Answer:
a. build on its weaknesses
Explanation:
The SWOT(strength, weekness, opportunity, threat) analysis, is an analysis used to check a firm's competitive position, and also to assess the potentials of the firm.
According to SWOT analysis, a firm should not build on its weakness, rather, it should build on its strengths. It should be open to work around its weaknesses, take advantage of the opportunities presented by the environment and also protect the firm from threats in order to succeed.
Option A is the correct option because a company should not build on its weaknesses according to SWOT analysis.
Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The firm expects the project to generate annual cash flows of $7 million over the next five years. Its cost of capital is 18 percent. What is the net present value of this project
Answer:
NPV = $0.89 million
Explanation:
The net present value is an important concept in evaluation a project. It calculates the return a project provides when discounted at the required rate. The initial cost involved in the project is deducted from the discounted cash flows provided by the project and if the NPV is positive, the project should be proceeded with.
The formula for NPV is,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial outlay
NPV = 7 / (1+0.18) + 7 / (1+0.18)^2 + 7 / (1+0.18)^3 + 7 / (1+0.18)^4 + 7 / (1+0.18)^5 - 21
NPV = $0.89 million
Waterway Industries required production for June is 172000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 350000 and 380000 pounds, respectively. How many pounds of direct material Z must be purchased
Answer:
Direct material purchase budget = 546,000 pounds
Explanation:
Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials.
Purchase budget = usage budgeted + closing inventory - opening inventory
Usage budget = Production budget × standard materials per unit
= 172,000 × 3 pounds= 516,000
Purchase budget =516,000 + 380,000 - 350,000=546,000
Direct material purchase budget = 546,000 pounds
When or how does a contract become a legal document and is binding on all parties involved?
The Meat Market has $747,000 in sales. The profit margin is 4.1 percent and the firm has 7,500 shares of stock outstanding. The market price per share is $22. What is the price-earnings ratio
Answer:
The price-earnings ratio= 5.4 times
Explanation:
The price earning ratio is used to compare the price of company's share to its earnings.
EPS = Total earnings available to ordinary shareholders/Number of shares
Total earnings available = Profit margin × Sales = $30,627
Earnings per shares = $30,627 /7.500 = $4.0836
The price-earnings ratio = Price/EPS= 22/4.0836 =5.38
The price-earnings ratio= 5.4 times
Which of the following is not a finding or conclusion of the research study by ou and penman that used traditional accounting measure to predict whether a company's income would increase or decrease?
a. The researchers were unable to describe the following year earnings changes correctly in most cases.
b. Markets are not as efficient as efficient-market advocates would like to believe.
c. Better accounting standards might improve the predictive ability of accounting information.
d. Fundamental analysis is still important for investment purposes.
Answer: a. The researchers were unable to describe the following year earnings changes correctly in most cases.
Explanation:
It was long believed and shown by the works of researchers before Jane Ou and Stephen Penman that the price and performance of stock prices can be used to predict the direction that earnings would take. They attributed this to the fact that stock prices have off information about how the company would perform and by extension how much earnings it would make.
Ou and Penman expanded on this research by showing that the information that the stock prices had was already inside the financial statements of the company. As such they were able to describe the earnings changes in the coming period.
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -37,500 -37,500 1 17,300 5,700 2 16,200 12,900 3 13,800 16,300 4 7,600 27,500 a) What is the IRR for each of these projects
Answer:
IRR for project A = 19.71%
IRR for project B= 18.76%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calcuated using a finanical calcuator
for project A :
Cash flow in year 0 = -37,500
Cash flow in year 1 = 17,300
Cash flow in year 2 = 16,200
Cash flow in year 3 = 13,800
Cash flow in year 4 = 7,600
IRR = 19.71%
for project B :
Cash flow in year 0 = -37,500
Cash flow in year 1 = 5,700
Cash flow in year 2 = 12,900
Cash flow in year 3 = 16,300
Cash flow in year 4 = 27,500
IRR = 18.76%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
the differences between career and non career
A linear programming approach is usually used by managers involved in portfolio selection to maximize risk. minimize risk. maximize return on investment. maximize investment limitations.
Answer: maximize return on investment
Explanation:
Linear programming is an optimization technique that is used for a system of linear constraints and an objective function that helps in defining the quantity that is to be optimized.
It is used for sure solving complex problems in businesss whereby deciding of the quantities f variables to use in achieving profit maximization or cost minimization is difficult.
Therefore, linear programming approach is usually used by managers involved in portfolio selection to maximize return on investment.
Portions of the financial statements for C. Ruiz Inc. are provided below.
C. Ruiz Inc.
Income Statement
For the Year Ended December 31, 2018
Revenues $613,000
Expenses:
Cost of goods sold $360,000
Operating expenses 116,000
Depreciation expense 33,000
Income tax expense 52,000
Total expenses 561,000
Net Income $52,000
Requirement:
Prepare the cash flows from operations section of C. Ruiz Inc.'s 2018 statement of cash flows using the indirect method.
Answer:
Some information is missing, so I looked it up.
Explanation:
C. Ruiz, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flow from operating activities:
Net income $52,000
Depreciation expense $33,000Decrease in prepaid rent $10,200Increase in operating expense payable $6,200Increase in income tax payable ($21,000)Increase in accounts receivables ($5,800)Increase in inventory ($12,100)Decrease in accounts payable ($7,100) $3,400Cash flow from operating activities $55,400
Cash flow from investing activities: $0
Cash flow from financing activities $0
Net increase in cash $55,400
You will be paying $10,200 a year in tuition expenses at the end of the next two years. Bonds currently yield 9%. a. What is the present value and duration of your obligation
Answer:
Present value of obligation is $17,942.94
Duration 1.4785 years
Explanation:
Present value of obligation can be calculate by using following formula
PV = Tuition payment x ( 1 + yield rate )^-n
PV of First year payment = $10,200 x ( 1 + 9% )^-1 = 9,357.80
PV of Second year payment = $10,200 x ( 1 + 9% )^-2 = 8,585.14
PV of Obligation = PV of First year payment + PV of Second year payment
PV of Obligation = 9,357.80 + $8,585.14 = $17,942.94
Duration
Time in years PV of Payments Weight Duration (Time x Weight)
1 $9,357.80 0.5215 0.5215 x 1 = 0.5215
2 $8,585.14 0.4785 0.4785 x 2 = 0.9569
Total $17,942.94 1.0000 1.4785
Accel, Greylock Partners, Sequoia Capital, Benchmark, and Andreessen Horowitz are all in the business of providing funds to new businesses in exchange for an ownership share in the company. These companies are all seeking a high return on their investment, and they tend to be drawn to technology and biotechnology companies. Accel, Greylock, Sequoia, Benchmark, and Andreessen are all pints
A. venture capital firms.
B. business incubators.
C. C corporations.
D. for-profit arms of the SBA.
E. commercial banking organizations.
Answer:
The correct answer is the option A: venture capital firms.
Explanation:
To begin with, the ''venture capital firms'' are the ones that tend to finance start ups with high risks in tha investment due to the fact that those low start ups tend to show high improvements that could lead to a particular high income in the future for the owners and therefore for the investors too. Moreover, this type of funding is particulary design to make the investors become part of the organizations in which they invest in by giving them shares of the company or equity as well.
A higher price point should create value for the customer. The buyers need to know that they are paying for __________, or an unforgettable experience. The product itself must live up to these expectations.
Answer:
Differentiation.
Explanation:
The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.
The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.
Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.
Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.
Now Assume the equipment’s residual value could be as low as $0 or as high as $400,000, but $200,000 is the expected value. Because the residual value is riskier than the other relevant cash flows, this differential risk should be incorporated with the analysis. Describe how this could be accomplished. What effect would the residual value’s increased uncertainty have on Lewis's lease-versus-purchase decision?
Answer:
the residual value in a rent examination will be demonstrated either in the "cost of possessing area" or in the "cost of renting" segment, contingent upon whether the organization intends to keep utilizing the rented resource at the termination of the essential rent. In the event that the resident intends to keep utilizing the hardware, at that point it should be bought when the rent terminates, and for this situation the remaining worth shows up as an expense in the renting cost segment. In any case, on the off chance that the resident plans not to keep utilizing the gear, at that point the lingering worth won't be appeared in the renting segment - rather, it will be appeared as an inflow in the expense of possessing area. For Lewis' situation, the benefit won't be required at the lapse of the rent, so the remaining is appeared as an inflow in the claiming segment. In this circumstance, we represent expanded hazard by expanding the rate used to limit the lingering esteem income, bringing about a lower present estimation of the remaining income. This prompts a greater expense of possessing, so the more prominent the danger of the leftover worth, the higher the expense of claiming, and the more appealing renting becomes.
Note, however, that the circumstance would be extraordinary on the off chance that Lewis wanted to rent and, at that point practice an honest evaluation buy choice so as to keep utilizing the gear. At that point the remaining would be appeared as an expense in the renting area, and its higher hazard would be reflected by limiting it at a lower rate. In that circumstance the danger of the leftover would punish as opposed to support the rent.
For the current situation, the lessor, not the resident, will claim the benefit toward the finish of the rent, so the lessor bears the leftover worth hazard. As a result, the rent exchange passes the hazard related with the remaining an incentive from the resident/client to the lessor. Obviously, the lessor perceives this, and therefore, resources with profoundly dubious leftover qualities will convey higher rent installments than resources with generally certain remaining qualities. Be that as it may, the best renting organizations have created skill in remodeling and discarding utilized hardware, and this gives them a favorable position over most residents in lessening lingering esteem dangers.
Further, renting organizations for the most part manage a wide exhibit of advantages, so leftover worth gauges that are excessively high on one resource might be counterbalanced by gauges that are excessively low on another.
The firm could wind up with no cash as a byproduct of the benefit toward the finish of the term, which implies no cash to return towards the obligation owed on the gear. On the off chance that the remaining worth were $400,000, the organization would be in karma, however it is extremely unlikely of knowing or getting ready for such an exceptional yield. So as to incorporate this hazard into the current worth estimation, the firm would need to concoct a rate for the hazard and increase it into the remaining worth. On the off chance that the measure of claiming the gear despite everything comes out to be more exorbitant than renting the hardware, Lewis should remain with the rent.
If the next year’s dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the current stock price should be:
Answer:
The answer is $41.67
Explanation:
Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.
Po is the present or current value of the stock
D1 is the next year dividend payment
r is the discount rate
g is the growth rate.
Po = $5.00 /0.16 - 0.04
= $5.00/0.12
=$41.67
Therefore, the current stock price is $41.67
Amanda Winter worked as a public engagement coordinator at Safe Food Alliance until three months ago when her manager, Laura Morris, promoted her to the position of a sustainable food campaigner. However, soon after this, Laura noticed that Amanda was facing major difficulties in achieving campaign milestones and the project was falling behind schedule due to her lack of performance. Which of the following, if true, would most strengthen the argument that Laura was influenced by the halo effect in her decision to promote Amanda? A) Laura is known to micromanage most of her projects. B) Laura uses cultural stereotyping in order to speed up the process of decision making. C) Laura has made good hiring decisions in the past and is known to be an unbiased judge of character. D) Laura sat in on only one of Amanda's presentations prior to giving her the promotion. E) Laura worked closely with Amanda over a period of eight months. Choose the right answer and then explain why with maximum 250 words
Answer: D) Laura sat in on only one of Amanda's presentations prior to giving her the promotion.
Explanation:
The Halo Effect refers to a scenario where a person lets the impression they get of someone or something in one area influence their perceptions of how that person or thing would react in another area.
If Laura indeed sat in on only one of Amanda's presentations prior to giving her the promotion and on this presentation, Amanda gave a stellar performance prompting Laura to believe that she was good in all her other presentations even if she wasn't then this would qualify for the Halo Effect.
Laura should have sat through more of Amanda's presentations to get a better impression of her before she promoted her.
The sensitivity parameter in the consumption function that measures how sensitive consumption is to changes in consumer confidence is referred to as the marginal propensity to consume.
a. True
b. False
Answer: False
Explanation:
The Sensitivity Parameter that measures the sensitivity of changes in consumption to changes in consumer confidence is not the Marginal Propensity to Consume.
The Marginal Propensity to Consume rather measures what proportion of additional income is spent on consumption. For example, if you earn an extra $50 this month and you spend $40, the Marginal Propensity to Consume is 40/50 = 0.8.
_____ bring together the functional expertise of employees from several different areas of the organization on a single project.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Quality circles
b) Informal groups
c) Teams
d) Work groups
e) Committees
And the correct answer is the option C: Teams.
Explanation:
To begin with, inside an organization the different employees with their diversity regarding their cultures, thoughts and more are the ones that end up forming teams to eventually work in projects given by the company or in the proper day to day work. Therefore that the teams are the ones that bring all that diversity together with the purpose of enrich the knowledge of the organization at the time of focusing in a work project
.During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: Multiple Choice debit to Work in Process of $67,000. credit to Work in Process of $74,000. NO debit to Work in Process of $74,000. NO credit to Work in Process of $67,000. NO
Answer: Debit to Work in Process of $67,000
Explanation:
Direct Labor costs incurred when producing are sent to the Work in Progress account to show that they were direct costs in the making of a product and so should be included in the cost of the good.
They are debited to the Work in Progress account and credited to the Wages Payable account.
From the above, the direct Labor costs are $67,000 and so this will be debited to the WIP account.
If nearly 28% of Cashland's citizens under the age of 65 are without healthcare and an advocacy group convinces its current administration to vote for basic healthcare for everyone, which of the following is likely to occur?A. Increasing reliance on markets to determine economic outcomesB. More rapid economic growthC. Higher taxes than in past yearsD. An increase in the number of insurance companies
Answer: Higher taxes than in past years
Explanation:
From the question, we are told that about 28% of Cashland's citizens under the age of 65 are without healthcare and an advocacy group convinces its current administration to vote for basic healthcare for everyone.
Based on the above statement, the most likely thing that will occur will be an increase in taxes than previous years. Since the advocacy group convinces its current administration to vote for basic healthcare for everyone, the government will look for a way to generate money that will be used in tp build hospitals and also settle the hospital workers wages or salaries and hence the government will raise the tax in order to meet its need and construct the hospital.
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $23,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 2,450 Outstanding checks 1,107 Additionally, a $48 check written and recorded by the company correctly was recorded by the bank as a $84 deduction. The adjusted cash balance per the bank records should be:
Answer:
The adjusted cash balance per the bank records should be: $24,740.
Explanation:
The correct Cash balance can only be verified using a Bank Reconciliation Statement.
Thus prepare a Bank Reconciliation Statement to extract the updated Cash Book Balance.
Bank Reconciliation Statement
Note : The Bank Statement amount has to be adjusted for an overstatement of $36.
Balance as per updated Cash Book (Balancing figure) $24,740
Add Unpresented Cheques $1,107
Less Lodgements not yet credited ($2,450)
Balance as per Bank Statement ($23,361 + $36) $23,397
Conclusion :
The adjusted cash balance per the bank records should be: $24,740.
As an exporter, Horizon Trading wants to be paid before a consignment is shipped. Correspondingly, its importer in Italy, Friggo Imports, wants to pay only upon receipt of the consignment. These conflicting preferences of Horizon Trading and Friggo Imports are most likely a manifestation of
Answer: lack of trust
Explanation:
From the question, we are informed that Horizon Trading wants to be paid before a consignment is shipped while its importer in Italy, Friggo Imports, wants to pay only upon receipt of the consignment.
These conflicting preferences of Horizon Trading and Friggo Imports are most likely a manifestation of lack of trust. We can see that both parties do not trust each other which is the reason for the differences.
Guthrie Enterprises needs someone to supply it with 210,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost $2,650,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $220,000. Your fixed production costs will be $705,000 per year, and your variable production costs should be $9.51 per carton. You also need an initial investment in net working capital of $375,000. If your tax rate is 22 percent and you require a 10 percent return on your investment, what bid price per carton should you submit?
Answer:
$6.9807 per carton
Explanation:
210,000 cartons of machine screws
equipment cost $2,650,000
depreciation per year = ($2,650,000 - $220,000) / 5 = $486,000
fixed manufacturing costs $705,000 per year
variable costs per carton = $9.51 x 210,000 = $1,997,100
initial investment in net working capital $375,000
tax rate 22%
discount rate 10%
price per carton?
initial investment = -$3,025,000
CF₁ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₂ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₃ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₄ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₅ = [(R - $705,000 - $486,000) x 0.78] + $486,000 + $220,000 + $375,000 = 0.78R + $152,020
$3,025,000 = (0.78R - $442,980) / 1.1 + (0.78R - $442,980) / 1.1² + (0.78R - $442,980) / 1.1³ + (0.78R - $442,980) / 1.1⁴ + (0.78R + $152,020) / 1.1⁵ = 0.709R - $402,709 + 0.645R - $366,099 + 0.586R - $332,817 + 0.533R - $302,561 + 0.484R + $94,392
$3,025,000 = 2.957R - $1,309,794
$4,334,794 = 2.957R
R = $4,334,794 / 2.957 = $1,465,943.19
total revenue = $1,465,943.19
revenue per carton = $1,465,943.19 / 210,000 = $6.98
Kent Manufacturing produces a product that sells for $50.00 and has variable costs of $24.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the contribution margin per unit if the machine is purchased.
Answer:
$29.50
Explanation:
Contribution margin = price - variable cost
Variable cost if machine is purchased = $24.00 - $3.50 = $20.50
= $50.00 - $20.50 = $29.50
I hope my answer helps you
Read and compare the following two scenarios. Explain why the court should or should not pierce the corporate veil in each scenario. Smith Services, Inc., a trucking business owned by Tony Smith, charged its fuel purchases to an account at Laker Express. When Smith Services was not paid on several contracts, it ceased doing business and was dissolved. Smith continued to provide trucking services, however, as a sole proprietor. Laker Express sought to recover Smith Services’ unpaid fuel charges, which amounted to about $35,000, from Smith. He argued that he was not personally liable for a corporate debt. Should the court pierce the corporate veil? Country Contractors, Inc., contracted to provide excavation services for A Westside Storage of Indianapolis, Inc., but did not complete the job and later filed for bankruptcy. Stephen Songer and Jahn Songer were Country’s sole shareholders. The Songers had not misused the corporate form to engage in fraud. The firm had not been undercapitalized, personal and corporate funds had not been commingled, and Country had kept accounting records and minutes of its annual board meetings. Are the Songers personally liable for Country’s failure to complete its contract?
Answer:
Piercing the Corporate Veil:
1. Smith Services, Inc. and Laker Express: With the given facts, Smith Services is still in operation by the alter ego, since Smith - the sole owner, has continued to provide trucking services. Smith should be able to pay for the debts it owed Laker Express. The question is: why was Smith Services, Inc. dissolved in the first place when the sole owner could continue privately to do the same business? Is there element of fraud involved, or was it trying to avoid its obligations? It seems that the dissolution was an effort to avoid liabilities and not because of impaired ability to operate the business because its own debtors did not pay for services on several contracts. Another question is: during the dissolution or liquidation of Smith Services, Inc. were other creditors not settled and where was Laker Express then?
However, it appears that the dissolution was just to avoid liability, especially the $35,000 debt owed to Laker Express for fuel purchases.
Therefore, in this situation where it seems that the corporate form is ignored, commingling of assets exists, and that Smith Services, Inc. is an instrumentality for Tony Smith, I will advise that the corporate veil be lifted. Tony Smith should be held liable for the business debts of Smith Services, Inc. because he has continued to use the assets of Smith Services, Inc. to run a sole proprietorship in the same line of business. However, recourse must be had to the State laws on piercing the corporate veil.
2. Country Contractors, Inc. & Westside Storage of Indianapolis:
Since Country Contractors, Inc and the Westside Storage are based in Indiana, the decision to pierce the corporate veil should be based on the eight factors that are applicable for piercing the veil: They include: undercapitalization; absence of corporate records; fraudulent representation by corporation shareholders or directors; use of the corporation to promote fraud, injustice or illegal activities; payment by the corporation of individual obligations; commingling of assets and affairs; failure to observe required corporate formalities; or other shareholder acts or conduct ignoring, controlling, or manipulating the corporate form.
But, the facts in this case do not support that any of the factors had been breached.
So, I do not support that Songers are personally liable for Country's failure to complete its contract.
Explanation:
The corporate veil is an important instrument for protecting shareholders of corporations from being held liable for the liabilities of the corporation in their individual and personal capacities. Corporate veil ensures that the entity is treated as a separate entity from its shareholders. It is a protection offered by law to encourage private enterprise and ensure that the debts of corporate bodies are not tagged to the individual shareholders. It is this veil that ensures the limited liability concept, whereby, the shareholders could only lose their capital contributions in case of business failure or dissolution.
Piercing the corporate veil is a court decision to lift the veil that separates the shareholders of corporation from their shareholders. There are special factors that must be met for courts to pierce the corporate veil and they do it reluctantly.
Companies in which owners or top executives make all of the planning, directing and controlling decisions are ____________ companies. A. decentralized B. segmented C. formalized D. centralized
Answer:
D. centralized
Explanation:
Centralized indicates to the hierarchical level of an organisation which has decision-making authority. The organisation is centralized when decision-making is kept at the top level.
So, according to the given situation the centralized companies in which higher authorities make all decisions concerning the planning, management and control
Therefore the correct option is D.
QUICK ONE!
A truck costing $80,000 has an expected life of 8 years
Required:
c) Prepare a depreciation schedule using the reducing balance method? (assuming the rate is 1.5 times the straight-line rate)
Answer:
Rate is 1.5 times the straight line depreciation rate which is;
= [tex]\frac{80,000}{8}[/tex]
= $10,000 per year
Rate = [tex]\frac{10,000}{80,000}[/tex] * 100%
=12.5%
Reducing balance rate = 12.5% * 1.5
= 18.75%
The Depreciation Schedule would be;
Year Beginning Book Value Depreciation Expense Accumulated Depreciation Book Value
1 $80,000 80,000*18.75% = $15,000 $15,000 $65,000
2 $65,000 65,000 * 18.75% = $12,1875.50 $27,187.50 $52,812.50
3 $52,812.50 52,812.5 *18.75% = $9,902.34 $37,187.84 $42,910.16
4 $42,910.16 42,910.16 * 18.75% = $8,045.66 $45,233.50 $34,766.50
5 $34,766.50 34,766.50 * 0.1875 = 6,518.72 $51,752.22 $28,247.78
6 $28,247.78 28,247.78 * 0.1875= $5,296.45 $57,048.67 $22,951.33
7 $22,951.33 22,951.33 * 0.1875= 4,403.37 $61,452.04 $18,547.96
8 $18,547.96 18,547.96 * 0.1875 = $3,477.74 $80,000 $0
$3,477.74 + 15,070.22= $18,574.96
Depreciation for the last year was not sufficient to take the truck to $0 so the remainder will be depreciated in that year so that it may be completely depreciated.
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $33600. If the balance of the Allowance for Doubtful Accounts is $7640 debit before adjustment, what is the amount of bad debt expense for that period
Answer:
The amount of bad debt expense for that period is $41240.
Explanation:
As the Allowance for Doubtful Accounts has credit balance because it is a contra account receivable account. This account should have credit balance. As already account has debit balance so this balance needs to be added in the estimated uncollectible accounts for the period to calculate the bad debt expense for the period.
Estimated uncollectible accounts = $33600
Allowance for Doubtful Accounts Balance = $7640 debit
Bad debt expense = $33600 + $7640 = $41240
A sharp increase in interest rates will decrease the price of bonds and increase the interest income available to new bondholders. This will increase the demand for bonds compared to the demand for stocks, all other considerations remaining constant.
A. True
B. False
Suppose a salesperson in a hardware store has a 10-year-old son with behavior problems. The supervisor gets to know about this. During one of their conversations, the supervisor says, "I've noticed that we haven't received any more customer complaints about your service and, in fact, one customer told me you went out of your way." This should be said by the supervisor during which stage of the counseling interview?
a. Selection of solution(s)
b. Consideration of possible solutions
c. Schedule a follow-up meeting
d. Discussion of what the problem is
Answer:
c. Schedule a follow-up meeting
Explanation:
In the given scenario the supervisor when talking to his son made the following statement: "I've noticed that we haven't received any more customer complaints about your service and, in fact, one customer told me you went out of your way."
This statement is one that should be asked during follow up meeting to review implemented solution.
Counseling interview will involve identifying the problem, consideration of solutions, choosing the appropriate solution, and finally the follow up meeting where review is done and feedback given.
The salesperson's son recieved positive feedback after solution implementation
Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $13.10 per hour. Production of 6,100 units required 18,670 hours at an hourly rate of $12.70 per hour. What is the direct labor for the following: Enter favorable variances as negative numbers.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $13.10 per hour.
Production of 6,100 units required 18,670 hours at an hourly rate of $12.70 per hour.
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (3*6,100 - 18,670)*13.1
Direct labor time (efficiency) variance= $4,847 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (13.1 - 12.7)*18,670
Direct labor rate variance= $7,468 favorable