Answer:
B. $246,500
Explanation:
Retail Cost
Beginning inventory
$278,000 $201,000
Purchases
$1,280,000. $889,000
Freight-in
--- $23,500
Net markups
$78,700
Net markdown
$56,200
Sales
$1,334,000
Ending inventory at retail would be;
= Beginning inventory + Purchases + Net markups - Net markdowns - Sales
= $278,000 + $1,280,000 + $78,700 -
$56,200 - $1,334,000
=$246,500
As an exporter, Horizon Trading wants to be paid before a consignment is shipped. Correspondingly, its importer in Italy, Friggo Imports, wants to pay only upon receipt of the consignment. These conflicting preferences of Horizon Trading and Friggo Imports are most likely a manifestation of
Answer: lack of trust
Explanation:
From the question, we are informed that Horizon Trading wants to be paid before a consignment is shipped while its importer in Italy, Friggo Imports, wants to pay only upon receipt of the consignment.
These conflicting preferences of Horizon Trading and Friggo Imports are most likely a manifestation of lack of trust. We can see that both parties do not trust each other which is the reason for the differences.
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -37,500 -37,500 1 17,300 5,700 2 16,200 12,900 3 13,800 16,300 4 7,600 27,500 a) What is the IRR for each of these projects
Answer:
IRR for project A = 19.71%
IRR for project B= 18.76%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calcuated using a finanical calcuator
for project A :
Cash flow in year 0 = -37,500
Cash flow in year 1 = 17,300
Cash flow in year 2 = 16,200
Cash flow in year 3 = 13,800
Cash flow in year 4 = 7,600
IRR = 19.71%
for project B :
Cash flow in year 0 = -37,500
Cash flow in year 1 = 5,700
Cash flow in year 2 = 12,900
Cash flow in year 3 = 16,300
Cash flow in year 4 = 27,500
IRR = 18.76%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
QUICK ONE!
A truck costing $80,000 has an expected life of 8 years
Required:
c) Prepare a depreciation schedule using the reducing balance method? (assuming the rate is 1.5 times the straight-line rate)
Answer:
Rate is 1.5 times the straight line depreciation rate which is;
= [tex]\frac{80,000}{8}[/tex]
= $10,000 per year
Rate = [tex]\frac{10,000}{80,000}[/tex] * 100%
=12.5%
Reducing balance rate = 12.5% * 1.5
= 18.75%
The Depreciation Schedule would be;
Year Beginning Book Value Depreciation Expense Accumulated Depreciation Book Value
1 $80,000 80,000*18.75% = $15,000 $15,000 $65,000
2 $65,000 65,000 * 18.75% = $12,1875.50 $27,187.50 $52,812.50
3 $52,812.50 52,812.5 *18.75% = $9,902.34 $37,187.84 $42,910.16
4 $42,910.16 42,910.16 * 18.75% = $8,045.66 $45,233.50 $34,766.50
5 $34,766.50 34,766.50 * 0.1875 = 6,518.72 $51,752.22 $28,247.78
6 $28,247.78 28,247.78 * 0.1875= $5,296.45 $57,048.67 $22,951.33
7 $22,951.33 22,951.33 * 0.1875= 4,403.37 $61,452.04 $18,547.96
8 $18,547.96 18,547.96 * 0.1875 = $3,477.74 $80,000 $0
$3,477.74 + 15,070.22= $18,574.96
Depreciation for the last year was not sufficient to take the truck to $0 so the remainder will be depreciated in that year so that it may be completely depreciated.
Guthrie Enterprises needs someone to supply it with 210,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost $2,650,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $220,000. Your fixed production costs will be $705,000 per year, and your variable production costs should be $9.51 per carton. You also need an initial investment in net working capital of $375,000. If your tax rate is 22 percent and you require a 10 percent return on your investment, what bid price per carton should you submit?
Answer:
$6.9807 per carton
Explanation:
210,000 cartons of machine screws
equipment cost $2,650,000
depreciation per year = ($2,650,000 - $220,000) / 5 = $486,000
fixed manufacturing costs $705,000 per year
variable costs per carton = $9.51 x 210,000 = $1,997,100
initial investment in net working capital $375,000
tax rate 22%
discount rate 10%
price per carton?
initial investment = -$3,025,000
CF₁ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₂ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₃ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₄ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₅ = [(R - $705,000 - $486,000) x 0.78] + $486,000 + $220,000 + $375,000 = 0.78R + $152,020
$3,025,000 = (0.78R - $442,980) / 1.1 + (0.78R - $442,980) / 1.1² + (0.78R - $442,980) / 1.1³ + (0.78R - $442,980) / 1.1⁴ + (0.78R + $152,020) / 1.1⁵ = 0.709R - $402,709 + 0.645R - $366,099 + 0.586R - $332,817 + 0.533R - $302,561 + 0.484R + $94,392
$3,025,000 = 2.957R - $1,309,794
$4,334,794 = 2.957R
R = $4,334,794 / 2.957 = $1,465,943.19
total revenue = $1,465,943.19
revenue per carton = $1,465,943.19 / 210,000 = $6.98
Consider each situation and determine whether the person is structurally unemployed, frictionally unemployed, or cyclically unemployed.
a. Julie had to leave her old job when she moved to a new city. She works in customer service and is looking for a new job.
b. Julie graduates from college and is looking for a job as an accountant.
c. Bob loses his job as the economy slips into a recession.
d. Jim got laid off from his job at an auto manufacturer as the company became more automated.
Answer:
The correct answers are:
a - Frictionally unemployed
b - Frictionally unemployed
c - Cyclically unemployed
d - Structurally unemployed
Explanation:
To begin with, the term of "Frictional unemployment" refers to the situation that is caused when a person does not have a job because of the fact that she has recently quit one and is looking for a new one. The name of frictional unemployement refers to the time that the person quits a job and gets a new one.
Secondly, the term of "Cyclical unemployment" refers to the situation that is caused due to the economics situations of the country. Therefore that this type of unemployment is caused because of the bad sales, the bad production and the bad moment that the economy is having. It is refered to the economic cycles.
Finally, the term of "Structural unemployment" refers to the situation that is caused when a person in without a job due to the specialties and necessities that the companies are requiring or looking for. Therefore that this type of unemployment is caused by the lack of education in the workforce.
The correct answers are:
Frictionally unemployedFrictionally unemployed Cyclically unemployed Structurally unemployed.Explain the types of employment mentioned above ?The clinical unemployment refers to the component of the overall unemployment that is an output of the cycles of direct economic upturn and downturns.
Structural unemployment is the involuntary unemployment that is due to the mismatch between the skills that the workers in the economy can offer. Frictional unemployment is a voluntary transmission within the economy.
Find out more information about the unemployed.
brainly.com/question/10546218.
when the market demand curve crosses the long-run average total cost curve where average total costs are declining, the firm is called
Answer: Natural monopoly
Explanation:
A natural monopoly is a form of monopoly that comee into being due to huge start-up costs and also economies of scale. A firm that has a natural monopoly may be the only producer of a particular good or service.
A natural monopoly occurs when the long-run average total cost curve is crossed by the markwt demand curve when the average total costs are still diminishing.
If nearly 28% of Cashland's citizens under the age of 65 are without healthcare and an advocacy group convinces its current administration to vote for basic healthcare for everyone, which of the following is likely to occur?A. Increasing reliance on markets to determine economic outcomesB. More rapid economic growthC. Higher taxes than in past yearsD. An increase in the number of insurance companies
Answer: Higher taxes than in past years
Explanation:
From the question, we are told that about 28% of Cashland's citizens under the age of 65 are without healthcare and an advocacy group convinces its current administration to vote for basic healthcare for everyone.
Based on the above statement, the most likely thing that will occur will be an increase in taxes than previous years. Since the advocacy group convinces its current administration to vote for basic healthcare for everyone, the government will look for a way to generate money that will be used in tp build hospitals and also settle the hospital workers wages or salaries and hence the government will raise the tax in order to meet its need and construct the hospital.
The first budget customarily prepared as part of an entity's master budget is the Group of answer choices sales budget cash budget direct materials purchases production budget
Answer:
Sales budget
Explanation:
A budget is an amount that is planned and set aside to be used for a particular purpose. It helps a business entity plan and efficiently use its resources.
As a business the first budget that is usually prepared is the sales budget. This is the primary purpose of the entity, to sell and make profit.
As profit is generated from sales other activities can easily be budgeted for.
Master budget is collection of all lower budgets of a business
Answer:
sales budget
Explanation:
The master budget is a document in which a company shows all the budgets for each department to have the whole picture of the business finances. Usually, it begins with the sales budget that is created using the sale forecast that is adjusted based on additional information and the manager's judgement. This is the first budget because it affects the other budgets as the level of production would depend on the expected sales. According to this, the answer is that the first budget customarily prepared as part of an entity's master budget is the sales budget.
Jake recently invested in a Hottie Potatee franchised business that serves potatoes with all the trimmings. The business needs lots of employees in order to operate effectively. He told you that if he calls the business once each day and tells the employees that he is on his way there, they will be on their best behavior. As he tells it, "It's okay if I really don't make it there, after all, I'm the owner and the business should be able to run without micromanagement." As a recent student of business ethics, you remind Jake that:
Explanation:
It is important that Jake change his stance in relation to his leadership style, as an effective leader is one who can communicate with his employees in a direct and ethical way, providing essential information for carrying out activities and through his example of conduct and behaviors build a work environment focused on collaboration, employee engagement, motivation, performance, learning, etc.
To achieve satisfactory results, the leader has to base his management and his conduct on integrity, respect and values that serve as an example of the employees' conduct, so that he feels integrated and essential for the organization, increases his job satisfaction and creating so there is a positive environment and focused on development and generating results.
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $33600. If the balance of the Allowance for Doubtful Accounts is $7640 debit before adjustment, what is the amount of bad debt expense for that period
Answer:
The amount of bad debt expense for that period is $41240.
Explanation:
As the Allowance for Doubtful Accounts has credit balance because it is a contra account receivable account. This account should have credit balance. As already account has debit balance so this balance needs to be added in the estimated uncollectible accounts for the period to calculate the bad debt expense for the period.
Estimated uncollectible accounts = $33600
Allowance for Doubtful Accounts Balance = $7640 debit
Bad debt expense = $33600 + $7640 = $41240
If the next year’s dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the current stock price should be:
Answer:
The answer is $41.67
Explanation:
Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.
Po is the present or current value of the stock
D1 is the next year dividend payment
r is the discount rate
g is the growth rate.
Po = $5.00 /0.16 - 0.04
= $5.00/0.12
=$41.67
Therefore, the current stock price is $41.67
Which of the following is not a finding or conclusion of the research study by ou and penman that used traditional accounting measure to predict whether a company's income would increase or decrease?
a. The researchers were unable to describe the following year earnings changes correctly in most cases.
b. Markets are not as efficient as efficient-market advocates would like to believe.
c. Better accounting standards might improve the predictive ability of accounting information.
d. Fundamental analysis is still important for investment purposes.
Answer: a. The researchers were unable to describe the following year earnings changes correctly in most cases.
Explanation:
It was long believed and shown by the works of researchers before Jane Ou and Stephen Penman that the price and performance of stock prices can be used to predict the direction that earnings would take. They attributed this to the fact that stock prices have off information about how the company would perform and by extension how much earnings it would make.
Ou and Penman expanded on this research by showing that the information that the stock prices had was already inside the financial statements of the company. As such they were able to describe the earnings changes in the coming period.
The sensitivity parameter in the consumption function that measures how sensitive consumption is to changes in consumer confidence is referred to as the marginal propensity to consume.
a. True
b. False
Answer: False
Explanation:
The Sensitivity Parameter that measures the sensitivity of changes in consumption to changes in consumer confidence is not the Marginal Propensity to Consume.
The Marginal Propensity to Consume rather measures what proportion of additional income is spent on consumption. For example, if you earn an extra $50 this month and you spend $40, the Marginal Propensity to Consume is 40/50 = 0.8.
A stock just paid a dividend of $5.37 and is expected to maintain a constant dividend growth rate of 4.6 percent indefinitely. If the current stock price is $77, what is the required return on the stock
Answer:
The required return on the stock is 11.89%.
Explanation:
To calculate this, the Gordon growth model (GGM) formula is used as follows:
P = d1 / (r – g) ……………………………………… (1)
Where;
P = current share price = $77
d1 = next dividend = Recent dividend * (1 + g) = $5.37 * (1 + 0.046) = $5.61702
r = required return = ?
g = dividend constant growth forever = 4.6%, or 0.046
Substituting the values into equation 1) and solve for r, we have:
77 = 5.61702 / (r - 0.046)
77(r - 0.046) = 5.61702
77r - 3.542 = 5.61702
77r = 5.61702 + 3.542
r = 9.15902 / 77
r = 0.1189, or 11.89%
Therefore, the required return on the stock is 11.89%.
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $23,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 2,450 Outstanding checks 1,107 Additionally, a $48 check written and recorded by the company correctly was recorded by the bank as a $84 deduction. The adjusted cash balance per the bank records should be:
Answer:
The adjusted cash balance per the bank records should be: $24,740.
Explanation:
The correct Cash balance can only be verified using a Bank Reconciliation Statement.
Thus prepare a Bank Reconciliation Statement to extract the updated Cash Book Balance.
Bank Reconciliation Statement
Note : The Bank Statement amount has to be adjusted for an overstatement of $36.
Balance as per updated Cash Book (Balancing figure) $24,740
Add Unpresented Cheques $1,107
Less Lodgements not yet credited ($2,450)
Balance as per Bank Statement ($23,361 + $36) $23,397
Conclusion :
The adjusted cash balance per the bank records should be: $24,740.
A higher price point should create value for the customer. The buyers need to know that they are paying for __________, or an unforgettable experience. The product itself must live up to these expectations.
Answer:
Differentiation.
Explanation:
The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.
The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.
Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.
Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.
Accel, Greylock Partners, Sequoia Capital, Benchmark, and Andreessen Horowitz are all in the business of providing funds to new businesses in exchange for an ownership share in the company. These companies are all seeking a high return on their investment, and they tend to be drawn to technology and biotechnology companies. Accel, Greylock, Sequoia, Benchmark, and Andreessen are all pints
A. venture capital firms.
B. business incubators.
C. C corporations.
D. for-profit arms of the SBA.
E. commercial banking organizations.
Answer:
The correct answer is the option A: venture capital firms.
Explanation:
To begin with, the ''venture capital firms'' are the ones that tend to finance start ups with high risks in tha investment due to the fact that those low start ups tend to show high improvements that could lead to a particular high income in the future for the owners and therefore for the investors too. Moreover, this type of funding is particulary design to make the investors become part of the organizations in which they invest in by giving them shares of the company or equity as well.
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000.
Rate Maturity Mo/Yr Bid Asked Chg Ask Yld
?? May 21 103.5540 103.5418 +.3093 6.119
5.524 May 26 104.5030 104.6487 +.4365 ??
6.193 May 36 ?? ?? +.5483 4.151
Required:
In the above table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars?
Answer:
$1,247.12
Explanation:
For computing the asked price we need to apply the present value formula i.e to be shown in the attachment below
Given that,
Future value = $1,000
Rate of interest = 4.151% ÷ 2 = 2.076%
NPER = 17 years × 2 = 34 years
The 20 years come from May 2019 to May 2036
PMT = $1,000 × 6.193% ÷ 2 = $30.965
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value or the ask price is $1,247.12
A linear programming approach is usually used by managers involved in portfolio selection to maximize risk. minimize risk. maximize return on investment. maximize investment limitations.
Answer: maximize return on investment
Explanation:
Linear programming is an optimization technique that is used for a system of linear constraints and an objective function that helps in defining the quantity that is to be optimized.
It is used for sure solving complex problems in businesss whereby deciding of the quantities f variables to use in achieving profit maximization or cost minimization is difficult.
Therefore, linear programming approach is usually used by managers involved in portfolio selection to maximize return on investment.
Suppose a salesperson in a hardware store has a 10-year-old son with behavior problems. The supervisor gets to know about this. During one of their conversations, the supervisor says, "I've noticed that we haven't received any more customer complaints about your service and, in fact, one customer told me you went out of your way." This should be said by the supervisor during which stage of the counseling interview?
a. Selection of solution(s)
b. Consideration of possible solutions
c. Schedule a follow-up meeting
d. Discussion of what the problem is
Answer:
c. Schedule a follow-up meeting
Explanation:
In the given scenario the supervisor when talking to his son made the following statement: "I've noticed that we haven't received any more customer complaints about your service and, in fact, one customer told me you went out of your way."
This statement is one that should be asked during follow up meeting to review implemented solution.
Counseling interview will involve identifying the problem, consideration of solutions, choosing the appropriate solution, and finally the follow up meeting where review is done and feedback given.
The salesperson's son recieved positive feedback after solution implementation
the differences between career and non career
You will be paying $10,200 a year in tuition expenses at the end of the next two years. Bonds currently yield 9%. a. What is the present value and duration of your obligation
Answer:
Present value of obligation is $17,942.94
Duration 1.4785 years
Explanation:
Present value of obligation can be calculate by using following formula
PV = Tuition payment x ( 1 + yield rate )^-n
PV of First year payment = $10,200 x ( 1 + 9% )^-1 = 9,357.80
PV of Second year payment = $10,200 x ( 1 + 9% )^-2 = 8,585.14
PV of Obligation = PV of First year payment + PV of Second year payment
PV of Obligation = 9,357.80 + $8,585.14 = $17,942.94
Duration
Time in years PV of Payments Weight Duration (Time x Weight)
1 $9,357.80 0.5215 0.5215 x 1 = 0.5215
2 $8,585.14 0.4785 0.4785 x 2 = 0.9569
Total $17,942.94 1.0000 1.4785
When or how does a contract become a legal document and is binding on all parties involved?
Health Care Event Protection
Christina Haley of San Marcos, Texas, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $135,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $170 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance.
1. How much of Christina’s direct medical expenses was paid by her insurance policy?
2. What did Christina have to pay for her nursing home care?
3. How much income did Christina lose?
Answer:
$ 132,500
$4,250
$9000
Explanation:
From the given information:
Christina Haley of San Marcos who's aged 57 years recently suffered from stroke.
She was in intensive care for 3 days and was hospitalized for 10 more days
Total bill = $135,500
After Discharge;
she spent 25 days in a nursing home at a cost of $170 per day
Amount earned by Christiana per month at her work = $4500
She missed 2 months of going to work.
Christina had a health insurance plan through her employer.
The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap
1. How much of Christina’s direct medical expenses was paid by her insurance policy?
The amount the insurance policy paid can be known by the expression:
= Total bill amount for the care - deduction for policy - coinsurance cap
= $135,000 - $1000 - $2,000
= $ 132,500
2. What did Christina have to pay for her nursing home care?
We are being told that She spent 25 days in a nursing home at a cost of $170 per day
Thus; the amount Christina have to pay for her nursing home care = 25 × $ 170
= $4,250
3. How much income did Christina lose?
We knew she missed two months from work and she collect $4500 per month.
Thus the amount of income she lose = $4500 × 2
the amount of income she lose = $9000
Kent Manufacturing produces a product that sells for $50.00 and has variable costs of $24.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the contribution margin per unit if the machine is purchased.
Answer:
$29.50
Explanation:
Contribution margin = price - variable cost
Variable cost if machine is purchased = $24.00 - $3.50 = $20.50
= $50.00 - $20.50 = $29.50
I hope my answer helps you
Carl is a self-employed real estate agent. For the current year, his self-employment net earnings (revenues minus expenses) are $80,000. He is also employed as an accountant with a gross salary of $70,000 for the year. Assume that the appropriate social security income ceiling for the year is $130,000 and that the self-employed FICA rates are 12.4% for social security and 2.9% for Medicare. What is Carl s self-employment tax liability for the year
Answer:
$12,240
Explanation:
Social security Tax = $80,000 x 12.4%
Social security Tax = $9,920
Medicare Tax = $80,0000 x 2.9%
Medicare Tax = $2,320
Total tax = $9,920 + $2,320
Total tax = $12,240
Now Assume the equipment’s residual value could be as low as $0 or as high as $400,000, but $200,000 is the expected value. Because the residual value is riskier than the other relevant cash flows, this differential risk should be incorporated with the analysis. Describe how this could be accomplished. What effect would the residual value’s increased uncertainty have on Lewis's lease-versus-purchase decision?
Answer:
the residual value in a rent examination will be demonstrated either in the "cost of possessing area" or in the "cost of renting" segment, contingent upon whether the organization intends to keep utilizing the rented resource at the termination of the essential rent. In the event that the resident intends to keep utilizing the hardware, at that point it should be bought when the rent terminates, and for this situation the remaining worth shows up as an expense in the renting cost segment. In any case, on the off chance that the resident plans not to keep utilizing the gear, at that point the lingering worth won't be appeared in the renting segment - rather, it will be appeared as an inflow in the expense of possessing area. For Lewis' situation, the benefit won't be required at the lapse of the rent, so the remaining is appeared as an inflow in the claiming segment. In this circumstance, we represent expanded hazard by expanding the rate used to limit the lingering esteem income, bringing about a lower present estimation of the remaining income. This prompts a greater expense of possessing, so the more prominent the danger of the leftover worth, the higher the expense of claiming, and the more appealing renting becomes.
Note, however, that the circumstance would be extraordinary on the off chance that Lewis wanted to rent and, at that point practice an honest evaluation buy choice so as to keep utilizing the gear. At that point the remaining would be appeared as an expense in the renting area, and its higher hazard would be reflected by limiting it at a lower rate. In that circumstance the danger of the leftover would punish as opposed to support the rent.
For the current situation, the lessor, not the resident, will claim the benefit toward the finish of the rent, so the lessor bears the leftover worth hazard. As a result, the rent exchange passes the hazard related with the remaining an incentive from the resident/client to the lessor. Obviously, the lessor perceives this, and therefore, resources with profoundly dubious leftover qualities will convey higher rent installments than resources with generally certain remaining qualities. Be that as it may, the best renting organizations have created skill in remodeling and discarding utilized hardware, and this gives them a favorable position over most residents in lessening lingering esteem dangers.
Further, renting organizations for the most part manage a wide exhibit of advantages, so leftover worth gauges that are excessively high on one resource might be counterbalanced by gauges that are excessively low on another.
The firm could wind up with no cash as a byproduct of the benefit toward the finish of the term, which implies no cash to return towards the obligation owed on the gear. On the off chance that the remaining worth were $400,000, the organization would be in karma, however it is extremely unlikely of knowing or getting ready for such an exceptional yield. So as to incorporate this hazard into the current worth estimation, the firm would need to concoct a rate for the hazard and increase it into the remaining worth. On the off chance that the measure of claiming the gear despite everything comes out to be more exorbitant than renting the hardware, Lewis should remain with the rent.
A sharp increase in interest rates will decrease the price of bonds and increase the interest income available to new bondholders. This will increase the demand for bonds compared to the demand for stocks, all other considerations remaining constant.
A. True
B. False
.During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: Multiple Choice debit to Work in Process of $67,000. credit to Work in Process of $74,000. NO debit to Work in Process of $74,000. NO credit to Work in Process of $67,000. NO
Answer: Debit to Work in Process of $67,000
Explanation:
Direct Labor costs incurred when producing are sent to the Work in Progress account to show that they were direct costs in the making of a product and so should be included in the cost of the good.
They are debited to the Work in Progress account and credited to the Wages Payable account.
From the above, the direct Labor costs are $67,000 and so this will be debited to the WIP account.
Combs Co. is planning to sell 400 hair dryers and produce 380 hair dryers during March. Combs uses 500 grams of plastic and one-half hour of direct labor to produce one hair dryer. Plastic costs $10 per 100 grams and employees of the company are paid $15 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Combs Co. has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?
a. $2,800
b. $5,600
c. $2,660
d. $5,320
Answer:
Budgeted labour cost =$8,550
Explanation:
Labour budgeted is prepared using the production budget data. This is simply because the budgeted labour hour is a function of the budgeted production units.
Budgeted labour hours = Production budget × standard hours per unit
= 380 × 1.5 hours=570
Budgeted labour cost= Budgeted labour hours × Standard labour rate
= 570 hours × $15 =$8550
Budgeted labour cost =$8,550