Weighted-average method, spoilage, equivalent units. (CMA, adapted)
Consider the following data for November 2017 from MacLean Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the process and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value MacLean Manufacturing Company uses the weighted-average method of process costing
Physical Units Direct Materials
Pennants
Work in process, November 1 1,350 $ 966
Started in November 2017 ?
Good units completed and transferred 8,800
out during November 2017
Normal spoilage 80
Abnormal spoilage 50
Work in process, November 30 1700
Total costs added during November 2017 $10,302
aDegree of completion: direct materials, 100%, conversion costs, 45%
bDegree of completion: direct materials, 100%, conversion costs, 35%
Compute equivalent units for direct materials and conversion costs.
Answer:
Equivalent Units: Materials = 10630
Equivalent Units : Conversion = 9525
Explanation:
MacLean Manufacturing Company
Weighted-Average Method
Process Costing
Particulars Units % Of Completion Equivalent Units
Materials Conversion Materials Conversion
Units completed
and transferred 8,800 100 100 8800 8800
Add
Ending Inventory 1700 100 35 1700 595
Normal Spoilage 80 100 100 80 80
Abnormal Spoilage 50 100 100 50 50
Equivalent Units 10630 9525
The weighted average method equivalent unit production implies that the units completed and the ending inventory completed plus any spoilage normal or abnormal is taken is accounted for.
The weighted average method EUP can also be determined by adding the beginning units and units started
The normal and abnormal spoilage are taken 100 % because all the spoilage is evident once the goods are completed.
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:
Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share
What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.
Answer: $1,852,320
Explanation:
First find out the proportion owned by Matsui.
= 74,800 shares / 220,000
= 34%
The investment at the end of the year is:
= Cost of investment + Shares of net income - Share of dividend
Share of income:
= Percentage ownership * Net income
= 34% * 240,000
= $81,600
Share of dividend:
= 34% * 72,000
= $24,480
Investment at end of year:
= 1,795,200 + 81,600 - 24,480
= $1,852,320
To open and operate Boo! City, a Halloween costume and paraphernalia shop, Dwayne and Erica form a business organization that combines the limited liability aspects of a corporation with the tax advantages of a partnership. Their form of business organization is
Answer:
a limited liability company.
Explanation:
From the question we are informed about To open and operate Boo! City, a Halloween costume and paraphernalia shop, Dwayne and Erica form a business organization that combines the limited liability aspects of a corporation with the tax advantages of a partnership. In this case, Their form of business organization is limited liability company.limited liability company can be regarded as business structure in which owners are not personally liable as regards to debts or liabilities of the company.It is hybrid entities with features of corporation and partnership as well as sole proprietorship.
In 1 to 2 paragraphs, analyze how a person's ethics or values might affect his performance on the job
Answer:
In simple words, Individual workers' ethical convictions have an impact on team and department productivity as well as individual achievement. Being an ethical worker allows you to be a stronger team participant constantly contributing positively in group situations and just never impeding collective success.
Even though all individuals are important in and of themselves, ethical individuals can be more monetarily useful to their companies as well as more respected by their colleagues and competitors. Reflecting on workplace ethics may help you become a better employee, and it's a good thing to begin if you want to do the right thing all of the time.
Answer:
How can poor ethics devalue you as an asset on the team? Well, if you have poor moral standards and beliefs and what not, people can somewhat easily identify your personality as a negative trait. However if you're a good person with good values and spot on ethics, people will quickly realize that you're a good asset to have on the team.
Your energy, work ethic, and values also determine how good or bad your work ethic is.
Explanation:
For Connections Academy Career Development Unit Test
Supply chain management:is based on the concept of just-in-timefocuses on removing scheduling bottlenecks within the companyfocuses on the internal routing of products from raw materials to finished goodsis a complex computerized system for managing resources efficientlyis accurately described by none of the above
Answer:
is based on the concept of just-in-time.
Explanation:
Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers.
Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services from the manufacturers to the consumers.
Additionally, all businesses tend to use supply chain management to eliminate waste and maximize value for growth and development.
Hence, supply chain management is based on the concept of just-in-time (JIT) because it is a management framework that is focused on cutting manufacturing costs while increasing efficiency between suppliers and consumers through the use of a proper inventory system.
The purpose or objectives of competition policy
Answer:
to encourage creativity
In the space provided, using the letters (a-e), indicate in which category of the statement of cash flows the preceding items would. After each item, indicate with a plus sign ( ) or a minus sign (-) whether the item would be reported as an increase / inflow or a decrease/ outflow.
The following information relates to the Marshall Company for 2010:
Gain on sale of land $ 800
Bond premium amortization (by the issuer) 300
Decrease in accounts payable 700
Increase in prepaid expenses 100
Net income 9,000
Purchased equipment 10,000
Increase in salaries payable 400
Proceeds from sale of land 5,000
Decrease in inventories 1,100
Payment of dividends 600
Depreciation expense 1,000
Required:Compute net cash provided by operating activities for the Marshall Company for 2010.
Answer:
Particulars Amount
Cash Flows from Operating Activities
Net Income $9,000
Adjustments to reconcile net income to
Net Cash flows from Operating Activities
Depreciation Expense $1000
Gain On Sale of land ($800)
Decrease in accounts payable ($700)
Increase in prepaid expenses ($100)
Increase in salaries payable $400
Decrease in Inventories $1100
Amortization of bond premium ($300) $600
Net Cash flows from operating activities $9,600
Read the scenario carefully and provide your response regarding the organizational structure and culture in the fictional organization provided below.
Scenario:
An industry consulting firm has the following structure and culture:
All the employees at this consulting firm work full-time. All the full-time consultants report to various industry directors depending on the industry contract. The company employees work mostly from home with directors or consultants renting temporary office space with or without videoconferencing when needed for either client meetings or vendor meetings. The company is very successful and has an expanding client base. The company CEO is extremely relaxed and extremely smart and expects everyone at the company to display a relaxed yet expert demeanor as well. There really are very few rules or expectations at the company as the CEO also believes in keeping processes very simple. The previous president retired about six months ago, and the CEO, together with a human resources firm, hired a new president. About two months ago the companyâs employees (i.e., consultants) started receiving emails from the new president putting pressure on all of them to produce results in less time but pressuring them to charge the clients higher sums without making any more money for themselves. In addition, the new president wants the staff to come into the office now three times a week for meetings. Three months ago the new president hired thirty new full-time consultants that seem more like salespersons than consultants to existing employees. A few of the long-time consultants have been emailing the CEO about these changes and suggesting they may go elsewhere. In the meantime, the Finance Director has detected several anomalies in the contract terms and financial results from some of the new consultants and one or two of the existing consultants.
a. Describe the organizational structure at this consulting firm and how it affects employee behavior.
b. Describe how the changes to the organizationâs culture might affect employee behavior.
c. Provide a recommendation for any adjustments you think need to be made at this organization based on the Reading and explain why?
Answer:
The response to the given question can be defined as follows:
Explanation:
This organizational structure is flat and also has a strongly attributed. Its flat culture gives experts the chance to be innovative and boost productivity. Its freedom to work or to work allowed its productivity to be enhanced. It kept them in touch with it and allowed them t stay tuned to a consultation environment. This change has caused confusion amongst this personnel and they are frustrated with the change. You've begun to approach the CEO. It indicates that they're not really happy and that the change is not welcomed. They have dismantled a whole manner for working. The company should communicate its objectives to its employees and also develop an acceptable way of working. All they need to grasp here is that before the new President has been hired, people already exist inside a specific method of work and culture. When the changes are required, an organization as a whole must be discreet and agreeable to enable the implementation easier. The manager should develop a seamless transition–
Email the staff and express your view.Include a career strategy and schedule certain objectives.Identify modifications and also be receptive to input. Not that every modification done provides the best outcomes.It ensures the restoration of the inclusive community, as well as the manner of work and objectives, are altered still.
Straight-Line: Amortization of bond discount LO P2 Skip to question [The following information applies to the questions displayed below.] Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $570,443 when the market rate is 12%. Problem 14-4A
Required:
1. Prepare the January 1 journal entry to record the bonds' issuance
2. determine the total bond interest expense to be recognized over the bonds' life.
Answer:
Legacy
1. Journal Entry:
January 1:
Debit Cash $570,443
Debit Bonds Discount $69,557
Credit Bonds Payable $640,000
To record the issuance of the bonds at a discount.
2. Total bond interest expense to be recognized over the bonds' life:
= $287,160
Explanation:
a) Data and Calculations:
January 1, 2019
Face value of bonds issued = $640,000
Price of bonds = $570,443
Bonds discount = $69,557 ($640,000 - $570,443)
Coupon interest rate = 8.5%
Market interest rate = 12%
Maturity period = 4 years
Interest payment = semiannual on June 30 and December 31
With straight-line amortization of bonds discount, the semiannual amortization will be = $8,695
Semi-annual interest payment = $27,200 ($640,000 * 4.25%)
Semi-annual interest expense = $35,895 ($27,200 + $8,695)
Annual interest expense = $71,790
1. Transaction Analysis
January 1:
Cash $570,443 Bonds Discount $69,557 Bonds Payable $640,000
2. Total bond interest expense to be recognized over the bonds' life:
= $287,160 ($71,790 * 4) or ($35,895 * 8)
Describe the organizational structure of your school or company. What difficulties have you encountered working within this structure
Answer:
My company have a centralized structure of management framework. Under this structure all the decisions are made by the executive level managers of the company.
The main problem that me and my fellow workers face under this structure is that we do not get any space for creativity and judgement of our own. Also the organisation, do not emphasize on our suggestions that we believe can actually make us more efficient.
A developer of a new townhome community estimates that there will be 1,200 home (all types) sales in University City over the next year. An analysis of demographic information has revealed that the core market share for the townhome project within the community is 10%. Assuming a capture rate of 20%, what is the developer's first-year projection of townhome sales in the new community
PAnswer:
24 units
Explanation:
Calculation to determine what is the developer's first-year projection of townhome sales in the new community
First-year projection=10%*1200*20%
First-year projection=24 units
Therefore the developer's first-year projection of townhome sales in the new community is 24 units
Explain how the GDP and the interest rate are related to the transactions demand and asset demand for money.
Answer:
Transaction demand rises as income or GDp rises and falls as income or DP falls. Also high interest rate causes more to be left as asset, thereby reducing money demand
Explanation:
1. Asset demand for money is money that is kept aside for a person holding it to earn interest on. A high interest rate on money asset reduces the demand for money. This increased rate of interest is the opportunity cost of having money as assets. It has a negative relationship with interest rate of an economy.
2. Transaction money is that which is used for the day to day expenditure. This has a positive relationship with GDP. It increases as income or GDP increases and falls as it falls.
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):Spot............................................ $0.943230-day forward.......................... $0.948190-day forward.......................... $0.9531180-day forward........................ $0.9594a. Was the Swiss franc selling at a discount or premium in the forward market?b. What was the 30-day forward premium (or discount)?c. What was the 90-day forward premium (or discount)?d. Suppose you executed a 90-day forward contract to exchange 100,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?
Answer:
The Wall Street Journal Reports
a. The Swiss franc was selling at a premium in the forward market.
b. The 30-day forward premium was: $0.0049.
c. The 90-day forward premium was: $0.0099.
d. Dollars to receive from a 90-day forward contract is $95,310.
Explanation:
a) Data and Calculations:
Spot and forward rates for the Swiss franc ($/SF):
Spot............................................ $0.9432
30-day forward.......................... $0.9481
90-day forward.......................... $0.9531
180-day forward........................ $0.9594
Premium:
30-day forward.......................... $0.9481
Spot............................................ $0.9432
Premium = $0.0049
90-day forward.......................... $0.9531
Spot............................................ $0.9432
Premium = $0.0099
180-day forward........................ $0.9594
Spot............................................ $0.9432
Premium = $0.0162
Dollars to receive from a 90-day forward contract is $95,310 ($0.9531 * SF 100,000)
stock a has an expected return of 20 and stock b has an expected return of 5. what is the expected return on a portfolio this comprised of 67^ of stock a and 33% stoc k b
Answer:
15.05%
Explanation:
Calculation to determine the expected return on a portfolio
Using this formula
Expected return = (Return on stock A * Percentage invested in stock A) + ( Return on Stock B * Percentage invested in Stock B)
Let plug in the formula
Expected return= (20% * 67%) + (5% * 33%)
Expected return= 13.4% + 1.65%
Expected return= 15.05%
Therefore the expected return on a portfolio is 15.05%
true or false
2. Determining the producers preferences of products are
important when thinking of starting a business.
Explanation:
The answer is True!!!!!!!
Deazia is the sole proprietor of Baldwin Hair Salon that reported net income of $44,000 for the year. During the year she withdrew $20,000 from the business for personal use. How much income from the above must Deazia include in her gross income for the year
Answer:
$44,000
Explanation:
Based on the given information we were told that the sole proprietor reported NET INCOME of the amount of $44,000 for the year which means that the amount of income from the above that Deazia must include in her GROSS INCOME for the year will be the reported NET INCOME amount of $44,000.
Cash $13,000; Short-term Debt $21,000; Buildings and Equipment $420,000; Inventory, $44,000; Notes Payable $60,000; Accumulated Depreciation $110,000; Common Stock $80,000; Accounts Receivable $38,000; Retained Earnings $237,000; Accounts Payable $17,000.
Total assets on the balance sheet are: _________
Answer:
$405,000
Explanation:
Computation of total assets on balance sheet.
Fixed assets:
Building and equipment
$420,000
Less:
Accumulated depreciation
($110,000)
Net book value
$310,000
Total fixed assets $310,000
Current assets:
Cash
$13,000
Inventory
$44,000
Accounts receivable
$38,000
Total current assets $95,000
Therefore,
Total assets
= Total fixed assets + Total current assets
= $310,000 + $95,000
= $405,000
Lynx Corp. The data presented below for Lynx Corp. are for the year ended December 31, 2017: Sales (100% on credit) $1,000,000 Sales returns 30,000 Accounts receivable (December 31, 2017) 170,000 Allowance for doubtful accounts (credit balance) (before adjustment at December 31, 2017) 1,300 Estimated amount of uncollectible accounts based on aging analysis 14,000 See the data for Lynx Corp. If Lynx Corp. uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debts expense for 2017
Answer:
Allowance for Doubtful Accounts 69,000
Explanation:
If the company estimates its bad debt to be 2% of net credit sales:
sales 2,500,000
return and allowance (50,000)
net sales 2,450,000
Then, we calculate 2% of this amount:
2,450,000 x 0.02 = 49,000
As the uncollectible amounts are related to sales rather than account receivable we adjust for the full value giving an ending value of:
beginning 20,000 + adjustment 49,000 = 69,000
A comparable property sold 17 months ago for $115,000. If the appropriate adjustment for market conditions is 0.30% per month (without compounding), what would be the adjusted price of the comparable property
Answer and Explanation:
The computation is shown below:
Without compounding, the adjusted price of the comparable property is
= $115,000 × (1+ (0.003 × 17))
= $115,000 × 1.051
= $120,865
And,
With compounding:
= $115,000 × (1.003)^10
= $115,000 × 1.030408
= $118,496.92
In this way it should be calculated
Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through
50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the
answer to question 45, and so on:
Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
45. The average issue price per share of preferred stock must have been:
A) $20.00
B) $50.00
C) $70.00
D) $35.00
E) $45.00
46. Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006?
A) Preferred $20,000, Common $0
B) Preferred $8,000, Common $12,000
C) Preferred $18,000, Common $2,000
D) Preferred $14,000, Common $6,000
E) Preferred $12,000, Common $8,000
47. Marcy Company issues 2,000 shares of common stock in exchange for a building, with a market value of $100,000.
The journal entry to record the exchange will cause Total Contributed Capital to:________
A) increase by $10,000
B) increase by $100,000
C) increase by $90,000
D) increase by $80,000
E) remain unchanged
48. Marcy Company declared and issued a 15% common stock dividend on January 1, 2005, when the market price of their common stock was $12 per share. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
B) credit Common Stock Dividend Distributable, $15,000
C) credit Contributed Capital in excess of par, Common Stock, $21,000
D) credit Common Stock Dividend Distributable, $10,500
E) credit Contributed Capital in excess of par, Common Stock, $7,500
49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will:_________
A) debit Retained Earnings,$100,000
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
D) credit Common Stock Dividend Distributable, $100,000
E) Since this is considered a stock split, no journal entry is made
50. On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for
$15 per share. The journal entry required on March 1 will include:_______
A) credit Contributed Capital, Treasury Stock, $1,800
B) debit Retained Earnings for $1,800
C) debit Retained Earnings for $2,800
D) debit Contributed Capital, Treasury Stock, $2,800
E) debit Contributed Capital, Treasury Stock, $1,80040.
Answer:
Marcy Company
45. The average issue price per share of preferred stock must have been:
C) $70.00
46. The dividends paid to preferred and common stockholders in 2006 are:
B) Preferred $8,000, Common $12,000
47. The journal entry to record the exchange will cause Total Contributed Capital to:________
C) increase by $90,000
48. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
49. The entry to record this dividend will:_________
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
50. The journal entry required on March 1 will include:
Debit Cash $6,000
Credit Treasury stock $2,000
Credit Contributed Capital in excess of par value $4,000
Explanation:
a) Data and Calculations:
Preferred Stock:
6% cumulative, $20 par value, 10,000 shares authorized,
5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock:
$5 par value, 20,000 shares authorized,
10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
Average issue price per share of preferred stock = $70 ($100,000 + $250,000)/5,000
2005 2006
Total dividends declared $4,000 $20,000
Preferred dividend 6,000 6,000
Cumulative dividend -2,000 2,000
Common stock dividend $0 $12,000
Journal Entry:
Debit Building $100,000
Credit Common stock $10,000
APIC - common stock $90,000
January 1, 2005: Treasury stock $5,000 Contributed Capital in excess of par value $17,000 Cash $22,000
February 1, 2005: Cash $15,000 Treasury stock $3,000 Contributed Capital in excess of par value $12,000
March 1, 2005: Cash $6,000 Treasury stock $2,000 Contributed Capital in excess of par value $4,000
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
Help please Briefly explain how technology affects promotional strategies.
Answer: Technology has transformed marketing by making campaigns more personalized and immersive for people and creating ecosystems that are more integrated and targeted for marketers. And it's not just the interface between brands and people that have been transformed. ... 30% will prioritise technology over creativity.
In a competitive market with a linear upward-sloping supply curve and a linear downward-sloping demand curve, the government imposes a $10 tax per unit bought and sold. The tax causes the equilibrium quantity to fall from 89 units to 77 units. The deadweight :_______
Answer:
$105
Explanation:
Missing word "The deadweight loss of this tax is...?"
Change in price = $10
Original quantity = 89 units
New quantity = 77 unit
Change in quantity= 89 units-77 units = 12 units
Dead-weight loss = 1/2 * Change in price * Change in quantity
Dead-weight loss = 1/2 * $10 * $21
Dead-weight loss = $105
Therefore, the dead-weight loss of this tax is $105.
what is the positive impact of Commerce subject on our society?
Answer:
E-commerce facilitates the fundamental movement of goods from suppliers to customers. They offer an ideal commerce development to do digital business and improve the global presence. E-commerce has altered the workflow of the business
During 2021, Blossom Co. incurred the following costs: Testing in search for process alternatives $390000 Costs of marketing research for new product 260000 Modification of the formulation of a process 570000 Research and development services performed by Crane Corp. for Blossom 485000 In Blossom's 2021 income statement, research and development expense should be
Answer:
See below
Explanation:
Given the above information, our concern when calculating amount of research and development costs charged to Blossom corp. for 2021 should be the period cost. This means costs that are incurred in the period under review. I.e 2021.
= Testing in search for process alternative + Cost of marketing research + Modification of formulation of a process + Consulting fees
= $390,000 + $260,000 + $570,000 + $485,000
= $1,705,000
Therefore, Blossom's 2021 income statement , research and development expense should be $1,705,000.
During February, $75,150 was paid to creditors on account, and purchases on account were $96,190. Assuming the February 28 balance of Accounts Payable was $32,310, determine the account balance on February 1.
Answer:
$45,000
Explanation:
Given the above information, the account balance on February 1 is computed below;
Balance of account payable Feb 28 + Cash paid to creditors in February - Purchases on account
= $59,900 + $186,500 - $201,400
= $45,000
Therefore, the account balance on February 1 is $45,000
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $710,000 $630,000 $565,000 Sales on account 5,691,000 4,628,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume a 365-day year. Do not round intermediate calculations. Round your answers to one decimal place. 20Y3 20Y2 1. Accounts receivable turnover fill in the blank 2 fill in the blank 3 2. Number of days' sales in receivables fill in the blank 4 days fill in the blank 5 days The collection of accounts receivable has . This can be seen in both the in accounts receivable turnover and the in the collection period.
Answer:
Sigmon Inc.
1. Accounts receivable turnover = Sales/Average accounts receivable
20Y3 = 8.49x
20Y2 = 7.75x
2. Number of days sales in receivables = 365/Accounts receivable turnover
20Y3 = 43 days
20y2 = 47.1 days
3. The collection of accounts receivable has improved from 47.1 days to 43 days. This can be seen in both the in accounts receivable turnover and the in the collection period.
Explanation:
a) Data and Calculations:
Terms of all sales are 2/10, n/45
20Y3 20Y2 20Y1
Accounts receivable, end of year $710,000 $630,000 $565,000
Sales on account 5,691,000 4,628,500
Average accounts receivable 670,000 597,500
1. Accounts receivable turnover = Sales/Average accounts receivable
20Y3 = 8.49x ($5,691,000/$670,000)
20Y2 = 7.75x ($4,628,500/$597,500)
2. Number of days sales in receivables = 365/Accounts receivable turnover
20Y3 = 43 days (365/8.49)
20y2 = 47.1 days (365/7.75)
You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of Indian exports. The government is considering a policy shift toward much freer trade. What are the three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India
Answer:
1. The size of the economy as a whole grows as a result of free trade.
2. Consumers benefit from free trade.
3. Free trade can reduce cost of trading:
Explanation:
The three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India are as follows:
1. The size of the economy as a whole grows as a result of free trade: It provides for more efficient production of goods and services. This is because it encourages goods and services to be created in areas with the finest natural resources, infrastructure, or skills and experience. It boosts productivity, which can lead to greater long-term wages. There is universal consensus that growing global trade has boosted economic growth in recent decades.
2. Consumers benefit from free trade: By removing barriers and promoting competition, it lowers prices. Quality and choice are likely to improve as a result of increased competition.
3. Free trade can reduce cost of trading: Non-tariff barriers can be reduced, resulting in less red tape and lower trading costs. Companies that deal in multiple nations might reduce their compliance expenses by working with a single set of laws. In principle, this will lower the cost of goods and services.
impact of collusion in terms of output and price on consumers and producers
Answer: See explanation
Explanation:
Collusion refers to the agreements among the sellers of a particular product to either fix or increase the price and also reduce output. The main idea behind this is to increase profits and also reduce the competitiveness in such market.
Collusion can bring about high prices for the consumers and this ultimately leads to the reduction in the consumer surplus. Also, the new firms that want to enter the market may discouraged since the collusion can be an entry barrier.
Please answer the question posted in the attached image
Answer:
80
Explanation:
Years = 20
Compounding month = 4 (quarterly)
N is the number of compounding factors = 20 years * 4 periods per year = 80. So, the value of n in the F/A factor (for determining F/A factor the end of the 20 year period) is 80.