Answer:
See below
Explanation:
Given the above information, we can compute variable manufacturing overhead efficiency variance to be;
= (SA - AQ) × SR
Where
Standard quantity = SQ = 19,000
Actual Quantity = AQ = 7,600
Standard Rate = SR = $1.9
Variable manufacturing overhead efficiency variance
= [(19,000 × 0.3) - 7,600] × $1.9
= (5,700 - 7,600) × $1.9
= $3,610 U
The economy is in long-run equilibrium. Technological change shifts the long-run aggregate supply curve $120 billion to the right. At the same time, government purchases increase by $30 billion. If the MPC equals 0.8 and the crowding-out effects are $30 billion, we would expect that in the long run. (C)
a. real GDP would be higher but the price level would be lower
b. both real GDP and the price level would be lower
c. real GDP would be higher but the price level would be the same
d. both real GDP and the price level would be higher
Answer:
C. Real GDP would be higher but the price level would be the same
Explanation:
Real gdp would get to be higher as long run aggregate supply goes up. Prices would go down because as long run aggregate supply goes up, aggregate demand does not experience the same proportional increase. As long run aggregate supply goes up, short run aggregate supply falls backwards.
Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of $2,380 and.monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Cho0se the best evaluation of Viola's deci a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn't have major repairs to make. C. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.
Answer: C
Explanation: i took a test on k12 with the same answer
Answer:
A
Explanation:
Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease.
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $770,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,470,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $32,200. a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable.
Answer:
A. $25,200
B. Accounts Receivable $770,000
Allowance for Doubtful Accounts $32,200
Bad Debt Expense $25,200
C. $744,800
Explanation:
a. Calculation to Determine the amount of the adjusting entry for uncollectible accounts using this formula
Uncollectible accounts Adjusting entry= Allowance for Doubtful Accounts - Credit balance on Allowance for doubtful accounts
Let plug in the formula
Uncollectible accounts Adjusting entry=$32,200 - $7,000
Uncollectible accounts Adjusting entry= $25,200
Therefore the amount of the adjusting entry for uncollectible accounts is $25,200
B. Based on the information given the adjusted balances of Accounts Receivable will be $770,000
Based on the information given the adjusted balances of Allowance for Doubtful Accounts will be $32,200
Bad Debt Expense = $32,200 - $7,000
Bad Debt Expense= $25,200
c. Calculation to Determine the net realizable value of accounts receivable
Using this formula
Net realizable value of accounts receivable = Accounts receivables - Bad debt
Let plug in the formula
Net realizable value of accounts receivable= $770,000 - $25,200
Net realizable value of accounts receivable=$744,800
Therefore Net realizable value of accounts receivable is $744,800
Company A owns a 40% equity method investment in Company B. Subsequently, Company A acquires a controlling interest in a Company B and now must prepare consolidated financial statements. If the date Company A obtains control occurs midyear, how are subsidiary revenues and expenses reported in consolidated income statement in the year of the business combination
Answer:
Pre acquisition subsidiary revenues and expenses are excluded from consolidated revenue and expenses. Post acquisition subsidiary revenues and expenses are included in consolidated revenues and expenses.
Explanation:
Company A has acquired control over company B. When accounting for the consolidated financial statement the pre acquisition revenues and expenses will not be included, only post acquisition revenues and expenses will be included in the consolidated statement and they will be accounted for according to controlling percentage.
Jefferson Inc. (JI) is a relatively new company that wants to improve its employee rewards, compensation, and benefits. The company understands that there are effective reward systems that will motivate employees. However, JI management is not sure which would be the best for the company. Compensation, another important area, must also be improved so that it will satisfy all employees effectively. In addition, the company wants to create benefits to keep the employees not just satisfied, but also motivated. Yet another pressing issue is deciding on the training methods that are to be used to successfully teach the new employees.
JI believes that it will be on the right path if all of these changes can be successfully accomplished. The company plans to incorporate performance appraisals so it can be sure that the rewards, compensation, and benefits are effectively distributed. Refer to Jefferson, Inc. JI management must consider implementing the many different types of benefits. These include all of the following except :__________
a. insurance packages.
b. pension and retirement programs.
c. worker's compensation insurance.
d. Social Security.
e. profit sharing.
Answer:
E. Profit sharing
Explanation:
Employee benefits are the additional gains that employees enjoy in an organization in addition to their salaries.
There are different types of benefits that employers offer their employees.
Some of these are:
1. Medical benefits
2. Retirement benefits
3. Disability benefits
4. Insurance
5. Social security
E. T. C
Profit sharing is not an employee benefit so it is the odd 1 out of these options.
Florida Seaside Oil Exploration Company is deciding whether to drill for oil off the northeast coast of Florida. The company estimates that the project would cost $4.24 million today. The firm estimates that once drilled, the oil will generate positive cash flows of $2.12 million a year at the end of each of the next four years. While the company is fairly confident about its cash flow forecast, it recognizes that if it waits two years, it would have more information about the local geology as well as the price of oil. Florida Seaside estimates that if it waits two years, the project would cost $4.59 million. Moreover, if it waits two years, there is a 85% chance that the cash flows would be $2.306 million a year for four years, and there is a 15% chance that the cash flows will be $0.705 million a year for four years. Assume that all cash flows are discounted at a 8% WACC. Will the company delay the project and wait until they have more information
Answer:
The company will invest now and not delay
Explanation:
In order to determine the better option, we have to determine the Net present value of each of the option.
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
The option with the higher NPV would be chosen
First option
Cash flow in year 0 = $-4.24 million
Cash flow in year 1 = $2.12 million
Cash flow in year 2 = $2.12 million
Cash flow in year 3 = $2.12 million
Cash flow in year 4 = $2.12 million
I = 8%
NPV = 2.78 million
Second option
NPV of the cash flow with $2.306 million a year for four years
Cash flow in year 0 = 0
Cash flow in year 1 = 0
Cash flow in year 2 = $-4.59 million.
Cash flow in year 3 = $2.306
Cash flow in year 4 = $2.306 million
Cash flow in year 5 = $2.306 million
Cash flow in year 6 = $2.306 million
I = 8
NPV = $2.61 million
NPV when cash flows would be $0.705 million
Cash flow in year 0 = 0
Cash flow in year 1 = 0
Cash flow in year 2 = $-4.59 million.
Cash flow in year 3 = $0.705 million
Cash flow in year 4 = $0.705 million
Cash flow in year 5 = $0.705 million
Cash flow in year 6 = $0.705 million
I = 8 %
NPV = -1.93 million
NPV of the second option = (0.85 x $2.61 million) + (0.15 x 0) = $2.22 million
The NPV when cash flows would be $0.705 million is zero because the NPV is negative and thus would not be undertaken.
The company will invest now and not delay because the NPV of not waiting is greater than the NPV of delaying
To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
art of the screening process when choosing which markets to expand to involves gathering information on local markets. One way to gain information is by participating in trade fairs and trade missions. However, companies will often need additional information on markets that require further research. Collecting primary data in foreign markets can present some challenges in researchers especially because of cultural and technical differences between the markets. Identify whether each statement about the research process is most likely associated with cultural differences between markets or technical differences. 1. A number of languages may be spoken in a country and even in countries where only one language is used, a word's meaning can change from one region to the next.
Answer:
1. Cultural differences between markets.
Explanation:
There are many language across the world. There are even many languages spoken in a single country. People living in one region will speak different language than those who live in other nearby region of the same country. The meanings of many words also changes in different languages. The word of English language have some meaning and same words may have different meaning in other languages.
An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the year: DateValue Immediately Before DepositDeposit March 154020 June 18080 October 117575 On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time-weighted method, the equivalent annual effective yield during the first 6 months is equal to the (time-weighted) annual effective yield during the entire 1-year period. Calculate X.
Answer:
236.25
Explanation:
Calculation to determine X
First step is to calculate the 6 months Yield
6 month Yield=(40/40+20) (80/40+20) (157.60/80+80)+1)
6 month Yield=(40/60) (80/60) (157.60/160)-1
6 month Yield=5%
Second step is to calculate the Annual equivalent
Annual equivalent=(1.05)^2-1
Annual equivalent=10.25%
Third step is to calculate the 1 year yield
1 year yield=(40/50) (80/40+20) (175/80+80) (x/175+75)
1 year yield=(40/50) (80/60) (175/160) (x/250)-1
1 year yield=0.1025
Now Let calculate X
x(0.004667)=1+.1025
x(0.004667)=1.1025
x=1.1025/0.004667
x=236.25
Therefore X is 236.25
C Corporation is investigating automating a process by purchasing a machine for $808,200 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $141,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,800. The annual depreciation on the new machine would be $89,800. The simple rate of return on the investment is closest to (Ignore income taxes.): Multiple Choice 11.28% 5.28% 6.52% 16.88%
Answer:
6.52%
Explanation:
According to the scenario, computation of the given data are as follows,
New machine cost = $808,200
Scrap sold = $22,800
Cost of investment = $808,200 - $22,800 = $785,400
Saving from new machine = $141,000
Annual depreciation of machine = $89,800
Net operating income = $141,000 - $89,800 = $51,200
Now we can calculate the rate of return by using following formula,
Simple rate of return = Net operating income ÷ Cost of Investment
= $51,200 ÷ $785,400
= 6.52%
Illustrate the effects of each of the transactions on the accounts and financial statements of Snipes Company.
June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000. Snipes Company paid transportation costs of $400 for delivery of the merchandise.
Answer:
Snipes Company
Effects of each transaction on the accounts and the financial statements of Snipes Company:
Balance Sheet Income Statement Statement of
Cash Flows
Assets = Liabilities + Equity Revenue - Expense = Profit
+ $18,250 = 0 + $18,250 + $18,250 - 0 + $18,250
Accounts receivable $18,250 Sales revenue $18,250
Assets = Liabilities + Equity Revenue - Expense = Profit
-$10,000 = 0 - $10,000 0 - $10,000
Cost of goods sold $10,000 Inventory $10,000
Assets = Liabilities + Equity Revenue - Expense = Profit
-$400 0 -$400 0 -$400 -$400 Operating activity
Transportation-out expense $400 Cash $400
Explanation:
a) Data and Analysis:
Accounts receivable $18,250 Sales revenue $18,250
Cost of goods sold $10,000 Inventory $10,000
Transportation-out expense $400 Cash $400
At the beginning of his current tax year, Eric bought a corporate bond with a maturity value of $25,000 from the secondary market for $17,800. The bond has a stated annual interest rate of 8 percent payable on June 30 and December 31, and it matures in five years on December 31. Absent any special tax elections, how much interest income will Eric report from the bond this year and in the year the bond matures
Answer: See explanation
Explanation:
Based on the information given in the question, the interest income reported this year will be:
= ($25000 × 8%/2) × 2
= $25000 × 0.04 × 2
= $2000
The interest income that will be reported in the year the bond matures will be:
= $2000 + ($25000 - $17800)
= $2000 + $7200
= $9200
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $18 million, and Pictech will earn a profit of $2 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) _____ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)_______ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)______price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) ______ price.
c. Considering all of the information given, pricing high (is, is not) ______ a dominant strategy for both Flashfone and Pictech.
Answer:
Flashfone and Pictech
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) __low___ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)___low____ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)__low____price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) __low____ price.
c. Considering all of the information given, pricing high (is, is not) _is not_ a dominant strategy for both Flashfone and Pictech.
Explanation:
a) Data and Calculations:
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
b) A dominant strategy exists if Pictech or Flashfone would implement a particular strategy that benefits it no matter what the other firm does.
A Quality Analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of twenty ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:
Day Weight (ounces)
Monday 23 22 23 24
Tuesday 23 21 19 21
Wednesday 20 19 20 21
Thursday 18 19 20 19
Friday 18 20 22 20
What are the upper and lower control limits for these data?
a. UCL = 22.644 LCL = 18.556
b. UCL = 22.700 LCL = 18.500
c. UCL = 22.755 LCL = 18.642
d. UCL = 21.814 LCL = 19.300
Answer:
a. UCL = 22.664 LCL = 18.556
Explanation:
The sample mean for the given data is :
( 23 + 20 + 19 + 20 + 21 ) / 5 = 20.6
Upper control limit is :
Sample mean + standard deviation
20.6 + 2 = 22.6
Lower Control Limit is :
Sample mean - Standard Deviation
20.6 - 2 = 18.6
Hardware is adding a new product line that will require an investment of . Managers estimate that this investment will have a 10-year life and generate net cash inflows of the first year, the second year, and each year thereafter for eight years. The investment has no residual value. Compute the payback period.
Answer: 6.17 years
Explanation:
Payback period = Period before debt is paid back + Amount left to to be paid back / Cashflow in year of payback.
Year Cash Flows Amount left to be paid back
0 (1,540,000) (1,540,000)
1 315,000 (1,225,000)
2 265,000 (960,000)
3 230,000 (730,000)
4 230,000 (500,000)
5 230,000 (270,000)
6 230,000 (40,000)
7 230,000 190,000
Year before payback = 6
Payback amount = 6 + (40,000 / 230,000)
= 6.17 years
Which Finance jobs can someone pursue with only a high school diploma? Check all that apply.
Tax Preparer
Treasurer
Actuary
Teller
Loan Officer
Quantitative Analyst
Answer:
Actuary, Tax Preparer and Loan Officer
Answer:
A, C, and E
Explanation:
Actuary, Tax Preparer and Loan Officer
Lens Junction sells lenses for $44 each and is estimating sales of 16,000 units in January and 17,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 15 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,300 4,800 4,900 Direct materials: silicon 8,300 9,200 9,000 Direct materials: solution 11,000 12,200 12,900
Complete Question:
1. Prepare a sales budget. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX January February Expected Sales (Units) Sales Price per Unit Total Sales Revenue Total
2. Prepare a production budget. Lens Junction Production Budget For the Two Months Ending February 28, 20XX January February Expected Sales Total Required Units Required Production Total
3. Prepare direct materials budget for silicon. Lens Junction For the Two Months Ending Fabrant Materials, Purinat for Silinn February Expected Sales Total Required Units Required Production Total
4.Prepare direct materials budget for silicon.
Answer:
Lens Junction
1. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX
January February
Expected Sales (Units) 16,000 17,000
Sales Price per Unit $44 $44
Total Sales Revenue $704,000 $748,000
2. Lens Junction Production Budget For the Two Months Ending February 28, 20XX
January February
Expected Sales Total 16,000 17,000
Ending Inventory 4,800 4,900
Required Units 20,800 21,900
Beginning Inventory 4,300 4,800
Required Production Total 16,500 17,100
3 & 4. Lens Junction Direct Materials Budget For the Two Months Ending February
January February
Silicon Solution Silicon Solution
Expected Sales 32,000 48,000 34,000 51,000
Ending inventory 9,200 9,000 12,200 12,900
Total Required 41,200 57,000 46,200 63,900
Beginning inventory 8,300 11,000 9,200 12,200
Units Required 32,900 46,000 37,000 51,700
Explanation:
a) Data and Calculations:
Sales price of lenses per unit = $44
Estimated sales of lenses in January and February respectively = 16,000 and 17,000
Direct materials for each lense:
2 pounds of silicon at $2.50 per pound = $5.00
3 oz of solution at $3.00 per ounce = $9.00
Total cost of direct materials per unit = $14
15 minutes direct labor at $18 per hour = $4.50
Desired inventory levels:
Beginning inventory of finished goods:
January 4,300
February 4,800
March 4,900
Beginning inventory of direct materials:
Silicon Solution
January 8,300 11,000
February 9,200 12,200
March 9,000 12,900
l Englehard purchases a slurry-based separator for the mining of clay that costs $700,000 and has an estimated useful life of 10 years, a MACRS-GDS property class of 7 years, and an estimated salvage value after 10 years of $75,000. It was fi nanced using a $200,000 down payment and a loan of $500,000 over a period of 5 years with interest at 10%. Loan payments are made in equal annual amounts (principal plus interest) over the 5 years. a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year
Answer:
The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.
Explanation:
The amount of the MACRS-GDS depreciation taken in the 3rd year can be calculated as follows:
Cost of the slurry-based separator = $700,000
Third year depreciation rate for a MACRS-GDS property class of 7 years from the MACRS-GDS table = 17.49%
MACRS-GDS depreciation in the 3rd year = $700,000 * 17.49% = $122,430
Therefore, The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.
Cullumber Company incurred the following costs while manufacturing its product.
Materials used in product $121,000 Advertising expense $46,000
Depreciation on plant 61,000 Property taxes on plant 15,000
Property taxes on store 7,600 Delivery expense 22,000
Labor costs of assembly-line workers 111,000 Sales commissions 36,000
Factory supplies used 24,000 Salaries paid to sales clerks 51,000
Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.
Required:
Compute cost of goods manufactured.
Answer:
$328,400
Explanation:
Cost of Goods Manufactured is calculated in Manufacturing Account as follows :
Cost of Goods Manufactured = Beginning Work In Process Inventory + Total Manufacturing Costs - Ending Work In Process Inventory
therefore,
Cost of Goods Manufactured = $13,000 + ($121,000 + $61,000 + $15,000 + $111,000 + $24,000) - $16,600
= $328,400
Q 9.20: City Mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. Based on their yearly budget, they expect to spend $450,000 on food expenses, $350,000 on housing expenses, $280,000 on staff salaries, $90,000 on utilities, and $118,000 on other expenses. How much will City Mission need to raise in donations
Answer:
at least $1,288,000 in donation
Explanation:
With regards to the above information, we would add up all the expenses to arrive at how much donation that need City Mission needs to raise.
= Expenses on food + Housing expenses + Staff salaries + Utilities + Other expenses
= $450,000 + $350,000 + $280,000 + $90,000 + $118,000
= $1,288,000
The above is a large sum of money to raise only from donations, and by right a level or various levels of government should help pay for these expenses as no one go homeless either that or provide low cost homes for the homeless.
Assume the following information for Windsor Corp.
Accounts receivable (beginning balance) $139,000
Allowance for doubtful accounts (beginning balance) 11,450
Net credit sales 940,000
Collections 917,000
Write-offs of accounts receivable 5,600
Collections of accounts previously written off 1,600
Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.
Required:
Prepare the entries to record sales and collections during the period.
Answer:
To record the Sales
Dr. Account Receivables 940,000
Cr. Sales 940,000
To record the Collection
Dr. Cash 917,000
Cr. Account Receivables 917,000
Explanation:
To record the sales we need to debit the account receivables as the sales are made on credit and credit the sale to record the sale.
To record the Collection from the customers we need to debit the cash account to record the receipt of cash ab credit the account receivables to decrease the value of account receivables by the amount of collection.
Warrants exercisable at $15 each to obtain 81000 shares of common stock were outstanding during a period when the average market price of the common stock was $20. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by:_________
a. 20250.
b. 81000.
c. 27000.
d. 60750.
Answer:
a. 20250
Explanation:
Calculation to determine diluted earnings per share will increase the weighted average number of outstanding shares
Diluted earnings per share=[$81,000- (81,000 × $15) ÷ $20 ]
Diluted earnings per share=[$81,000-($1,215,000÷$20)]
Diluted earnings per share=$81,000-$60,750
Diluted earnings per share=$20,250.
Therefore in computing diluted earnings per share will increase the weighted average number of outstanding shares by:$20,250
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $2,200,000 has an estimated residual value of $400,000 and an estimated useful life of 20 years. Determine the following: (a) The depreciable cost $fill in the blank 1 (b) The straight-line rate fill in the blank 2 % (c) The annual straight-line depreciation $fill in the blank 3
Answer:
a)
Depreciable Cost = $ 1800000
b)
Straight Line Depreciation Rate = 5%
c)
Depreciation expense per year = $90000
Explanation:
a)
The depreciable cost is the cost that qualifies for depreciation. It is calculated as,
Depreciable Cost = Cost - Salvage Value
Depreciable Cost = 2200000 - 400000
Depreciable Cost = $ 1800000
b)
The straight line depreciation method charges a constant depreciation expense every period. The rate of straight line depreciation can be calculated as follows,
Straight Line Depreciation Rate = Depreciable cost percentage / Estimated useful life
Straight Line Depreciation Rate = 100% / 20
Straight Line Depreciation Rate = 5%
c)
The annual straight line depreciation expense can be calculated as follows,
Depreciation expense per year = Depreciable cost * Straight line depreciation rate
Depreciation expense per year = 1800000 * 0.05
Depreciation expense per year = $90000
What to do most careers in Finance deal with?
a) real estate and education
b) assets and liabilities
c) assets and retail
d) real estate and retail
Answer:
b
Explanation:
B)
Answer: B would be the answer
Explanation: assist and liabilities
Parker Company pays each member of its sales staff a salary as well as a commission on
each unit sold. For the coming year, Parker plans to increase all salaries by 5% and to keep
unchanged the commission paid on each unit sold. Because of increased demand, Parker
expects the volume of sales to increase by 10%. How will the total cost of sales salaries and
commissions change for the coming year?
A. Increase by 5% or less.
B. Increase by more than 5% but less than 10%.
Answer: B is correct
Explanation:
Sales salaries will increase by exactly 5%. The per-unit commission amount will remain constant, but sales commissions in total are expected to increase by 10%. Thus, total sales salaries and commissions will increase somewhere between 5% and 10%.
In 2021, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2021 would have been $18 million higher had the new life been used. Barney's tax rate is 25%. Barney's retained earnings as of December 31, 2021, would be:
Answer: unaffected
Explanation:
We should note that a retrospective adjustment isn't necessarily needed when there's an alternation to a accounting estimate.
With regards to this Barney's retained earnings as of December 31, 2021, would neither be understated or overstated but would be unaffected.
Ingraham Inc. currently has $820,000 in accounts receivable, and its days sales outstanding (DSO) is 54 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year.
Answer: 451759.29
Explanation:
To solve the question, we need to calculate the current sales. This will be calculated by using the formula:
DSO = (Account receivable × 365) / Sales
54 = 820000 × 365 / Sales
Sales = 820000 × 365 / 54
Sales = 5542593
After the new policy, the expected sales will be:
= 5542593 × (1 - 15%)
= 5542593 × (1 - 0.15)
= 5542593 × 0.85
= 4711204.5
The level of accounts receivable following the change will be:
DSO = (Account receivable × 365) / Sales
35 = Account receivable × 365 / 4711204.5
Account receivable = 35 × 4711204.5 / 365
Account receivable = 451759.29
In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a.
central services
b.
peripheral services
c.
tertiary services
d.
core services
Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10.
Further assume Sanmina-SCI offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each.
If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year.
In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated.
Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI.
(Use a negative sign with your answer, if appropriate.)
Answer:
The net benefit is -$26,000
Explanation:
Given the above information,
The total cost of manufacturing 12,000 circuit boards
= 12,000 × $34
= $408,000
Total purchase price
= 12,000 × $34
= $408,000
Fixed overhead cost applied
= 12,000 × $6
= $72,000
The rental income = $46,000
Outsourcing cost
= Total purchase price + Fixed overhead cost applied - Rental income
= $408,000 + $72,000 - $46,000
= $434,000
Therefore, Net benefit
= Total cost of manufacturing - Outsourcing cost
=$408,000 - $434,000
= -$26,000
Factory Overhead Volume Variance Dvorak Company produced 5,100 units of product that required 3.5 standard hours per unit. The standard fixed overhead cost per unit is $2.50 per hour at 18,750 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer:
$2,250 Favourable
Explanation:
Calculation to determine the fixed factory overhead volume variance
Fixed factory overhead volume variance=$2.50 × [18,750 hrs. – (5,100 units × 3.5 hrs.)]
Fixed factory overhead volume variance=$2.50×[18,750 hrs. – 17,850 hrs]
Fixed factory overhead volume variance=$2.50×900
Fixed factory overhead volume variance=$2,250 Favourable
Therefore the fixed factory overhead volume variance will be $2,250 Favourable
How are a startup's financing requirements estimated
Answer:
How are Startups Financing Requirements Estimated?
1. Make Use of a Startup Work Sheet to be Able to Plan the Initial Financing.
2. Focus on the Expenses versus Assets. Another way for startups to estimate their financing requirements is by means of focusing on the expenses versus assets.
3. Similar Articles.
4. Cash Balance Prior to the Starting Date.
Explanation: