Answer:
b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
Explanation:
The correct answer is - b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
Alexa and David are managers of different sales teams. Together, they decide to have a competition between teams to see who can bring in the most new clients this month. To increase the sense of competition, they create spirit days where they wear team colors (Alexa's team: blue, David's black), strategize ways to beat the other group, and keep a running total of who is winning on a white board. Alexa and David are employing ________ to increase productivity.
Incomplete question. The options read;
Social identity theoryParasocial interaction theoryLeader-member exchange theoryVigilant interaction theoryExpectancy theoryAnswer:
Vigilant interaction theory
Explanation:
Remember, we are told that Alexa and David kept a running total of who is winning on a whiteboard for the entire team to see while also strategizing ways to beat the opposing team.
According to the vigilant interaction theory, the productivity of a team is usually dependent upon the group's attentiveness during their group interaction.
Hence, we can thus conclude that Alexa and David are employing vigilant interaction theory to increase productivity.
The comparative balance sheets for Kingbird Corporation appear below:
KINGBIRD CORPORATION Comparative Balance Sheet
Assets 2022 2021
Cash $35,400 $33,600
Accounts receivable (net) 88,000 64,500
Prepaid insurance 29,300 19,200
Land 20,500 49,000
Equipment 81,500 69,500
Accumulated depreciation (15,800 ) (13,000 )
Total assets $238,900 $222,800
Liabilities and Stockholder's Equity Accounts payable $24,500 $8,100
Bonds payable 25,400 16,200
Common stock 148,000 120,000
Retained earnings 41,000 78,500
Total liabilities and stockholder's equity $238,900 $222,800
Additional information:
1. Net loss for 2022 is $13,000. Net sales for 2022 are $290,000.
2. Cash dividends of $24.800 were declared and paid in 2022.
3. Land was sold for cash at a loss of $3,500. This was the only land transaction during the year.
4. Equipment with a cost of $17,800 and accumulated depreciation of $10,900 was sold for $6,900 cash.
5. $12.900 of bonds were retired during the year at carrying (book) value.
6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $33,000.
Required:
Prepare a statement of cash flows for the year ended December 31, 2022 using the indirect method.
Sunland Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 340 $23 $7,820 April 15 purchase 390 28 10,920 April 23 purchase 270 30 8,100 1,000 $26,840 Compute the April 30 inventory and the April cost of goods sold using the LIFO method. Ending inventory $enter a dollar amount Cost of goods sold $
Answer:
Ending inventory cost= $10,900
COGS= $15,940
Explanation:
To calculate the ending inventory using LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:
Ending inventory in units= 1,000 - 550= 450
Ending inventory cost= 340*23 + 110*28= $10,900
Now, the cost of goods sold:
COGS= 270*30 + 280*28= $15,940
Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama-Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities has been determined. The life of the warehouse is expected to be 12 years, and MARR is 15%/year. City Initial Cost Net Annual Income Lagrange $320,000 $205,000 Auburn $880,000 $35,000 Anniston $1,040,000 $455,000 a. What is the annual worth of each site
Answer:
Lagrange Annual Worth $145,966.15
Auburn Annual Worth $873,543.17
Anniston Annual Worth=$435,814
Explanation:
Calculation to determine the annual worth of each site
Using this formula
Annual worth of Project = A - P* r/(1-(1+r)^-N)
Let plug in the formula
Lagrange Annual Worth = $205,000-$320,000*15%/(1-(1+15%)^-12)
Lagrange Annual Worth = $145,966.15
Auburn Annual Worth = $880,000-$35,000*15%/(1-(1+15%)^-12)
Auburn Annual Worth=$873,543.17
Anniston Annual Worth = $455,000-$104,000*15%/(1-(1+15%)^-12)
Anniston Annual Worth=$435,814
Therefore the annual worth of each site will be :
Lagrange Annual Worth $145,966.15
Auburn Annual Worth $873,543.17
Anniston Annual Worth=$435,814
Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,160. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 10 percent interest, and it has 20 years remaining until maturity. The current yield to maturity on similar bonds is 8 percent. a. Calculate the present value of the bond. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
Answer:
Bond Price or Present value = $1196.362948 rounded off to $1196.36
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, the annual coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 1000 * 0.1 = $100
Total periods (n) = 20
r or YTM = 0.08 or 8%
The formula to calculate the price of the bonds today is attached.
Bond Price = 100 * [( 1 - (1+0.08)^-20) / 0.08] + 1000 / (1+0.08)^20
Bond Price or Present value = $1196.362948 rounded off to $1196.36
Danner Company expects to have a cash balance of $53,100 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows.
Collections from customers: January $100,300, February $177,000.
Payments for direct materials: January $59,000, February $88,500.
Direct labor: January $35,400, February $53,100. Wages are paid in the month they are incurred.
Manufacturing overhead: January $24,780, February $29,500. These costs include depreciation of $1,770 per month. All other overhead costs are paid as incurred.
Selling and administrative expenses: January $17,700, February $23,600. These costs are exclusive of depreciation. They are paid as incurred.
Sales of marketable securities in January are expected to realize $14,160 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $29,500. The company wants to maintain a minimum monthly cash balance of $23,600.
Required:
Prepare a cash budget for January and February.
Answer:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Explanation:
Note: See the attached excel file for the cash budget for January and February.
In the attached excel file, the following calculation is made:
Additional loan in February = Minimum monthly cash balance - Preliminary cash balance in February = $23,600 - $16,520 = $7,080
From the attached excel file, we have:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
An analyst gathered the following information about a company for a fiscal year: QuarterPurchases in UnitsCost per UnitPurchases in DollarsUnit Sales Per Quarter Q1100$12.00$1,200200 Q2200$14.00$2,800200 Q3300$16.00$4,800300 Q4400$18.00$7,200300 FY total1,000 $16,0001000 Beginning Inventory200$10.00$2,000 Ending Inventory under LIFO perpetual is closest to:
Answer:
Ending Inventory under LIFO perpetual is closest to:
$2,800.
Explanation:
a) Data and Calculations:
Quarter Purchases Cost per Unit Purchases in Sales Per Quarter
in Units Dollars Unit
Beginning 200 $10.00 $2,000
Q1 100 $12.00 $1,200 200
Q2 200 $14.00 $2,800 200
Q3 300 $16.00 $4,800 300
Q4 400 $18.00 $7,200 300
FY total 1,200 $16,000 1000
LIFO Ending Inventory:
Beginning 100 $10.00 $1,000
Q4 100 $18.00 $1,800
Total 200 $2,800
b) LIFO (Last-in, First-out) is based on the assumption that inventory items sold are from the latest units in store and not from the earlier units. This means that items bought last are sold first. Therefore, to determine the value of ending inventory,
Dr. Bernanke argued two problems contributing to the financial crisis included:________.
A. banks reliance on long-term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.
B. banks reliance on short term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.
C. banks reliance on short term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
D. banks reliance on long-term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
Answer:
D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.
Explanation:
Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.
Creative Images Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Creative Images Co.:
Violet Lozano, Capital $880,000
Violet Lozano, Drawing 12,000
Fees Earned 702,400
Wages Expense 480,000
Rent Expense 69,000
Supplies Expense 11,000
Miscellaneous Expense 14,600
Required:
Journalize the two entries required to close the accounts.
Answer:
Journal 1
Debit : Fees Earned $702,400
Credit : Income Statement $702,400
Closing off Revenue against Income Statements
Journal 2
Debit : Income Statement $574,600
Credit : Wages Expense $480,000
Credit : Rent Expense $69,000
Credit : Supplies Expense $11,000
Credit : Miscellaneous Expense $14,600
Closing off Expenses against Income Statements
Explanation:
The Income Statement accounts for Incomes and expenses. Therefore, close off the Income Accounts against the Income Statement as well as Expenses Accounts.
Drag the tiles to the correct boxes to complete the pairs.
Match the cash outflows to their cash flow activities.
investing activities
financing activities
administration expenses
operating activities
purchase of fixed assets
repayment of loan
Answer:
Operating activities - - - - - - - - > administration expenses.
Purchase of fixed assets - - - - - - - > investing activities
Repayment of loan - - - - - - - - - - > financing activities.
Explanation:
Arrabellia Cunningham is 24 years old and single, lives in an apartment with no dependents. Last year she earned $55,000 as a sales representative for Planning Associates. $3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of $142. She takes the standard deduction. Calculate her taxable income, tax liability and tax refund or tax owed for 2018.
Answer:
The Taxable income is $43,142
The Tax liability is $5,430.74
The Tax tax owed for 2018 is $1,520.74
Explanation:
To calculate the taxable income use the following formula
Taxable income = Earnings + Interest income - Standard Deduction
Earnings = $55,000
Interest income = $142
Standard Deduction = $12,000
Placing values in the formula
Taxable income = $55,000 + $142 - $12,000
Taxable income = $43,142
The Tax Liability can be calculated as follow
Tax Liability = 22% of Income above $38,700
Tax Liability = $4,453.50 + ( Taxable income - $38,700 ) x 22%
Tax Liability = $4,453.50 + ( ( $43,142 - $38,700 ) x 22%)
Tax Liability = $4,453.50 + $977.24
Tax Liability = $5,430.74
Tax owed for 2018 = Tax Liability - Tax withheld
Tax owed for 2018 = $5,430.74 - $3,910
Tax owed for 2018 = $1,520.74
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 755,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 200,000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $248,300 of direct materials and $179,000 of conversion cost. The direct material cost added in November is $1,661,700, and the conversion cost added is $3,401,000. Beginning work in process consisted of 74,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 74,000 were from beginning work in process and 681,000 units were started and completed during the period.
A. Compute both the direct material cost and the conversion cost per equivalent unit.
B. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory.
Answer:
Victory Company
Materials Conversion
A. Cost per equivalent unit $2.00 $4.01
B. Costs assigned to:
i. Units completed and transferred out $1,510,000 $3,027,550
ii. Ending work in process inventory $400,000 $561,400
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Beginning Work in Process 74,000 $248,300 $179,000 $427,300
Started 881,000 $1,661,700 3,401,000 5,062,700
Units completed 755,000 $1,910,000 $3,590,000 $5,490,000
Ending Work in Process 200,000
Equivalent units:
Started and Completed 755,000 755,000 755,000 (100%)
Ending work in Process 200,000 200,000 140,000 (70%)
Equivalent units 955,000 895,000
Cost per equivalent unit
Total production costs $1,910,000 $3,590,000
Equivalent units 955,000 895,000
Cost per equivalent unit $2.00 $4.01
Cost assigned to:
Units completed and transferred out:
Materials = $1,510,000 ($2 * 755,000)
Conversion = 3,027,550 ($4.01 * 755,000)
Total $4,537,550
Ending Work in Process Inventory:
Materials = $400,000 ($2 * 200,000)
Conversion = 561,400 ($4.01 * 140,000)
Total $961,400
ME EXPLICA O BARINLY
Answer:
what lol
Explanation:
Croquet, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $13 Variable overhead 7 Fixed overhead 10 Total $30 Saran Company has contacted Croquet with an offer to sell it 5,000 of the wickets for $17 each. Fixed costs of $4 per unit is unavoidable. Should Croquet make or buy the wickets, why
Answer:
See below
Explanation:
Supplier's quotation (5,000 × $17)
$85,000
Less: Relevant costs
Variable cost (5,000 × $16)
$80,000
Avoidable fixed cost (5,000 × $4)
$20,000
Balance $100,000
Loss $15,000
Croquet should buy the widgets because the relevant cost of in house production is higher than the cost of buying it outside.
Dell has been aggressively cutting their days of inventory. In the third quarter of 2009, Dell reported $952 million of inventory, $10,663 million of sales and $12,896 million of cost of goods sold. How many days of inventory did Dell have in the third quarter of 2009
Answer:
27 days
Explanation:
The computation of the days of inventory is given below:
= 365 days ÷ inventory turnover ratio
= 365 days ÷ ($12,896 million ÷ $952 million)
= 365 days ÷ 13.55
= 27 days
We assume that the inventory i.e given in the question is average inventory
The first step of the financial planning process is to:
Answer:
Review Of Current Financial Situation
Explanation:
The first step in the financial planning process involves taking a detailed look into a person's current financial situation. This means examining a person's savings, income, debts and current living expenses.
Answer:
Creating and implementing a financial action plan..
Hope it helps:)
Warrants exercisable at $20 each to obtain 94000 shares of common stock were outstanding during a period when the average market price of the common stock was $25. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by:__________
a. 18800.
b. 75200.
c. 94000.
d. 23500.
Answer: 18800
Explanation:
First and foremost, we have to calculate the outstanding common shares which will be:
= Number of shares / Market price × Warrants Exercisable
= (94000 / 25) × 20
= 75200 shares
Then, the increase in the weighted average number of outstanding shares will be:
= 94000 - 75200
= 18800
Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note. $fill in the blank a69834fa4fcefa6_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. fill in the blank d7bbac03b019006_2 fill in the blank d7bbac03b019006_3 fill in the blank d7bbac03b019006_5 fill in the blank d7bbac03b019006_6 fill in the blank d7bbac03b019006_8 fill in the blank d7bbac03b019006_9
Answer and Explanation:
The computation is shown below:
a The Due date
= (21 days in april + 31 days in may + 30 days in june + 31 days in july + 7 days in august
So the due date is August 7
b The maturity value is
= $450,000 + ($450,000 × 8% × 120 ÷ 360)
= $462,000
c The journal entry is
Cash $462,000
To Notes Receivable $450,000
To Interest Revenue $12,000
(Being the receipts of the payment of the note at maturity is recorded)
A note or promissory note is a written promise to pay a certain amount of money on a future date. A future date is called a maturity date.
What do you mean by maturity of a note?The maturity date of the note is the time and day when interest and principal must be paid in full and must be paid.
The calculation of the maturity date is shown below:
a. The Due date of the note is:
= (21 days in April + 31 days in may + 30 days in June + 31 days in July + 7 days in August
So the due date is August 7
b. The maturity value is
[tex]= \$450,000 + (\$450,000 \times 8\% \times \frac{120}{360} ) \\\\= \$462,000[/tex]
c. The journal entry is
Cash $462,000
To Notes Receivable $450,000
To Interest Revenue $12,000
(Being the receipts of the payment of the note at maturity is recorded)
Hence, The calculation of maturity date, maturity value, and the journal for the receipt of the payment of the note at maturity is passed as shown.
To learn more about maturity date of the note, refer:
https://brainly.com/question/10152834
If most cartel members keep their agreement to cut back production: a. it's not profitable in the short run for another member to increase production. b. it's profitable in the short run for another member to increase production. c. cheating by another member won't be detected. d. the losses associated with cheating are internalized by the cheater.
Answer: b. it's profitable in the short run for another member to increase production.
Explanation:
This refers to an oligopolistic market where there are few producers of a good. These producers can come together to create a cartel that fixes prices for the goods and services they produce.
If they agree to cut back production, this will have the effect of increasing prices due to a reduction in supply. If a member decides to increase production, they would enjoy profits in the short term from the increased prices.
The other members would however respond by increasing production as well so those profits would stop towards the long run.
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 26,800 5,000 direct labor-hours Machine-related $ 4,500 9,000 machine-hours Machine setups $ 41,800 1,100 setups Production orders $ 17,000 500 orders Product testing $ 15,500 500 tests Packaging $ 51,000 3,400 packages General factory $ 52,400 5,000 direct labor-hours Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Answer:
Labor-related $5.36
Machine-related $0.5
Machine setups $38
Production orders $34
Product testing $31
Packaging $15
General factory $10.48
Explanation:
Computation for the activity rate for each activity cost pool using this formula
Activity rate =Estimated cost / Estimated activity
Let plug in the formula
Labor-related $ 26,800/5,000=$5.36
Machine-related $ 4,500/9,000=$0.5
Machine setups $ 41,800/1,100 =$38
Production orders $ 17,000/500=$34
Product testing $ 15,500/500 =$31
Packaging $ 51,000/3400=$15
General factory $ 52,400/5000=$10.48
Therefore the activity rate for each activity cost pool are:
Labor-related $5.36
Machine-related $0.5
Machine setups $38
Production orders $34
Product testing $31
Packaging $15
General factory $10.48
FASB revenue recognition requirements require nonprofits to apply five steps to each type of exchange contract to determine when to recognize revenue. The first 4 steps are (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, and (4) allocate the transaction price to the performance obligations in the contract. What is the 5th step
Answer:
Recognize revenue when (or as) the entity satisfies a performance obligation
Explanation:
The known five steps in the revenue recognition process includes
1. Identifcation of the contract(s) with customers.
2. Identify the separate performance obligations in the contract.
3. Determine the transaction price.
4. Allocate the transaction price to the separate performance obligations.and
5. Recognize revenue when each performance obligation is satisfied.
Recognize revenue is important for an entity especially as it fulfill the performance obligation need through the process of transfer of a promised good or service to a customer. If an entity cannot fulfill a performance obligation need in the cost of time, the performance obligation is then fulfilled at a point in time.
When performance obligation is satisfied, there is a change in control. That is a control is transferred when the customer has the ability to direct the use of and obtain substantially all the remaining benefits from the asset or service. Control is also shows if the customer has the ability to prevent other companies from directing the use of, or receiving the benefit, from the asset or service.
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 44,000 speaker sets:
Sales $3,608,000
Variable costs 902,000
Fixed costs 2,310,000
Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $20.00 per set; annual fixed costs are anticipated to be $1,988,000. (In the following requirements, ignore income taxes.)
Required:
a. Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States.
b. Determine the break-even point in speaker sets if operations are shifted to Mexico.
c. If variable costs remain constant, by how much must fixed costs change?
Answer:
a. Net Income = $396,000 and Sales to reach Target Profit $4,136,000
b. 32,065 speaker sets
c. $338,002
Explanation:
Part a
Company’s current income
Sales $3,608,000
Less Variable costs ($902,000)
Contribution $2,706,000
Less Fixed costs ($2,310,000)
Net Income $396,000
The level of dollar sales needed to double that figure
Double the Income figure gives $792,000
Sales to reach Target Profit = (Target Profit + Fixed Costs) ÷ Contribution Margin ratio
= ($792,000 + $2,310,000) ÷ 0.75
= $4,136,000
Part b
The break-even point in speaker sets if operations are shifted to Mexico
Break even point = Fixed Cost ÷ Contribution per unit
= $1,988,000 ÷ ($82.00 - $20.00)
= 32,065 speaker sets
Part c
If variable costs remain constant, by how much must fixed costs change
New Fixed Cost = Break even point x Contribution per unit
= 32,065 x ($82.00 -$20.50)
= $1,971,998
Change in Fixed Costs = $2,310,000 - $1,971,998 = $338,002
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 35 Selling and administrative $ 15 Fixed costs per year: Production $120,400 Selling and administrative $101,140 Last year, 6,020 units were produced and 5,920 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Answer:
See below
Explanation:
The computation of carrying value on the balance sheet of the ending inventory of finished goods under variable costing is seen below;
Before that, we have to determine the unit cost
Unit fixed manufacturing overhead = $120,400 ÷ 6,020 units = $20
Then, the difference will be;
= Unit fixed manufacturing overhead × change in inventory in units
= $20 × (6,020 units - $5,920)
= $20 × 100 units
= $2,000 less than absorption costing
Please Help!!
1. True or False: A tax lien which is a failure of an individual to pay his or her taxes and it can remain on a credit report for up to 10 years.
2. True or False: Credit utilization is the ratio of an individual's credit balance to their credit card limit.
3. True or false: Chapter 7 bankruptcy is focused more on the restructuring of an individual's finances rather than the elimination of debt altogether.
Answer:
1. True
2. True
3. False
Explanation:
1. True (If a tax is unpaid then it remains on the credit report up to 10 years)
2. True ( The statement correctly stats that Credit utilization is the ratio of an individual's credit balance to their credit card limit )
3. False because Chapter 7 bankruptcy is focused more on restructuring of debt altogether.
A ski chalet at Peak n' Peak now costs $250,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 10 years before Chris and Julie retire from successful investment banking careers. How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 13 percent in order to buy the ski chalet upon retirement
Answer:
$22,108
Explanation:
The computation is shown below:
Required deposit each year (P) = FVA ÷ ([(1+rate of interest)^number of years-1]÷rate of interest)
= $407,224 ÷ (((1+13%)^10-1) ÷ 13%)
= $22,108
The $407,224 comes from
= $250,000 × (1+5%)^10
Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Golden Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:
Direct materials $180
Direct manufacturing labor 170
Variable manufacturing support 250
Fixed manufacturing support 140
Total manufacturing costs 740
Markup (10% of total manufacturing costs) 74
Estimated selling price $814
Required:
If Mr. Stephen wanted a long-term commitment, and not a one-time-only special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same?
Answer:
$814
Explanation:
With regards to the above, if it charges a price below the full cost and markup, it will not be able to sustain such in the long run.
However, when a company received one time only, then they may be willing to charge a lower price in order to cover a portion of their fixed cost when there is extra capacity; whereas in the long run, they will have to charge at full cost so that they will not lose money.
Buyer and seller enter into a contract for buyer to purchase seller's condominium unit using the TREC Residential Condominium Contract with an effective date of January 31. The roof of the complex is partially destroyed by a fire on February 3. Seller notified buyer on February 5 of the fire. What is the latest date buyer can terminate the contract because of the fire
Answer: February 12
Explanation:
Part of the Texas Real Estate Commission(TREC) Residential Agreement calls for the Seller to send a Seller's Disclosure to the buyer. This will tell the buyer the condition of the house.
After the buyer receives the disclosure, they are allowed to terminate the contract within 7 days of the receipt of said disclosure. 7 days from February 5 is February 12 so this is the latest date the buyer can terminate the contract because of the fire.
Larkspur, Inc. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below.Date Numer of Units Unit priceMay 7 46 $10July 28 36 15On June 1, Larkspur, Inc. sold 23 units, and on August 27, 36 more units. Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e.g. 5.125.)
Answer:
Following are the solution to this question:
Explanation:
Calculating the cost of the product sold:
FIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 23 units costing of [tex]\$ 10[/tex] each [tex]= 230[/tex]
13 units costing of [tex]\$ 15[/tex] each [tex]= 195[/tex]
[tex]\$425[/tex]
Total cost of product sold[tex]= \$655[/tex]
LIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$15[/tex] each = 540
Total cost of product sold [tex]= \$ 770[/tex]
Average cost:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$13.051[/tex] each [tex]= \$469.836[/tex]
Total cost of product sold [tex]= \$699.836[/tex]
[Hair Stylist Woes] Ryan, a college student, went to see his hair stylist, Melissa. Ryan, who had black, curly hair, requested straight, blond hair. Melissa told him that she could make those changes, but that there would be significant upkeep involved. Melissa made the changes, but Ryan did not do the upkeep required. Ryan proceeded to falsely claim that Melissa did not do what Ryan asked her to do that Melissa lied to him, and that Melissa was professionally incompetent. Ryan made the statements about Melissa to friends of his. He also wrote a letter to his college newspaper saying that Melissa's shop should be avoided at all costs because Melissa was incompetent In fact, Melissa was a good hair stylist and enjoyed a good reputation up until the time that Ryan started his criticism. Melissa threatened to sue Ryan for defamation, but Ryan told Melissa that she could not prevail because she could not prove loss of income. Melissa had to admit that while her reputation had been damaged somewhat and she felt embarrassed and humiliated, the damage was primarily her appointment times were booked for weeks ahead. Statements made by Ryan to his friends that were defamatory of Melissa are what type of defamation? a. Libel but not slander. b. No tort was committed because the statements were made only to friends of Ryan, not to business acquaintances of Candy. c. No tort was committed because the falsehood involved matters of appearance not business related matters. Slander but not libel. d. Both libel and slander.
Answer:
The type of defamation statements made by Ryan against Melissa are:
d. Both libel and slander.
Explanation:
Ryan made a libelous statement against Melissa by writing to his college newspaper, advising potential clients to avoid Melissa's shop because of her alleged incompetence. Ryan also made slanderous statements against Melissa to his friends. The defamation of character and reputation was both libelous and slanderous.
Classifying Cash Flow Statement Components
The following table presents selected items from a recent cash flow statement of General Mills, Inc. For each item, determine whether the amount would be disclosed in the cash flow statement under operating activities, investing activities, or financing activities. (General Mills uses the indirect method of reporting cash flows from operating activities).
DOLE DOLE FOOD COMPANY, INC.
Selected items from its Cash Flow Statement
1. Long-term debt repayments
2. Change in receivables
3. Depreciation and amortization
4. Change in accrued liabilities
5. Dividends paid
6. Change in income taxes payable
7. Cash received from sales of assets and businesses
8. Net income
9. Change in accounts payable
10. Short-term debt borrowings
11. Capital expenditures
Answer:
1. Long term debt payment - Financing activities
2.Changes in Receivables - Operating activities
3. Depreciation and amortization - Operating activities
4. Changes in accrued liabilities - Operating activities
5. Dividend paid - Financing activities
7. Cash Received from sales of assets and business - Investing activities
8. Net Income - Operating activities
9. Change in accounts payable - Operating activities
10. Short term debt borrowings - Financing activities
11. Capital Expenditures - Investing activities