, actions are morally right if it is in accordance with the rules, rights et cetera. in this case the behavior does not follow any rules and there is no right given to anybody to harass a woman. This theory shows that these acts were unethical.
2. UTILITARIANISM: this theory supports actions and behaviors that brings happiness and joy to others and frowns at actions that brings sadness and unhappiness to people around us. In this case the employee is harassed which makes her unhappy so this theory labels sexual harassment as an unethical behavior.
3. INDIVIDUAL CHARACTER ETHICS: It says that there are certain qualities of a person that determine their ethics, this includes; gratitude, benevolence, respect but in this case the individual has no such traits present in him because of his disrespect towards a woman, so this theory shows how unethical those acts were.
4. WORKPLACE INDIVIDUAL ETHICS: It says that the development or presence of certain traits show the work ethics of an individual and the traits are honor, work pride, trustworthiness but in this case he has proved that there is no such trait present in him so it constitute unethical behavior at workplace.
If the straight-line depreciation method is used, the annual average investment amount used in calculating the accounting rate of return is calculated as (beginning book value + ending book value)/2.
a. True
b. False
Answer:
The answer is true
Explanation:
Accounting Rate of Return is a financial ratio used in capital budgeting decision making. It is the ratio of estimated accounting profit(net income) of a project to the average investment made in the project.
And average investment is calculated as the sum of the beginning and ending book value of the project/investment divided by 2
Depreciation is termed as the phase of the value of the assets when they keep on decreasing year by year or monthly. It is caused due to the overutilization of the assets for the production function of the firm.
The correct answer is true
An Accounting Rate of Return (ARR) is a financial ratio that is used to make capital budgeting decisions. It is the ratio of a project's estimated retained earnings (retained earnings) to a project's average investment.
Investment is equal to the sum of the project/initial investments and ending book values divided by two.
To know more about the straight-line depreciation method, refer to the link below:
https://brainly.com/question/15085226
The balance in Discount on Bonds Payable
a. would be added to the related bonds payable to determine the carrying amount of the bonds.
b. would be subtracted from the related bonds payable on the balance sheet.
c. should be reported on the balance sheet as an asset because it has a debit balance.
d. should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the interest method.
Answer:
b. would be subtracted from the related bonds payable on the balance sheet.
Explanation:
A bond is a fixed income instrument that represents the indebtedness of the borrower to the investor or creditor (bond issuer). They're basically loans that are given to large organizations or government.
This ultimately implies that, when an investor or creditor purchases a bond, an agreed amount of money is being borrowed to the issuer as a loan. Consequently, the bond issuer is expected to pay an interest with a return of principal at maturity to the holder (investor or creditor) of the bond.
Hence, bonds payable only arises when a company issues bonds so as to generate cash for its business and plans. Thus, the company is a borrower as the bond issuer while the holder of the bond is a debt-holder (investor or creditor). This further would mean that, the company becomes liable to the investor. Therefore, bonds payable should be recorded on the long-term liability side of the balance sheet being used by the company.
Bonds are issued at par or premium or discount and as such bond issuer records the face value of the bond as bonds payable.
Additionally, the balance in discount on bonds payable would be subtracted from the related bonds payable on the balance sheet because it decreases the value of the bonds.
g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 110 100 % Variable expenses 66 60 % Contribution margin 44 40 % The company is currently selling 5,060 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Answer:
Effect on income= $2,500 increase
Explanation:
Giving the following information:
Contribution margin= $44
The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 200*44 - 6,300
Effect on income= $2,500 increase
Shoe companies pair their logos with exciting athletes in order to get you excited about buying their shoes. Which could be BEST described as the unconditioned stimulus in this scenario
Answer:
Exciting athletes.
Explanation:
In psychology, the term classical conditioning refers to a form of learning in which a stimulus that triggers a natural answer by itself (unconditioned stimulus and unconditioned response) is paired with another stimulus that originally doesn't trigger any answer (neutral stimulus) but, after some repetitions, the answer evoked by the first stimulus starts to show up by presenting the originally neutral stimulus. Then, this answer is known as the conditioned response and the neutral stimulus has become a conditioned stimulus)
In this example the companies are pairing the logos which originally don't trigger any answer (and therefore are the neutral stimulus) to exciting athletes (which trigger a natural answer of excitement and thus are the unconditioned stimulus) in order that you get excited when you see the logo and buy the shoes. So, the answer evoked by the exciting athletes (unconditioned response) starts to show up when you just see the logo (neutral stimulus). Thus, in this scenario, the unconditioned stimulus (the one that triggers an answer by itself) would be the exciting athletes.
Using the overdraft protection line. Isabella Harris has an overdraft protection line. Assume that her October 2015 statement showed a latest (new) balance of $862. If the line had a minimum monthly payment requirement of 5 percent of the latest balance (rounded to the nearest $5 figure), then what would be the minimum amount that she’d have to pay on her overdraft protection line?
Answer:
$45
Explanation:
Calculation for what would be the minimum amount that Isabella Harris have to pay on her overdraft protection line
Using this formula
Percentage of monthly payment requirement × The new balance
Let plug the formula
5% * 862 = 43.1
Now we are going to round it to nearest $5
Thus, to the nearest $5 will be $45.
Therefore what would be the minimum amount that Isabella Harris have to pay on her overdraft protection line would be $45
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 358,000 debit Allowance for uncollectible accounts 530 debit Net Sales 803,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.3% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
Answer:
Debit Bad Debts Expense $2,939; Credit Allowance for Doubtful Accounts $2,939
Explanation:
Estimated Uncollectibles based on the past experience = $803,000 * 0.3%
=$2,409
Debit balance in allowance for doubtful accounts = $530
The total amount of Bad Debts Expense to be provided in the adjusting entry = $2,409 + $530
= $2,939