Answer:
it can make a difference in how well an organization performs.
Explanation:
The main reason strategic management is important is it can make a difference in how well an organization performs. This is because strategic management involves setting objectives, analyzing both the competitive and internal environment, evaluating strategies, and choosing the right strategies, by doing so the entire organization stays focused and united towards the same goal. This makes everything much more efficient and decreases confusion.
GDP would include all of the following except:
a. income earned for engineering services.
b. income earned by an airline pilot.
c. tips earned but not reported by a waitress at an upscale restaurant.
d. the purchase of a new automobile by a school.
e. the purchase of a new home by a retired couple.
Answer:
The correct answer is the option C: tips earned but not reported by a waitress at an upscale restaurant.
Explanation:
To begin with, the Gross Domestic Product or GDP comprehends in economic terms the monetary measure of the market value of all the final goods that an economy produces in a certain amount of time. Moreover, this measure is formed by different variables that are the consumption, investment, government spending and net exports. And in that scenario, all the of the cases presented will be included in the GDP of the economy except the tips that are not reported due to the fact that those earnings will figured as out of the circular flow of economy as it will represent a leak, a filtration of the system.
Answer:
The correct answer is C
DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Inc., for exist240 each, terms 1/10, n/60. August 7 Pays exist440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for exist260 each to customers on account. The total cost of the 58 game devices sold is exist14, 145.37. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
Answer:
August 6
DR Inventory $18,720
CR Accounts Payable $18,720
(To record purchase of goods for sale)
= 76 devices * $240
= $18,720
August 7
DR Inventory $440
CR Cash $440
(To record shipping costs of Inventory)
August 10
DR Accounts Payable $1,920
CR Inventory $1,920
(To record Purchase returns)
August 14
DR Accounts Payable $16,800
CR Inventory $168
CR Cash $16,632
(To record payment of purchases)
Working
Accounts Payable = Purchases - Returns
= 18,720 - 1,920
= $16,800
Inventory
Goods were purchased terms 1/10 meaning a 1% discount is goods paid for in 10 days.
= 1% * 16,800
= $168
August 23
DR Accounts Receivable $15,080
CR Sales Revenue $15,080
(To record sales of goods on account)
Sales Revenue = 58 devices * 260
= $15,080
August 23
DR Cost of Goods Sold $14,145.37
CR Inventory $14,145.37
(To record cost of Goods sold)
You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,000 in two years. If you have an investment opportunity that guarantees 7% interest, how much must you invest to have the necessary funds to purchase the elliptical machines
Answer:
$19,215.65
Explanation:
To the determine the amount to be invested, we have to find the present value of $22,000 at 7%
P= FV ( 1 + r) ^-n
FV = Future value = $22,000
P = Present value
R = interest rate = 7%
N = number of years = 2
$22,000(1.07)^-2 = $19,215.65
I hope my answer helps you
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.
Item cost $ 10.00 Standard deviation of weekly demand 25 per week
Order cost $ 250.00 Lead time 1 week
Annual holding cost (%)33 % of item cost Service probability 95 %
Annual demand 25,750
Average demand 515 per week
a. Determine the order quantity and reorder point. (Round your answers to the nearest whole number.)
Optimal order quantity units
Reorder point units
b. Determine the annual holding and order costs. (Round your answers to 2 decimal places.)
Holding cost $
Ordering cost $
c. If a price break of $50 per order was offered for purchase quantities of over 2,000, what would be the annual savings? (Round your answer to 2 decimal places.)
Answer: The answer is below...
Explanation: Answer a. Order Quantity = √2RO/C = √2 * 25750 * 250 / .33 * 10 = √1975.23 From the standard normal distribution, z = 1.64 = (515 * 1) + (1.64 * 25) = 556 Reorder point = Lead time * daily usage = 7 * 25 = 150 per week Answer b. Holding cost = Q/2 (H) = 1975/2 (.33)10 = $3,258.75 Ordering cost...
Proposed by Richard Hackman and Greg Oldham, ________ states that work has five core dimensions that impact employee satisfaction and productivity: skill variety, task identity, task significance, autonomy, and feedback.
Answer:
job characteristics model
Explanation:
The job characteristics model refers to the model in which it includes 5 characteristics or attributes i.e variety of skills, the identity of task, significance or importance of task, autonomy and the feedback
Based on these factors the performance of employees could be analyzed via department wise, project wise, etc so that it became easy for the company to take the decision which employee should be beneficial or which is not
Titanic Roofing Company has estimated the following amounts for its next fiscal year: Total fixed costs $ 833 comma 000 Sale price per unit 60 Variable cost per unit 30 If the company spends an additional $ 30 comma 000 on advertising, sales volume would increase by 2 comma 500 units. Before the change, the company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of Titanic? A. Operating income will decrease by $ 45 comma 000. B. Operating income will increase by $ 45 comma 000. C. Operating income will increase by $ 75 comma 000. D. Operating income will increase by $ 150 comma 000.
Answer: B. Operating income will increase by $ 45,000
Explanation:
Total fixed cost = $833,000
Sale price per unit = 60
Variable cost per unit = 30
Advertising = $30,000
Increase in sales volume = 2500
The contribution margin is the difference between the sales price per unit and the variable cost per unit.
= 60 - 30
= 30
Therefore, Hence the increase in the contribution margin will be:
= ($30 × 2500)=$75000
We then subtract the additional cost of $30,000 from $75,000. This will be:
= $75,000 - $30,000
= $45,000
Therefore, operating income will increase by $45,000
Use the information below to answer the following questions. U.S. $ EQUIVALENT CURRENCY PER U.S. $ Polish Zloty .2994 3.3406 Euro 1.2456 .8028 Mexican Peso .0752 13.2998 Swiss Franc 1.0352 .9660 Chilean Peso .002071 482.80 New Zealand Dollar .8080 1.2376 Singapore Dollar .8004 1.2494 a. If you have $275, how many Polish zloty can you get
Answer:
Explanation:
US $ = .2994
Polish Zloty = 3.3406 / US$
US $ = 1.2456
Euro = .8028 / US$
US$ = .0752
Mexican Peso = 13.2998 / US$
US$ = .9660
Swiss Franc = 1.0352 / US$
Us $ = -002071
Chilean Peso = 482.8/US$
US$ = .8080
New Zealand dollar = 1.2376 / US$
US $ = .8004
Singapore dollar = 1.2494/US$
$275 =
Workings
If $ 0.2994 = 3.3406 Polish zloty / US$
Using direct conversion by multiplication
Therefore $275 = 275 * 3,3406
= Polish Zloty 918.67
A year ago, the IT team earned corporate-wide recognition for its performance. More recently, it has begun to experience some declines in its performance. They have missed the last three project deadlines and have experienced budget overruns. The team leader has encouraged the team members to reflect on and adjust their purpose. To turn around the
Answer: Reflexivity
Explanation:
Here is the complete question:
A year ago, the IT team earned corporate-wide recognition for its performance. More recently, it has begun to experience some declines in its performance. They have missed the last three project deadlines and have experienced budget overruns. The team leader has encouraged the team members to reflect on and adjust their purpose. To turn around the team's performance, the team lead is encouraging the team to show __________.
a. creativity
b. adherence to norms
c. OCBs
d. reflexivity
e. cohesion
Reflexivity simply means when individuals examine their own judgements, beliefs, and practices during a project or a research process and how their judgements, practices or beliefs may have influenced or impacted the research.
From the question, we are told that a year ago, the IT team earned corporate-wide recognition for its performance but recently, it has begun to experience some declines in its performance which has led to them missing the last three project deadlines and having experienced budget overruns.
To turn around the team's performance, the team lead is encouraging the team to show reflexivity. He wants them to look at what they've been doing earlier and what they're doing presently and make necessary adjustments regarding their judgements for the goals of the organization to be achieved.
Sensitivity analysis determines the: Multiple Choice net present value range that can be realized from a proposed project. degree to which a project relies on its initial costs. ideal ratio of variable costs to fixed costs for profit maximization. range of possible outcomes given that most variables are reliable only within a stated range. degree to which the net present value reacts to changes in a single variable.
Answer:
It determines the degree to which the net present value reacts to changes in a single variable
Explanation:
Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.
It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.
During Bruce Company’s first year of operations, the company purchased $4,300 of supplies. At year-end, a physical count of the supplies on hand revealed that $1,825 of unused supplies were available for future use. How will the related adjusting entry affect the company’s financial statements?
Answer:
Supplies Used = $2475
Explanation:
Bruce Company
Supplies Purchases $4,300
Supplies on hand $1,825
Supplies Used = $ 4300- $ 1825 = $2475
The amount of Supplies used ( $ 4300- $ 1825 = $2475) will be shown in the income statement as an expense and the amount of unused supplies or Supplies on hand $1,825 will be shown in the Balance sheet as an asset account. The both of which will total the supplies actually purchased.
The relating adjusting entry will be
Supplies Expense $ 2475 Debit
Supplies Account $ 2475 Credit
This means the supplies of the amount $ 2475 have been used and is recorded as an expense in the income statement. It will be deducted from the gross profit. The remaining amount $ 1825 is for future use so recorded as an asset in the Balance Sheet and added to the total assets.
The definition of __________ is "The tools, techniques, processes, and activitiesthat accelerate any product development lifecycleto produce higher quality, more reliable, and moresecure products or projects to market on time."
Answer:
Digital innovation
Explanation:
In marketing, digital innovation refers to using new technologies and methodologies in order to accelerate the development and production of new products or services. In other words, through the use of technology we can shorten the product development stages in order to offer better products faster.
Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock. The land is subject to a $45,000 liability, which the corporation assumes. What amount of gain must Carl recognize as a result of this transaction?
Answer: $15,000
Explanation:
From the question, Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock and that the land is subject to a $45,000 liability, which the corporation assumes.
The amount of gain that Carl must recognize as a result of this transaction will be the difference between the liability the land is subjected to which is $45,000 and the basis of the land which is $30,000.
= $45,000 - $30,000
= $15,000
Rihanna Company is considering purchasing new equipment for $578,500. It is expected that the equipment will produce net annual cash flows of $65,000 over its 10-year useful life. Annual depreciation will be $57,850. Compute the cash payback period.
Answer:
The answer is 8.9 years
Explanation:
Solution
Given that:
purchase of new equipment = $578,500
Net annual cash flows =$65,000
The useful life = 10 years
Annual depreciation = $57.850
Now, we have to compute the cash payback period which given below:
The payback period (cash) = cost of capital investment/net annual cash flows
=$578.500/$65,000
=8.9 years
The cash payback period is 8.9 years
reonna Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipment's 8-year useful life, and the present value of the lease payments is less than 90 % of the fair value of the assets leased. The annual lease payment is $41,000 at the beginning of each year, and Breonna's incremental borrowing rate is 8%, which is the same as the lessor's implicit rate. The agreement is properly classified as an operating lease. Assume the equipment is carried at a cost of $280,000 and the Straight-Line method for depreciation is used. In preparing the necessary journal entries for Falls Company (the lessor) for 2020, the "Leased Equipment" account should include a debit for depreciation expense of ___________. (Enter the answer with NO commas or dollar signs!)
Answer:
$35,000
Explanation:
Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).
Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000
Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services ServicesRevenues $4,771 $4,597 Income from operations 1,681 1,660 Depreciation 171 154Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin $1,681 $1,660 If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $1,660 million.Assume the fixed assets were "sold": $ 1,506 million
Answer and Explanation:
a. The estimation of the contribution margin for each segment is shown below:
(in millions)
Particulars Investor Advisor Services Services
Income from
operations $1,681 $1,660
Add:
Depreciation $171 $154
Contribution
Margin $1,852 $1,814
2. Now the estimation of decline in operating income is
(in millions)
Particulars Combined services Institutional Services
Revenues $9,368 $4,771
Less:
Variable cost $5,702 $2,919
($2,919 + $2,783)
Contribution
margin $3,666 $1,852
Less:
Fixed cost -$325 -$171
Net income $3,341 $1,681
So according to the above calculations, the net operating income is declined by
= $3,341 - $1,681
= $1,660 million
The variable cost is come from
= Service revenues - income from operations - depreciation expense
Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. Determine the cost per case for each of the four flavors. Round your answers to two decimal places.
Answer and Explanation:
The cost per case for each of the four flavors are shown below:
Particulars Orange Cola Lemon Lime Root Beer
Total Cost Transferred
to finished goods (a) $19,125 $391,800 $324,000 $36,000
No. of Cases (b) 2,500 60,000 50,000 4,000
Cost Per Case
(a ÷ b) $7.65 $6.53 $6.48 $9
By dividing the total cost from the number of cases we can get the cost per case for each of the four flavors
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 2.10 ounces $15.00 per ounce $31.50
Direct labor 0.80 hours $15.00 per hour 12.00
Variable manufacturing overhead 0.80 hours $3.50 per hour 2.80
Total standard cost per unit $46.30
During November, the following activity was recorded, relative to production of Fludex:
a. Materials purchased, 9,420 ounces at a cost of $49,926.
b. There was no beginning inventory of materials; however, at the end of the month, 1,600 ounces of material remained in ending inventory.
c. The company employs 40 lab technicians to work on the production of Fludex. During November, they worked an average of 61.50 hours at an average rate of $12.30 per hour.
d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,658.
e. During November, 4,600 good units of Fludex were produced.
The company's management is anxious to determine the efficiency of the Fludex production activities.
Required:
1. For direct materials used in the production of Fludex, compute the price and usage variances.
2. For direct labor employed in the production of Fludex, compute the price and usage variances.
Answer:
1)
direct materials price variance = actual quantity x (actual price - standard price)
direct materials price variance = 7,820 x ($5.30 - $15) = 7,820 x (-$9.70) = -$75,854 favorable
direct materials usage variance = standard price x (actual usage - standard usage)
direct materials usage variance = $15 x (7,820 - 9,660) = -$27,600 favorable
2)
direct labor price variance = actual hours x (actual rate - standard rate)
direct labor price variance = 2,460 x ($12.30 - $15) = 2,460 x (-$2.70) = -$6,642 favorable
direct labor usage (efficiency) variance = standard rate x (actual hours - standard hours)
direct labor usage (efficiency) variance = $15 x (2,460 - 3,680) = $15 x (-1,220) = -$18,300 favorable
Suppose the corporate tax rate is 40 %40%. Consider a firm that earns $ 2 comma 500$2,500 before interest and taxes each year with no risk. The firm's capital expenditures equal its depreciation expenses each year, and it will have no changes to its net working capital. The risk-free interest rate is 5 % a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? b. Suppose instead the firm makes interest payments of $ 700$700 per year. What is the value of equity? What is the value of debt? c. What is the difference between the total value of the firm with leverage and without leverage? d. The difference in (c) is equal to what percentage of the value of the debt?
Answer: a. $30,000
b. $21,600; $14,000
c. $5,600
d. 40%
Explanation;
a. When the company is assumed to have no debt and pays its net income entirely as dividends then the Value of the firm's equity is;
= Earnings after taxes / Cost of Equity
Risk free interest rate will be used. The Earnings after taxes are used because taxes have to be taken out to find out the amount due to shareholders for the year.
= 2,500 ( 1 - 40%) / 5%
= 1,500/ 5%
= $30,000
b. If interest is paid then the Value of equity will be;
= Earnings after interest and taxes / Cost of Equity
= (2,500 - interest * ( 1 - tax) ) / Cost of Equity
= (2,500 - 700 * ( 1 - 40%) ) / 5%
= $21,600
Value of debt = Interest/cost of debt
=700/5%
= $14,000
c. The total value of the firm without Leverage has been shown to be $30,000.
The total value of the firm with leverage would be;
= Value of Equity assuming debt + Value of Debt
= 21,600 + 14,00
= $35,600
Difference;
= 35,600 - 30,000
=$5,600
d. Value of debt is $14,000
= (5,600/14,000) * 100%
= 40%
If the economy booms, RTF, Inc., stock is expected to return 11 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 72 percent while the probability of a recession is 28 percent. What is the variance of the returns on RTF, Inc., stock
Answer:
0.000988
Explanation:
For calculation of the variance of the returns on RTF, Inc., stock first we need to find out the expected rate of return which is shown below:-
Expected rate of return = (Boom percentage × Expected return) + (Recession percentage × Expected return)
= (0.72 × 0.11) + (0.28 × 0.04)
= 9.04%
The Variance of the returns = Boom percentage × (Expected return - Expected rate of return)^2 + Probability recession × (Expected return - Expected rate of return)^2
= 72% × (0.11 - 0.0904)^2 + 28% × (0.04 - 0.0904)^2
= 0.000988
Pizza is a normal good if the demand:__________
a. for pizza rises when income rises.
b. for pizza rises when the price of pizza falls.
c. curve for pizza slopes upward.
d. curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.
Answer:
a. for pizza rises when income rises.
Explanation:
A normal good is a good that people purchase more when their income increases and that have a lower demand when their income decreases, for example, clothing. According to this, the answer is that Pizza is a normal good if the demand for pizza rises when income rises.
The other options are not right because a normal good is determined by the way in which the demand of a product behaves when the income increases or decreases.
Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week. The store sells several different brands of cereal. Which of the following statements is most likely true about Laura’s consumer behavior?a. Laura is brand loyal to the grocery store, but buys the same cereal store out of inertia.b. Laura’s commitment to the grocery store is high, and her commitment to the cereal brand is low.c. Laura’s is habituated to the grocery store, and her commitment to the cereal brand is low.d. Laura is a brand switcher and is susceptible to random influences in her choice of cereal.e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.
Answer: e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.
Explanation:
From the question, we are informed that Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week even though the store sells several different brands of cereal.
The most likely reason for this is that Laura loves that particular brand of cereal she buys maybe due to its packaging, taste, quality etc. So, in this case she is brand loyal to that particular brand of cereal as she won't like to buy or consume any other brand apart from that but she visits the same store out of inertia as its the only store across the street from her apartment building
If there were other stores, she could have gone into them but will still purchase the same brand of cereal.
Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: An emotional one for the project team. An emotional one for the clients. One that is external and intellectual. One that is internal and intellectual.
Answer:
Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: One that is external and intellectual.
Explanation:
External issues do not affect an entity obviously. The clients shifting new people into projects and moving their key people to new challenges know why they must be doing so. It may be to encourage organizational learning. It may be because the key people have been promoted and need to move to higher positions.
Most importantly, it is the clients as entities that we should be concerned and deal with. Clients like other organizational entities have systems, processes, and policies that they work with to produce results. Their internal management should remain internal and not be externalized by overtly and overzealous outsiders.
The following information is available for Quality Book Sales's sales on account and accounts receivable:
Accounts Receivable Balance, January 1, Year 2 $ 78,500
Allowance for Doubtful Accounts, January 1, Year 2 4,710
Sales on Account, Year 2 550,000
Collections of Accounts Receivable, Year 2 556,000
After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5 percent of sales on account will be uncollectible.
Required
Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) Net realizable value of receivables at the end of Year 2.
Answer:
1) Amount of uncollectible accounts expenses is $ 2,750
2) Net realizable value of receivables at the end of Year 2 is $65,040
Explanation:
Accounts Receivable Balance, January 1, Year 2 = $ 78,500
Allowance for Doubtful Accounts, January 1, Year 2 = $4,710
Sales on Account, Year 2 = $550,000
Collections of Accounts Receivable, Year 2 = $556,000
1) Amount of uncollectible accounts expenses = $550,000 ×0.5% = $ 2,750
2) Allowance for doubtful accounts, beginning balance = $4,710
Less: Write off = $ -2,850
Add: Uncollectible accounts expense for the year = $2,750
Allowance for doubtful accounts, ending balance = $4,610
Accounts receivable, Beginning balance =$78,500
Add: Credit sales = $550,000
Less: Collections = $-556,000
Less: Write off = $-2,850
Accounts receivable, Ending balance = $69,650
Accounts receivable, Ending balance = $69,650
Less: Allowance for doubtful accounts, ending balance = $-4,610
Net realizable value = $65,040
If after several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5 percent of sales on account will be uncollectible.
Using the allowance method, the amount of uncollectible accounts expense for Year 2 will be $2,750Net realizable value of receivables at the end of Year 2 will be $65,0401) Uncollectible account expense
Uncollectible account expense = $550,000×0.5%
Uncollectible account expense= $2,750
2) Net realizable value
First step is to calculate the ending account receivable
Ending account receivable = $78,500+$550,000-$556,000-$2,850
Ending account receivable=$69,650
Second step is to calculate the ending allowance for doubtful accounts
Ending allowance for doubtful accounts =$4,710+$2,750-$2,850
Ending allowance for doubtful accounts=$4,610
Now let determine the Net realizable value using this formula
Net realizable value=Ending account receivable-Ending allowance for doubtful accounts
Let plug in the formula
Net realizable value =$69,650 -$4,610
Net realizable value =$65,040
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The Boxwood Company sells blankets for $ 37.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Product Z Units Cost May 01 Purchase 7 $15.00 May 10 Sale 5 May 17 Purchase 10 $16.00 May 20 Sale 8 May 23 Sale 3 May 30 Purchase 12 $24.00 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.
Answer:
$128
Explanation:
The FIFO inventory system means first in , first out. It means that it is the first purchased inventory that is the first to be sold.
Under the perpetual system, the cost of goods sold Under the FIFO system would be taken from the most recent inventory purchase prior to the sale.
The most recent inventory purchase prior to the sale occurred on the 17th. The price at which the inventory was purchased on the 17th would be used to calculate the cost of goods sold
So the cost of goods sold = $16.00 × 8 = $128
I hope my answer helps you
On August 31,the balance sheet of La Brava Veterinary Clinic showed cash $9,000,Account receivable$1700,supplies $600,equipments $6000,account payable $3600,common stock $13,00 and retained earings $700. During september,the following transaction occur
1. paid $2900 cash for accounts payable
2. collected $1,300 of accounts receivable
3. purchased additional equipments for $2100,paying $800 in cash and the balance on account
4. recognized revenue of $7300 of which $1500 is collected in cash and balance due in october
5. declared and paid $400 cash dividend
6. paid salaries $1700 rent for september $900,and advertising expense $200
7. Incurred utilities expense for month on account $170
8. Received $10,000 from capital bank on 6 month note payable
a. prepare a tabular analysis of september transactions begin with august 31 balances.column headings: cash,account receivable,supplies,equipments,account payable,common stock,retain earnings with separate column for revenues,expenses,dividends.Including margin explanation changes in retain earnings. Revenue is called Service Revenueb. prepare an income statements for september,a retained earnings statements for september,and a balance sheet at september 30.
Answer:
Brava Veterinary Clinic
a) Tabular Analysis of September Transactions:
see attached.
b1) Income Statement for September:
Service Revenue $7,300
Expenses:
Salaries $1,700
Rent 900
Advertising 200
Utilities 170 ($2,970)
Net Income $4,330
b2) Retained Earnings Statements for September
Net Income $4,330
Beginning Retained Earnings $700
Dividends ($400)
Ending Retained Earnings $4,630
b3) Balance Sheet at September 30:
Assets:
Cash $14,900
Accounts Receivable 6,200
Supplies 600
Equipment 8,100
Total Assets $29,800
Liabilities + Equity:
Accounts Payable $12,170
Common Stock 13,000
Retained Earnings 4,630
Total Liabilities + Equity $29,800
Explanation:
Financial Statements (Income Statement and Balance Sheet) are prepared at the end of a period to show the financial performance (Net Income) and the financial position (Assets = Liabilities + Equity) of a business entity.
A tabular statement of transactions illustrates the changes that have taken place during the period as a result of transactions. Transactions affect the Assets and Liabilities and Equity equally. The excess of revenue over expenses gives a net income.
Answer:
For a better visualization of the answer the first point was attached as an image.
Income Statement
Sales Revenues 7300
Salaries expense (1700)
Rent Expense (900)
Advertising Expense (200)
Utilities expense (170)
Net Income 4,330
Retained Earnings
Beginning 700
Income 4,330
Dividends (400)
Ending 4,630
Balance Sheet
Cash 14,900
Account Receivables 6,200
Supplies 600
Current 21,700
Equipment 8,100
Total Assets 29,800
Liablities
Account Payable 2,170
Note Payable 10,000
Total Liabilities 12,170
Equity
Common Stock 13,000
Retained Earnings 4,630
Total Equity 17,630
Total Liabilities + Equity 29,800
Explanation:
The dividends paid are not considered an expense.
We consider revenues and expense using the accrual basis rather than cash basis so we also recognize accrued expense (utilities ) and accrued revenues (sales which weren't paid right away)
For the Balance sheet the equipment is considered long.temr asset as their usefil life exceed a year.
The note payable while it is different from account payable is also a current liaiblity as it is due within the one-uyear window.
Vargas Company uses the perpetual inventory method. Vargas purchased 800 units of inventory that cost $9.00 each. At a later date the company purchased an additional 1,200 units of inventory that cost $10.00 each. Vargas sold 900 units of inventory for $13.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:
Answer:
$8200
Explanation:
FIFO means first in first out. It means that it is the first purchased inventory that is the first to be sold.
The cost of the 900 units sold, would be:
800 x 9 = $7200
100 × $10 = $1000
Total = $8200
I hope my answer helps you
A major advantage of S corporations is that they: Multiple Choice Can have more stockholders than a C corporation. Require less paperwork to set up than a C corporation does. Avoid the problem of double taxation associated with conventional corporations. Can operate in foreign nations as if they were domestic corporations.
Answer:
.Avoid the problem of double taxation associated with conventional corporations
Explanation:
An s corporation is a type of corporation that meets specific Internal Revenue Code requirements. It Avoid the problem of double taxation associated with conventional corporations
Spokes Bicycles is looking to change up its promotional strategy and focus on its relationships with customers. Which of the following is required for Spokes to build meaningful relationships with its customers?
a. Giving consumers access to limited information
b.Tracking customer purchases
c. "Promoting to" rather than "working with" customers
d. Offering full-service purchases over their cell phones
Answer:
The correct answer is: b.Tracking customer purchases
Explanation:
Building meaningful relationships with customers corresponds to an advantageous strategy for any company, since technological changes have revolutionized consumer relations and brought the company and the consumer much closer together, in addition to increasing the flow of information that favors the appearance of each time more products and solutions.
Therefore, it is necessary for the company to be aware that selling products or services, goes far beyond actually selling, to create relationships and position your brand in the market, it is necessary to provide an excellent service, which can be achieved by tracking the purchases of the customer, which provides a series of essential data for the company to personalize its service according to the characteristics, profile, tastes and needs of its customer, which brings the company closer to the consumer, creates a loyalty relationship and increases the value from the company.
Consider the demand for Russian rublesRussian rubles in exchange for British poundsBritish pounds. Which of the following will not increase the foreign currency demand for the rubleruble? A. Currency traders who believe that the value of the rubleruble in the future will be less than its value today. B. Foreign firms and consumers who want to buy goods and services from RussiaRussia. C. Currency traders who believe that the value of the rubleruble in the future will be greater than its value today.
Answer: A. Currency traders who believe that the value of the ruble in the future will be less than its value today.
Explanation:
In the foreign exchange market, currencies are traded at different prices. From the options given in the question, the correct option is option A (Currency traders who believe that the value of the rubleruble in the future will be less than its value today).
When the currency traders believe that the value of the rubel is going to depreciate in the future, they will start selling the rubels and this will lead to a decrease in the demand for it because it will depreciate. Here, the supply will increase but the demand will reduce.
In 2007, Joe Gebbia and Brian Chesky realized they could not afford the rent on their pricey San Francisco apartment, so they decided to put an air mattress in their living room and offer people an alternative to an expensive hotel room. This is the story of how Airbnb got started. In other words, Airbnb began when Gebbia and Chesky ________; the company grew because it ________.
Answer: c. Identified a problem or frustration; identified an opportunity or need
Explanation:
Airbnb began when the founders Joe Gebbia and Brian Chesky realized that they could not afford the rent on their San Francisco apartment. This was a problem for them and they needed to solve it. Another problem they realized was that people were having to pay for expensive hotel rooms. The common denominator here being that both places were pricey.
They then identified the opportunity or need that people needed to afford their rent and visitors needed to afford places to stay temporarily and then acted on this opportunity by putting an air mattress in their living room and offering people an alternative to an expensive hotel room.