Answer and Explanation:
a. The computation of the targeted production of the finished product is shown below:
= Expected sales units - beginning finished goods + ending finished goods
= 160,000 - 20,000 + 5,000
= 145,000 shells
b. The required amount of plastic purchased is
Plastic to be purchased = Consumed plastic + closing inventory - opening inventory
where,
Consumed plastic is
= 145,000 × 6 ounces
= 870,000 ounces
Opening inventory is 60,000 ounces
And, the closing inventory is
= 160,000 ÷ 12 months × 2 months × 6 ounces
= 160,000
So, the purchased plastic is
= 870,000 + 160,000 - 60000
= 970,000 ounces
The total targeted production of the finished product for the coming year is $145,000shells. The required amount of plastic to be purchased is 970,000 ounces.
What is inventory?All the raw materials available for production plus all the goods produced that are intended for sale are known as inventory.
A. Computing total targeted production of the finished product-
[tex]=Expected sales units - beginning finished goods + ending finished goods\\=160,000-20,000+5,000\\=145,000 shells[/tex]
B. Computing required amount of plastic to be purchased
[tex]=Consumed plastic+ closing inventory-inventory at end\\=870,000+160,000-60,000\\=970,000[/tex]
Working note-
Consumed plastic is calculated as 145,000 x 6 ounces.Closing inventory is calculated as 160,000/12 x 2 x 6.Therefore, the required amount of plastic to be purchased is 970,000.
Learn more about Inventory here:
https://brainly.com/question/14184995
Selected financial data regarding current assets and current liabilities for two competing companies, Simon and Garfunkel, are provided as follows:
($ in millions) Simon Garfunkel
Current assets
Cash and cash equivalents $ 620 $ 2,920
Short-term investments 3,690 0
Net receivables 992 1,330
Inventory 510 203
Other current assets 335 477
Total current assets $ 6,147 $ 4,930
Current liabilities
Accounts payable $ 7,220 $ 4,285
Short-term debt 1,270 1,028
Other current liabilities 0 1,306
Total current liabilities $ 8,490 $ 6,619
1-a. Calculate the current ratio for Simon. Then calculate the current ratio for Garfunkel. (Round your answers to 2 decimal places.)
1-b. Which of the two companies has the best current ratio?
Simon
Garfunkel
2-a. Calculate the acid-test (quick) ratio for Simon. Then calculate the acid-test (quick) ratio for Garfunkel. (Round your answers to 2 decimal places.)
2-b. Which of the two companies has the best acid-test ratio?
Garfunkel
Simon
Answer:
Please find the detailed answer in the explanation section
Explanation:
1. Current ratio = Curren assets / Curren liabilities.
For Simon:
Current assets are:
Cash and cash equivalents $ 620
Short-term investments $3,690
Net receivables $992
Inventory $510
Other current assets $335
Total current assets $6,147
Current liabilities are:
Accounts payable $7,220
Short-term debt $1,270
Other current liabilities. $0
Total current liabilities $8,490
So current asset is $6,147/$8,490
0.72:1
For Garfunkel:
Current assets are:
Cash and cash equivalents $2,920
Short-term investments $0
Net receivables $1,330
Inventory $203
Other current assets $477
Total current assets $4,930
Current liabilities are:
Accounts payable $4,285
Short-term debt $1,028
Other current liabilities. $1,306
Total current liabilities $6,619
So current asset is $4,930/$6,619
0.74:1
1b Simon current asset is 0.72 while Garfunkel's own is 0.74
Therefore Garfunkel with 0.74 has a better current ratio
2a. Acid-test ratio = total current assets minus Inventory / total current liabilities
For Simon:
($6,147 - $510) / $8,490
=0.66:1
For Garfunkel:
($4,930 - $203) / $6,619
=0.71:1
2b. Garfunkel with 0.71 has a better acid-test ratio
Identify the key elements to incorporate when making a request for a claim or adjustment. Check all that apply. Communicating feelings politely Excessive detail Chronology of details Moderate tone Logical case Sincere praise
Answer:
1. Communicating feelings politely
2. Moderate tone
3. Logical case
4. Sincere praise
Explanation:
In the quest of engaging in business transactions between individuals and businesses, the business might sometimes not meet up to the customer's needs. When customers want to make their claims or request for an adjustment, it is vital that they communicate their feelings in a polite manner, use a moderate tone, build their case logically, and offer sincere praise to the organization in question. In so doing, their claims can be addressed in a civil manner and they would be more likely to get a positive result.
Offering excessive details and bombarding the organization with the chronology of details might lead to confusion as to the real problems to be addressed.
Momber's Flooring Company
2011 2012
Cash 500 800
Accounts receivable 1,400 1,200
Inventory 3,900 4,400
Net fixed assets 8,200 8,200
Land 1,000 2,000
Total Assets 15,000 16,600
Notes payable 1,000 600
Accounts payable 3,000 2,000
Accruals 500 900
Long-term debt 3,600 5,400
Common Stock 2,500 2,200
Retained earnings 4,400 5,500
Total Liabilities and Equity 15,000 16,600
Given the Balance Sheets for Momber's Flooring Company above for the years ending December 31, 2011 and 2012, find Net Cash Flows from Operating Activities for 2012 assuming the following income statement data:
Net income (2012)= $3,382 and Depreciation (2012) = $810
Round your answer as a whole number and record without a dollar sign and without commas. For example, record $3,204.854 as 3205. To show a negative cash flow (i.e., a net cash outflow), place a negative sign before your answer with no space between the negative sign and the number. Thus, record negative 5,432 as -5432.
Answer:
Net Cash Flows from Operating Activities for 2012 will be $2,082
Explanation:
Prepare the Cash flow from Operating Activities Section to determine the Net Cash Flows from Operating Activities.
Cash flow from Operating Activities :
Net income 3,382
Adjustment for Non-Cash items :
Depreciation 810
Adjustment for Changes in Working Capital items :
Decrease in Accounts Receivables 200
Increase in Inventory -500
Decrease in Notes payable -400
Decrease in Accounts payable -1,000
Increase in Accruals 400
Net Cash Flows from Operating Activities 2,082
Conclusion :
Net Cash Flows from Operating Activities for 2012 will be $2,082
Q-mart failed to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count. Consequently, the ending inventory on 12/31 was understated on the balance sheet. Explain how this error will effect the income statement.Asset understatedEquity understated
Answer:
a. The gross profit. net income and retained earnings at the end of year will be overstated.
b. Assets will be understated especially the current assets.
c. Equity will be overstated.
Explanation:
a. Explain how this error will effect the income statement income statement
When the income statement is being prepared, cost of goods sold must be computed and then deducted from the net sales revenue to arrive at the gross profit. The formula for calculating the cost of goods sold and gross profit is as follows:
Cost of goods sold = Beginning inventory + Net purchases - Ending inventory
Gross profit = Net sales revenue - Cost of goods sold
From the cost of goods sold, it can be seen that ending inventory is a deduction. Also, cost of goods sold is a deduction from the gross profit equation.
As a result these, the failure of Q-mart to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count will make the cost of goods sold to be understated, while the gross profit and the net income for the year as well as retained earnings at the end of the year will be be overstated by the amount of the omitted ending inventory.
b. Explain how this error will effect the Asset
Ending inventory is a component of the current assets in the balance sheet. As a result of this, the failure of Q-mart to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count will make the asset to be understated by the amount of the omitted ending inventory.
c. Explain how this error will effect the Equity
From part a. above, it can be seen that retained earnings at the end of the year will be be overstated by the amount of the omitted ending inventory.
Since the retained earnings for the year is a component of the stockholders equity in the balance sheet, equity will therefore be overstated by the amount of the omitted ending inventory as the gross profit and the net income for the year as well as retained earnings for the year were already overstated in the income statetement.
Based upon Booked Orders and Sales Predictions, we expect to need the following finished goods over the planning period: 120 Product A We currently have the following Finished Goods Products in Inventory: 60 Product A We have scheduled the following to be produced in the factory within the planning period: 50 Product A How many products should we include on future Planned Production Orders
Answer:
10 product
Explanation:
Calculation of how many products should we include on future Planned Production Orders
Product A
Finished goods over the planning period =120
Finished Goods Products in Inventory= 60
Scheduled of what will be produced in the factory within the planning period =50
Hence
120-60-50=10
Therefore the amount of products should we include on future Planned Production Orders should be 10 products.
To be Lean means:
a. to be able to move quickly without significant penalty
b. to decrease economies of scale
c. to do the same things as Agile but modified just a bit
d. to reduce or eliminate waste from the system
Answer:
d. to reduce or eliminate waste from the system
Explanation:
Lean refers in business to generating more benefits to your clients using less resources and a company using lean principles tries to eliminate all the unecessary things that doesn't add value which are considered waste and increase its efficiency. According to this, the answer is that to be lean means to reduce or eliminate waste from the system.
The other options are not right because Agile and Lean are different methodologies and Lean helps to generate cost reductions that can create economies of scale. Also, to be lean it doesn't matter if you move quickly or slow as long as you eliminate the waste to give more value to customers.
Equipment was acquired for $ 201 comma 000and has accumulated depreciation of $ 95 comma 000.The business exchanges this equipment for new equipment. The new equipment has a market value of $ 309 comma 000and the business pays $ 53 comma 000cash. Assume the exchange has commercial substance. The exchange results in ________.
Answer:
$150,000
Explanation:
The computation of exchange results is shown below:-
Before that we need to do the following calculations
Equipment value after depreciation = Equipment amount - Depreciation
= $201,000 - $95,000
= $106,000
New equipment value = Market value - Paid amount
= $309,000 - $53,000
= $256,000
Gain = New equipment value - Equipment value after depreciation
= $256,000 - $106,000
= $150,000
We simply applied the above formulas
Dave Fletcher was able to determine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project completion time and the critical path should also be determined. Here are the activity times: Activity Time (weeks) Immediate Predecessor(s) Activity Time (weeks) Immediate Predecessor(s) A 5 minus E 4 B B 6 minus F 5 B C 4 A G 11 C, E D 2 A H 6 D , F
Answer:
Project completion time: 21 weeksCritical Path: B - E - GES, EF, LS, LF are shown belowExplanation:
The earliest start is the latest of the earliest finish times of the predecessors. The earliest finish is the sum of earliest start and duration.
The latest finish is the earliest of the latest start times of the successors. The latest start is the difference of latest finish and duration.
The slack is the difference between earliest start (or finish) and latest start (or finish).
Project duration is the earliest start of the "Project Done" task. For purposes of computing slack, this (project duration) is taken to be the latest finish of the immediate predecessors.
The critical path is the sequence of tasks with 0 slack.
The amount of minutes you were active during the day is referred to as activity.
It's essentially the total amount of time you spent exercising in a 24-h cycle, and it may be anything from a gym aerobic or prenatal yoga class to brisk strolling.
Time to complete the project: 21 weeks
Below are the Critical Paths: B - E - G ES, EF, LS, LF.
The calculation has been attached below.
The earliest start is the latest of the predecessors' earliest finish times. The combination of the oldest start and endurance represents the earliest conclusion.
The latest finish is the earliest of the successors' latest start timings. The deviation between the newest finish and the length is the latest start.
The slack is the time between the earliest start (or finish) and the latest start (or complete) (or finish).
The beginning of the "Program Complete" task is termed the construction length. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack.
The critical route is a set of jobs with no slack in between them.
To know more about the determination of the activity times for constructing his laser scanning machine, refer to the link below:
https://brainly.com/question/15043428
Raphael and Susan Firth live in Swarthmore, PA. Their son, Alex, owns his own plumbing business.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
a. Susan gets a new video camera made in the United States.
b. Alex buys a new set of tools to use in his plumbing business.
c. Raphael buys a sweater made in Guatemala.
d. Raphael's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.
e. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Raphael and Susan's house.
Answer:
a. Consumption (C).
b. Investment (I).
c. Imports (M) and consumption (C).
d. Exports (X).
e. Investment (I) and government purchases (G).
Explanation:
a. Susan gets a new video camera made in the United States: this is a consumption (C).
b. Alex buys a new set of tools to use in his plumbing business: this is an investment (I).
c. Raphael buys a sweater made in Guatemala: this is both an import (M) and consumption (C).
d. Raphael's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China: this is an export (X).
e. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Raphael and Susan's house: this both an investment (I) and government purchases (G).
The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.
Ultimately, this implies that Gross Domestic Products (GDP) is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Hence, GDP is the summation of the consumption (C), investment (I), net exports (N) [exports (x) - imports (M)] and government purchases (G).
Mathematically, GDP is given by the equation; [tex]GDP = C + I + N + G[/tex]
Where, consumption (C) is the personal spending by households on various goods and services for their own pleasure.
Investment is the spending by business owners on equipments and other inventories to enhance productivity.
Government purchases is the expenditures made by state, local and federal government on goods and services for the general public.
Net exports (N) is the subtraction of imports (M) from exports (X) in a country at a particular period of time.
Chegg "Topper Corporation has 130,000 shares of $1 par value common stock and 92,000 shares of cumulative 8.6%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year. If Topper declares a $1.95 per common share dividend this year, what will be the total amount they must pay their shareholders?"
Answer:
Total divided= $1,761,800
Explanation:
The cumulative preference shares entire the investors to fixed amount of dividend. Where dividends are not paid during an accounting period, the unpaid dividend are carried forward and paid in arrears when profits become available in following accounting period.
Hence, before Chegg would pay common dividend the arrears of preference dividend must first be paid .
Preferred dividend = Dividend rate × Nominal value
Prior year Preferred dividend = 8.6%× 100× 92,000 = $791,200
Current year dividend = 8.6%× 100× 92,000 = $791,200
Common dividend = Div per share × units of common stock
Current year Common dividend = $$1.95 × 130,000 = $179,400
Total dividend = $791,200 +$791,200 + $179,400 =$1,761,800
Total divided= $1,761,800
While on a hike with a tour group in the mountains, Derek gets mauled by a bear. No previous reports of bears in the area had been made. Derek wants to hold the tour company liable for his injury. Which of the following is most likely true?
A. Derek cannot hold the tour company liable because there is no way to prepare for or avoid a bear attack.
B. The company is not at fault because it does not owe Derek a duty of care.
C. Because most people would not expect something as dangerous as a bear encounter while on a hike, an assumption of risk defense will probably not protect the tour company.
D. Derek assumed the risk of a bear attack by joining the tour group, so he cannot hold the tour company liable.
Answer: D. Derek assumed the risk of a bear attack by joining the tour group, so he cannot hold the tour company liable
Explanation:
Derek has to accept that by joining the tour group, he assumed some the risk of some elements of danger amongst them the bear attack.
Even though there had been no prior attack by bears in the mountain, a mountain hike still has some inherent danger in it and this includes bears. He cannot hold the tour company liable using this reason alone.
The futures price of gold is $1,250. Furutes contracts are for 100 ounces of gold and the requirement is $5,000 per contact. The maintenacnce margin requirement is $1,500. You expect the price of gold to rise and enter into a contract to buy gold.
Required:
a. How much must you initially remit?
b. If the futures price of gold rises to $1,255, what is the profit and percentage return on your position?
c. If the futures price of gold declines to $1,248, what is the loss and percentage return on the position?
d. If the futures price falls to $1,238, what must you do?
e. If the futures price continues to decline to $1,210, how much do you have in your account?
f. How do you close your position?
Answer and Explanation:
a) The amount of initially rent equal to the requirement per contact i.e $5,000
b) Now the Profit is
= Future contract × (rise future prices - initial future prices)
= 100 × ($1,255 - $1,250)
= $500
And, the percentage return is
= Profit ÷ requirement
= $500 ÷ $5,000
= 10.00%
c) Now the loss is
= Future contract × (decline future prices - initial future prices)
= 100 × ($1,248 - $1,250)
= -$200
And, the loss percentage return is
= Loss ÷ requirement
= -$200 ÷ $5,000
= -4.00%
d) Now of the price of future price falls so the balance in account left is
= Requirement - future contract × (future price of gold - declined future prices)
= $5,000 - 100 × ($1,250 - $1,238)
= $3,800
Since as we can see the balance is more than the maintenance margin so there is nothing to be done
e) Now if the future price continues to falls to $1,210 so
Balance in the account is
= Requirement - future contract × (future price of gold - declined future prices)
= 5000 - 100 × ($1,250 - $1,210)
= $1,000
As we can see that the balance of the margin account is less than the maintenance margin so the initial margin i.e $5,000 is to be deposited
So, the amount deposited is
= $5,000 - $1,000
= $4,000
f)Now for closing the position can be done by entering into the inverse transaction i.e by selling off one futures contract.
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $1,000, terms 2/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $300. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley
Answer:
$686
Explanation:
the journal entries necessary to record the sale:
June 15, inventory sold on account to Sunglass Hut, terms 2/10, n/30
Dr Accounts receivable 1,000
Cr Sales revenue 1,000
June 20, partial return of purchase from Sunglass Hut
Dr Sales returns and allowances 300
Cr Accounts receivable 300
June 24, invoice is paid within discount period
Dr Cash 686
Dr Sales discounts 14
Cr Accounts receivable 700
In the early 1980's, 7 people in the Chicago area were poisoned by Tylenol capsules laced with cyanide. Although the company's investigation showed that the tainted capsules had not been tampered with at the factories where they were produced, Johnson & Johnson took immediate action through a massive recall and offered a $100,000 reward for information leading to the arrest of the person or people responsible. Industry experts believe that this led to the brand's ability to recover from the negative publicity surrounding the "Tylenol Murders". Johnson & Johnson's actions illustrate:a) The power of the Food and Drug Administrationb) How managing negative publicity is impossiblec) The importance of sacrificing short-term profits for long-term credibilityd) The need to combat negative publicity with facts in order to maintain sales levelse) The importance of sustainability on public perception and the bottom line
Answer: c) The importance of sacrificing short-term profits for long-term credibility.
Explanation:
The Chicago Tylenol Murders of September–October 1982 shocked the United States and claimed the lives of 7 people and was due to a poisoned Tylenol capsules which is produced under a Johnson and Johnson subsidiary.
Johnson & Johnson have been hailed as heroes for their response to the issue because even though the facts showed that they were in the clear, they still not only sacrificed huge short term profits by recalling thousands of tablets but by also offering a massive reward for anyone who would come forward with information that would lead to the arrest of perpetrators.
This act of Corporate Altruism saved the company's brand because people were humbled by the lengths Johnson & Johnson went to.
This endeared the Johnson & Johnson brand in their hearts as a Credible company and proved infinitely beneficial in the long run.
This proves that sacrificing short term profits for long term credibility is quite beneficial.
A ___ necessity is a practice that is important for the safe and efficient of the business.
Answer:
business
Explanation:
A business necessity is a practice that is deemed important for the smooth running of business operation. It is a legal concept which can be used to create soft landings for employers regarding their employment decisions which may affect certain group of people. These group of people are unevenly affected or rejected because of certain employment requirements which is premised on the fact that the company has legal backing to do so for the efficient and effective management of the business.
Example is when a large number of people seeking employment are rejected by business owners due to certain criteria used even though they are qualified for the job, such scenario is termed business necessity.
If Decker had a financing deficit, it could remedy the situation by a. paying down its long-term debt b. paying a special dividend c. borrowing on its line of credit d. borrowing from retained earnings e. buying back common stock
Answer:
c. borrowing on its line of credit.
Explanation:
Line of credit denoted as LOC is a form of borrowing which is known to be a flexible form of taking loans. In this borrowing platform, one can borrow a certain amount of money and still borrow more even without paying the initial dept, this primarily makes it flexible. In giving this loans their a certain factors that aid qualify one in getting access to this loan, and this includes the individual credit score and good usage of his/her online purchasing medium without faulting or breaking codes of conducts.
Types of bonds
Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date.
1. Which of the following statements about Treasury bonds is the most accurate?
A. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
B. Treasury bonds are completely riskless.
C. Treasury bonds have a very small amount of default risk, so they are not completely riskless.
Based on the information given in the following statement, answer the questions that follow:
New York City issued a general obligation bond for a canal in 1812. It was the first formal debt instrument with a fixed repayment schedule issued by a city.
2. Who is the issuer of the bonds?
A. The New York City government
B. Bank of New York
C. Federal Reserve Bank of New York
3. What type of bonds are these?
A. Treasury bonds
B. Municipal bonds
C. Corporate bonds
4. Which of the following statements is true about bonds?
A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments.
B. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay federal—but not state—taxes on the bond’s coupon payments.
5. Which of the following types of bonds has the least default risk?
A. Corporate bonds
B. Treasury bonds
C. Municipal bonds
Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
2. A. The New York City government
3. B. Municipal bonds
4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments
5. B. Treasury bonds
Explanation:
1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.
2. The City of New York issued to bonds in question so it is a New York City Government bond.
3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.
4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.
5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.
g Using the Multiplier Model (and assuming the price level is fixed), if the economy is operating at $3,000 billion and the government policymakers have determined that the target level of income to reach is $3,500 billion, by how much must they increase government spending by to eliminate the recessionary gap if the mpe
Answer: a. $200 billion
Explanation:
The Multiplier Effect (MPE) is used to calculate the Multiplier which then shows how much the GDP of the country will increase if a certain amount of money is induced into it.
The formula is;
Multiplier = 1 / ( 1 - MPE)
= 1 / ( 1 - 0.6)
= 2.5
The economy is now operating at $3,000 billion but they would want it to operate at $3,500 billion.
The difference of $500 billion is the amount that policy makers would like to add to the economy.
The Multiplier of 2.5 means that for every $1 spent, $2.5 will be added to the economy.
To get a $500 billion increase therefore, they would need to spend;
= 500 / 2.5
= $200 billion.
If they spend $200 billion, $500 billion will be added to the economy by the Multiplier Effect.
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 9 units at $47 $423 Aug. 13 Purchase 19 units at $50 950 Nov. 30 Purchase 13 units at $51 663 Available for sale 41 units $2,036 There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) $ c. Weighted average cost
Answer:
a. First-in, first-out (FIFO) $813
b. Last-in, first-out (LIFO) $773
c. Weighted average cost $795
Explanation:
Date transaction units unit cost total cost
Jan. 1 Inventory 9 units at $47 $423
Aug. 13 Purchase 19 units at $50 $950
Nov. 30 Purchase 13 units at $51 $663
Available for sale 41 units $2,036
Ending inventory 16 units
a. First-in, first-out (FIFO) $
ending inventory = (13 x $51) + (3 x $50) = $813
COGS and ending inventory are calculated based on the oldest units purchased
b. Last-in, first-out (LIFO) $
ending inventory = (9 x $47) + (7 x $50) = $773
COGS and ending inventory are calculated based on the last units purchased
c. Weighted average cost
ending inventory = ($2,036 / 41) x 16 = $795
COGS and ending inventory are calculated using an average
A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 40 quarts per day and a standard deviation of 6 quarts per day. Excess costs run 35 cents per quart. The grocer orders 49 quarts per day.
a. What is the implied cost of shortage per quart?
b.Why might this be a reasonable figure?
Answer:
(a)The implied cost of shortage per quart is = $4.75
(b) This could be viewed as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.
Explanation:
Solution
Given that:
Mean =μ = 40
Standard deviation =σ = 6
Excess cost= Ce =$0.35
The amount ordered =S₀= 49
Thus
Z =(49 -40)/6
=1.5
Now
From the Table Z, we have the service level which is,
P(X <49 ) = P(Z < 1.5)
= 0.9332
Since we know that,
Service level (SL) =Cs/Cs+Ce
So,
0,9332 =Cs/Cs+0.35
Thus
0.9332Cs + 0.35* 0.9332 =Cs
0.0668Cs =0.32662
Hence
Cs = $4.75
(a) The implied cost of shortage per quart is = $4.75
(b) Therefore,this could be regarded as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.
(a) "$4.75" would be the implied cost of shortage per quart.
(b) Just because is equivalent to the loss of strawberry, this could be the reasonable figure.
According to the question,
Mean,
[tex]\mu = 40[/tex]Standard deviation,
[tex]\sigma = 6[/tex]Excess cost,
[tex]C_e = 0.35[/tex]Amount ordered,
[tex]S_o = 49[/tex]Now,
→ [tex]Z = \frac{S_o-\mu}{\sigma}[/tex]
[tex]= \frac{49-40}{6}[/tex]
[tex]= 1.5[/tex]
With the help of Z-table, we get
→ [tex]P(X < 49) = P(Z < 1.5)[/tex]
[tex]= 0.9332[/tex]
As we know,
→ Service level, [tex]SL = \frac{C_s}{C_s+C_e}[/tex]
By substituting the values, we get
[tex]0.9332 = \frac{C_s}{C_s+0.35}[/tex]
[tex]0.9332 C_s +0.35\times 0.9332 = C_s[/tex]
[tex]0.0668 C_s = 0.32662[/tex]
[tex]C_s = \frac{0.32662}{0.0668}[/tex]
[tex]= 4.75[/tex] ($)
Thus the above response is correct.
Learn more:
https://brainly.com/question/16975911
You expect to receive annual gifts of $1,000 at the end of Years 1 and 2 and $1,500 at the end of Years 3 and 4. What is the correct present value of multiple annuities formula if the rate is 6 percent?
Answer:
PV of annuities =$3,021.53
Explanation:
The present value of the annuity would be as follows;
First annuity of $1000:
PV = A × (1- (1+r)^(-n)/r
PV = Present Value , r- rate of return, n-number of years
PV = 1000× (1- (1.06)^(-2)
PV= $1,833.39
The second annuity
PV = 1,500 x (1-1.06^(-2)× 1.06^(-2)= 1,188.140
PV = $1,188.140
PV of the annuities = $1,833.39 + $1,188.140 =$3,021.53
PV of annuities =$3,021.53
why Estonia is so highly technologically advanced country?
Answer:
in fact, despite its size, Estonia has become one of the world's most technologically advanced countries.
Explanation:
This is largely due to the efforts the Estonian Government made in the 1990s to reform the country and turn it into a digital society, a movement now known as 'e-Estonia'. hope this helps you :)
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Wayne ($ in millions) Corporation Enterprises Current assets: Cash and cash equivalents $ 407 $ 165 Current investments 6 463 Net receivables 706 86 Inventory 10,653 7,409 Other current assets 1,215 135 Total current assets $ 12,987 $ 8,258 Current liabilities: Current debt $ 7,421 $ 4,229 Accounts payable 1,687 941 Other current liabilities 1,193 2,375 Total current liabilities $ 10,301 $ 7,545 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) 1-b. Which company has the better ratio
Answer:
1-a. ACME corporation is 1.26
Wayne corporation is 1.09
1-b. ACME corporation
Explanation:
ACME ($ in millions) Wayne ($ in millions)
Total current assets $ 12,987 $ 8,258
Total current liabilities $ 10,301 $ 7,545
1-a) Formula for calculating current ratio: Current ratio = Current assets ÷ Current liabilities
ACME corporation, current ratio = $ 12,987 million ÷ $ 10,301 million = 1.26
Wayne corporation, Current ratio = $ 8,258 million ÷ $7,545 million = 1.09
1-b. The higher the current ratio, the better the liquidity position. ACME corporation has the better ratio.
1-The current ratio of. ACME corporation is 1.26 and Wayne corporation is 1.09.
1-b. ACME corporation
Calculation of the current ratio:ACME ($ in millions) Wayne ($ in millions)
Total current assets $ 12,987 $ 8,258
Total current liabilities $ 10,301 $ 7,545
1-a) The Formula for calculating current ratio is
Current ratio = Current assets ÷ Current liabilities
For ACME corporation
= $ 12,987 million ÷ $ 10,301 million
= 1.26
And,
Wayne corporation
= $ 8,258 million ÷ $7,545 million
= 1.09
1-b. The higher the current ratio, the better should be the liquidity position. ACME Corporation has the better ratio.
Learn more about ratio here: https://brainly.com/question/22958464
Think of an organization with which you are familiar, perhaps one you have worked for— such as a store, restaurant, office, church, or school. Then answer the following questions. 1. Which contingencies are most important in explaining how the organization is organized? Do you think it is organized in the best way?
Answer:
I considered an Automobile manufacturer of cars in Japan in this case. the company is famous for manufacturing small and medium sized affordable cars in the market in a small lead time of introduction.
The contingencies that are most crucial for the company are the scarcity of low cost labor in its home country Japan, the increased competition in the same segment that is low cost of cars, in every country where the company operates.
The company is organised in the best form because it has a particular custom that has a strong hierarchical structure with little room to flexibility. it is a functional structure.
Explanation:
Solution
Let us consider a major automobile manufacturer of Japan in this context. the company is well established in Japan as well as in global automobile market in the last 30 years.
The company is known for manufacturing small and medium sized affordable cars in the market in a small lead time of introduction. the success of the company is primary on the efficiency improvement, lean operations and economics of scale.
Thus
The contingencies that are most important for this company is shown below:
Scarcity of low cost labor in its home country Japan.The lack of competitive advantages and unique resources to retain the same.The increased competition in the same segment that is low cost of cars, in every country where the company operates.The company has followed a particular custom that has a strong hierarchical structure with little room to flexibility. it is a functional structure.
With the present expansion in different market the functional structure may not be efficient and effective for the company.
Market size and growth rates in different countries can be influenced positively or negatively by A. population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available B. the ability of management to tailor a strategy to take into consideration country differences C. the large size of emerging markets such as China and India D. competitive rivalry that is only moderate in some countries E. All of these choices are correct
Answer:
A. population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available
Explanation:
For market to grow and develop, there are many basic elements that are required to influence this growth, either positively or negatively. Some of these factors are:
i) Size of population
ii) Current level and state of infrastructural facilities
iii) Level of availability of retail and distribution networks
iv) Level of income of the general population in the particular country
v) Cultural influence
vi) Religious influence, etc
From the explanation above, we can see that option A is correct.
Market size and growth rates in different countries can be influenced positively or negatively by population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available.
In a persuasive message, an effective introduction of a product, service, or idea: a. describes an anecdote that is likely familiar to the audience. b. is written using a deductive outline. c. is cohesive and action centered. d. uses abstract nouns and passive verbs.
Answer:
d. uses abstract nouns and passive verbs.
Explanation:
A persuasive text can be defined as one written in order to convince someone of something. This text is prepared using some specific techniques and structures to achieve the objective. In a persuasive marketing text, techniques are used that affirm and support a favorable position to convince consumers to purchase a product, for example, supported by facts, evidence, statistics, etc.
Therefore, one of the techniques used in the introduction for a persuasive text to be effective, is to carry out an indirect approach, using resources from abstract nouns and passive verbs, which convey states, qualities, actions and feelings, so that the text is understood generating reciprocity, empathy , commitment, scarcity and several factors that make the consumer be encouraged to purchase a certain product or service.
Suppose disposable income increases by $2,000 . As a result, consumption increases by $1,500 . Answer the questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage.
The increase in savings resulting directly from this change in income is:_______
The marginal propensity to save (MPS) is:_________
Answer:
The increase in savings resulting directly from this change in income is $500
The marginal propensity to save (MPS) is 0.25
Explanation:
In order to calculate The increase in savings resulting directly from this change in income we would have to make the following calculation:
increase in savings resulting directly from this change in income= increase in income - increase in consumption
increase in savings resulting directly from this change in income= $2,000 - $1,500
increase in savings resulting directly from this change in income=$500
The Marginal propensity to save = increase in savings/increase in income =
Marginal propensity to save = $500/$2.000
Marginal propensity to save =0.25
Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.'s accounting equation
Answer:
Megginson, Inc.
Effect of the Bond Issuance on Megginson, Inc.'s accounting equation:
(The account equation states that Assets = Liabilities + Equity.)
With the bond issuance, the Assets (Cash) will increase by $290,000 and the Liabilities (Bonds Payable) will increase by $300,000, and there will be a loss (Equity - Retained Earnings) of $10,000 in the form of Discount on Bonds. This discount on bonds is usually amortized over the bonds' life, thus increasing the interest payable.
Explanation:
The issuance of bonds is one of the means of obtaining finance for business operations. It is a long-term borrowing, which entities use to finance the activities when funds cannot be sourced from other sources or when it is considered cheaper to borrow from outside sources.
Sometimes, customers can tell if they received good service. For example, vacations, haircuts, and restaurants all have ________ attributes that allow customers to decide whether they will repeat the purchase another time.
Answer:
experiential
Explanation:
All of these have experiential attributes that allow customers to decide whether they will repeat the purchase another time. Experiential attributes are those that are based on experience and observation. The customer is able to judge different aspects of their purchase and experience in order to decide how good the service was. Such as in a vacation, the individual can rate the service of the food, hotel, attractions etc.
Part E14 is used by M Corporation to make one of its products. A total of 22,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials$4.70 Direct labor$9.30 Variable manufacturing overhead$9.80 Supervisor's salary$5.20 Depreciation of special equipment$3.60 Allocated general overhead$8.80 An outside supplier has offered to make the part and sell it to the company for $31.90 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part E14 could be used to make more of one of the company's other products, generating an additional segment margin of $34,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part E14 from the outside supplier should be:
Answer:
(29,800)
Explanation:
The computation of the financial advantage or disadvantage is shown below:
As we know that
Financial disadvantage = Cost of making - Cost of buying
where,
Cost of making is
= [(Direct material per unit + direct labor per unit + variable manufacturing overhead per unit) × units produced] + additional segment margin
= [($4.7 + $9.30 + $9.80 + $5.20) × 22,000 units] + $34,000
= ($29 × 22,000 units ) + $34,000
= $672,000
And, the Cost of buying is
= Units produced × offered price
= 22,000 units × $31.90
= $701,800
So,
Financial disadvantage is
= Cost of making - Cost of buying
= $672,000 - $701,800
= (29,800)