Answer:
The price leardership model of oligopoly
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.
Answer:
Ending inventory:
(a) specific identification = $2,720(b) weighted average = $2,810.05(c) FIFO = $2,687.50(d) LIFO = $3,010Cost of goods sold:
(a) specific identification = $6,495(b) weighted average = $6,404.95(c) FIFO = $6,527.50(d) LIFO = $6,205Explanation:
Date Activity Units Cost Total
Jan. 1 Beg. inventory 215 $14 $3,010
Jan. 10 Sales 165
Jan. 20 Purchase 160 $13 $2,080
Jan. 25 Sales 190
Jan. 30 Purchase 330 $12.50 $4,125
total Purchases 705 $13.07 $9,215
Ending inventory:
(a) specific identification = (190 x $12.50) + (5 x $13) + (20 x $14) = $2,720
(b) weighted average = 215 x $13.07 = $2,810.05
(c) FIFO = 215 x $12.50 = $2,687.50
(d) LIFO = 215 x $14 = $3,010
Cost of goods sold:
(a) specific identification = $9,215 - $2,720 = $6,495
(b) weighted average = $9,215 - $2,810.05 = $6,404.95
(c) FIFO = $9,215 - $2,687.50 = $6,527.50
(d) LIFO = $9,215 - $3,010 = $6,205
Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 127 units. The following is the BOM in indented form:
ITEM DESCRIPTION USAGE
X Bracket assembly 1
A Wall board 5
B Hanger subassembly 2
D Hanger casting 3
E Ceramic knob 2
C Rivet head screw 3
F Metal tong 4
G Plastic cap 1
Below is a table indicating current inventory levels:
Item X A B C D E F G
Inventory 27 19 74 23 201 262 975 100
b. What are the net requirements for each item? (Leave no cells blank - be certain to enter "0" wherever required.)
Item Net Requirements
X
A
B
C
D
E
F
G
Answer and Explanation:
The computation of net requirements for each item is shown below:-
Net requirement = Gross requirement - Inventory
To compute the Gross requirement we will use the following formulas:
A = 5 × Net requirement of X
= 5 × 127
= 635
B = 2 × Net requirement of X
= 2 × 127
= 254
C = 3 × Net requirement of X
= 3 × 127
= 381
D = 3 × Net requirement of B
= 3 × 180
= 540
E = 2 × Net requirement of B
= 2 × 180
= 360
F = 4 × Net requirement of C
= 4 × 358
= 1,432
G = 1 × Net requirement of C
= 1 × 358
= 358
Item Gross Requirement Inventory Net Requirement
X 127 1 127
A 635 19 616
B 254 74 180
C 381 23 358
D 540 201 339
E 360 262 98
F 1,432 975 457
G 358 100 258
Therefore we have applied the net requirement formula.
Hi Abigail,
As you may know, Macy’s is in a battle with Abercrombie & Fitch for sales among 15- to 20-year-old female customers. We are relocating our Junior department to the basement of our store to give young people a separate entrance and place to call their own. We want to beat Abercrombie & Fitch, and we’ll all need to work together to make that happen.
Thanks for your hard work. Together we can do this!
Best regards,
William
1. Do you think some kind of reward would be appropriate to motivate Abigail? If so, what should it be?
a. A choice of work assignments
b. Two days off with pay
c. A $200 bonus
2. What sentences should I use to increase Abigail’s expectancy P&O expectancy?
a. You asked for new promotional posters last week—I’ve gotten those for you.
b. Any employee who increases sales by 10% this month will receive a reward.
c. Your attitude is critical in this effort—I know you can do it.
3. Which of the following sentences should I use to increase Abigail’s E&P expectancy?
a. Any employee who increases sales by 10% this month will receive a reward.
b. You can choose your own reward if you hit your goals.
c. You asked for new promotional posters last week—I’ve gotten those for you.
Answer:
c b a
Explanation:
1. c
You need to make the person feel good about their hard work.
2. b
They make the right point.
3. a
It pretty much makes the most sense as you don't want the employ to have too much power.
For employee encouragement Macy’s shall do the following:
1. Reward to Abigail:
a) A choice of work assignments
2. Performance & outcome expectancy:
c) Your attitude is critical in this effort, I know you can do it.
3. Effort & Performance Expectancy:
a) Any employee who increases sales by 10% this month will receive a reward.
What do you mean by Performance and Outcome (P&O) Expectancy?
Performance Expectancy:
The degree to which a person expects that employing a system will enable him or her to improve their performance at work is known as performance expectancy (PE).
Outcome Expectancy:
Expected results of a conduct, whether favorable or bad, are referred to as outcome expectations.
Expectancy theory consists of three parts:
Effort Performance ⇒ Result ⇒ RewardoutcomeTherefore Macy should focus on employee motivation by combining effort, performance & outcome element under agency theory.
To know more about Performance & Outcome (P&O) Expectancy refer:
https://brainly.com/question/14914100
#SPJ5
g If the U.S. real exchange rate appreciates, U.S. exports a. increase and U.S. imports decrease. b. decrease and U.S. imports increase. c. and U.S. imports both increase. d. and U.S. imports both decrease.
Answer:
The answer is B.
Explanation:
If dollar appreciates, imports become cheaper(decrease), meaning dollar will buy more of another foreign currency
because Americans will find foreign goods less expensive because they have to spend less for those goods and services in dollar.
In the same vein, exports rise(increase) or less profitable, causing the domestic demand to fall because foreigners will find American goods more expensive because they have to spend more for those goods and services in dollar
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has no stated value. A corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash.
Answer:
1. Dr Cash $35,000
Cr Common Stock $20,000
Cr Paid-in Capital in excess of par value Common Stock $15,000
2.Dr Organization expenses $40,000
Cr Common stock $2,000
Cr Paid-in cap in excess of stated value Common Stock $38,000
3.Dr Organization expenses $40,000
Cr Common stock, no-par value $40,000
4. Dr Cash 60,000
Cr Preferred stock 50,000
Cr Paid-in cap in excess of par value, preferred stock 10,000
Explanation:
1. Based on the information given we told that they issued 4,000 shares of $5 par value of common stock for the amount of $35,000, which means that the transaction will be recorded as:
Dr Cash $35,000
Cr Common Stock $20,000
(4,000 Shares *$ 5 Par Value)
Cr Paid-in Capital in excess of par value Common Stock $15,000
($35,000-$20,000)
2.Since they issued 2,000 shares of no-par common stock estimated to be worth the amount of $40,000. This means that the transaction will be recorded as:
Dr Organization expenses $40,000
Cr Common stock $2,000
(2,000 Shares*$1 stated value)
Cr Paid-in cap in excess of stated value Common Stock $38,000
(40,000-2,000)
3. Based on the information given we were told that they issued 2,000 shares of no-par common estimated to be worth the amount of $40,000 in which the stock has no stated value, this means that the transaction will be recorded as.
Dr Organization expenses $40,000
Cr Common stock, no-par value $40,000
4. Based on the information given we were told that they issued 1,000 shares of $50 par value preferred stock for the amount of $60,000 which means that the transaction will be recorded as:
Dr Cash 60,000
Cr Preferred stock 50,000
(1,000 Shares *$50 par value)
Cr Paid-in cap in excess of par value, preferred stock 10,000
(60,000-50,000)
When there are lower prices, but waiting lines customers will often be drawn to the competing location of a Monopolistic Competitor with greater customer service and better atmosphere.
A. True
B. False
Footsteps Co. has a bond outstanding with a coupon rate of 5.4 percent and annual payments. The bond currently sells for $1,007.49, matures in 18 years, and has a par value of $1,000. What is the YTM of the bond
Answer: 5.33%
Explanation:
Use a financial calculator to get this faster.
On the calculator input the following.
FV = 1,000 because when it matures in 18 years it will be worth this
PV = -1007.49 as that is the current value. Should be in negative.
PMT = 54 because the coupon payments are 5.4% from the par of $1,000 which is $54.
N = 18
Click compute / CPT and then click I/Y.
You should get a YTM of 5.33%.
The acid-test (quick) ratio Group of answer choices is used to quickly determine a company's solvency and long-term debt paying ability. relates cash, short-term investments, and net receivables to current liabilities. is calculated by taking one item from the income statement and one item from the balance sheet. is the same as the current ratio except it is rounded to the nearest whole percent.
Answer:
relates cash, short-term investments, and net receivables to current liabilities
Explanation:
The quick ratio is am example of a liquidity ratio. Liquidity ratios measure a company's ability to meet its short term obligations
1. The roles of money Brian is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Brian decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Brian accumulates money in his savings account for future purchases. Brian buys his lunch with a $10 bill.
Answer:
Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.
unit of accountBrian accumulates money in his savings account for future purchases.
Store of valueBrian buys his lunch with a $10 bill.
Medium of exchangeExplanation:
Money's four functions are:
Medium of exchange = you can use money to purchase or sells goods and services. Unit of account = money helps us to understand the relative value of goods and services, since the higher the price, the higher the value of a good or service is. Store of value = you can save money for future useStandard of deferred payment = money allows people to take or hand out loans that will be repaid in the futureA stock has an expected return of 15.0 percent, its beta is 0.90, and the risk-free rate is 5.3 percent. What must the expected return on the market be
Answer:
16.07%
Explanation:
The computation of the expected return on the market is shown below
As we know that
Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )
15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)
15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%
10.77% = Expected Market Rate of Return - 5.3 %
So, expected market rate of return is
= 10.77 + 5.3%
= 16.07%
We simply applied the above formula
Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,300. The company believes that with this new machine, it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $98,800 for the next 6 years. Management requires a 10% rate of return on all new investments
Required:
a. Calculate the internal rate of return on this new machine. Should the investment be accepted?
b. Calculate cash payback period, internal rate of return, and apply decision rules.
Answer:
10%
Yes
4.36 years
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-430,300
Cash flow each year from year one to six = $98,800
IRR =10%
The project should be accepted because the IRR is equal to the required rate of return
Cash payback calculates how long it takes for the amount invested in a project to be recovered from the cumulative cash flow.
Cash payback = amount invested / cash flow =
$430,300 / $98,800 = 4.36 years
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
The purpose of a buffer statement in a negative message is to ________. a. ensure that the company avoids legal liability. b. reduce the reader's shock or pain related to the bad news. c. inform the reader of the reasons for the bad news. d. explain company policy regarding the bad-news message.
Answer:
The correct answer is: b. reduce the reader's shock or pain related to the bad news.
Explanation:
Communication is a fundamental tool that promotes synergy for a company to achieve its objectives and goals. Through this process, it is possible to pass on essential information, integrate employees, strengthen the organization's reputation, promote a good relationship with the internal and external environment, etc.
However, many times companies also need to transmit some bad news, so it is important that there are resources and tools so that communication is carried out in a clear and effective manner without causing any type of situation that alarms the recipients of the message, therefore the buffer statement is used at the beginning of a letter or commercial communication to reduce the impact of bad news, helping to prepare the reader for what will be communicated, explaining the context of the message in a more neutral and not so alarming way.
During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for 10$ each and his sales averaged 20 per day. When he increased the price by , he found that the average decreased by two sales per day.(a) Find the demand function, assuming that it is linear.(b) If the material for each necklace costs Terry 6$ , what should the selling price be to maximize his profit?
Answer:
$13.00
Explanation:
Mars Inc. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
Answer:
It should continue the production in the short-run.
Explanation:
Given the unit produced by Mars Inc. = 100000 boxes.
The selling price of boxes = $4 per box.
The variable costs = $3 per box.
The fixed costs = $150000
The total sales revenue = number of boxes × selling price
= 100000 × 4
= $ 400000
In the short run, the firm should continue its production because it still covers the variable costs.
Larkspur Appliance Co. manufactures low-price, no frills appliances that are in great demand for rental units. Pricing and cost information on Larkspur main products are as follows. Item Standalone Selling Price (Cost) Refrigerator $500 ($260 ) Range 570(270 ) Stackable washer/dryer unit 690(400 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800.The bundle price includes delivery and installation. Larkspur also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Larkspur Appliance Co. On June 1, 2017, Larkspur sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Larkspur offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
The journal entries to record the sale on June 1 are:
June 1, 2017, 100 units of washer/dryer to Laplante Rentals
Dr Cash 69,000
Cr Sales revenue 69,000
Dr Cost of goods sold 40,000
Cr Inventory 40,000
If the next question asks to record the return privilege and estimates, it should be recorded as both an asset (estimated returns inventory) and a liability (customer refunds payable).
You purchased an airplane for $500,000 and will depreciate it using a 7-year an MACRS. Salvage value in year 4 is expected to be $250,000. The airplane is expected to increase revenues by $200,000 per year, however, O&M costs are expected to be $30,000 per year. Your company is in a 40% tax bracket and your MARR is 15%. Show the end of year cash flows for this project for years 0 through 4. What is the Net Present Worth of this investment?
Year 0_____
Year 1____
Year 2______
Year 3_____
Year 4______
NPW_____
Answer:
Year 0 = -$500,000
Year 1 = $130,580
Year 2 = $150,980
Year 3 = $136,980
Year 4 = $433,260
NPV = $65,495
Explanation:
depreciation expense per year under 7 year MACRS table:
year 1 = $500,000 x 14.29% = $71,450
year 2 = $500,000 x 24.49% = $122,450
year 3 = $500,000 x 17.49% = $87,450
year 4 = $500,000 x 12.49% = $62,450
cash flow year 1 = [($200,000 - $30,000 - $71,450) x (1 - 40%)] + $71,450 = $130,580
cash flow year 2 = [($200,000 - $30,000 - $122,450) x (1 - 40%)] + $122,450 = $150,980
cash flow year 3 = [($200,000 - $30,000 - $87,450) x (1 - 40%)] + $87,450 = $136,980
cash flow year 4 = [($200,000 - $30,000 - $62,450 + $93,800 gain on sale) x (1 - 40%)] + $62,450 + $250,000 = $433,260
MARR = 15%
using a financial calculator, NPV = $65,495
You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2
Answer:
$2,250
Explanation:
Since terms require you to amortize the loan with 7 equal end-of-year payments, it implies that interest will be paid on the amount outstanding balance for a whole year.
The would be paid in Year 2 can therefore be calculated as follows:
Equal amount of the loan principal = Loan amount / Number of equal end-of-year payments = $35,000 / 7 = $5,000
Loan balance outstanding throughout Year 2 = Loan amount - Year 1 end-of-year payment = $35,000 - $5,000 = $30,000
Year 2 interest payable = Loan balance outstanding throughout Year 2 * Annual interest rate = $30,000 = 7.5% = $2,250.
Therefore, you would be paying $2,250 interest in Year 2.
A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:
Answer:
A debit to Land for $12,000
Explanation:
The entry to record in this transaction include a debit to Land for $12,000
Particulars Debit Credit
Land $84,000
Common stock $12,000
(6,000 * $2)
Paid in capital in excess $72,000
of par, common stock
Gather secondary data by reading what others have experienced and observed. You should begin nearly every research project by researching secondary sources to gather information that has already been written about your topic. What kind of data can books provide?
A. In-depth historical data
B. Up-to-date information
C. Electronic indexes
Answer:
A. In-depth historical data
Explanation:
When starting a new research project you should always gather in-depth historical data. This form of data will provide you with a wide array of information that other individuals have already gathered and documented regarding the specific topic that you are currently researching. Aside from providing you with valuable information it also provides you with a guide of what sub-topics previous researchers may have missed, which you can then research yourself.
A recent survey of 280 small firms (with annual revenue less than $12 million) asked whether an increase in the minimum wage would cause the firm to decrease capital spending. Possible responses to the survey question were: "Yes," "No," or "Don’t Know." This data is best classified as
Answer:
nominal scale
Explanation:
nominal scale are scales that are used to assign events into discrete classifications.
Nominal scales have no order and there is no means to measure the distance between the possible responses. they are just classifications.
Blue Sky Drone Company has a total asset turnover ratio of 3.50x, net annual sales of $25 million, and operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 7% interest rate. To analyze a company’s financial leverage situation, you need to measure the firm’s debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone’s debt management ratios?
Answer:
The values for Blue Sky Drone’s debt management ratio is 0.35
Explanation:
In order to calculate the values for Blue Sky Drone’s debt management ratios we would have to make the following calculation:
debt management ratio=Total Debt / Total Assets
According to the given we have that it reported total debt of $2.50 million.
To calculate the total assets we would have to use the following formula:
Total Asset Turnover Ratio = Net Sales / Total Assets
3.50=$25,000,000/Total Assets
Total Assets=$25,000,000/3.50
Total Assets=$7,142,857
Therefore, debt management ratio=$2,500,000/$7,142,857
debt management ratio=0.35
The values for Blue Sky Drone’s debt management ratio is 0.35
A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,050,000 and can be sold for $670,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 34 percent. What is the aftertax salvage value of the equipment?
Answer:
$718,606.4
Explanation:
The first step is to calculate the accumulated depreciation
=$3,050,000×(0.2+0.32+0.192+0.1152)
= $3,050,000×0.8272
= $2,522,960
The accumulated depreciation is then subtracted from the book value in purchase to get the book value on sale
= $3,050,000-$2,522,960
= $527,040
The next step is to subtract the book value on sale from the salvage value
= $527,040-$670,000
= -$142,960
Loss of - $142,960
The tax gain on disposal can be calculated as follows
= -$142,960×34/100
= -$142,960×0.34
= -$48,606.4
Therefore, the after-tax salvage value can be calculated as follows
= salvage value-tax disposal
= $670,000-(-48,606.4)
= $670,000+$48,606.4
= $718,606.4
Hence the aftertax salvage value of the equipment is $718,606.4
MC Qu. 137 Clayborn Company deposits... Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $24,525. Clayborn's May bank statement shows $21,800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 7,450 Outstanding checks $ 6,100 Bank service fees, not yet recorded by company $ 100 A NSF check from a customer, not yet recorded by the company $ 1,275 The adjusted cash balance should be:
Answer:
The adjusted cash balance is $23,150.
Explanation:
The correct cash balance can only be verified through preparation of a bank reconciliation statement.
The first step is to update the Cash Book Bank balance as follows ;
Debits :
Balance as at May 31 $24,525
Totals $24,525
Credits:
Bank service fees $100
Dishonored Check $1,275
Balance as per updated cash book $23,150
Totals $24,525
The next step is to prepare a Bank Reconciliation Statement.
Bank Reconciliation Statement as at May 31.
Balance at bank as per the cash book (updated) $23,150
Add Unpresented cheques $ 6,100
Less Lodgements not yet credited ($ 7,450)
Balance as per bank statement $21,800
Conclusion :
The adjusted cash balance is $23,150.
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $235,000 Actual manufacturing overhead cost $244,200 Estimated machine hours 20,300 Actual machine hours 22,700 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to
Answer:
$11.58 per machine hour
Explanation:
Given that: Estimated Manufacturing overhead cost =$235,000, Actual manufacturing overhead cost = $244,200 Estimated machine hours = 20,300, Actual machine hours= 22,700
The predetermined manufacturing overhead rate per machine hour = Estimated manufacturing overhead cost / Estimated machine hours
= $235,000 / 20,300
= $11.5763
= $11.58 per machine hour
Risk and Return. Suppose that the risk premium on stocks and other securities did, in fact, rise with total risk (i.e., the variability of returns) rather than just market risk. Explain how investors could exploit the situation to create portfolios with high expected rates of return but low levels of risk. (LO12-2)
Answer:
The overview of the given scenario is described in the explanation segment below.
Explanation:
Diversification could never eradicate the systematic risk. It's indeed primarily even though all securities shift somewhat in unison (a significant part of their volatility is purposeful) also that diversified stock strategies remain volatile. Additionally, if I am a thing that separates by purchasing a proportion throughout the S & P indicator, I would also have indeed very variable returns because the global economy as a whole has been fluctuating widely.The unsystematic risk seems to be the volatility in share markets arising through factors unique to something like an individual's abilities. The risk involved with this kind of volatility is essentially the form whereby diversification could increasing.The entire premise of portfolio selection would be that, to both the degree that shares don't shift in unison all of the occasions, variations throughout the performance from every other given sector appear to have been wiped clean or softened out by additional differences in contributions from several other investments.Huprey Co. is the defendant in the following legal claims. For each of following claims, does Humphrey (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Humphrey can reasonably estimate that a pending lawsuit will result in damages of $1,280,000it is probable that Huprey will lose the case. Have no disclosure. Disclose in notes. Record a liability. 2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. Record a liability. Disclose in notes. Have no disclosure. 3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case. Disclose in notes. Record a liability. Have no disclosure.
Answer:
1. Record a liability.
2. Disclose in notes.
3. Disclose in notes.
Explanation:
The issue here relates to a Contingent Liability which is a provision that is recorded in the books as a liability if there is a likelihood that the firm will incur it in future. This is usually done for law suits.
The general rule is: Record a liability if the loss is probable and estimable.
If a loss is not probable, disclose it in the notes.
If a loss is not estimable, disclose it in the notes.
1. Loss is both estimable and it is probable that Humphrey will lose the case. It should be recorded as a liability.
2. It is probable that Humphrey will lose the case however, loss is not estimable. Disclose in the notes.
3. It is not probable that Humphrey will lose the case. Disclose in the notes.
Ryan works at a community college and the college requires all employees to contribute to a pension fund. At this time, he is not too worried about the safety of this contribution because
Answer:
pension funds usually make conservative investments
Explanation:
Pension funds are pools of investment that are used to prepare an employee for retirement. Pension contributions are made either by the employer or the employee.
These funds are collected and invested by Pension Fund Administrators (PFA).
Primarily pension funds are invested in stocks and bonds.
The aim of the investments is to make low risk profit on the funds. So Ryan is not worried about the safety of his pension contributions because they are put in conservative investments that have low risk of loss.
A seller lists property with a multimillion-dollar broker. The broker's agreement calls for him to enter the listing into the MLS within three working days. On the second day, the broker shows the property to a prospective buyer, who loves it. The buyer is leaving town the next day but will be back in one week to purchase it if it is still on the market. The broker wants to double his commission by selling his own listing, so he withholds the information from the MLS for 10 days. Based on this information, the broker ______________.
Answer: B) may be liable to the seller for violating duties required by the listing agreement.
Explanation:
The Multiple Listing Service (MLS) is a database that allows brokers to cooperate in finding buyers for homes. They list the properties for sale and if other brokers know people who need such a house they will reach out and buy it. The listing broker and the selling broker will then share commissions.
This is what the broker was trying to avoid by withholding the information from the MLS.
However, the broker is in violation of the listing agreement which stated that he should post it on the MLS within 3 working days and as such there is a very real chance that he is liable to the seller for this violation.
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
A. Cannot be determined given the information provided.
B. Have no effect on cost of goods sold.
C. Understate cost of goods sold.
D. Overstate cost of goods sold.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
A) A debit to an asset.
B) A debit to a liability.
C) A credit to a liability.
D) A credit to an asset.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.
B) $50,000.
C) $170,000.
D) $280,000.
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
A) Either plan
B) Defined Benefit Plan
C) Neither Plan
D) Defined Contribution Plan
Answer:
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
C. Understate cost of goods sold.Cost of goods sold = beginning inventory + purchases during the period - ending inventory. If ending inventory is overstated, then COGS are understated.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
B) A debit to a liability.Deferred revenues are liabilities with credit balances, therefore, when they are actually earned, they must decrease with a debit.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.Gross profit = net sales revenue - COGS
net sales revenue = total sales revenue - sales returns - sales discounts
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
C) Neither PlanAll types of pension plans are currently protected and only a small portion of very high income plans are affected in case of bankruptcy (generally plans that hold over $1 million or those plans with contributions higher than $54,000 per year).
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.22 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $36.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $83.33 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 72 191 Number of tiers on the cake 6 4 Cost of purchased decorations for cake $ 21.45 $ 77.65 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Ericson wedding cake to just break even
Answer:
$409.88
Explanation:
The computation of the amount that the company have to charge for break even is shown below:
Particulars Ericson Wedding Rate Amount
Guest 72 $1.22 $87.84
Tiers 6 $36.21 $217.26
Orders 1 $83.33 $83.33
Decoration 1 $21.45 $21.45
Total $409.88
We simply applied the number of units with the rate so that the final amount could come