Answer:
This question is incomplete, the options are missing. The options are the following:
a) For consumer purposes
b) For commercial purposes
c) Usurious
d) An online contract
And the correct answer is the option C: Usurious.
Explanation:
To begin with, in the area of law, the term known as "Usury" is refer to the practice that focuses on making the lender richer in unethical ways so therefore that this practice is considered to be the one that makes inmoral monetary loans that try to affect the borrower in order to benefit the lender. One example of the use of this term could be the case in where the lender charges or try to charges a higher interest rate to the borrower than the one that is prohibited by law as a maximun rate.
The acid-test (quick) ratio Group of answer choices is used to quickly determine a company's solvency and long-term debt paying ability. relates cash, short-term investments, and net receivables to current liabilities. is calculated by taking one item from the income statement and one item from the balance sheet. is the same as the current ratio except it is rounded to the nearest whole percent.
Answer:
relates cash, short-term investments, and net receivables to current liabilities
Explanation:
The quick ratio is am example of a liquidity ratio. Liquidity ratios measure a company's ability to meet its short term obligations
1. The roles of money Brian is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Brian decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Brian accumulates money in his savings account for future purchases. Brian buys his lunch with a $10 bill.
Answer:
Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.
unit of accountBrian accumulates money in his savings account for future purchases.
Store of valueBrian buys his lunch with a $10 bill.
Medium of exchangeExplanation:
Money's four functions are:
Medium of exchange = you can use money to purchase or sells goods and services. Unit of account = money helps us to understand the relative value of goods and services, since the higher the price, the higher the value of a good or service is. Store of value = you can save money for future useStandard of deferred payment = money allows people to take or hand out loans that will be repaid in the futureOn January 1, 2019, Wasson Company purchased a delivery vehicle costing $38,000. The vehicle has an estimated 7-year life and a $3,000 residual value. What is the vehicle's book value as of December 31, 2020, assuming Wasson uses the straight-line depreciation method
Answer:
The answer is $28,000
Explanation:
straight-line depreciation method =
( original cost of the asset minus salvage/residual value) ÷ number of useful life
Cost of the asset is $38,000
Residual value is $3,000
Number of use life is 7 years
($38,000 - $3,000) ÷ 7 years
= $5,000
Depreciation is $5,000 per year.
January 1, 2019 through
December 31, 2020 is 2 years.
That means accumulated depreciation is $10,000 ( $5,000 x 2 years)
Book value = cost of the asset - accumulated depreciation
$38,000 - $10,000
Book value = $28,000
Use the following information to work the problems. Each problem stands alone.
Bernard Windows is a small company that installs windows. Its cost structure is as follows:
Selling price for each window installation $500
Variable cost of each window installation $400
Annual fixed costs $150,000
#1. This is also TRY IT 3-2 on page 75.
Calculate (a) the breakeven point in units and revenue and (b) the number of windows Bernard Windows must install and the revenues needed to earn a target operating income of $100,000.
#2. TRY IT 3-3 on page 77.
Same information as above but now tax rate is 30%. Calculate the number of windows Bernard Windows must install and the revenues needed to earn a target net income of $63,000.
#3. TRY IT 3-4 on page 82. Calculate the margin of safety in units and dollars and the margin of safety percentage if the company expects to sell 2,400 windows in the year.
#4. TRY IT 3-5 on page 84. Number of units sold is 2500.
Bernard is considering changing its sales compensation for next year. Bernard would pay salespeople a 5% commission next year and reduce fixed costs by $62,500. Calculate the degree of operating leverage at sales of 2,500 units under the two options. Comment briefly on the result.
#5. TEY IT 3-6 on page 87.
Bernard Windows plans to sell two different brands of windows-- Chad and Musk--- and budgets the following:
Chad Musk Total
Expected sales 2500 1000 3500
Revenues (500 and 350 per unit) $1,250,000 $350,000 $1,600,000
Variable cost ( 400 and 275 per unit) $1,000,000 $275,000 $1,275,000
Contribution margin (100 and 75 ) 250,000 $75,000 $325,000
Fixed costs $195,000
Operating income $130,000
Calculate the break even point for Bernard Windows in terms of the (a) number of units sold and (b) revenues.
Answer:
1.(a). Breakeven point (in units) = Fixed cost / Contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit
= 500 - 400 = 100 per unit
Breakeven point = 150,000 / 100 per unit
Breakeven point = 1500 units
Breakeven point ( in revenue) = Fixed Cost / Contribution margin ratio
Contribution margin ratio = ( Selling price per unit - Variable cost per unit) / Selling price per unit ×100
= ($500 - $400) / $500 ×100
= 20%
Breakeven point ( in revenue) = $150,000 / 20%
Breakeven point ( in revenue) = $750,000
(b). Let x be the unknown quantity of units Bernard Windows must sell to earn an operating income of $100,000. Selling price is $500
Revenue - Variable cost - Fixed cost = operating income
($500 * x) - ($400*x) - $150,000 = $100,000
($100* x) = $250,000
x = $250,000 / $100 per unit = 2,500 units
Quantity of units required to be sold = 2,500 units
Revenue to earn an operating income of $100,000 is
Revenue = Number of units required to be sold * Selling Price
Revenue = 2,500 * $500 = $1,250,000
2. Target operating income = Target net income / (1 - Tax Rate)
= $63,000 / (1 - 0.30)
= $90,000
In other words, to earn a target net income of $63,000, Bernard Windows Target operating income is $90,000.
Proof: Target operating income $90,000
Tax at 30% ( $90,000*0.30) $27,000
Target net income $63,000
Calculation of number of units Bernard Windows must sell:
Quantity of units required to be sold = Fixed cost + Target operating income / Contribution margin per unit
= $150,000 + $90,000 / $100 = $2,400 units
Quantity of units required to be sold = 2,400 units
Revenue to earn net income of $63,000 is:
Revenue = Number of units required to be sold * Selling price
= 2,400 * $500
Revenue = $1,200,000
3. Margin of Safety = Budgeted revenue - Breakeven revenue
= $1,200,000 - $750,000
Margin of Safety = $450,000
Margin of safety (in units) = Budgeted Sales (units) - Breakeven Sales (units)
= 2,400 - 1,500
Margin of safety (in units) = 900 units
The margin of safety indicated that sales would have to decrease by 900 units and revenue by $450,000 before the breakeven point is reached.
Margin of safety percentage = Margin of safety in dollars / Budgeted revenues
= $450,000 / $1,200,000 * 100 = 37.5%
This result means that revenue would have to decrease substantially, by 60%, to reach the breakeven revenues.
5. Let we assume that the budgeted sales mix (2,500 units of chad windows sold for every 1,000 units of Musk windows sold, that is a ratio of 5:2) will not change at different levels of total unit sales.
Number of units of Contribution Margin
Chad Windows and per unit for Chad Windows
Musk Windows in and Mask Windows Contribution
each bundle margin the bundle
Chad Windows 5 $100 $500
Musk windows 2 $75 $150
Total $650
To calculate breakeven point, we calculate the number of bundles Bernard needs to sell.
Breakeven point in bundles = Fixed cost / Contribution margin per bundle
= $195,000 / $650 = 300 bundles
a. Breakeven point in units of Chad Windows and Musk windows is as follows:
Chad windows: 300 bundles× 5 units per bundle = 1,500 units
Musk windows: 300 bundles ×2 units per bundle = 600 units
Total number of units to breakeven = 1,500 + 600 = 2,100 units
b. The breakeven point in dollars for Chad windows and Musk windows is as follows:
Chad windows: 1,500 units × $500 per unit = $750,000
Musk windows: 600 units ×$350 per unit = $210,000
Breakeven revenue = $750,000 + $210,000 = $960,000
A recent survey of 280 small firms (with annual revenue less than $12 million) asked whether an increase in the minimum wage would cause the firm to decrease capital spending. Possible responses to the survey question were: "Yes," "No," or "Don’t Know." This data is best classified as
Answer:
nominal scale
Explanation:
nominal scale are scales that are used to assign events into discrete classifications.
Nominal scales have no order and there is no means to measure the distance between the possible responses. they are just classifications.
Blue Sky Drone Company has a total asset turnover ratio of 3.50x, net annual sales of $25 million, and operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 7% interest rate. To analyze a company’s financial leverage situation, you need to measure the firm’s debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone’s debt management ratios?
Answer:
The values for Blue Sky Drone’s debt management ratio is 0.35
Explanation:
In order to calculate the values for Blue Sky Drone’s debt management ratios we would have to make the following calculation:
debt management ratio=Total Debt / Total Assets
According to the given we have that it reported total debt of $2.50 million.
To calculate the total assets we would have to use the following formula:
Total Asset Turnover Ratio = Net Sales / Total Assets
3.50=$25,000,000/Total Assets
Total Assets=$25,000,000/3.50
Total Assets=$7,142,857
Therefore, debt management ratio=$2,500,000/$7,142,857
debt management ratio=0.35
The values for Blue Sky Drone’s debt management ratio is 0.35
2016
Mar. 1 Borrowed $ 240,000 from Naples Bank. The twelve-year, 9% note requires payments due annually, on March 1. Each payment consists of $ 20,000 principal plus one year's interest.
Dec. 1 Mortgaged the warehouse for $ 400 comma 000 cash with Sage Bank. The mortgage requires monthly payments of $ 5,000. The interest rate on the note is 11% and accrues monthly. The first payment is due on January 1, 2017.
31 Recorded interest accrued on the Sage Bank note.
31 Recorded interest accrued on the Naples Bank note. 2017
Jan. 1 Paid Sage Bank monthly mortgage payment.
Feb. 1 Paid Sage Bank monthly mortgage payment.
Mar. 1 Paid Sage Bank monthly mortgage payment.
1 Paid first installment on note due to Naples Bank.
Required:
Journalize be transactions in me Green Pharmacies general journal.
Answer:
Green Pharmacies
General journal
Mar. 1:
Debit Cash Account $240,000
Credit Bank 9% Notes Payable (Naples Bank) $240,000
To record the issue of notes payable.
Dec. 1
Debit Warehouse Mortgage $400,000
Credit Warehouse $400,000
To record the transfer of the house to a mortgage bank.
Debit Cash Account $400,000
Credit Mortgage Payable (Sage Bank) $400,000
To record the receipt of cash from the mortgage.
Dec. 31:
Debit Interest on Mortgage Note Expense $3,667
Credit Interest on Mortgage Note Payable $3,667
To record the interest due for the month.
Dec. 31:
Debit Interest on Bank Note Expense $18,000
Credit Interest on Bank Notes Payable $18,000
To accrue interest for 10 months.
Jan. 1:
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Jan. 31:
Debit Interest on Mortgage Note Expense $3,667
Credit Interest on Mortgage Note Payable $3,667
To record the interest due for the month.
Feb. 1:
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Feb 28:
Debit Interest on Bank Note Expense $3,600
Credit Interest on Bank Notes Payable $3,600
To accrue interest for 2 months.
Mar. 1
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Mar. 1:
Debit Notes Payable (Naples Bank) $20,000
Debit Interest on Bank Notes Payable $21,600
Credit Cash Account $41,600
To record the first repayment of principal and interest.
Explanation:
Journals are initial records made in an accounting book. It shows the debit and credit aspects of each business transaction.
Risk and Return. Suppose that the risk premium on stocks and other securities did, in fact, rise with total risk (i.e., the variability of returns) rather than just market risk. Explain how investors could exploit the situation to create portfolios with high expected rates of return but low levels of risk. (LO12-2)
Answer:
The overview of the given scenario is described in the explanation segment below.
Explanation:
Diversification could never eradicate the systematic risk. It's indeed primarily even though all securities shift somewhat in unison (a significant part of their volatility is purposeful) also that diversified stock strategies remain volatile. Additionally, if I am a thing that separates by purchasing a proportion throughout the S & P indicator, I would also have indeed very variable returns because the global economy as a whole has been fluctuating widely.The unsystematic risk seems to be the volatility in share markets arising through factors unique to something like an individual's abilities. The risk involved with this kind of volatility is essentially the form whereby diversification could increasing.The entire premise of portfolio selection would be that, to both the degree that shares don't shift in unison all of the occasions, variations throughout the performance from every other given sector appear to have been wiped clean or softened out by additional differences in contributions from several other investments.The purpose of a buffer statement in a negative message is to ________. a. ensure that the company avoids legal liability. b. reduce the reader's shock or pain related to the bad news. c. inform the reader of the reasons for the bad news. d. explain company policy regarding the bad-news message.
Answer:
The correct answer is: b. reduce the reader's shock or pain related to the bad news.
Explanation:
Communication is a fundamental tool that promotes synergy for a company to achieve its objectives and goals. Through this process, it is possible to pass on essential information, integrate employees, strengthen the organization's reputation, promote a good relationship with the internal and external environment, etc.
However, many times companies also need to transmit some bad news, so it is important that there are resources and tools so that communication is carried out in a clear and effective manner without causing any type of situation that alarms the recipients of the message, therefore the buffer statement is used at the beginning of a letter or commercial communication to reduce the impact of bad news, helping to prepare the reader for what will be communicated, explaining the context of the message in a more neutral and not so alarming way.
Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year:
Total assets $ 530,000
Total noncurrent assets 362,000
Liabilities:
Notes payable (8%, due in 5 years) 15,000
Accounts payable 56,000
Income taxes payable 14,000
Liability for withholding taxes 3,000
Rent revenue collected in advance 7,000
Bonds payable (due in 15 years) 90,000
Wages payable 7,000
Property taxes payable 3,000
Note payable (10%, due in 6 months) 12,000
Interest payable 400
Common stock 100,000
1-a. What is the amount of current liabilities?
1-b. Compute working capital.
2. Would your computation be different if the company reported $250,000 worth of contingent liabilities in the notes to its financial statements?
Answer:
Diane Corporation
1-a. Amount of Current Liabilities:
$102,400
1-b. Computation of working capital:
Working capital = Current assets minus Current liabilities
= $168,000 - 102,400 = $65,600
2. Computation of working capital with contingent liabilities of $250,000 in the notes to the financial statements:
If the contingent liabilities are likely to occur, since the amount has been ascertained, the working capital would have been different.
Working capital would have been = 168,000 - 102,400 - 250,000 = ($184,400).
Explanation:
a) Current Liabilities:
Accounts payable 56,000
Income taxes payable 14,000
Liability for withholding taxes 3,000
Rent revenue collected in advance 7,000
Wages payable 7,000
Property taxes payable 3,000
Note payable (10%, due in 6 months) 12,000
Interest payable 400
Total current liabilities $102,400
b) Current Assets = Total assets minus noncurrent assets
= $530,000 - 362,000 = $168,000
c) Contingent liabilities are probable future financial obligations. They become probable to occur in the future as a result of some past events. If it is probable that they would occur and the amount involved can be reasonably estimated, they are recognized in the accounts. If the amount cannot be ascertained, they are presented as notes to the financial statements.
d) Current liabilities are the financial obligations owed by an entity to others as a result of past transactions, and their payment or settlement is usually due within the next 12 months.
e) Working capital is the difference between current assets and current liabilities of a company. It is called working capital because they are the net resources that can be used in the business operations of the company within the current period.
1-a. The amount of Current Liabilities is $102,400.
1-b. The working capital is $65,600.
2. The contingent liabilities($184,400).
Diane Corporation
Answer 1-a)
The amount of Current Liabilities is :
Entries Amount($)
Accounts payable 56,000
Income taxes payable 14,000
Liability for withholding taxes 3,000
Rent revenue collected in advance 7,000
Wages payable 7,000
Property taxes payable 3,000
Note payable (10%, due in 6 months) 12,000
Interest payable 400
Total current liabilities $102,400
The amount of Current Liabilities is $102,400.
Answer 1-b.
The computation of working capital is :
Current Liabilities = $102,400
Current Assets
Current Assets = Total assets - noncurrent assets
Current Assets = $530,000 - 362,000
Current Assets= $168,000
Working capital = Current assets - Current liabilities
Working capital = $168,000 - 102,400
Working capital = $65,600
The working capital is $65,600.
Answer 2:
The computation the company reported $250,000 worth of contingent liabilities in the notes to its financial statements is :
Computation of working capital with contingent liabilities =$250,000
If the contingent liabilities are likely to occur, since the amount has been ascertained, the working capital would have been different.
Working capital = Current Assets- Current Liability- Working Capital
Working capital = 168,000 - 102,400 - 250,000
Working capital = ($184,400).
Learn more about Liabilities:
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Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.22 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $36.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $83.33 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 72 191 Number of tiers on the cake 6 4 Cost of purchased decorations for cake $ 21.45 $ 77.65 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Ericson wedding cake to just break even
Answer:
$409.88
Explanation:
The computation of the amount that the company have to charge for break even is shown below:
Particulars Ericson Wedding Rate Amount
Guest 72 $1.22 $87.84
Tiers 6 $36.21 $217.26
Orders 1 $83.33 $83.33
Decoration 1 $21.45 $21.45
Total $409.88
We simply applied the number of units with the rate so that the final amount could come
The Horstmeyer Corporation commenced operations early in 2018. A number of expenditures were made during 2018 that were debited to one account called intangible asset. A recap of the $223,000 balance in this account at the end of 2018 is as follows:
Date Transaction Amount
2/3/18 State incorporation fees and legal costs related to
organizing the corporation $ 10,000
3/1/18 Fire insurance premium for three-year period 5,000
3/15/18 Purchased a copyright 35,000
4/30/18 Research and development costs 55,000
6/15/18 Legal fees for filing a patent on a new product resulting
from an R&D project 5,000
9/30/18 Legal fee for successful defense of patent developed above 27,000
10/13/18 Entered into a 10-year franchise agreement with franchisor 55,000
Various Advertising costs 31,000
Total $ 223,000
Required: Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions.
Answer:
Journal Entry to record various expenditure incorrectly charged to the intangible asset account
Date Account Title Debit Credit
Organisation cost expenses $10,000
Prepaid insurance $5,000
Copyright $35,000
Research and development exercise $55,000
Patent $32,000
Franchise $55,000
Advertising expenses $31,000
Intangible asset $223,000
(To record the cash expenditure)
Working note
Patent cost= Legal fee for filling a patent + Legal fee for defense
= $5,000 + $27,000
= $32,000
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $235,000 Actual manufacturing overhead cost $244,200 Estimated machine hours 20,300 Actual machine hours 22,700 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to
Answer:
$11.58 per machine hour
Explanation:
Given that: Estimated Manufacturing overhead cost =$235,000, Actual manufacturing overhead cost = $244,200 Estimated machine hours = 20,300, Actual machine hours= 22,700
The predetermined manufacturing overhead rate per machine hour = Estimated manufacturing overhead cost / Estimated machine hours
= $235,000 / 20,300
= $11.5763
= $11.58 per machine hour
A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:
Answer:
A debit to Land for $12,000
Explanation:
The entry to record in this transaction include a debit to Land for $12,000
Particulars Debit Credit
Land $84,000
Common stock $12,000
(6,000 * $2)
Paid in capital in excess $72,000
of par, common stock
Lake Charles Seafood makes 550 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts per day instead. The plant is now able to produce 700 boxes per day.
Required:
a. Before the change in work rules, the company's productivity per day
b. Based on the changes made, the percent increase in productivity
c. If production is increased to boxes per day (with the three 8-hour shifts), the new productivity equals
Answer:
a. Before the change in work rules, the company's productivity per day
= 550 packing boxes / 20 hours = 27.5 packing boxes per hour
b. Based on the changes made, the percent increase in productivity
productivity after the change = 700 packing boxes / 24 hours = 29.17 packing boxes per hour
productivity change = (29.17 - 27.5) / 27.5 = 6.07%
c. If production is increased to boxes per day (with the three 8-hour shifts), the new productivity equals
700 packing boxes per day (prior productivity of 550 packing boxes per day, which represents a 27.27% increase)
productivity = output / unit of time
Concord Company provides for bad debt expense at the rate of 2% of accounts receivable. The following data are available for 2018: Allowance for doubtful accounts, 1/1/18 (Cr.) $ 12700 Accounts written off as uncollectible during 2018 9200 Ending accounts receivable 1199000 The Allowance for Doubtful Accounts balance at December 31, 2018, should be $3500.00. $20480.00. $27480.00. $23980.00.
Answer:
$27,480
Explanation:
Calculation for Allowance for Doubtful Accounts balance at December 31, 2018
Using this formula
Allowance for Doubtful Accounts=( Ending accounts receivable ×Bad debt expense rate ) + (Allowance for doubtful accounts -Accounts written off as uncollectible)
Let plug in the formula
Allowance for Doubtful Accounts=(1,199,000 ×2%) +(12,700-9,200)
Allowance for Doubtful Accounts =23,980+3,500
Allowance for Doubtful Accounts= $27,480
Therefore the Allowance for Doubtful Accounts balance at December 31, 2018 should be $27,480
A stock has an expected return of 15.0 percent, its beta is 0.90, and the risk-free rate is 5.3 percent. What must the expected return on the market be
Answer:
16.07%
Explanation:
The computation of the expected return on the market is shown below
As we know that
Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )
15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)
15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%
10.77% = Expected Market Rate of Return - 5.3 %
So, expected market rate of return is
= 10.77 + 5.3%
= 16.07%
We simply applied the above formula
During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for 10$ each and his sales averaged 20 per day. When he increased the price by , he found that the average decreased by two sales per day.(a) Find the demand function, assuming that it is linear.(b) If the material for each necklace costs Terry 6$ , what should the selling price be to maximize his profit?
Answer:
$13.00
Explanation:
has bonds on the market with 19.5 years to maturity, a YTM of 6.6 percent, a par value of $1,000, and a current price of $1,043. The bonds make semiannual payments. What must the coupon rate be on these bonds?
Answer:
The coupon rate must be 7%
Explanation:
See attached file
Xbox and PlayStation pay close attention to video game blogs to monitor the latest trends and popular games, because they know that video game players always want the newest games. This information helps Xbox and Playstation create new products in order to
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Keep up in the market where sales come primarily from new products
b) Satisty engineering and design needs and specifications
c) Take advantage of the long product lifecycle of video games
d) Create diversification and reduce risk
e) Avoid market penetration of products that have been on the market for a long time.
And the correct answer is the option B: Satisfy engineering and design needs and specifications.
Explanation:
To begin with, the fact that those companies and others pay close attention to the video game blogs is because their managers know no just that the gamers always want the newest games but also because in that way they can know what are the current problems of the video games and what are the mistakes that need to be correct it in order to upgrade the next game and selling it by all its new features. Therefore that by doing that they try to understand the gamers needs and specifications of engineering and design of the games so in that way they would by more of the better games and the sales would increase.
Larkspur Appliance Co. manufactures low-price, no frills appliances that are in great demand for rental units. Pricing and cost information on Larkspur main products are as follows. Item Standalone Selling Price (Cost) Refrigerator $500 ($260 ) Range 570(270 ) Stackable washer/dryer unit 690(400 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800.The bundle price includes delivery and installation. Larkspur also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Larkspur Appliance Co. On June 1, 2017, Larkspur sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Larkspur offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
The journal entries to record the sale on June 1 are:
June 1, 2017, 100 units of washer/dryer to Laplante Rentals
Dr Cash 69,000
Cr Sales revenue 69,000
Dr Cost of goods sold 40,000
Cr Inventory 40,000
If the next question asks to record the return privilege and estimates, it should be recorded as both an asset (estimated returns inventory) and a liability (customer refunds payable).
Huprey Co. is the defendant in the following legal claims. For each of following claims, does Humphrey (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Humphrey can reasonably estimate that a pending lawsuit will result in damages of $1,280,000it is probable that Huprey will lose the case. Have no disclosure. Disclose in notes. Record a liability. 2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. Record a liability. Disclose in notes. Have no disclosure. 3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case. Disclose in notes. Record a liability. Have no disclosure.
Answer:
1. Record a liability.
2. Disclose in notes.
3. Disclose in notes.
Explanation:
The issue here relates to a Contingent Liability which is a provision that is recorded in the books as a liability if there is a likelihood that the firm will incur it in future. This is usually done for law suits.
The general rule is: Record a liability if the loss is probable and estimable.
If a loss is not probable, disclose it in the notes.
If a loss is not estimable, disclose it in the notes.
1. Loss is both estimable and it is probable that Humphrey will lose the case. It should be recorded as a liability.
2. It is probable that Humphrey will lose the case however, loss is not estimable. Disclose in the notes.
3. It is not probable that Humphrey will lose the case. Disclose in the notes.
According to its 2013 10-K, how many more shares can Colgate repurchase in the future under it share repurchase program?
Answer:
The correct answer is -25,937,562
Explanation:
25,937,562 additional offers can be repurchased by Colgate later on under its offer repurchase program as indicated by its 2013 10-K. Likewise, 6,760,592 offers were repurchased by the organization.
31,905,271 offers and 30,425,271 offers were as far as possible for repurchase in the classification of Maximum Number of Shares that may yet be bought under the plans or projects however the most recent cutoff for Maximum Number of Shares that may yet be bought under the plans or projects is 25,937,562 Shares.
Thus, the correct answer is -25,937,562
The charitable organization Heifer International uses donations to provide people in developing nations with farm animals to help feed hungry families. Heifer International is therefore contributing to
Answer:
Subsistence farming
Explanation:
With the provision of such donations, Heifer international is contributing to subsistence farming.
Subsistence farming is a kind of farming where proceeds from the farm are for immediate consumption. Peop who engage in such farming do it to meet the immediate needs of themselves and their families. Heifers donation is targeted towards breeding of farm animals for the people to feed, which is basically for their survival. This is what makes it a contribution to subsistence farming.
A U.S.-based company, Global Products Inc., has wholly owned subsidiaries across the world. Global Products Inc. sells products linked to major holidays in each country.
The president and board members of Global Products Inc. believe that the managers of their wholly owned country-level subsidiaries are best motivated and rewarded with both annual salaries and annual bonuses. The bonuses are calculated as a predetermined percentage of pretax annual income.
Señora Larza, the president of Global Products of Mexico, has worked hard this year to make her Mexican subsidiary profitable. She is looking forward to receiving her annual bonus, which is calculated as a predetermined percentage (15 percent) of this year's pretax annual income earned by Global Products of Mexico. A condensed income statement for Global Products of Mexico for the most recent year is as follows (amounts in thousands of pesos).
Sales MXN 25,000
Expenses 23,000
Pretax Income MXN 2,000
The U.S. headquarters financial group translates each of its wholly owned subsidiary's results into U.S. dollars for evaluation. After translating the Mexican pesos income statement into U.S. dollars, the condensed income statement for Global Products of Mexico is as follows (amounts in thousands of dollars).
Sales US $7,000
Expenses 8,100
Pretax Income US $(1,100)
Required:
A1. Calculate the bonus amount based on (1) the Mexican peso-based Pretax Income and (2) the U.S. dollar-based Pretax Income.
A2. Translate the peso-based bonus to U.S. dollars using a current exchange rate.
B. Calculate the average exchange rate used to translate the Mexican pesos income statement into the U.S. dollar statement for the categories: (1) Sales and (2) Expenses.
A1. Bonus on mexican peso-based Pretax Income
Bonus U.S. dollar-based Pretax Income
A2. U.S. dollars
B. Average exchange rate for sales pesos
Average exchange rate for expenses pesos
Answer:
Global Products Inc.
Global Products of Mexico
Señora Larza
A1. Bonus on mexican peso-based Pretax Income
= MXN 2,000 x 15% = MXN 300
Bonus U.S. dollar-based Pretax Income
= -$1,100 x 15% = -$165, there is no U.S. dollar-based bonus
A2. U.S. dollars
Current Exchange rate = US$1 = MXN 20.0369 (July 18, 2020)
MXN 2,000 = MXN 2,000/MXN 20.0369 = $98.19
B. Average exchange rate for sales pesos
Sales MXN 25,000 = US $7,000,
The exchange rate = US $1 = MXN 3.5714 (MXN 25,000/ US $7,000)
Average exchange rate for expenses pesos
Expenses MXN 23,000 = US $ 8,100
The exchange rate = US $1 = MXN 2.8395 (MXN 23,000/US $ 8,100)
Explanation:
Señora Larza, the president of Global Products of Mexico seems to have a bonus in Mexican peso, but when the bonus pre-tax income is translated into US dollars, the bonus turns negative just like the pre-tax income was negative. This implies that since the U.S. headquarters translates each subsidiary's results into U.S. dollars for evaluation, Señora Larza did not qualify for bonus payment for the current year.
The disparity is caused by the different exchange rates for translating the sales revenue and the expenses. Exchange rates are the rates at which currencies exchange their values for international account settlements.
S10-5 (book/static) On February 28, 2017, Rural Tech Support purchased a copy machine for $ 53 comma 400. Rural Tech Support expects the machine to last for six years and to have a residual value of $ 3 comma 000. Compute depreciation expense on the machine for the year ended December 31, 2017, using the straight-line method.
Answer:
$7,000
Explanation:
depreciation expense using straight line method = (purchase cost - salvage value) / useful life = ($53,400 - $3,000) / 6 years ) = $8,400 per year
since the machine was used for 10 months, the depreciation expense for 2017 = $8,400 x 10/12 = $7,000
the adjusting journal entry should be:
December 31, 2017, depreciation expense
Dr Depreciation expense 7,000
Cr Accumulated depreciation - copy machine 7,000
On March 1, sather co. Sold merchandise to Boone Co. on account for $30,100 terms 2/15 n/30 the cost of the merchandise sold is $19,600. The merchandise was paid for on March 14. Assume all discounts are taken.
Journalize the entries for sather co. And Boone. Co. For the sale, purchase, and payment of amount due.
Answer:
1.March 1
Dr Accounts Receivable-Boone Co 29,498
Cr Sales 29,498
2.March 1
Dr Cost of Merchandise Sold 19 600
Cr Merchandise Inventory 19,600
3.March 14
Dr Cash 29,498
Cr Accounts Receivable-Boone Co.29,298
Explanation:
Preparation of the Journal entries for sather co. And Boone. Co. For the sale, purchase, and payment of amount due.
Explanation:
1. Preparation of the Journal entry to record sales .
Since On March 1, sather co tend to Sold merchandise to Boone Co. on account for $30,100 terms 2/15 n/30 the transaction will be recorded as :
March 1
Dr Accounts Receivable-Boone Co 29,498
2%×30,100=602
30,100-602= 29,498
Cr Sales 29,498
2. Journal entry to record purchase
Since tthe cost of the merchandise sold was $19,600 the transaction Wii be recorded as:
March 1
Dr Cost of Merchandise Sold 19 600
Cr Merchandise Inventory 19,600
3. Preparation of the Journal entry to record payment of amount due.
.Since we were told to record the payment about intrest due the Journal entry Wii be recorded as;
March 14
Dr Cash 29,498
Cr Accounts Receivable-Boone Co.29,298
In the "Input Analysis" section of the spreadsheet model, calculate the correlations between the sales of each type of product and event attendance. Use appropriate ranges from the "Past Event" worksheet for your calculations.
Answer:
The correct formula will be :
=average(past event tab then col in that tab) use this for att, programs, food, and merch
=AVERAGE('Past Events'!C4:C103)
Explanation:
To calculate the correlation between the sales of each kind of product and event attendance, from the Input analysis part of the spreadsheet model.
According to the information provided, in the targeted cell, we will use formula
=Average(data cells)
and for other part of the question is to calculate sales. For this part we can simply use the sum formula, first, we will sum the sales for a single item in past events column than at the end of the past column.
Thus, the correct formula will be :
=average(past event tab then col in that tab) use this for att, programs, food, and merch
=AVERAGE('Past Events'!C4:C103)
Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 127 units. The following is the BOM in indented form:
ITEM DESCRIPTION USAGE
X Bracket assembly 1
A Wall board 5
B Hanger subassembly 2
D Hanger casting 3
E Ceramic knob 2
C Rivet head screw 3
F Metal tong 4
G Plastic cap 1
Below is a table indicating current inventory levels:
Item X A B C D E F G
Inventory 27 19 74 23 201 262 975 100
b. What are the net requirements for each item? (Leave no cells blank - be certain to enter "0" wherever required.)
Item Net Requirements
X
A
B
C
D
E
F
G
Answer and Explanation:
The computation of net requirements for each item is shown below:-
Net requirement = Gross requirement - Inventory
To compute the Gross requirement we will use the following formulas:
A = 5 × Net requirement of X
= 5 × 127
= 635
B = 2 × Net requirement of X
= 2 × 127
= 254
C = 3 × Net requirement of X
= 3 × 127
= 381
D = 3 × Net requirement of B
= 3 × 180
= 540
E = 2 × Net requirement of B
= 2 × 180
= 360
F = 4 × Net requirement of C
= 4 × 358
= 1,432
G = 1 × Net requirement of C
= 1 × 358
= 358
Item Gross Requirement Inventory Net Requirement
X 127 1 127
A 635 19 616
B 254 74 180
C 381 23 358
D 540 201 339
E 360 262 98
F 1,432 975 457
G 358 100 258
Therefore we have applied the net requirement formula.
Fiona, a regional sales manager, works from her office in State U. Her region includes several states, as indicated in the sales report below. Fiona is compensated through straight commissions on the sales in her region and a fully excludable cafeteria plan conveying various fringe benefits to her. Determine how much of Fiona’s $250,000 commissions and $75,000 fringe benefit package is assigned to the payroll factor of State U.
State Sales Generated Fiona’s Time Spent There
U $3,000,000 20%
V 4,000,000 50%
X 8,000,000 30%
Answer:
Payroll factor State U:
commissions $50,000fringe benefit package $15,000Explanation:
State Sales Generated Fiona’s Time Spent There
U $3,000,000 20%
V $4,000,000 50%
X $8,000,000 30%
Sales percentage generated in state U = $3,000,000 / $15,000,000 = 20%
so 20% of the $250,000 commissions should be assigned to state U = $50,000
Time spent in state U = 20% x $75,000 fringe benefits = $15,000 assigned to state U