Answer:
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Explanation:
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Your company manufactures widgets. The fixed cost incurred (independent of the number of widgets produced) each year is $80,000. The variable cost per widget is $0.25. The sale price of each widget is $1.00. The price and the costs are expected to remain unchanged over time. In year 1, the company expects to sell 100,000 widgets. It expects its sales to increase at the rate of 4% a year forever. The discount rate is 10%. Ignore taxes. What is the value of this company
Answer:
$450,000
Explanation:
Since the cash flows from the first 2 years are negative, we cannot calculate a negative terminal value. But we can calculate the present value of the total contribution margin and the fixed costs separately and the find the difference between them.
contribution margin = $100,000 - $25,000 = $75,000
growth rate = 4%
discount rate = 10%
the present value of contribution margin = $75,000 / (10% - 4%) = $1,250,000
now we calculate the present value of fixed costs = $80,000 / 10% = $800,000
the company's value = $1,250,000 - $800,000 = $450,000
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits.
Cooking Canning
Beginning work in process $0 $4,240
Materials 24,700 9,800
Labor 9,550 7,440
Overhead 32,800 27,100
Costs transferred in 55,000
Journalize the April transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date Account Titles and Explanation Debit CreditApril 30(To record materials used.)30 (To assign factory labor to production.)30 (To assign overhead to production.)30 (To record costs transferred in.)
Answer: Please explanation column for answers
Explanation: Cooking Canning
Beginning work in process $0 $4,240
Materials 24,700 9,800
Labor 9,550 7,440
Overhead 32,800 27,100
Costs transferred in 55,000
a) journal to record materials used
Date Account Debit Credit
April 30 Work in progress- cooking $24,700
Work in progress -Canning $9,800
Raw materials inventory $34,500
B) journal to record assignment of factory labor to production
Date Account Debit Credit
April 30 Work in progress- cooking $9,500
Work in progress -Canning $7,440
Factory Labour $16,940
c) journal to record assignment of overhead to production.
Date Account Debit Credit
April 30 Work in progress- cooking $32,800
Work in progress -Canning $27,100
Manufacturing Overhead $59,900
c) journal to record costs transferred in from cooking to Canning
Date Account Debit Credit
April 30 Work in progress- Canning $55,000
Work in progress -Cooking $55,000
Gross profit margin (Gross profit/Sales) is an important determinant of NOPAT. Identify two factors that can cause gross profit margin to decline. Is a reduction in the gross profit margin always bad news
Answer:
Please find the detailed answer in the explanation section.
Explanation:
Gross profit margins can decline because:
1. When the industry becomes more competitive and/or the company's products have lost their competitive advantage so that the company will have to reduce prices inorder to sell more.
2. Product costs have increased. These are the cost to produce goods and services. Examples are direct labour, direct materials etc. Gross profit will decline if these increases
Declining gross profit margins are usually viewed negatively i.e the reduction in the gross profit margin is always a bad news for a company.
What causes gross profit margin to decline? - when the competition in the industry is high and the company is losing the competition in the market.
Swisher, Incorporated reports the following annual cost data for its single product: Normal production level 30,000units Direct materials$6.40per unit Direct labor$3.93per unit Variable overhead$5.80per unit Fixed overhead$150,000in total This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's income increase or decrease under variable costing
Answer:
The company's income would decrease by $422,600.
Explanation:
The Variable Costing includes only variable manufacturing costs in product costs.Fixed and non-manufacturing costs are treated as period costs.
Prepare a Differential Analysis for an additional 20,000 units
Differential Analysis for an additional 20,000 units
Additional Costs :
Direct materials ($6.40 × 20,000) $128,000
Direct labor ($3.93× 20,000) $78,600
Variable overhead ($5.80× 20,000) $116,000
Fixed Overheads ($5 × 20,000) $100,000
Incremental Cost $422,600
Conclusion:
The company's income would decrease by $422,600.
Patricia Nall was approved for a $3,000, two-year, 11 percent loan with the finance charges figured using the discount method. How much cash will Patricia receive from this loan?
Answer:
$2,340
Explanation:
The computation of cash received from this loan is shown below:-
cash received from this loan = Approved amount - (Approved amount × Two year × Percentage of loan )
= Approved amount - ($3,000 × 2 × 11% )
= $3,000 - ($3,000 × 2 × 0.11 )
= $3,000 - $660
= $2,340
Therefore, for computing the cash will Patricia receive from this loan we simply applied the above formula.
For each of the following separate transactions:
Sold a building costing $38,500, with $23,400 of accumulated depreciation, for $11,400 cash, resulting in a $3,700 loss. Acquired machinery worth $13,400 by issuing $13,400 in notes payable. Issued 1,340 shares of common stock at par for $2 per share. Note payables with a carrying value of $41,700 were retired for $50,400 cash, resulting in a $8,700 loss.
Required:
a. Prepare the reconstructed journal entry.
1. Record Sale of Building
2. Record Acquisition of machinery
3. Record the issuance of common stock for cash
4. Record payment of cash to retire debit
b. Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows.
Answer:
Separate Transactions
a. Reconstructed Journal Entries:
1. Record Sale of Building
Debit Sale of Building $38,500
Credit Building $38,500
To transfer building to sale of building account.
Debit Accumulated Depreciation- Building $23,400
Credit Sale of Sale $23,400
To transfer the accumulated depreciation to sale of building account.
Debit Cash Account $11,400
Credit Sale of Building $11,400
To record the cash received on sale of building.
2. Record Acquisition of machinery :
Debit Equipment (Machinery) $13,400
Credit Notes Payable $13,400
To record the purchase of machinery with notes payable.
3. Record the issuance of common stock for cash :
Debit Cash Account $2,680
Credit Common Stock $2,680
To record the issue of 1,340 shares at par, $2 per share.
4. Record payment of cash to retire debit:
Debit Notes Payable $41,700
Debit Loss on Notes Payable $8,700
Credit Cash Account $50,400
To record the retirement of notes payable.
b. Identification of the effect on the investing section or financing section of the statement of cash flows:
1. Investing Section of the statement of cash flows:
Building $11,400
This increases the cash inflow from investing activities by $11,400.
2. Machinery acquired by issuing notes payable does not affect the statement of cash flows. No cash is involved in the transaction, at least for now.
Financing Section of the statement of cash flows:
3. Issue of common stock $2,680
This increases the cash inflow from financing activities by $2,680.
4. Notes Payable ($50,400)
This increases the cash outflow from financing activities by $50,400 if the notes payable are non-current liabilities. If they are current, it will have the same effect but on the operating activities section of the statement of cash flows.
Explanation:
The financing activities section of the statement of cash flows deals with the sources of funding the business, both inflow and outflow of cash.
The investing activities section deals with the investments made by the entity based on cash flows.
If the depreciable investment is $1,000,000 and the MACRS 5-Year class schedule is: Year-1: 20%; Year-2: 32%; Year-3: 19.2%; Year-4: 11.5%; Year-5: 11.5% and Year-6: 5.8% Calculate the depreciation tax shield for Year-2 using a tax rate of 30%:
Answer: C.$96,000
Explanation:
The Depreciation Tax Shield refers to how much in taxes are being saved by the company for depreciating an asset because Depreciation is tax deductible.
Depreciation Tax Shield = Tax Rate * Depreciation Amount for year
= 30% * ( 1,000,000 * 32%)
= 30% * 320,000
= $96,000
By claiming a Depreciation of $320,000 in Year 2, the depreciable asset saved the company $96,000 in taxes.
"The nature and purpose of the public sector result in a unique organizational characteristics". Discuss
The correct answer to this open question is the following.
Although the question is incomplete because it does not provide the location, country, or any other further reference, we can say the following.
The nature and purpose of the public sector result in unique organizational characteristics, basically in the formation of bureaucracies that are a form of governmental and administrative organizations with many employees and hierarchies that more that improve management and operations, complicate it and make it slow due to the fact that the number of people working is numerous.
Experts say that this is not the more efficient and effective form of managing governmental offices. On the contrary, it is slow and inefficient.
You are considering two mutually exclusive projects. Both projects have an initial cost of $52,000. Project A produces cash inflows of $25,300, $37100, and $22,000 for years 1 through 3, respectively. Project B produces cash inflows of $43,600, $19,800 and $10,400 for years 1 through 3, respectively. The required rate of return is 14.2 percent for Project A and 13.9 percent for Project B. Which project should you accept and why? a) Project A because it has the higher required rate of return b) Project A because it has the larger NPV c) Project 8, because it has the largest cash inflow in year 1. d) Project B; because it has the lower required rate of return
Answer:
b) Project A because it has the larger NPV
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Project A
Cash flow in year 0 = $-52,000
Cash flow in year 1= $25,300,
Cash flow in year 2 = $37100
Cash flow in year 3= $22,000
I = 14.2
NPV = $13,372.95
Project B
Cash flow in year 0 = $-52,000
Cash flow in year 1= $43,600
Cash flow in year 2 =, $19,800
Cash flow in year 3= $10,400
I = 13.9
NPV = $8,579.62
The NPV of project A is larger than that of project B, so, project A is more suitable
What is liquidity risk? Select one: a. risk due to changes in interest rates b. risk due to exchange rates c. risk to technological investments d. risk due to a sudden surge in liability withdrawals
Answer:
The correct answer is D)
Risk due to a sudden surge in liability withdrawals.
Explanation:
In banking terms, this simply refers to the inability of the bank to meet with its financial responsibilities in the near term.
When a bank has excess capital tied down in the form of loans which have been collateralised, the physical assets upon the default of the loans become assets to the bank. Its liabilities to the depositors which are still in existence have to be met. If at any point in time the bank is unable to meet its liability to depositors and is also unable to quickly convert the assets, then it is said to be exposed to the risk of liquidity.
Cheers!
Using the following information please prepare a schedule of cost of goods sold and calculate the value of ending inventory and cost of goods of sold included in the Schedule of Cost of Goods Sold for the year ended December 31, 2019, Using FIFO, First In First Out The total Inventory valuation using FIFO on December 31, 2018 was 2,000 units at a cost of $10 per unit. On June 30, 2019 the company purchased 5,000 units at cost of $20 per unit. On September 30, 2019 the company purchased 3,000 units at a cost of $30 per unit. On December 1, 2019 the company sold 6,000 units.
Answer:
Ending inventory= $110,000
COGS= $100,000
Explanation:
Giving the following information:
Beginning inventory=2,000 units for $10 per unit.
Purchases:
June 30, 2019= 5,000 units at cost of $20 per unit.
September 30, 2019= 3,000 units for $30 per unit.
On December 1, 2019 the company sold 6,000 units.
Using the FIFO (first-in; first-out) inventory method, the value of ending inventory is calculated using the cost of the last units incorporated into inventory.
Ending inventory in units= 10,000 - 6,000= 4,000
Ending inventory= 3,000*30 + 1,000*20= $110,000
COGS= 2,000*10 + 4,000*20= $100,000
Barnes Company purchased $58,000 of 10.0% bonds at par. The bonds mature in six years and are a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment?
a) debit Unrealized Gain-Equity, $2,900; credit Cash, $2,900.
b) debt Cash, $2,900; credit Long-Term Investments-HTM, $2,900.
c) debit Cash, $2,900; credit Interest Revenue, $2,900.
d) debit Cash, $5,800; credit Unrealized Gain-Equity, $5,800.
e) debit Cash, $5,800; credit Long-Term Investments-HTM, $5,800.
Answer:
Option B,debt Cash, $2,900; credit Long-Term Investments-HTM, $2,900,is correct
Explanation:
Semiannual interest on the bond can be computed using the below semiannual interest formula:
semiannual interest=face value*coupon rate*6/12
face value is $58000
The coupon rate is 10%
semiannual interest=$58000*10%*6/12=$2900
The receipt of $2900 semiannual interest would be debited to cash while also being credited to Long-Term investments-HTM
Bailand Company purchased a building for $286,000 that had an estimated residual value of $6,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur:
1. Bailand estimates that the asset has 8 years’ life remaining (for a total of 12 years).
2. Bailand changes to the sum-of-the-years’-digits method.
3. Bailand discovers that the estimated residual value has been ignored in the computation of depreciation expense.
Required: For each of the independent situations, prepare all the journal entries relating to the building for the fifth year. Ignore income taxes.
Answer:
Bailand Company
Journal Entries:
1. Re-estimated useful life to 8 years (12 in total):
Debit Depreciation Expense $21,000
Credit Accumulated Depreciation $21,000
To record depreciation expense for the year.
2. Sum of the digit method:
Debit Depreciation Expense $37,333
Credit Accumulated Depreciation $37,333
To record depreciation expense for the year.
3. Bailand discovers that the estimated residual value had been ignored:
Debit Depreciation Expense $27,600
Credit Accumulated Depreciation $27,600
To record depreciation expense for the year.
Explanation:
A) Calculations:
Building $286,000
Residual value = $6,000
Depreciable amount = $280,000 ($286,000 = 6,000)
Straight-line Depreciation per year = $28,000 ($280,000/10)
Accumulated Depreciation after 4 years = $112,000 ($28,000 x 4)
Book value after 4 years = $174,000
Independent situations:
1. Bailand estimates that the asset has 8 years’ life remaining (for a total of 12 years).
Book Value = $174,000
Residual value = $6,000
Depreciable amount = $168,000
Remaining Lifespan = 8 years
Depreciation expense each year = $21,000
2. Bailand changes to the sum-of-the-years’-digits method.
8/36 x $168,000 = $37,333 for fifth year.
7/36 x $168,000 for the sixth year
6/36 x $168,000 for the seventh year, and so forth
B) The Sum-of-the-years'-digits (SYD) is an accelerated method for calculating an asset's depreciation. For each year, there is a digit reflecting the number of years remaining. This digit is then divided by this sum of the years to determine the percentage by which the asset should be depreciated each year, starting with the highest number in the first year of application.
3. Bailand discovers that the estimated residual value has been ignored in the computation of depreciation expense.
Determination of annual depreciation expenses:
Depreciable amount = $286,000
Depreciation expense per year = $28,600 ($286,000/10)
After four years, Accumulated Depreciation = $114,400 ($28,600 x4)
Book Value = $171,600 ($286,000 - 114,000)
less salvage value $6,000
Depreciable amount = $165,600
Depreciation expense each year = $27,600 ($165,600 / 6)
A 10-year bond that pays coupon semi-annually at a coupon rate of 9% is priced at $ 900 at its issuance. What is the Yield to Maturity of the Bond? If it is called back 3-years after the issuance will a call premium of 5%. What is its Yield to Call? (12 points)
Answer:
YTM = 10.53%
YTC = 14.36%
Explanation:
the yield to maturity (YTC) formula is:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {$45 + [($1,000 - $900)/20]} / [($1,000 + $900)/2] = $50 / $950 = 5.26 x 2 coupons per year = 10.53%
the yield to call (YTC) formula is:
YTC = {$45 + [($1,050 - $900)/6]} / [($1,050 + $900)/2] = $70 / $975 = 7.179 x 2 = 14.36%
Beatrice invests $1,360 in an account that pays 3 percent simple interest. How much more could she have earned over a 4-year period if the interest had been compounded annually
Answer:
If the interest was compounded annually, the amount that would have been earned more over the simple interest method is $7.49
Explanation:
A simple interest account pays interest on only the sum deposited at an annual rate for a specified period of time while a compounding interest account adds the interest earned in each period to the principal amount and calculate the interest for the next period on this new amount (Principal + Accumulated Interest).
The formula to calculate interest under simple interest method is,
Interest = Principal * Annual Rate * Time in years
Total Interest earned = 1360 * 3% * 4
Total interest earned = 163.2
The formula to calculate interest under compound interest method is,
Interest = [Principal * (1+i)^t] - Principal
Where,
i is the interest ratet is the number of periodsInterest = 1360 * (1+0.03)^4 - 1360
Interest = 170.6919 rounded off to $170.69
If the interest was compounded annually, the amount that would have been earned more over the simple interest method is,
Extra amount = 170.69 - 163.2
Extra amount = $7.49
Prepare journal entries to record the following production activities. 1. Incurred $59,000 of direct labor in production (credit Factory Payroll Payable). 2. Incurred $22,000 of indirect labor in production (credit Factory Payroll Payable). 3. Paid factory payroll.
Answer: The answer has been solved and attached
Explanation:
The work in progress and inventory is the inventory that has almost finished by a company and waiting so was to be changed to finished goods. We are told that direct labour is used, therefore we will have to debit work in progress inventory by $59,000 and credit payable factory payroll by $59,000.
Factory overhead are expenses that a company makes. We have to debit it by $22,000 and credit payable factory payroll by $22,000.
The solution has been attached.
Telecom Company is preparing its annual budgeted income statement. What is the best place to locate the amount of interest expense for the year
Answer: d. Cash Budget
Explanation:
The Cash budget is used to project the company's expected position in terms of the cash it holds in the future. As such, the budget contains both cash receipts and cash disbursements.
Some of the disbursements include expenses and loan payments. The loan payments are where the interest expense will be found for the coming year.
Which senior managers may assume a greater deal of transferability between domestic and international HRM practices?
Answer: d. All of the Above
Explanation:
All the above senior managers are more likely to apply more Domestic HRM practices to make them International HRM practices when they are put into a situation where International practices will be needed.
This is because they have been with the Domestic companies for much of their time and so know more about Domestic practices than international.
The first options refers to senior managers in firms with large domestic markets. To be a senior manager demands experience in the market they are in so it is not far fetched to say that they are more knowledgeable in domestic practices than international.
The second option speaks of managers with little International experience meaning they are more likely to engage in transferability between domestic and International practices.
The third option speaks of managers who built their careers on domestic experience. They will find it hard letting go of what has brought them such success so will more likely apply domestic practices on an international scale.
Suppose for every dollar change in household wealth, consumption expenditures change by $0.05. If real household wealth declines by $45 billion, potential GDP is $120 billion, and the multiplier effect for the first year after an expenditure shock is 1.4, what is the total change in output relative to potential for the first year? A. minus 1.63% B. minus 2.63% C. minus 2.8% D. minus 7.0%
Answer:
B. Minus 2.63%
Explanation:
Increase in consumption = Change in consumption × Household wealth
= $0.05 × $45billion
= $2.25billion
Total output = Potential GDP ÷ Multiplier effect
= $120 billion ÷ 1.4
= $85.71
Total change in output = Increase in consumption ÷ Total output
= $2.25 ÷ $85.71
= $0.0263 or 2.63%
Suppose that the risk-free rates in the United States and in the United Kingdom are 4% and 6%, respectively. The spot exchange rate between the dollar and the pound is $1.60/BP. What should the futures price of the pound for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs
Answer:
The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.
Explanation:
In order to calculate the the futures price of the pound for a one-year contract be to prevent arbitrage opportunities we would have to make the following calculation:
futures price of the pound for a one-year contract=Spot rate*(1+United Kingdom risk free rate)/(1+United States risk free rate)
futures price of the pound for a one-year contract=$1.60/BP*(1+6%)/(1+4%)
futures price of the pound for a one-year contract=$1.63/BP
The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.
A small independent television station will need to replace one of its cameras. They deposit $9,400 in an account that earns 3.7% per year compounded semiannually. How much will they have toward the purchase of the camera in 3 years?
Answer:
$10,492.86
Explanation:
we are to determine the future value of the lump sum in 3 years
The formula for calculating future value:
FV = P (1 + r/m)^nm
FV = Future value
P = Present value
R = interest rate
N = number of years
m = number of compounding per year
$9,400 (1 + 0.037 / 2)^6 = $10,492.86
You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 28%. The T-bill rate is 8%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. Suppose that your risky portfolio includes the following investments in the given proportions: Stock A 25 % Stock B 32 % Stock C 43 % What are the investment proportions of your client’s overall portfolio, including the position in T-bills?
Answer:
Stock A: 20%
Stock B: 25.6%
Stock C: 34.4%
Explanation:
Calculation for the investment proportions of your client's overall portfolio, including the position in T-bills
Based on the information given the T-bill rate is 8% which means we are going to multiply each stock Investments by 8%
Stock A 25%
Stock B 32%
Stock C 43%
Hence
Stock A: .25*.8= 20%
Stock B: .32*.8= 25.6%
Stock C: .43*.8= 34.4%
Therefore the investment proportions of your client's overall portfolio, including the position in T-bills will be :
Stock A: 20%
Stock B: 25.6%
Stock C: 34.4%
Clemens Inc. is considering a $100 million investment in a new line of soft drinks. However, $100 million is a huge investment for Clemens; if things turn bad, it could wipe out the company. A few senior managers have suggested
Answer: expand
Explanation:
Here's the complete question:
Clemens Inc. is considering a $100 million investment in a new line of soft drinks. However, $100 million is a huge investment for Clemens; if things turn bad, it could wipe out the company. A few senior managers have suggested a smaller investment of $20 million to see if the market is as strong as they hope it is. If demand is strong and the opportunity is still available, Clemens will increase its investment at a later date. This example describes a real option to:
a. abandon
b. expand
An expansion option is an option that gives the company that bought a real option, the right to take part in certain actions, and to also expand its operations in the future even with little or no cost. In real estate, this option gives opportunities to the tenants to increase the space of the premises where they live.
This is the idea portrayed in the question when few senior managers suggested a smaller investment of $20 million should be made at first and when the demand is strong and the opportunity is still available, Clemens will increase its investment at a later date.
For each of the following, compute the present value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Present Value Years Interest Rate Future value $ 13 7 % $ 15,451 4 13 51,557 29 14 886,073 40 9 550,164
Answer:
To calculate these values, we use the present value formula:
FV = PV (1 + i)^n
Where:
FV = Future ValuePV = Present Valuei = interest raten = number of compounding periods (years in this case)Present value #1
15,451 = PV (1 + 0.07)^13
15,451 = PV (2.41)
15,451 / 2.41 = 6,411
Present value #2
51,557 = PV (1 + 0.13)^4
51,557 = PV (1.63)
51,557 / 1.63 = 33,471
Present value #3
886,073 = PV (1 + 0.14)^29
886,073 = PV (44.69)
886,073 / 44.69 = 19,827
Present value #4
550,164 = PV (1 + 0.09)^40
550,164 = PV (31.41)
550,164 / 31.41 = 17,516
DeKay Dental Supplies issued $10,000 of bonds on January 1, 2018. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds Effective Decrease in Outstanding Payment Cash interest balance 400 400 400 400 409 409 409 410 balance 9,080 9,089 9,098 9,107 9,117 10 What is the stated annual rate of interest on the bonds?
a) 4.5%.
b) 9.0%.
c) 40%.
d) 80%.
Answer: d. 8.0%
Explanation:
The Stated Annual Rate of Interest on a bond refers to the coupon rate which is the amount that the company promises to pay on the bond pay period.
Looking at the question, the company is paying $400 every 6 months on the $10,000 bonds . The interest therefore is;
= 400/10,000
= 4%
Company pays 4% on the bonds every 6 months.
This 4% should be stated in annual terms so;
= 4% * 2
= 8%.
Recording Factory Labor Costs A summary of the time tickets for January is as follows: Job No 3467 3470 3471 Amount Job No.Amount 3478 3480 3497 3501 $6,829 3,438 11,273 21,352 $9,106 9,891 12,638 17,474 Indirect labor
a. Determine the amounts of factory labor costs transferred to Work in Process and Factory Overhead for January
b. Illustrate the effect on the accounts and financial statements of the factory labor costs transferred in.
Answer:
Work in process = $70649
Factory overhead = 21,352
Explanation:
A.
Factory labor cost transferred to Work in process is the sum of all direct labor cost incurred
Factory labor cost transferred to Factory Overhead is the sum of all indirect labor cost incurred
Work in Process = $6,829 + $3,438 + $11,273 + $9,106 + $9,891 + $12,638 + $17,474
Work in process = $70649
Factory overhead = 21,352
B.
Balance sheet
Assets = liabilities + Capital
$70649 + $21,352 = 92,001 No Effect
Statement of cashflow = No Effect
Income statement = No Effect
"______, a key feature of a customer relationship management system, is the ability to aid customer service representatives so that they can quickly, thoroughly, and appropriately address customer requests and resolve customer issues while collecting and storing data about those interactions."
Answer:
Customer support
Explanation:
Customer support offers various customer services to help customers in making cost effective and correct use of a product. Through customer support, customers requests and issues can be resolved through answering questions and providing help on onboarding, while collecting and storing data about those interactions
True or False? Financial instruments can be grouped by time to maturity (money vs. capital) or type of obligation (stock, bond, derivative).
Answer:
True
Explanation:
Financial Instruments are agreements pertaining to the exchange of money between parties. The financial instruments could be in the form of cash or the right bound by contractual laws to receive or deliver items with monetary value. Shares, bonds, loans, and derivatives like futures and forwards are other examples of financial instruments. These financial derivates are securities whose prices are hinged on underlying assets like bonds, stocks, commodities, and currencies. Cash instruments, on the other hand, have their prices determined mainly by the market fluctuations.
Classification of financial instruments could be based on the asset or debt classes. The debt classification could also be broken down as being long or short term. So, the grouping by time to maturity (money vs. capital) or type of obligation (stock, bond, derivative) is a system of classifying financial instruments.
In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. What is another way to state this fact
Answer:
Market supply is much more elastic in the long run than the short run.
Explanation:
Here are the options to this question :
In the long run, average total cost is minimized
Market supply is much less elastic in the long run than the short run.
In the long run, price equals marginal cost.
Market supply is much more elastic in the long run than the short run.
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
When the supply curve is horizontal or nearly so, it means that supply is highly elastic. a small change in price would greatly affect the quantity supplied.
A hospital carried a 2-year malpractice insurance policy that allows for retroactive premium adjustments based on experience (claims actually incurred). The basic premium is $150,000 for the 2-year policy payable in advance. At the end of the first year the hospital estimates that it will have to pay an additional $80,000 in premiums as a result of claims filed in the current year and it estimates that it will incur additional premiums in the second year of $100,000 as a result of claims filed in the second year. The amount of insurance expense that should appear on the financial statements at the end of the first year should be:_______
Answer:
The answer is $155,000
Explanation:
Solution
Given that:
The Malpractice claims should accumulate an estimated loss by a charge to operations as soon as both the following conditions are :
1. There is a possibility that an asset has been weakened or a liability has been incurred.
2. The loss can be reasonably estimated
Thus
The Basic premium is = $150,000
The Additional premium is = $80,000 for first year as result of claims
So,
The insurance expense in first year is given as follows:
150,000/2 + 80,000
= 75,000+80,000
= $155,000
Therefore the amount of insurance expense that should appear on the financial statements at the end of the first year is $155,000