Answer:
Valve has a flat organizational structure. As a result, the following features of a hierarchical organization are turned upside down:
1. Departmentalization: Valve is not organized in departments but has dispersed teams that are freely formed based on need. Employees are free to choose the jobs that they do and the teams that they join based on their personal interests.
2. Chain of command: Valve lacks the strict chain of command that is visible in hierarchical organizations where instructions are issued from the top and reports are sent from the lower cadre to the upper echelon. Therefore, employees are not managed by others.
3. Span of control: Valve is recognized as a community of respect where the best idea wins without the observance of seniority.
4. Formalization: The working culture is informal and casual. This has enabled people at Valve to be invested in each other. Questions are freely asked to solicit and share ideas. There is self-discipline.
Explanation:
Valve, owned by CEO Gabe Newell, has created a model flat organization where managers are not prominent. There are no formal positions and no centralized plans. Even the CEO does not interfere in the daily management of the organization. Thus, decision-making is improved, and there is a high sense of personal responsibility by employees.
Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,700 in Year 1 and $1,400 in Year 2. Assume no other transactions. The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be:_____.A) $36,000 and $0. B) $37,890 and $0. C) $37,890 and $38,520. D) $1,890 and $630.
Answer:
B) $37,890 and $0
Explanation:
Calculation to determine The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be
Total liabilities=$36,000+($36,000 * 7% * 9/12)
Total liabilities = $36,000+$1,890
Total liabilities = $37,890
Therefore The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be $37,890
Monte Motors sells two different products. Following are the monthly revenues and costs. Product A Sales Quantity: 10,000 units Sales Price per Unit: $6.00 Variable Costs per Unit: $1.25 Product B Sales Quantity: 30,000 Units Sales Price per Unit: $2.50 Variable Costs per Unit: $0.75 Total fixed costs are $200,000. What is the break-even point for this company in units
Answer:
80,000 units
Explanation:
First, calculate the contribution margin of both products using the following formula
Contribution margin = Selling Price - Variable cost
Product A
CM = $6 - $1.25 = $4.75
Product B
CM = $2.5 - $0.75 = $1.75
Now calculate the Weighted average contribution margin
Weighted average contribution margin = ( $4.75 x 10,000 / ( 10,000 + 30,000 ) ) + ( $1.75 x 30,000 / ( 10,000 + 30,000 ) ) = $1.1875 + $1.3125 = $2.50
Use the following formula to calculate the breakeven point in unit
Breakeven point in unit = Fixed Cost / Weighted average contribution margin = $200,000 / $2.50 = 80,000 units
g Because the monopolist is the only firm in the market, its demand curve Group of answer choices upward-sloping Vertical Flat. downward-sloping. Flag question: Question 2
Answer:
downward-sloping
Explanation:
Identify a chart of accounts, using correct headings from the list of account titles below: Account Titles Chart of Accounts Accounts Payable Accounts Receivable Building Cash Equipment Insurance Expense Prepaid Insurance Rent Expense Service Fees Dunlop, Capital Dunlop, Drawing Supplies Wage Expense Wages Payable
Answer:
The question wants the given accounts to be grouped by what type of account they are. For instance, Accounts Payable is a liability.
Liabilities:
Accounts Payable Wages payableAssets
Accounts Receivable Building Cash Equipment Prepaid Insurance SuppliesExpenses
Insurance expense Rent expense Wage expenseRevenue
Service feesOwner's Equity
Dunlop, CapitalDunlop, DrawingPhillips Company bought 30 percent ownership in Jones Bag Company on January 1, 20X1, at underlying book value. During the period of January 1, 20X1, through December 31, 20X3, the market value of Phillips' investment in Jones' stock increased by $1,500 each year. In 20X1, 20X2, and 20X3, Jones Bag reported the following:
Year Net Income Dividends
20X1 $8,000 $15,000
20X2 12,000 10,000
20X3 20,000 10,000
The balance in Phillips Companyâs investment account on December 31, 20X3, was $54,000.
Required
In each of the following independent cases, determine the amount that Phillips paid for its investment in Jones Bag stock assuming that Phillips accounted for its investment using the ( a ) cost method and ( b ) equity method.
Answer:
1. Fair value
Particulars Amount$
Investment on December 31,20X3 54,000
Less: Increase for 20X1 -1,500
Less: Increase for 20X2 -1,500
Less: Increase for 20X3 -1,500
Amount that phillips paid for Investment $49,500
2. Equity Method
Particulars Amount$
Investment on December 31, 20X3 54,000
Add: Dividend share for 20X1 4,500 (15000*30%)
Add: Dividend share for 20X2 3,000 (10000*30%)
Add: Dividend share for 20X3 3,000 (10000*30%)
Less: Net Income share for 20X1 -2,400 (8000*30%)
Less: Net Income share for 20X2 -3,600 (12000*30%)
Less: Net Income share for 20X3 -6,000 (20000*30%)
Amount that phillips paid for Investment $52,500
What was the result in the Lucy v. Zehmer case (referenced in the textbook) involving whether allegations of joking regarding the sale of land prevented the formation of a contract
Answer:
The Supreme Court ruled in favour of the Complainants, enforcing the contract.
Explanation:
The Lucy Vs Zehmer case was one of decision on if a contract was binding or not on the basis of the undisclosed intentions of the parties involved in the contract. Zehmer alleged that he had jokingly sold and transferred title to Lucy while drunk. However the court ruled that contract for the sale of land to Lucy was valid on the basis that the secret intentions of Zehmer was not known or disclosed in the sale of the land and only his actions count for the contract to be binding.
A company reports the following income statement and balance sheet information for the current year:
Net income $424,000 Interest expense 80,000 Average total assets 4,200,000
Determine the return on total assets. (Round percentages to one decimal place.)
______%
Answer:
10.1%
Explanation:
Given the above information, return on total asset is computed as;
Return on total asset = Net income / Average total assets
Net income = $24,000
Average total assets = $4,200,000
Therefore,
Return on total assets = $424,000 / $4,200,000
Return on total assets = 10.1%
Answer:
10.1%
Explanation:
Determine the return on total assets. (Round percentages to one decimal place.) 10.1%
If the government of Balancia runs a deficit of $50 million per year in Year 1 and in Year 2 due to its recession, but then has a $100 million surplus in Year 3 due to strong economic recovery, Balancia is likely following which type of rule?
Answer:
Cyclically balanced budget
Explanation:
The following information describes a company's usage of direct labor in a recent period! Actual Hours Used 22000Actual Rate per Hour 15Standard Rate per Hour 14 Standard Hours for Units Produced 23500The direct labor RATE variance is:__________. A. $21,000 Favorable B. $21,000 Unfavorable C. $22,000 Favorable D. $22,000 Unfavorable E. $23,500 Unfavorable The direct labor EFFICIENCY variance is:_______. A. $21,000 Favorable B. $21,000 Unfavorable C. $22,000 Favorable D. $22,000 Unfavorable E. $23,500 Unfavorable
Answer:
Results are below.
Explanation:
Giving the following information:
Actual Hours Used 22,000
Actual Rate per Hour 15
Standard Rate per Hour 14
Standard Hours for Units Produced 23,500
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 15)*22,000
Direct labor rate variance= $22,000 unfavorable
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (23,500 - 22,000)*14
Direct labor time (efficiency) variance= $21,000 favorable
At December 31, 2018, Oriole Company reported the following information on its balance sheet.
Accounts receivable $948,000
Less: Allowance for doubtful accounts 78,000
During 2019, the company had the following transactions related to receivables.
1. Sales on account $3,609,930
2. Sales returns and allowances 51,000
3. Collections of accounts receivable 2,756,000
4. Write-offs of accounts receivable deemed uncollectible 97,000
5. Recovery of bad debts previously written off as uncollectible 28,000
Compute the accounts receivable turnover for 2019, assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e.g. 25.25.)
Answer:
Bad debt expense (Dr.) $68,930
Allowance for Doubtful Debt (Cr.) $68,930
Explanation:
Accounts Receivable :
Balance $948,000
Add: Sales $3,609,930
Less: Sales returns $51,000
Less: Collections $2,756,000
Less: Write offs $97,000
Add: Recovery of old Bad debts $28,000
Adjusted Balance $1,653,930
Bad Debts :
Balance $78,000
Less: Allowance for doubtful debts $97,000
Less: Recovery $28,000
Adjusted Balance $9,000
While studying the process, it became evident to the team that people and equipment were not optimally positioned. Which process map would best help the team address this issue?
Answer: Spaghetti map
Explanation:
A spaghetti map refers to as a visual representation that makes use of a continuous flow line that's used in the tracing of an activity for a particular process.
Since the people and equipment were not optimally positioned, the process map that would best help the team address this issue is the spaghetti map. It's vital as it helps in identification of workflow redundancies.
James mortgaged his house and received a certain amount of money in return as a loan. However, he repaid half the loan in six months. Which of the following is likely to be true in this scenario, at the present moment?
A) The mortgagee has an insurable interest towards 25 percent of the loan amount.
B) The mortgagee has an insurable interest towards the entire loan amount.
C) The mortgagee does not have an insurable interest in the loan amount.
D) The mortgagee has an insurable interest towards half the loan amount.
Answer:B
Explanation:
_________ used ingredient branding, which resulted in end consumers requiring that their product be included by the OEM’s.
Answer:
Intel
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Ingredient branding can be defined as a strategic marketing plan or technique which typically involves branding a component of a business firm or organization as a separate entity so as to project its high performance and quality.
Intel is a multinational corporation (MNC) that uses ingredient branding such as "Intel inside", which stimulate end consumers to request that Intel's product such as processors be included by the original equipment manufacturers (OEM's).
Heinz Company began operations on January 1, 2020, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:
Final Inventory
2017 2018
FIFO $640,000 $712,000
LIFO $560,000 $636,000
Net Income
(computed under the FIFO method) $980,000 $1,030,000
Based on the above information, a change to the LIFO method in 2020 would result in net income for 2018 of ________.
a. $1,070,000
b. $1,030,000
c. $954,000
d. $950,000
Answer: $954,000
Explanation:
Thw difference in the final inventory between the FIFO and the LIFO method in 2018 will be:
= $712,000 - $636,000
= $76,000
Then, based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of:
Net income as per FIFO = $1,030,000
Less: Decrease in income = $76,000
Net income as per LIFO = $954,000
What is expansionary policy used for?
Answer:
to stimulate an economy
Explanation:
it stimulates the economy by boosting demand through monetary
A firm has an equity beta of 1.2, the risk-free rate is 3.4 percent, the market return is 15.7 percent, and the pretax cost of debt is 9.4 percent. The debt-equity ratio is .47. If you apply the common beta assumptions, what is the firm's asset beta
Answer:
0.82
Explanation:
Calculation to determine the firm's asset beta
Using this formula
Firm's asset beta=Equity beta/(1+/D/E)
Let plug in the formula
Firm's asset beta=1.2/(1+0.47)
Firm's asset beta=1.2/1.47
Firm's asset beta=0.816
Firm's asset beta=0.82 (Approximately)
Therefore the firm's asset beta is 0.82
f a business has fixed costs of $1k a month, variable costs of $1k a month and has product sales of $2k a month, what statement is a correct analysis of the situation
Answer:
The correct option is b. The business is realizing $0 profit and the business is at break-even point.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
If a business has fixed costs of $1k a month, variable costs of $1k a month and has product sales of $2k a month, what statement is a correct analysis of the situation?
a. The business is realizing $2k profit and the business is at break-even point
b. The business is realizing $0 profit and the business is at break-even point
c. The business is realizing $2k loss and the business is at break-even point
d. The business is realizing $2k profit
The explanation of the answer is now provided as follows:
Total cost = Fixed cost + Variable cost = $1K + $1K = $2k
Total revenue = Product sales = $2k
Profit = Total revenue - Total cost = $2k - $2k = $0
When a business makes $0 profit, it implies that the business is at break-even point.
Therefore, the correct option is b. The business is realizing $0 profit and the business is at break-even point.
If a country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, then the net capital outflow of that country Group of answer choices
Answer: falls and the net capital outflow of other countries rise
Explanation:
Net capital outflow refers to the net flow of funds that's invested abroad by a particular country at a particular period. It should be noted that a positive net capital flow simply means that such country invests more outside more than than what the other parts of the world invests in it.
Given the question above, since the country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, it means that the net capital outflow of that country falls and the net capital outflow of other countries rise.
The BRS Corporation makes collections on sales according to the following schedule:45% in month of sale50% in month following sale5% in second month following saleThe following sales have been budgeted:Sales April $ 160,000May $ 180,000June $ 170,000Budgeted cash collections in June would be:___________a) $170,800b) $166,500c) $170,000d) $174,500
Answer:
$170,500
Explanation:
Calculation to determine what the Budgeted cash collections in June would be
Cash collections for June:March credit sales collected in June ($160,000 × 45%)$72,000
February credit sales collected in June ($180,000 × 50%) $90,000
January credit sales collected in June ($170,000 × 5%) $8,500
Total cash collections in June $170,500
Therefore the Budgeted cash collections in June would be:$170,500
Which of the following statements is an example of wording that might be included in an
informative advertisement?
a. Machine washable
b. The route to good health
c. Used by the "Whatsit" pop group
d. To keep you young and beautiful
Answer:
a. Machine washable
Explanation:
An informative advertisement is an advert focused on being fact based, unbiassed and accurate. An advert is of the informative form, when it only makes reference to the attributes, advantages, and the tasks the service or goods can do well, in place of making use of emotions to persuade a consumer into purchasing a commodity
From the given options, the statement which is an example of wording that might be included in an informative advertisement is option a. 'Machine washable', because it refers to the strength of the goods which as stated, can be washed with a washing machine
Marketing communication
Answer:
yes
Explanation:
It's popular!
Kuley owns two investments, A and B, that have a combined total value of $73.600. Investment A is expected to pay $53,000 in 5 years from today and has an expected return of 8.41 percent per year. Investment B is expected to pay $61,400 in 8 years from today and has an expected return of R per year. What is R, the expected annual return for investment B
Solution :
The present value is given by :
[tex]$PV = \frac{FV}{(1+r)^n}$[/tex]
Here r = interest rate per period
n = number of periods
Particulars Amount
Future value $ 53,000
Interest rate 8.41%
Periods 5
The present value is :
[tex]$PV = \frac{FV}{(1+r)^n}$[/tex]
[tex]$ = \frac{53,000}{(1+0.0841)^5}$[/tex]
[tex]$=\frac{53000}{1.4974}$[/tex]
= $ 35,393.96
Therefore, the value of investment A is $ 35,393.96
The value of investment of B = Combined value - value of A
= $ 73600 - $ 35393.96
= $ 38,206.04
The Future Value
[tex]$FV=PV \times (1+r)^n$[/tex]
Particulars Amount
Present value $ 38,206.04
Future value $ 61,400
Periods 8
Therefore, the future value is :
[tex]$FV=PV \times (1+r)^n$[/tex]
[tex]$61,400=38,206.04 \times (1+r)^8$[/tex]
[tex]$(1+r)^8 = \frac{61400}{38206.04}$[/tex]
[tex]$(1+r)^8 = 1.6071$[/tex]
(1 + r) = 1.061096
r = 1.061096 - 1
r = 0.061096
r = 6.1096 %
Therefore, the interest rate per annum is 6.1096%
The journal entry to record the issuance of a note for the purpose of converting an existing account payable would be:_______
a. debit Cash; credit Accounts Payable
b. debit Accounts Payable; credit Cash
c. debit Cash; credit Notes Payable
d. debit Accounts Payable; credit Notes Payable
The Freeman Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1 at 96. The journal entry to record the issuance will show a:___.
a. debit to Cash of $2,000,000.
b. credit to Discount on Bonds Payable for $80,000.
c. credit to Bonds Payable for $1,920,000.
d. debit to Cash for $1,920,000.
Answer:
d. debit to Cash for $1,920,000
Explanation:
Journal entry
Date Account titles and Explanation Debit Credit
Cash $1,920,000
(2,000*$1,000*0.96)
Discount on Bonds Payable $80,000
(2,000*$1,000*0.04)
Bonds Payable $2,000,000
Decker Enterprises Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statement Current Projected Sales na 1,500 Costs na 1,050 Profit before tax na 450 Taxes na 135 Net income na 315 Dividends na 95 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 If Decker had a financing surplus, it could remedy the situation by a. reducing its dividend. b. borrowing on its line of credit. c. borrowing from its retained earnings d. paying a special dividend e. issuing more common stock.
Answer:
Decker Enterprises
If Decker had a financing surplus, it could remedy the situation by
d. paying a special dividend
Explanation:
a) Data and Calculations:
Income statement
Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Retained earnings na 220
Balance sheets
Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Total $1,300 $1,555 Total $1,300 $1,591
Preppy Co. makes and sells a single product. The current selling price is $30 per unit. Variable costs are $21 per unit, and fixed expenses total $90,000 per month. Sales volume for July totaled 12,000 units.
Required:
a. Calculate the operating income for July.
b. Calculate the break-even point in units sold and total revenues.
Answer and Explanation:
The computation is shown below:
(a)
Sales = 30 × 12,000 units = $360,000
(Less) variable costs = 21 × 12,000 units = $252,000
(Less) fixed costs = $90,000
Operating income = $18,000
(b)
Break even point in units be X
X × 30 = X × 21 + $90,000
9X = $90,000
X = 10,000 units
Now
Break even point in dollars is
= 10,000 × $30
= $300,000
At the beginning of 20X1, a company issues 100,000 shares of 4%, $10 par value, cumulative preferred stock. All remaining shares outstanding are common stock. The company does not pay any dividends in 20X1, but pays dividends of $100,000 at the end of 20X2. How much of the dividend will be paid to common stockholders in 20X2?
a. $20,000.
B. $100,000.
C. $80,000.
D. $60,000.
Answer:
a. $20,000.
Explanation:
The computation of the dividend that will be paid to common stockholders in 20X2 is shown below:
= $100,000 - ($100,000 × 10 × 4% × 2 years)
= $100,000 - $80,000
= $20,000
Hence, the dividend that will be paid to common stockholders in 20X2 is $20,000
Therefore the option a is correct
On December 31, the Accounts Receivable ending balance is $80,000. Assume that the unadjusted balance of Allowance for Uncollectible Accounts is a debit of $500 and that the company estimates 7% of the accounts receivable will not be collected. The amount of bad debt expense recorded on December 31 will be:
Answer:
$6,100
Explanation:
Calculation to determine what The amount of bad debt expense recorded on December 31 will be:
Using this formula
Bad debt expense=(Estimated % of accounts receivable*Accounts Receivable ending +balance)+Unadjusted balance of Allowance for Uncollectible Accounts
Let plug in the formula
Bad debt expense=(7%*$80,000)+$500
Bad debt expense=$5,600+$500
Bad debt expense=$6,100
Therefore The amount of bad debt expense recorded on December 31 will be:$6,100
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.
1. Record the investment in bonds.2. Record receipt of the first interest payment on June 30.
Answer and Explanation:
The journal entries are shown below;
a. Investment Dr $37,282
To Cash $37,282
(being the investment in bonds is recorded)
b.
Cash (($1,000 × $40) × 0.07 × 6 ÷ 12) $1,400
Investment $91
To interest revenue ($37,282 ×8% × 6 ÷ 12) $1,491
(Being the first interest payment is recorded)
A rookie quarterback is in the process of negotiating his first contract. The team's general manager has offered him three possible contracts. Each contract lasts for four years. All of the money is guaranteed and is paid at the end of each year. The payment terms of the contracts are as follows:
(dollars in millions)
Year Contract 1 Contract 2 Contract 3
1 $1.50 1.0 3.5
2 $1.50 1.5 0.5
3 $1.50 2 0.5
4 $1.50 2.5 0.5
The quarterback discounts all the cash flows at 12%. Which of the three contracts offers the most value? (Hint: Calculate the present value of future cash flows)
Answer:
Contract 2 offers the most value.
Explanation:
a) Data and Calculations:
Payment terms of the contracts:
(dollars in millions)
Year Contract 1 Contract 2 Contract 3
1 $1.50 1.0 3.5
2 $1.50 1.5 0.5
3 $1.50 2 0.5
4 $1.50 2.5 0.5
Discount rate = 12%
Present value of Contract 1:
PV annuity factor at 12% for 4 years = 3.037
PV annuity of $1.50 = $1.50 * 3.037 = $4.5555 or $4,555,500
Present value of Contract 2:
$1.0 * 0.893 = $0.893
$1.5 * 0.797 = 1.1955
$2 * 0.712 = 1.424
$2.5 * 0.636 = 1.59
Total = $5.1025 or $5,102,500
Present value of Contract 3:
$3.5 * 0.893 = $3.1255
$0.5 * 0.797 = 0.3985
$0.5 * 0.712 = 0.356
$0.5 * 0.636 = 0.318
Total = $4.198 million or $4,198,000