Answer:
$15.2279
Explanation:
Current P/E = Price per share * Share outstanding / Net Income
Current P/E = 17.5 * 5,500,000 / 8,000,000
Current P/E = 12.03
The Current P/E will remain the same next year
Next year P/E = Price * (New shares + Existing shares) / Next year earnings
12.03 = Price * (5,500,000 + 2,400,000) / 8,000,000 * 1.25
12.03 = Price * (7,900,000) / 10,000,000
12.03 * 10,000,000 = Price * (7,900,000)
Price = 120,300,000 / 7,900,000
Price = 15.22785
Hence, the price of shares next year will be $15.2279
The following information was taken from the accounting records of Light Tool Corporation. Work in process inventory, beginning of the year $ 50,000 Cost of direct materials used 260,000 Direct labor cost applied to production 135,000 Cost of finished goods manufactured 897,750 Overhead assigned to production was $500,000. Compute the amount of the work in process inventory on hand at year-end.
Answer:
47,250
Explanation:
The manufacturing costs in the year is the sum of work in process inventory, at the beginning of the year, the cost of direct materials, the direct cost of labor and the overhead assigned to production as computed thus:
manufacturing costs=50,000+260,000+135,000+500,000
manufacturing costs=945,000
amount of the work in process inventory on hand at year-end=manufacturing costs-cost of finished goods manufactured
amount of the work in process inventory on hand at year-end=945,000-897,750= 47,250
On January 2, 20X1, Meister Company issues $200,000 of 6% bonds. Interest of $6,000 is payable semi-annually on June 30 and December 31. The bonds mature in 5 years. The market yield for bonds of similar risk and maturity is 7%. Utilizing the time value of money tables in your book, calculate the issue price of the bonds (round the result to whole dollars).
Answer:
January 2, 20x1, bonds issues at a discount
Dr Cash 191,600
Dr Discount on bonds payable 8,400
Cr Bonds payable 200,000
Explanation:
the bonds' current market value = PV of face value + PV of coupon payments
The bond has a 6 percent coupon rate, matures in 5 years (10 semiannual periods), and the market rate is 7%:
PV of face value = $1,000 / (1 + 3.5%)¹⁰ = $708.92
PV of coupon payments = 30 x 8.31661 (PV annuity factor, 3.5%, 10 periods) = $249.50
bond's market value = $958.42 ≈ $958 x 200 bonds = $191,600
amilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $252,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $265,000 and 22,200 hours, respectively. Required: 1. Compute over- or underapplied overhead. 2a. Which accounts will be affected by the over- or underapplied manufacturing overhead
Answer:
a) $ 13000 under applied
b) Cost of goods sold $ 13,000 Debit
Factory Overhead $ 13000 Credit
Explanation:
Estimated Manufacturing overhead $252,000
Actual overhead $265,000
Estimated Direct labor hours 20,000
Actual direct labor hours 22,200
Actual overhead-Estimated Manufacturing overhead= $265,000 -$252,000
= $ 13000 under applied
When actual overhead is greater than estimated overhead then it under applied and if estimated overhead is greater than actual it is over applied.
Accounts affected by over and under applied overhead are cost of goods sold and work in process accounts.
The under applied overhead is debited to cost of goods sold account and Factory Overhead is credited to ensure the transfer of the remaining part of the factory overhead.
Similarly over applied overhead is credited to cost of goods sold account and Factory Overhead is debited to ensure the removal of the additional part of the factory overhead from cost of goods sold.
The entry in the above example would be
Cost of goods sold $ 13,000 Debit
Factory Overhead $ 13000 Credit
You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund
Answer: 0.71
Explanation:
The following can be deduced from the question:
Expected risk premium = 10%
Standard deviation = 14%.
Treasury bills rate = 6%.
The expected return of equity will be:
= 10% + 6%
= 16%
The reward to voltality ratio is calculated as:
(expected return - risk free rate )/standard deviation
= (16% -6%)/14%
= 10%/14%
=0.1/0.14
= 0.71
Which of the following can be filed by the defendant of a lawsuit?A) InjunctionB) ReplyC) ComplaintD) Answer
Answer:
D) Answer
Explanation:
Answer can be filed by the defendant of a lawsuit. This is basically a pleading or response that is filed by the defendant in order to respond to a complaint made by a plaintiff. So when a defendant files an answer, he pleads and presents the defenses or counter arguments by addressing the allegations or claims made by the plaintiff in the complaint. So this way the defendant defends himself/herself against the accusations that are made against the defendant.
Injunction is not valid here because it is a court order which requires an individual to take a particular action or stop doing a particular action.
Reply is also not a valid option because it is a pleading or response of a plaintiff to the defendant's demand for relief which the defendant appeals through the filed answer.
Complaint is also not a valid option because it is a pleading which is filed by the plaintiff. This pleading is filed in order to start a case or a civil action and this is presented in a form of a document.
Annuities are a series of constant cash flows that have been received over a certain period of time. However, not all annuities are created equal. Some annuities adjust the payments based on certain macroeconomic factors. Growing annuities are a series of payments that grow at aconstant rate. You invested in an aggressive growth fund and expect to earn 14.84% annually over the next five years. However, due to strong growth, inflation is expected to be 7.35%. What should be your expected real rate of return
Answer:
Real interest rate= 0.0749= 7.49%
Explanation:
Giving the following information:
You invested in an aggressive growth fund and expect to earn 14.84% annually over the next five years. However, due to strong growth, inflation is expected to be 7.35%.
The inflation rate provokes the opposite effect than the interest rate. It decreases the value of money through time, reducing the purchasing price of the nominal value of money.
Real interest rate= nominal interest rate - inflation rate
Real interest rate= 0.1484 - 0.0735
Real interest rate= 0.0749= 7.49%
Cvs purchase of Aetna represents what type of fundamental strategy
Answer:
growth strategy
Explanation:
the options were missing:
defensive global growth divisional stabilityBy acquiring Aetna, CVS entered the health insurance industry. CVS was already one of the largest players in the health care industry since it owned one of the largest chain of pharmacies in the US and due to its size was able to negotiate discounts and other services with health care providers and drug producers.
The fact that one of the largest chain of pharmacies and retail health centers merges with one of the largest health insurers will give them competitive advantages, e.g. being capable of offering lower prices or earning higher higher profits (or both even).
Another important factor in this equation is consumer data, and that is going to be significant and the more information a company possesses and uses correctly, it can target more profitable consumer segments.
There are many other advantages including cutting costs, better customer service, etc.
Use the following two links to answer the following questions: Nominal Wages (W) Price index CPI (P) a) (5 points) Calculate the real wage (W/P) the first month of the recession 12/07 and compare it to the last month of the recession 6/09. What is the percent change in the real wage during this most recent recession
Answer:
3.45%
Explanation:
the real wage at the beginning of the recession (12/07) = nominal wage / price index Dec. 2007 = $17.70 / 2.1141 = $8.3721
the real wage at the end of the recession (6/09) = nominal wage / price index June 2009 = $18.53 / 2.14527= $8.6609
% change in real wage = [($8.6609 - $8.3721) / $8.3721] x 100 = 3.44955% = 3.45%
Due to the recession, the price index changed less than the nominal wages since the inflation rate was very low. It is normal that during recessions, specially severe ones, the inflation rate decreases or even turns negative (what happened in Europe in those years).
The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales $ 23,600 Assets $ 54,300 Debt $ 20,300 Costs 14,600 Equity 34,000 Taxable income $ 9,000 Total $ 54,300 Total $ 54,300 Taxes (40%) 3,600 Net income $ 5,400 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $26,904. What is the external financing needed? (Do not round intermediate calculations.)
Answer:
external financing needed $4,296
Explanation:
Sales 26,904
Cost 16,644
(14.600 / 23,600 x 26,904)
Taxable Income 10,206
Tax Income (40%) 4,104
Net Income 6,156
Dividends: (same payout ratio is maintaned)
2,500 / 5,400 x 6,156 = 2,850
Assets: (proportional to sales)
54,300 / 23,600 x 26,904 = 61902
Equity:
34,000 + 6,156 net income - 2,850 dividends = 37306
Liabilities: 61,902 - 37,306 = 24,596
Previous liaiblities 20,300
Addional debt taken: 24,596 - 20,300 = 4296
What is the most critical element in successful strategic planning?
Answer:
top management's support and participation
Explanation:
the most critical or important element for successful strategic planning is the support and participation of top management.
Strategic planning has to do with the management situation that involves the creation and maintenance of a fit that involves a firms goals and resources and also rising market opportunities. it's goal is profitability and growth in the long term.
What should be Alicia's first step? What should be Alicia's first step? Multiple Choice set goals for hiring new staff check with her colleagues in the industry for possible new hires forecast labor supply and demand within the company once video work starts take out a recruitment ad in the local newspaper get together with company execs for a planning session
The complete question reads;
As you read the following case, think about how Alicia Brooks, HR manager at Edu-Films, needs to take a balanced approach to hiring the right amount of staff for the company's next big project. In this exercise, please read the mini-case and answer the questions that follow. Edu-Films is a small design company that writes and produces videos for the elementary and high school education market. The company is in the final stages of negotiating a new contract with a U.S. publisher to create 40 videos for a new K-12 math series, and the videos need to be available by the spring of 2017. Business for Edu-Films has been slow over the past three years, and the company has kept staff levels to a minimum. Mindful of the company's flat fiscal results over the last couple of years but understanding that new hires must be ready to go once the agreement is signed, HR manager Alicia Brooks must put together a cohesive hiring plan.
1). What should be Alicia's first step?
A). Check with her colleagues in the industry for possible new hires.
B). Get together with company execs for a planning session.
C). Set goals for hiring new staff.
D). Forecast labor supply and demand within the company once video work starts.
E). Take out a recruitment ad in the local newspaper.
Answer:
C). Set goals for hiring new staff.
Explanation:
A goal refers to expected results or achievement which requires effort. Remember we are told, "the videos need to be available by the spring of 2017". Meeting this deadline should be the ultimate goal, and so Alicia's first step should be to set goals for hiring new staff.
By so doing she can get the expected results.
Business strategy concerns Select one: A. ensuring consistency in strategic approach among the businesses of a diversified company. B. selecting a model for a single line of business to use in pursuing objectives that contribute to the whole of a diversified company. C. choosing the most appropriate strategic intent for a specific line of business. D. selecting a set of stretch financial and strategic objectives for a single business unit. E. strengthening the market position and building competitive advantage for a single line of business.
Answer:
The correct answer is the option E: strengthening the market position and building competitive advantage for a single line of business.
Explanation:
To begin with, in the world of business, the strategy concerns on making a plan that must be adaptative to the future conditions and that can be realistic at the same time in order to follow the budget requirements that the superiors have and that can be able to accomplish the most important aspects of every major strategy, and that is, to strength the market position of the company regarding that specific line of business and to also acquire competitive advantage as much as possible so that the sales will increase and the primary goal of the company of earning profits will be satisfied.
A new competitor has entered the market to compete against Particles, and you’ve noticed that the customer defection rate had a sharp increase last month. The percentage of repeat customers buying Particles from us declined suddenly. You know that the cost of acquiring a new customer is higher and less efficient than continuing to sell to an existing customer. What would you do?
Answer: Conduct a quick market research study to learn directly from customers if they’re buying Mobile Strategies Enterprise’s (MSE) product Chipz instead of Particles and why.
Explanation:
The options to the question are:
do?
A.Conduct a quick market research study to learn directly from customers if they’rebuying Mobile Strategies Enterprise’s (MSE) product Chipz instead of Particles and why.
B.Pull together a cross-discipline team to discuss the internal perspectives on theParticles. The team should include R&D, sales, and production.
From the question, we are informed that the arrival of a new competitor against Particles, has led to huge customer defection rate.
Based on further information provided in the question, what should be done is " to conduct a quick market research study to learn directly from customers if they’re buying Mobile Strategies Enterprise’s (MSE) product Chipz instead of Particles and why".
Market research simply helps in the identification and and analysis of market needs, market size and its competition. When marketing research techniques like consumer surveys, focus groups, interviews, etc are all carried out, Particles can get the necessary information required to stop its competitors from collecting its customers and gaining a competitive edge.
Add the following and reduce to lowest terms 3/9+3/9
Steps to solve:
3/9 + 3/9
~Add
6/9
~Simplify
2/3
Best of Luck!
Answer:
2/3
Explanation:
3/9 + 3/9 = 6/9 = 2/3
Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration:Consideration Transferred Basis to Transferor Fair Market Value Number of Shares IssuedFrom Seth—Inventory $30,000 $96,000 30*From Pete—Equipment ($30,000 of depreciation taken by Pete in prior years)45,000 99,000 30**From Cara—Proprietary process 15,000 90,000 30From Jen—Cash 30,000 30,000 10*Seth receives $6,000 in cash in addition to the 30 shares.**Pete receives $9,000 in cash in addition to the 30 shares.a. Seth’s recognized gain or loss. Identify the nature of any such gain or loss.b. Seth’s basis in the Kingfisher Corporation stock.c. Kingfisher Corporation’s basis in the inventory.d. Pete’s recognized gain or loss. Identify the nature of any such gain or loss.e. Pete’s basis in the Kingfisher Corporation stock.f. Kingfisher Corporation’s basis in the equipment.g. Cara’s recognized gain or loss.h. Cara’s basis in the Kingfisher Corporation stock.i. Kingfisher Corporation’s basis in the proprietary process.j. Jen’s recognized gain or loss.k. Jen’s basis in the Kingfisher stock.
Answer:
A. Ordinary gain of $6,000
B.$30,000
C. $36,000
D. $9,000
E. $45,000
F.$54,000
G. NO recognized gain or loss for Cara’s.
H. $15,000
I.$15,000
J. NO gain or loss on the transfer
K. $30,000
Explanation:
a. Based on the information given we were told that Seth’s receives the amount of $6,000 in cash in addition to the already 30 shares which means that Seth had ordinary gain of $6,000
b. Calculation for Seth’s basis in the Kingfisher Corporation stock
Using this formula
Seth’s basis= (Inventory basis+Gain Recognized)-Boot received
Let plug in the formula
Seth’s basis=($30,000 + $6,000)–$6,000
Seth’s basis=$36,000-$6,000
Seth’s basis=$30,000
c. Calculation for Kingfisher Corporation’s basis in the inventory
Using this formula
Kingfisher basis(Inventory)=Inventory basis+ Gain Recongnized
Let plug in the formula
Kingfisher basis(Inventory)=$30,000+$6,000
Kingfisher basis(Inventory)=$36,000
d.Pete’s recognized gain or loss will be the amount of $9,000 which is the amount of cash received
e. Calculation for Pete’s basis in the Kingfisher Corporation stock
Using this formula
Pete’s basis=(Equipment basis+ Gain recognized)- Boot received
Let plug in the formula
Pete’s basis=($45,000+$9,000)-$9,000
Pete’s basis=$54,000-$9,000
Pete’s basis=$45,000
f. Calculation for Kingfisher Corporation’s basis in the equipment
Using this formula
Kingfisher basis(Equipment)=Pete Equipment basis + Gain Recongnized by Pete
Let plug in the formula
Kingfisher basis(Equipment)=$45,000+$9,000
Kingfisher basis(Equipment)=$54,000
g. Based on the information given NO recognized gain or loss for Cara’s.
h. Based on the information given Cara will have a basis of the amount of $15,000 in the Kingfisher Corporation stock.
i. Based on the information given Kingfisher Corporation would as well has a basis of the amount of $15,000.
j.Jen’s has No recognized gain or loss on the transfer
k. Based on the information given Jen’s basis in the Kingfisher stock will be the amount of $30,000.
Kansas Enterprises purchased equipment for $73,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,500 at the end of five years. Using the double-declining balance method, depreciation expense for 2022 would be:___________.
a. $26,200
b. $15.720
c. $17.520
d. $29.200
Answer: 29.200
Explanation:
Which of the following is an example of a middle manager?
Teller at a bank
O Director of marketing
O Chief executive officer
O Salesperson in a retail store
Answer:
Director of marketing
Explanation:
I just got it right in a test
The Director of marketing is an example of a middle manager. Thus, option B is correct.
Who is a manager?A manager is a person who maintains the flow of the business, he is responsible for the smooth running of the business and coordinating between various departments. A manager tends to be the person who is delegating and is responsible for coordinating.
According to the hierarchical positions of the company, there are various positions that need to be filled like workers, staff, managers, executive managers, head of an office, CEO, etc.
From the given options, the middle manager will be the director of marketing the teller of the bank comes at a lower level, the chief executive officer will be at the top most level, and a salesperson will be at the lower middle level. Therefore, option B is the correct option.
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Which of the following best describes why the aggregate demand curve is downward sloping?
a. As the aggregate price level decreases, the stock of existing physical capital increases.
b. As the aggregate price level increases, consumer expectations about the future change.
c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.
d. As a good\'s price increases, holding all else constant, the good\'s quantity demanded decreases.
Answer: c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.
Explanation:
The Aggregate Demand (AD) curve is used to measure the impact that price level has on the expenditure in the economy.
The AD comprises of Investment, Consumption Spending, Government spending and Net Income.
When prices are high, households will spend less as they cannot afford to spend a lot which will reduce consumption spending.
Another result of a high price level is that people will have less money to save and so there will be a lower supply of loanable funds.
Both of these components of the AD reduce when prices increase and vice versa. This is why the AD is downward slopping.
A broad differentiation strategy works best in situations where Select one: A. buyers have a low degree of bargaining power and purchase the product frequently. B. buyers incur low costs in switching their purchases to rival brands. C. technological change is slow-paced and new or improved products are infrequent. D. buyer needs and uses of the product or service are diverse. E. buyer needs and uses of the product or service are very similar.
Answer:
D. buyer needs and uses of the product or service are diverse.
Explanation:
broad differentiation strategy helps company to stand out among her competitors, it involves development of business strategy to carry out activities in the company to increase productivity and low production cost in the company.
It should be noted that broad differentiation strategy works best in situations where buyer needs and uses of the product or service are diverse.
g If oil executives read in the newspaper that massive new oil supplies have been discovered under the Pacific Ocean but will likely only be useful in 10 years, what is likely to happen to the supply of oil today? What is the likely equilibrium impact on the price and quantity of oil today?
Answer:
a. What is likely to happen to the supply of oil today?
The supply of oil will increase today because the oil executives will no longer be worried about limiting supply on account of the current reserves running out because the oil reserves discovered that will be ready in 10 years will become the new supply source when the current reserves run out.
b. What is the likely equilibrium impact on the price and quantity of oil today?
As the supply oil will increase in the present, the Equilibrium quantity will increase.
With an increase in the equilibrium quantity, prices will decrease as oil will no longer be as scarce.
What are some of the reasons businesses fail?
Answer:
The most common reasons businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.
Some of the reasons businesses fail are lack of knowledge, lack of planning, lack of management of resources effectively.
What is business?An economic activity that involves the exchange of goods and services with the help of buying and selling with the objective to gain some profit is called Business.
A business can possibly fail when there is no planning of things like what to do and how to do it. For a business, to be effective, there should be a plan or roadmap which needs to be followed step by step in order to succeed.
A business will fail when it is unable to manage the capital as well as the workforce effectively and make optimum utilization of it in order to produce and achieve productivity in abundance.
When a business does not have expertise or knowledge about the field as well as current market trends and competitors it will go to fail as it is unable to cope with the trend
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Resources are limited in
_________?
Answer:
A basic condition of nature which means that the quantities of available labor, capital, land and entrepreneurship used for the production of goods and services are finite. It means that the economy has only so many resources that can be used AT ANY GIVEN TIME time to produce goods and services.
Explanation:
Question 3(Multiple Choice Worth 5 points)
(02.04 HC)
Bill wants to attend a college with a current tuition of $10,000 a year. He will graduate from high school in five years. Roughly how much will Bill need to save for
one-year's tuition to account for an annual rate of inflation of 3%?
O $11.590.00
O $11,255.00
O $10,000.00
O $13,000.00
Answer:
Money need for one-year's tuition (A) = $11,590 (Approx)
Explanation:
Given:
Initial value (P) = $10,000
Annual rate of inflation (r) = 3% = 0.03
Time taken = 5 years
Find:
Money need for one-year's tuition (A)
Computation:
[tex]A=p[1+r]^n\\\\A=10,000[1+0.03]^5\\\\A = 11,592.7407[/tex]
Money need for one-year's tuition (A) = $11,590 (Approx)
Vulnerability assessment is a curvey of a system to identify:_____.
Answer:
Threats and the risks they pose.
Explanation:
Vulnerability assessment is the identification, evaluation, classification, quantification and also the prioritization of the risks or vulnerabilities in a system. One main importance of carrying out this assessment is to find out the potential risks in a system before attackers find them. Through this assessment future risks can also be averted.
Answer:
Specific risks
Explanation:
Vulnerability assessment is defined as a process used to identifying, quantifying, and ranking vulnerabilities or weaknesses in a given system.
It has been applied in various fields like engineering, psychology, and economics.
There are different variables that gives rise to system vulnerability, and vulnerability asses helps identify specific risks.
The formula for Vulnerability is
Vulnerability = Risk + Response
Vulnerability assessment helps reduce effects of risks and also to avoid future risks
A large corporation has accrued a lot of debt over the last two years in an
effort to expand its business. While they have gained new customers, they
still aren't making enough money to pay off their debt. Which type of
bankruptcy would this company likely want to file?
A. Chapter 13
B. Chapter 7
C. Chapter 1
D. Chapter 11
Someone help plz
Answer:
D. Chapter 11
Explanation:
Apex
A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Use this information to answer Problem 2-54 through 2-56. Select the closest answer.2-54 How many units per year must be sold for the company to breakeven?a.4,800b.3,000c.8,000d.6,667e.4,0002-55 If 10,000 units per year are sold, what is the annual profit?a.$280,000b.$50,000c.$150,000d.−$50,000e.$30,0002-56 If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year?a.12,000b.10,000c.16,000d.18,000e.5,143
Answer:
8000
$30,000
d.18,000
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
Fixed costs = $100,000 + $20,000 = $120,000
Variable costs are costs that vary with production
variable costs per unit = $15 + $10 = $25
Price = $40
Break even quantity = $120,000 / $40 - $25 = 8000
Profit = total revenue - total cost
Total revenue = price x quantity sold
$40 x 10,000 = $400,000
Total cost = fixed cost + total variable cost
total variable cost = variable cost per unit x quantity sold
$25 x 10,000 = $250,000
total cost = $250,000 + $120,000 = $370,000
Profit = $400,000 - $370,000 = $30,000
C.
Price = $35
quantity = x
profit = $60,000
$60,000 = $35x - ($120,000 + $25x)
solving for x
$180,000 = $10x
x = 18,000
g After preparing a bank reconciliation, a journal entry would be required for which of the following: Group of answer choices None is correct. A deposit in transit A deposit made by a company with a similar name and credited to your account. Interest earned on the company's checking account. A check for $48 given to a supplier but not yet recorded by the company's bank.
Answer:
After preparing a bank reconciliation, a journal entry would be required for which of the following:
Interest earned on the company's checking account.
Explanation:
This interest was not recorded in the company before receiving the bank statement. A journal entry would record this by debiting Cash account and crediting Interest Earned account. The other transactions do not require the company to make any entry in its journals because they had earlier being recorded. The bank will make the necessary adjustment and not the company for the 'deposit made by a company with a similar name.'
Give one advantage and one disadvantage for a Command Economy.
Answer:
Command economy advantages include low levels of inequality and unemployment, and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.
In 2021, Holyoak Inc. offers a coupon for $15 off qualifying purchases of its new line of products. Holyoak sold 10,600 of these products during the year. By year-end of 2021, 7,700 coupons had been redeemed and the $15 reduction of purchase price provided to customers. Holyoak's historical experience with such coupons indicates that 80% of customers use the coupon. Holyoak recognizes coupon expense in the period coupons are issued. What is the expense that Holyoak should report for its promotional coupons in its 2021 income statement
Answer: $127200
Explanation:
Promotional codes are simply the alphanumeric strings which are offered by online stores in order to encourage purchases. It is a marketing strategy
Based in the information provided in the question, the expense that Holyoak should report for its promotional coupons in its 2021 income statement will.be calculated as:
= $10,600 × 80% × $15
= $10,600 × 0.8 × $15
= $127200
Here are selected data for Boston Bracing Company: Estimated manufacturing overhead $236,800 Factory utilities $30,200 Estimated labor hours 35,000 Indirect labor $22,400 Actual direct labor hours 36,000 Sales commissions $53,700 Estimated direct labor cost $320,000 Factory rent $47,700 Actual direct labor cost $320,200 Factory property taxes $28,100 Factory depreciation $66,000 Indirect materials $33,000 If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?
Answer:
Allocated MOH= $236,948
Explanation:
Giving the following information:
Estimated manufacturing overhead $236,800
Estimated direct labor cost $320,000
Actual direct labor cost $320,200
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 236,800/320,000
Predetermined manufacturing overhead rate= $0.74 per direct labor dollar
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.74*320,200
Allocated MOH= $236,948