Answer:
Part a.
Work In Process : Job 201 $64,200 (debit)
Work In Process : Job 202 $32,100 (debit)
Work In Process : Job 203 $25,350 (debit)
Work In Process : Job 204 $47,100 (debit)
Salaries Payable $168,750 (credit)
Part b.
Work In Process : Job 201 $94,160 (debit)
Work In Process : Job 202 $47,080 (debit)
Work In Process : Job 203 $37,180 (debit)
Work In Process : Job 204 $69,080 (debit)
Overheads $168,750 (credit)
Explanation:
Calculation of Labor Cost :
Job 201 = 4,280 hours × $15 = $64,200
Job 202 = 2,140 hours × $15 = $32,100
Job 203 = 1,690 hours × $15 = $25,350
Job 204 = 3,140 hours × $15 = $47,100
Application of overhead to jobs :
Job 201 = 4,280 hours × $22 = $94,160
Job 202 = 2,140 hours × $22 = $47,080
Job 203 = 1,690 hours × $22 = $37,180
Job 204 = 3,140 hours × $22 = $69,080
Use the information from the balance sheet and income statement below to calculate the following ratios:
a. Current Ratio
b. Acid-test ratio
c. Times interest earned
d. Inventory turnover
e. Total asset turnover
f. Operating profit margin
g. Days in receivables
h. Operating return on assets
i. Debt ratio
j. Fixed asset turnover
k. Return on equity
Balance Sheet ASSETS
Cash $100,000
Accounts receivable 30,000
Inventory 50,000
Prepaid expenses 10,000
Total current assets $190,000
Gross plant and equipment 401,000
Accumulated depreciation (66,000)
Total assets $525,000
LIABILITIES AND OWNERS' EQUITY
Accounts payable $90,000
Accrued liabilities 63,000
Total current liabilities $153,000
Long-term debt 120,000
Common stock 205,000
Retained earnings 47,000
Total liabilities and equity $525,000
Income Statement Sales* $210,000
Cost of goods sold (90,000)
Gross profit $120,000
Selling, general, and
administrative expenses (29,000)
Depreciation expenses (26,000)
Operating profits $65,000
Interest expense (8,000)
Earnings before taxes $57,000
Taxes (11,970)
Net income $45,030
Answer:
a. Current Ratio = current assets / current liabilities = 190,000 / 153,000 = 1.24
b. Acid-test ratio = (current assets - inventory) / current liabilities = (190,000 - 50,000) / 153,000 = 0.92
c. Times interest earned = EBIT / interest expense = 65,000 / 8,000 = 8.13
d. Inventory turnover = COGS / inventory = 90,000 / 50,000 = 1.8
e. Total asset turnover = net sales / total assets = 210,000 / 525,000 = 0.4
f. Operating profit margin = operating income / total sales = 65,000 / 210,000 = 0.31
g. Days in receivables = (accounts receivables / total sales) x 365 = (30,000 / 210,000) x 365 = 52.14 days
h. Operating return on assets = operating income / total assets = 65,000 / 525,000 = 0.12
i. Debt ratio = total liabilities / total assets = 273,000 / 525,000 = 0.52
j. Fixed asset turnover = total sales / fixed assets = 210,000 / 335,000 = 0.63
k. Return on equity = net income / total equity = 45,030 / 252,000 = 0.18
what has the U.S customs created to force importing companies like wal-mart to provide more detailed information about
Answer: The Customs-Trade Partnership Against Terrorism (CTPAT)
Explanation:
The Customs-Trade Partnership Against Terrorism (CTPAT) is a partnership program between the public and private sector created by the US Customs to improve border and cargo security.
When a firm like Wal-Mart becomes a member of the CTPAT, the likelihood of their goods being examined at a port of entry falls but this is because of the oversight requirements imposed on the firms such as ensuring the members provide detailed information about their suppliers and transportation companies.
Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended August 31, 2019, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows:
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... 45,000
Gross Profit ........ $72,000
Nutritional has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $19,000.
Required:
a. Journalize the adjusting entry for merchandise inventory, if any is required.
b. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit.
Answer:
a) since the cost of ending inventory is higher than the replacement value, then ending inventory must decrease, which will result in higher COGS. The adjusting journal entry is:
March 31, 2017, inventory adjustment
Dr Cost of goods sold 2,000
Cr Merchandise inventory 2,000
b) revised income statement
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... $47,000
Gross Profit ........ $70,000
The following information is available for Mergenthaler Corporation for the year ended December 31, 2022:
Collection of principal on long-term loan to a supplier $16,000
Acquisition of equipment for cash 10,000
Proceeds from the sale of long-term investment at book value 22,000
Issuance of common stock for cash 20,000
Depreciation expense 25,000
Redemption of bonds payable at carrying (book) value 34,000
Payment of cash dividends 6,000
Net income 30,000
Purchase of land by issuing bonds payable 40,000
In addition, the following information is available from the comparative balance sheet for Mergenthaler at the end of 2022 and 2021:
2021 2022
Cash $148,000 $91,000
Accounts receivable (net) 25,000 15,000
Prepaid insurance 19,000 13,000
Total current assets $192,000 $119,000
Accounts payable $30,000 $19,000
Salaries and wages payable 6,000 7,000
Total current liabilities $36,000 $26,000
Required:
Prepare Mergenthaler's statement of cash flows for the year ended December 31, 2014, using the indirect method.
Answer:
Cash Flow from Operating Activities Amount$
Net Income 30000
Add Depreciation Expense 25000
Increase in Accounts Payable 11000
Increase in Accounts Receivables -10000
Increase in Prepaid Insurance -6000
Decrease in Salaries and Wages Payable -1000
Net Cash Flow from Operating Activities A 49000
Cash Flow from Investing Activities
Acquisition of Equipment for Cash -10000
Proceeds from Sale of Long-Term Investment 22000
Net Cash Flow from Investing Activities B 12000
Cash Flow from Financing Activities
Redemption of Bonds Payable -34000
Proceeds from Issuance of Common Stock 20000
Payment of Cash Dividends -6000
Collection of Principal on Long-Term Loan 16000
Net Cash Used in Financing Activities C -4000
Opening Cash Balance 91000
Add Increase in Cash (A+B+C) 57000
Closing Cash Balance 148000
Three workers each take home two packs of Post-It notes at a cost of $.67 per pack.
Answer:
$ 4.02
Explanation:
Take two packs ×3 and it = 6 then take 6 × 67 and you get $4.02
CAM charges for retail leases in a shopping mall must be calculated. The retail mall consists of a total area of 2.8 million square feet, of which 800,000 square feet has been leased to anchor tenants that have agreed to pay $2 per rentable square foot in CAM charges. In-line tenants occupy 1.3 million square feet, and the remainder is a common area, which the landlord believeswill require $8 per square foot to maintain and operate each year. If the owner is to cover total CAM charges, how much will in-line tenants have to pay per square foot?
Answer:
$3.08 per square foot
Explanation:
Calculation for how much will in-line tenants have to pay per square foot
First step is to find the common area
Common area = 2,800,000−800,000−1,300,000 Common area= 700,000
Second step is to find Common area operating costs
Common area operating costs = 700,000×8
Common area operating costs= $5.6 million
Third step is to find the Operating costs charged to in-line tenants
Operating costs charged to in-line tenants = 5,600,000−800,000×2
Operating costs charged to in-line tenants = 4,000,000
Last step is to calculate the In-line CAM charges using this formula
In-line CAM charges=Operating costs charged to in-line tenants -In-line tenants square feet
Let plug in the formula
In-line CAM charges = 4,000,000 ÷ 1,300,000
In-line CAM charges= $3.08
Therefore the amount that in-line tenants have to pay per square foot will be $3.08 per square foot.
Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,500 of itemized deductions, and they had $3,550 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice is 18 years of age, the Jacksons may only claim the child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.)
Comprehensive Problem 4-55 Parts-c through f
a. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?
b. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?
c. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?
Answer:
a. Taxable income = $80,000
b. Taxable income = $77,600
c. Taxable income = $80,600
Explanation:
Taxable income refers to the amount of income that is used to determine the amount of tax that will be paid to the government by an individual or firm in given year. The taxable income is arrived at after all the relevant addition and allowable deductions have been made.
The requirements are therefore answered as follows:
a. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?
Note: See part a of the attached excel file see the effect on taxable income.
The itemized deductions total of $28,000 instead of $16,500 makes the taxable income to be $80,000.
In the attached excel file, the following calculations is used:
Qualified business income deduction = Qualified business income * Parentage of deduction allowed = $10,000 * 20% = $2,000
b. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?
Note: See part b of the attached excel file for the calculations of the taxable income.
This makes the taxable income to be equal to $77,600.
c. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?
Note: See part c of the attached excel file for the calculations of the taxable income.
The loss of loss of $5,000 on the sale of some of their investment assets incurred by the Jacksons is capital loss.
For tax purposes, capital loss of can be deducted as a loss on tax return by tax payers with a maximum of $3,000 to be deducted per year.
Therefore, the Jacksons will deduct $3,000 as a capital loss from their tax return, and the effect of this is to reduce the taxable income by $3,000.
This makes the taxable income to be equal to $80,600.
Theresa works as a Risk Management Specialist for an investment corporation. Which best describes her educational pathway?
A. an associate’s degree, then a bachelor’s degree
B. a master’s degree, then vocational school
C. vocational school, then an associate’s degree
D. a bachelor’s degree, then a master’s degree
Answer:
The answer is b
Explanation:
i'm doing the unit test right now
Answer:
I feel that the correct answers is D because to become a Risk Management Specialist you must have a bachelors in business and most likely a master.
Explanation:
Martinez Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Benefit Obligation Plan Assets Value
2019 $2,340,000 $2,223,000
2020 2,808,000 2,925,000
2021 3,451,500 3,042,000
2022 4,212,000 3,510,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows:
2019, $327,600 loss; 2020, $105,300 loss; 2021, $12,870 loss; and 2022, $29,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Required:
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $
Answer:
2020 $11,700
2021 $8,080
2022 $14,040
Explanation:
PBO = Projected benefit Obligation
PA = Plan Asset
Acc. OCI = Accumulated OCI Gain / Loss
Min. Amort loss = Minimum Amortization of Loss
Year : PBO ; PA ; Corridor 10% ; Acc. OCI ; Min. Amort loss
2019 : $2,340,000 ; $2,223,000 ; $234,000
2020 : $2,808,000 ; $2,925,000 ; $280,800 ; $397,800 ; 11,700
2021 : $3,451,500 ; $3,042,000 ; $345,150 ; $264,350 ; 8,080
2022 : $4,212,000 ; $3,510,000 ; $421,200 ; $280,800 ; 14,040
Who was the first missionary to arrive in Africa?
Answer:
David Livingstone in 1840.
Hope this helps ; ) Enjoy your day!
In an example, a local church is made up of people who are very different in their lifestyles and their stages of life. Mary is a 23-year-old single parent who earns the minimum wage. Jonathan is 60 years old, extremely wealthy, and works because he enjoys it. Jane is a 45-year-old lawyer who earns well and is well-respected in her profession. She is extremely career-oriented and is proud of her achievements. Which of the following do you think would motivate Jonathan the most?
a. safety
b. physiological
c. self-actualization
d. growth
e. esteem
Answer:
C) Self actualization
Explanation:
From the question, we are informed about example of alocal church is made up of people who are very different in their lifestyles and their stages of life, we are told if Mary who is is a 23-year-old single parent who earns the minimum wage. Jonathan is 60 years old, extremely wealthy, and works because he enjoys it. Jane is a 45-year-old lawyer who earns well and is well-respected in her profession. She is extremely career-oriented and is proud of her achievements.
In this case, self actualization would motivate Jonathan the most. This is because self actualization can be regarded as self fulfilment, it is when one fully realize his/her potential and gives appreciation, and here
Jonathan is 60 years old, and described as extremely wealthy, and works because he enjoys it. Hence self actualization is the best answer.
The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales revenue, $22,600; cost of goods sold, $14,650; selling expense, $2,330; general and administrative expense, $1,230; dividend revenue from investments, $230; interest expense, $330. Income taxes have not yet been accrued. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in 000s). All transactions are material in amount.
1. Investments were sold during the year at a loss of $300. Foxworthy also had unrealized losses of $200 for the year on investments.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $2,000.
3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2016 prior to the sale, and its assets were sold at a
loss of $1,800.
4. Foreign currency translation gains for the year totaled $600.
Required:
Prepare Foxworthy's single, continuous statement of comprehensive income for 2021, including basic earnings per share disclosures. Two million shares of common stock were outstanding throughout the year.
Question attached
Answer and Explanation:
Please find attached
Pham can work as many or as few hours as she wants at the college bookstore for $12 per hour. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or other potential jobs. One potential job, at a café, will pay her $15 per hour for up to 6 hours per week. She has another job offer at a garage that will pay her $13 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work.
If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?
Answer:
4 hours
Explanation:
For Pham to maximize her income, she must consider the jobs with the highest per-hour earnings first. She has 15 hours to work. Her priorities should be as below.
Work at the cafe for 6 hours for $15 per hourWork at the garage for 5 hours for $13 per hourWork at the books store for 4 hours for $12 per hourA total of 15 hours. Pham can work at the book store for 4 hours per week to maximize her income.
Pham will have to work 4 hour per week at the bookstore to maximize her pay.
Given data
Total number of hours available per week = 15 hours
Cafe will pay her $15 per hour up to 6 hoursGarage offers $13 per hour up to 5 hoursDycare Centre offers $11.50 per hours for as long as she can workOut of the potential job, only the cafe and garage centre pay is more than the pay of bookstore
Hence, in order to maximize the amount of money, Pham have to devote 6 hours at the cafe, 5 hours at the garage centre and remaining 4 hours at bookstore,
In this way, the amount of money she will receives will be at maximum.
Working at Cafe she will make $15 * 6 = $90 Working at Garage centre she will make $13 * 5 = $65Working at Bookstore she will make $12*4 = $48Total amount she will earn = $90 + $65 + $48
Total amount she will earn = $203
Therefore, Pham will have to work 4 hour per week at the bookstore to maximize her pay.
Read more about pay maximization
brainly.com/question/10880329
Question 3
20 pts
Solve the problem
A normal distribution has a limited range and can be skewed in either direction.
True
0 False
Next >
A deposit of $10,000 is made a year from now, a second deposit of $10,000 is made at the end of the year 5, and a deposit of $3000 is made at the end of year 8. The account earns 6% interest. You want to withdraw an equal amount, X at the end of each year for the next 10 years. What is the amount of X if the goal is to empty the account
Answer:
$4068.77
Explanation:
We calculate the Future value of all the three deposits at the end of year 8
FV = CF1 *(1+r)^8-1 + CF5*(1+r)^8-5 + CF8 * (1+r)^8-8
FV = 10000 *(1+0.06)^7 + 10000*(1+0.06)^3 + 3000 * (1+0.06)^0
FV = 15,036.30 + 11,910.16 + 3,000
FV= $29,946.46
We have to calculate the annuity payments that have a Present value = $29,946.46
PV = PMT * 1-(1+r)^-n / r
PV = 29,946.46, PMT= ?, r = 6%, n = 10
29,946.46 = PMT * 1-(1+0.06)^-10 / 0.06
29,946.46 = PMT * 1 - 1.06^-10 / 0.06
29,946.46 = PMT * 1 - 0.558395 / 0.06
29,946.46 = PMT * 0.441605 / 0.06
29,946.46 = PMT * 7.36008
PMT = 29,946.46/7.36008
PMT = 4068.768274257889
PMT = $4068.77
Thus, amount of X is $4068.77 if the goal is to empty the account.
Etxuck327 Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Answer:
539,000.00
Explanation:
As per the contribution margin analysis concept, the break-even point is obtained by dividing fixed cost by contribution margin per unit.
For Etuck327,
The selling price is $39
Variable expense is $28
Break-even in units is 49,000 books.
Contribution margin per unit = selling price - variable costs
=$39- $28
=$11
if Break-even = fixed cost/ contribution margin per unit, then
49,000= fixed cost / 11
fixed costs = 11 x 49000
Fixed costs = 539,000.00
At January 1, 2021, Cafe Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $29,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $207,000 (its fair value) and was expected to have a useful life of 13 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $94,113.) Crescent seeks a 12% return on its lease investments. By this arrangement, the lease is deemed to be an operating lease.
Required:
a. What will be the effect of the lease on Cafe Med's earnings for the first year (ignore taxes)?
b. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Café Med (ignore taxes)?
Answer:
Café Med
a. Café Med's earnings for the first year will be reduced by $58,000 (Operating lease expense for January 1 and December 31, 2021).
b. In Café Med's Balance Sheet, at the end of the first year, there will be a liability balance or Lease Expense Payable of $29,000 for the balance due to be paid on December 31, 2021.
Explanation:
Lease annual payments = $29,000
First payment date = January 1, 2021
Subsequent payment dates = December 31, 2021 to 2028.
Period of lease agreement = 9 years < 75% (9/13)
Cost of equipment to Crescent = $207,000
Lifespan of equipment = 13 years
Residual value at end of the lease term = $94,113
b) Café Med will recognize this lease arrangement as an operating lease. This is based on periodic rental payment on a straight-line basis, which is recorded as an operating lease expense. The liability arising will be for unpaid rentals at the end of the accounting period.
Apr. 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
3 Paid $390 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $500.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $13,100 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
21 After negotiations, received from Frist a $400 allowance toward the $13,100 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Required:
Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Answer:
Apr. 2
Merchandise $6,900 (debit)
Accounts Payable : Lyon Company $6,900 (credit)
Purchased Merchandise from Lyon Company on credit
April 3.
Accounts Payable : Lyon Company $390 (debit)
Cash $390 (credit)
Payment of Freight Charges Include in Invoice (FOB)
April 4.
Accounts Payable : Lyon Company $500 (debit)
Merchandise $500 (credit)
Returned Merchandise to Lyon Company
April 17.
Accounts Payable : Lyon Company $6,010 (debit)
Discount Received $120 (credit)
Cash $5,890 (credit)
Payment of amount due to Lyon Company and discount received
April 18.
Merchandise $13,100 (debit)
Accounts Payable: Frist Corp $13,100 (credit)
Purchased Merchandise on credit from Frist Corp
April 2.
Accounts Payable: Frist Corp $400 (debit)
Purchase allowance $400 (credit)
Received and allowance from Frist Corp
April 28.
Accounts Payable: Frist Corp $12,700 (debit)
Discount Received $127 (credit)
Cash $12,573 (credit)
Payment of amount due to Frist Corp and discount received
Explanation:
See the journals and their narrations prepared above.
Managers must be able to determine whether their workers are doing an effective and efficient job, with a minimum of errors and disruptions. They do so by using a performance appraisal, an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination. Managing effectively means getting results through top performance. That's what performance appraisals at all levels of the organization are for—including at the top, where managers benefit from review by their subordinates. In the 360-degree review, management gathers opinions from all around the employee, including those under, above, and on the same level, to get an accurate, comprehensive idea of the worker's abilities.
a. True
b. False
Answer:
a. True
Explanation:
This system of performance review is a 360-degree review or feedback process where a given employee receives inputs on her performance (or other criteria such as behaviors, competencies and results achieved) from different employees with varying working relationships and at different levels. The idea is to ensure that the employee's performance is not partial or biased. Using this system, the employee who may be a manager will have her performance reviewed by employees below, above, and on the same level with her.
The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following.
GARY COOPER CO.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $20,892
Accounts Receivable 8,340
Prepaid Rent 3,700
Equipment 19,470
Accumulated Depreciation-
Equipment $6,315
Notes Payable 7,120
Accounts Payable 6,892
Common Stock 21,420
Retained Earnings 12,730
Dividends 4,420
Service Revenue 13,010
Salaries and Wages Expense 8,260
Rent Expense 2,154
Depreciation Expense 251
Interest Expense 189
Interest Payable 189
$67,676 $67,676
Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.
Answer: See attachment
Explanation:
An income statement is sometimes referred to as the profit and loss account. It should be noted that it shows the revenue and the expenses that are incurred by a particular company for a certain year.
With regards to the questions above, check the attachments for the solution.
The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other factors affecting sleep:
sleep = β0 + β1totwrk + β2educ + β3age + u,
where sleep and totwrk (total work) are measured in minutes per week and educ and age are measured in years. (See also Computer Exercise.)
(i) If adults trade off sleep for work, what is the sign of β1?
(ii) What signs do you think β2 and β3 will have?
(iii) Using the data in SLEEP75.RAW, the estimated equation is
= 3,638.25 - .148 totwrk - 11.13 educ + 2.20 age n = 706, R2 = .113.
If someone works five more hours per week, by how many minutes is sleep predicted to fall? Is this a large tradeoff?
(iv) Discuss the sign and magnitude of the estimated coefficient on educ.
(v) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?
Use the data in SLEEP75.RAW from Biddle and Hamermesh (1990) to study whether there is a tradeoff between the time spent sleeping per week and the time spent in paid work. We could use either variable as the dependent variable. For concreteness, estimate the model
sleep =β0+ β1totwrk+u, where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.
(i) Report your results in equation form along with the number of observations and R2. What does the intercept in this equation mean?
(ii) If totwrk increases by 2 hours, by how much is sleep estimated to fall? Do you find this to be a large effect?
Answer:
1. I²1 will have a negative sign
This is because the more work the adults do, the less sleep they will utilize.
2. The sign of i²2 is likely to be negative. This is because due to the demands placed on them, more educated people are likely to sleep less. Also, general as age increases some people sleep less. While some others sleep more as it increases. So i²3 is a bit complicated to judge.
3. Using the data
^sleep = 3638.24-0.148toteork-11.13educ + 2.20age
N = 706 r² = 0.113
We will convert 5 hours to minutes = 60x5 = 300
Coefficient of totwork = 0.148
O.148x300 = 44.4 minutes
In a week approximately 45 minutes of less sleep is not too much a change.
4. We are to discuss the sign and magnitude of estimated education
More education indicates less sleeping time. This is obvious given the sign of the variable educ. It is negative, but it's effect is quite small. Magnitude is -11.13.
So as education increases by 1 year, expected sleeping time decreases by 11.13 minutes weekly.
5. R² is 0.113. the 3 predictor variables gives us 11.3% of total variations in sleep and rest. 88.7% is unexplained.
Some factors that might also affect it are general health, number and age of children are factors that could correlate with totwork
The following summary transactions occurred during 2021 for Bluebonnet Bakers:
Cash Received from:
Collections from customers $490,000
Interest on notes receivable 11,500
Collection of notes receivable 54,000
Sale of investments 34,000
Issuance of notes payable 175,000
Cash Paid for:
Purchase of inventory 235,000
Interest on notes payable 7,500
Purchase of equipment 90,000
Salaries to employees 95,000
Payment of notes payable 40,000
Dividends to shareholders 35,000
The balance of cash and cash equivalents at the beginning of 2021 was $26,000.
Required:
Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities
Answer and Explanation:
The preparation of the statement of cash flows is presented below:
Bluebonnet Bakers
Cash flow statement
For the year 2021
Cash flow from operating activities
Collections from customers $490,000
Interest on notes receivable 11,500
Less: Interest on notes payable 7,500
Less: Purchase of inventory 235,000
Less: Salaries to employees 95,000
Net cash flow from operating activities $164,000
Cash flow from investing activities
Collection of notes receivable 54,000
Sale of investments 34,000
Less: Purchase of equipment 90,000
Net cash flow from investing activities -$2,000
Cash flow from financing activities
Issuance of notes payable 175,000
Less: Payment of notes payable 40,000
Less: Dividends to shareholders 35,000
Net cash flow from financing activities $100,000
Net increase or decrease in cash $262,000
Add: Opening cash balance $26,000
Ending cash balance $288,000
Company XYZ closed at $ per share with a P/E ratio of . Answer the following questions. a. How much were earnings per share? b. Does the stock seem overpriced, underpriced, or about right given that the historical P/E ratio is 12-14?
Answer:
Hello your question is incomplete below is the complete question
Company XYZ closed at $53.02 per share with a P/E ratio of 14.02 .
Answer :
A) $3.79
B) underpriced
Explanation:
Given data:
Closing price ( price per share ) = $53.02
P/E ratio = 14.02
A ) How much earnings per share
Earnings per share = price per share / (P/E) ratio
= 53.02 / 14.02 = $3.79
B) To check if the stock is overpriced, underpriced or about right
i) At P/E ratio = 12
Earnings per share = 53.02 / 12 = $4.43
Earning yield = ( earning per share / market value ) * 100
= ( 4.43 / 53.02 ) * 100 = 8.33%
ii) At P/E ratio = 13
Earnings per share = 53.02 / 13 = $4.09
Earning Yield = ( earning per share / market value ) * 100
= (4.09 / 53.02 ) * 100 = 7.69%
iii) At P/E ratio = 14
Earnings per share = 53.02 / 14 = $ 3.8
Earnings yield = ( earning per share / market value ) * 100
= ( 3.8 / 53.02 ) * 100 = 7.14%
The average of the earning yield given P/E ratio is 12-14
= ( 8.33 + 7.69 + 7.14 ) % / 3 = 7.72%
while The earning yield given P/E ratio is 14.02
= ( earning per share / market value ) * 100
= ( 3.79 / 53.02 ) * 100 = 7.12%
Therefore the stock is underpriced
Bristo Corporation has sales of 1,750 units at $40 per unit. Variable expenses are 30% of the selling price. If total fixed expenses are $39,000, the degree of operating leverage is:
Answer:
1,750=$40=1,750×40=70-30÷100×39,000=58,3
Explanation:
is total cost of production can be fixed cost +variable cost
Answer:
degree of operating leverage= 4.9
Explanation:
To calculate the degree of operating leverage, we need to use the following formula:
degree of operating leverage= Total contribution margin / operating income
Total Contribution margin= 1,750*(40*0.7)= $49,000
Operating income= 49,000 - 39,000= $10,000
degree of operating leverage= 49,000/10,000
degree of operating leverage= 4.9
Which section of a CAR Residential Purchase Agreement is a provision divided into three sections: mediation, arbitration of disputes, and additional terms?
Answer: Appraisal contingency and Removal.
Explanation:
The appraisal contingency, is a kind of CAR residential purchase agreement, which allows a buyer to back out of the deal if the house appraises for less than the already agreed-upon value. and the loan contingency, this term lets the buyer back out if he/she can't get their loan approved for the said purposes.
The section of a car residential purchase agreement that separates it into three sections would be:
Section 9C
The section titled 9C functions to separate the property purchase provisions into three varied divisions. These divisions include mediation followed by arbitration of disputes, and the external terms that fulfill the remaining ones.The other options are present in order to fulfill if either of them fails to resolve the dispute.Thus, "section 9C" is the correct answer.
Learn more about "Residential Agreement" here:
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Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.
Answer:
A.intensive
Explanation:
Products such as chocolate bars and chips fit the classification of non-durable consumer goods, that is, those that are produced for immediate consumption.
Its characteristics involve meeting the needs of the final consumer periodically, generally they are low-cost products that need quick replacement to meet the high demand for these non-durable products.
Therefore, the best strategy for the distribution of non-durable products is the intensive strategy, making it available in different places with easy access to the consumer and with high replacement.
Apply What You’ve Learned - Managing Credit Cards and ConsumerLoans
Scenario: You are 30 years old, married, have two children, and household income (take-home pay) of$3,500 per month. Your credit and consumer debt is as follows:_______.
• Car loan, 6% interest rate, $10,000 balance, $295 per month
• Department store card, 28% interest rate, $600 balance, minimum payment 5% of balance
• Discover Card, 12% interest rate, $2,000 balance, minimum payment 2% of balance
• VISA Card, 13% interest rate, $3,000 balance, minimum payment 2% of balance
• MasterCard 1, 14% interest rate, $4,000 balance, minimum payment 2% of balance
• MasterCard 2, 14% interest rate, $0 balance, minimum payment 2% of balance
• Gasoline card, 21% interest rate, $300 balance, minimum payment 5% of balance
Assume all credit cards will assess a $35 late fee and ongoing penalty interest of 8% above the currentrate if you miss a payment. Your recent VISA card statement came with a blank cash advance check(for up to $10,000) with terms of 23.99% APR and a fee of 3% if you use it. Your recent MasterCard 2statement came with a balance transfer oFer (up to $4,000) with no fee and 0% APR for 12 months,after which the normal interest rate applies. You recently found an incorrect amount charged on yourVISA card from a store you frequent often. You’d like to come up with a plan to eliminate all of yourcredit card debt.
In general, is it a good idea to make only minimum payments on your credit cards?
Yes, you can invest the money saved each month to earn interest.
No, it will cause your interest rate to go up.
No, the small payment requirement is mathematically guaranteed to keep you in debt for manyyears.
Yes, this allows you more ±exibility in your cash budget.
Assuming you have $1,500 in your budget this month with which to pay down your credit cards, howmuch should you pay on each card?
CardInterestrateOutstandingRequired minimumRecommendedbalancepayment(%)payment($)debtrepaymentamount
store card
Discover Card12%2,0008%
VISA Card13%3,00010%
MasterCard 114%4,0008%
MasterCard 214%010%
Gasoline card21%30015%
Total$9,900$1,500
Answer:
1) In general, is it a good idea to make only minimum payments on your credit cards?
No, the small payment requirement is mathematically guaranteed to keep you in debt for many years.All you have to do is analyze the interest rates charged by the credit card companies and it is really difficult for any investment to match those interest rates.
2) Assuming you have $1,500 in your budget this month with which to pay down your credit cards, how much should you pay on each card?
I would start with the cards that charge the highest interest rates. I would pay the full balance of the department store card and the gasoline card = $600 + $300 = $900
Since I have $600 left, I would then pay the minimum payments for the cards that charge the least interest rates. I would pay $40 to Discover card and $60 to VISA.
The remaining $500 would be used to pay MasterCard 1 card and lower its balance.
Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility as possible, given his $20/month food budget. On Monday, the Blue Coffee Shop was selling espresso shots for $3 each and Robert added 3 shots to his cappuccino. By Friday, the Purple Coffee Shop offered espresso shots for $2 each, while all other prices remained the same, so Robert was bold and added 4 espresso shots to his hot beverage.
Required:
Given this information, plot Robert's demand curve for espresso shots.
Answer:
I drew Robert's demand curve for espresso shots assuming that it was a linear curve since the information contained in the question is limited to that.
A demand curve generally is downward sloping, since an increase in price will usually result in a higher quantity demanded (at least for normal goods).
connecting u dropped its price from $20 to $16 per gigabyte of data. Joe according to the midpoint formula, Connecting U reduced its price by what percentage?
Answer:
-$22.2
Explanation:
The computation of price by percentage is shown below:-
Price by percentage = (End price - Beginning price) ÷ (End price - Beginning price) ÷ 2 × 100
= ($16 - $20) ÷ ($16 - $20) ÷ 2 × 100
= -$4 ÷ $18 × 100
= -$400 ÷ $18
= -$22.2
So, we have applied the above formula.
And, the same is to be considered
Connecting u dropped price in percentage is 22.2%
Midpoint formula:Given that;
Old price = $20
New price = $16
Find:
Connecting u dropped price in percentage
Computation:
[tex]Dropped\ price\ in\ percentage=[\frac{16-20}{\frac{16+20}{2} }]100\\\\Dropped\ price\ in\ percentage=[\frac{16-20}{18}]100\\\\Dropped\ price\ in\ percentage=[\frac{-4}{18}]100\\\\Dropped\ price\ in\ percentage=22.2[/tex]
Connecting u dropped price in percentage = 22.2%
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Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $960,000, and the LLC has debts of $624,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records.
Ordinary income $900,000
W-2 wages to employees 200,000
Depreciation expense 300,000
Interest income from bond 4,000
Long-term capital loss 6,000
Short-term capital gain 12,000
Charitable contribution 4,000
Cash distribution to Amy 20,000
Unadjusted basis of partnership depreciable property 1,600,000
Year-end LLC debt payable to unrelated parties is $140,000.
Required:
What income, gains, losses, and deductions does Amy report on her income tax return?
Answer: See explanation
Explanation:
Share of ordinary income:
= (Ordinary income - Wages - Depreciation)/2
= (900,000 - 200,000 - 300,000)/2
= 400,000/2
= 200,000
Share of net short term capital gain
= (12,000 - 6,000) × 50%
= 6,000 × 0.5
= 3,000
Share of interest income
= 4000 × 50%
= 4000 × 0.5
= 2000
Share of charitable contribution deduction
= 4000 × 50%
= 4000 × 0.5
= 2000