Answer: Natural monopoly
Explanation:
A natural monopoly is a form of monopoly that comee into being due to huge start-up costs and also economies of scale. A firm that has a natural monopoly may be the only producer of a particular good or service.
A natural monopoly occurs when the long-run average total cost curve is crossed by the markwt demand curve when the average total costs are still diminishing.
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 74,000 shares authorized, issued, and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 226,000 Retained earnings 880,000 Total stockholders’ equity $ 1,846,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 5,200 shares of its own common stock at $27 per share on October 11. Sold 1,050 treasury shares on November 1 for $33 cash per share. Sold all remaining treasury shares on November 25 for $22 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
Answer:
1, Journal entries
Date Account and explanation Debi$ Credit$
Treasury stock (5200*27) 140,400
Cash 140,400
(To record purchase treasury stock)
Cash (1,050*33) 34,650
Paid in capital from sale of treasury stock 6,300
Treasury stock (1,050*27) 28,350
(To record sale of treasury stock)
Cash (4,150*22) 91,300
Paid in capital from sale of 6,300
treasury stock
Retained earnings 14,450
Treasury stock (4,150*27) 112,050
(To record sale of treasury stock)
2. Revised equity section
Contributed capital
Common Stock 740,000
Paid in capital in excess of 226,000
par value-Common Stock
Total paid in capital 966,000
Retained earnings 880,000
Total 1,846,000
Less: Treasury stock (140,400)
Total Stockholder's equity $1,705,600
You will pay $7,000 now to purchase a perpetuity which will pay you and your heirs $340 at the end of each year, forever. What is the rate of return on this perpetuity?
Answer:
4.86%
Explanation:
Interest rate of a perpetuity = amount / present value
$340 / $7,000 = 0.048571 = 4.86%
I hope my answer helps you
Answer:
4.86%
Explanation:
Interest rate of a perpetuity = amount / present value
$340 / $7,000 = 0.048571 = 4.86%
Exercise 9-17 Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4]
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
Fixed Component
per Month Variable
Component per Job Actual Total
for February
Revenue $ 275 $ 38,500
Technician wages $ 8,100 $ 7,950
Mobile lab operating expenses $4,800 $ 33 $ 9,590
Office expenses $ 2,400 $ 2 $ 2,550
Advertising expenses $1,590 $ 1,660
Insurance $ 2,850 $ 2,850
Miscellaneous expenses $ 960 $ 2 $ 565
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $33 per job, and the actual mobile lab operating expenses for February were $9,590. The company expected to work 150 jobs in February, but actually worked 160 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Answer:
AirQual Test Corporation
Flexible Budget Performance Report for February:
Fixed Variable Flexible Actual
Component Budget Total
Revenue $ 275 $38,500 $ 38,500 0 None
Technician wages $ 8,100 $8,100 $ 7,950 150 F
Mobile lab operating
expenses $4,800 $ 33 $10,080 $ 9,590 490 F
Office expenses $ 2,400 $ 2 $2,720 $ 2,550 170 F
Advertising expenses $1,590 $1,590 $ 1,660 70 U
Insurance $ 2,850 $2,850 $ 2,850 0 None
Miscellaneous expenses $ 960 $ 2 $1,280 $ 565 715 F
Explanation:
Fixed Component Variable Budget Actual
Revenue $ 275 $41,250 $ 38,500
Technician wages $ 8,100 $8,100 $ 7,950
Mobile lab operating
expenses $4,800 $ 33 $9,750 $ 9,590
Office expenses $ 2,400 $ 2 $2,700 $ 2,550
Advertising expenses $1,590 $1,590 $ 1,660
Insurance $ 2,850 $2,850 $ 2,850
Miscellaneous expenses $ 960 $ 2 $1,260 $ 565
b) Variable elements for the flexible budget:
1) Mobile lab operating expenses = $4,800 + ($33 x 160) = $10,080
2) Office Expenses = $2,400 + ($2 x 160) = $2,720
3) Miscellaneous expenses = $960 + ($2 x 160) = $1,280
c) A flexible budget is a budget that is flexed with regard to the volume of activity, with respect to the variable elements. This budget type changes in value as a result of the changes in the volume of activity. It is different from a static budget, which does not change in value following the level of activity and does not account for changing incomes and expenses.
Initially, Eleanor earns a salary of $200 per year and Darnell earns a salary of $100 per year. Eleanor lends Darnell $50 for one year at an annual interest rate of 16% with the expectation that the rate of inflation will be 5% during the one-year life of the loan. At the end of the year, Darnell makes good on the loan by paying Eleanor $58. Consider how the loan repayment affects Eleanor and Darnell under the following scenarios. Scenario 1: Suppose all prices and salaries rise by 5% (as expected) over the course of the year. In the following table, find Eleanor's and Darnell's new salaries after the 5% increase, and then calculate the $58 payment as a percentage of their new salaries. (Hint: Remember that Eleanor's salary is her income from work and that it does not include the loan payment from Darnell.) Value of Eleanor's new salary after one year The $58 payment as a percentage of Eleanor's new salary Value of Darnell's new salary after one year The $58 payment as a percentage of Darnell's new salary Scenario 2: Consider an unanticipated increase in the rate of inflation. The rise in prices and salaries turns out to be 14% over the course of the year rather than 5%. In the following table, find Eleanor's and Darnell's new salaries after the 14% increase, and then calculate the $58 payment as a percentage of their new salaries. Value of Eleanor's new salary after one year The $58 payment as a percentage of Eleanor's new salary Value of Darnell's new salary after one year The $58 payment as a percentage of Darnell's new salary An unanticipated increase in the rate of inflation benefits______ and harms_____ .
Answer:
Scenario 1: Suppose all prices and salaries rise by 5% (as expected) over the course of the year. In the following table, find Eleanor's and Darnell's new salaries after the 5% increase, and then calculate the $58 payment as a percentage of their new salaries.
Eleanor's new salary = $200 x 1.05 = $210
Darnell's new salary = $100 x 1.05 = $105
the $58 payment represents:
$58 / $210 = 27.62% of Eleanor's new salary
$58 / $105 = 55.24% of Darnell's new salary
Scenario 2: Consider an unanticipated increase in the rate of inflation. The rise in prices and salaries turns out to be 14% over the course of the year rather than 5%. In the following table, find Eleanor's and Darnell's new salaries after the 14% increase, and then calculate the $58 payment as a percentage of their new salaries.
Eleanor's new salary = $200 x 1.14 = $228
Darnell's new salary = $100 x 1.14 = $114
the $58 payment represents:
$58 / $228 = 25.44% of Eleanor's new salary
$58 / $114 = 50.88% of Darnell's new salary
An unanticipated increase in the rate of inflation benefits Darnell and harms Eleanor.
An estimate of the money and paperwork spent complying with environmental regulations could be compared to the advantages of cleaning up pollution. This method of determining the value of the environment is known as __________.
Answer:
Contingent valuation.
Explanation:
An estimate of the money and paperwork spent complying with environmental regulations could be compared to the advantages of cleaning up pollution. This method of determining the value of the environment is known as contingent valuation.
Contingent valuation can be defined as a survey based method which is typically used to determine the economic value of a non-market resource such as the impact of pollution and preservation of the environment.
This ultimately implies that, contingent valuation is used for the valuation of resources and goods that are not being traded in marketplaces. Therefore, it is mostly related to the environmental and natural resources found around us on planet Earth.
Generally, this environmental and natural resources usually do not have a market price but various individuals derive utility or satisfaction from them.
Hence, the contingent valuation method is aimed at seeking people's opinions by asking questions on how much money they're willing to pay or receive for the preservation of an environmental resource.
For instance, many people derive pleasure from visiting tourist attractions sites such as zoo, recreational facilities, parks etc and would be willing to pay for this natural resources.
If Galaxia has a GDP that is 10 times larger than Myopia, which country would likely have greater marginal returns to capital based on the law of diminishing returns to capital
Answer:
Myopia
Explanation:
The law of marginal returns states that as the total amount of any production factor increases, the output per unit of that factor will start to decrease. In other words, the marginal output or return from that factor will decrease. E.g. if you invest $100 in a small business, you will require a very high rate of return. If instead, you invest $1,000 in corporate bonds, you will only obtain moderate to low yields.
In this case, $1,000 invested in Myopia (smaller economy) should return a higher yield than $1,000 invested in Galaxia. Also, the $1,000 invested in Myopia will have a larger economic effect than the $1,000 invested in Galaxia.
Certain car companies offer performance cars at affordable prices, but in doing so they contribute to climate and environmental issues. These car companies overlook the .................. philosophy.
Can you complete the gap?
Answer:
Kaizen Philosophy
Explanation:
Kaizen philosophy refers to good change. It is a Japanese term in which the companies are required to improve their processes continuously. The companies which offer low cost car vehicles are overlooking Kaizen principle because they are contributing to environment pollution. Kaizen principle focuses on new improvements and abolishes old concepts.
A company borrowed cash from the bank by signing a 5-year, 8% installment note. The present value for an annuity (series of payments) at 8% for 5 years is 3.9927. The present value of 1 (single sum) at 8% for 5 years is .6806. Each annual payment equals $75,000. The present value of the note is:
Answer: $299,452.50
Explanation:
The company will pay back $75,000 every year for 5 years. This is an Annuity as the payments are constant.
The Present Value = Annuity * ( Present Value Interest Factor of an Annuity for the year and interest)
Present Value = 75,000 * 3.9927 ( Present value Interest Factor of an Annuity at 8% for 5 years)
= $299,452.50
Refer to Exhibit 26- 1. If average-cost pricing is imposed on the natural monopoly firm, what price is charged?
a. P1
b. P2
c. P3
d. any of the three prices
Answer: b. P2
Explanation:
Average Cost Pricing regulations being imposed on natural monopolies means that the regulators want them to charge customers a price that is close to or is the same as the Average cost it costs to produce goods and services.
The price that the Monopoly will charge is therefore the intersection between the Average Total Cost Curve and the Demand curve.
From the graph that price is P2 so that is the price that will be charged.
Sheboygan Co. purchased a new vehicle at a cost of $42,000 on July 1. The vehicle is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the vehicle during the first year ended December 31?
Answer:
The depreciation at the end of first year = $3250
Explanation:
The cost of a new vehicle on July 1st = $42000
The estimated useful life of vehicle = 6 years
The salvage value of vehicle = $3000
It is given that the company uses the straight-line method for depreciation so we have to calculate the depreciation by subtracting the salvage value from its cost and dividing by years.
Depreciation = ($42000 – $3000) / 6 = $6500
So annual depreciation is $6500.
Therefore depreciation at the end of the first yThe depreciation at the end of first year = $3250ear that is for 6 months = $3250
Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $4 per share. It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 156 shares.
a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of shares b. What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round your answer to 2 decimal places.) Anticipated stock price $c. Because investors often have a negative reaction to a revere stock split, assume the stock only goes up to 80 percent of the value computed in part b. What will the stock’s price be? (Do not round intermediate calculations and round your answer to 2 decimal places.) Stock price $d. How has the total value of Dean Smith’s holdings changed from before the reverse stock split to after the reverse stock split (based on the stock value computed in part c)? To get the total value before and after the split, multiply the shares held times the stock price.(Input the amount as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places.) Dean Smith’s holdings $
Answer:
A. Post-split shares 26 shares
B.Post-split stock price$24
C.Adjusted stock price$19.2
D.Pre split value $624.00
Post-split value $499.2
Change in value=-$124.8
Explanation:
Worst Buy Company
a. Calculation for Post-split shares
Post split share= Pre-split shares × Split ratio=156 × 1/6=26 shares
b. Calculation for Post-split stock price
Post split stock price= Pre-split price × (1 / Split ratio)
=$4 × 6/1=$24.00
c. Calculation for Adjusted stock price
Adjusted stock price = Adjustment ratio × Post-split price=.80 × $24.00=$19.2
d. Calculation for Pre-split value
Pre split value = Pre-split shares × Pre-split price=
156 × $4=$624.00
Post-split value = Post-split shares × Post-split price=26 × $19.2=$499.2
Change in value = Post-split value – Pre-split value=$624.00 – $499.2
Change in value=-$124.8
The value of Dean Smith's holdings decreased by $124.8
Suppose you are evaluating two mutually exclusive projects, A and B. Project A costs $350 and has cash flows of $250 and $250 in the next 2 years, respectively. B costs $300 and generates cash flows of $300 and $100. What is the crossover rate for these projects
Answer:
The answer is 30%
Explanation:
Solution
Given that:
Project A
Project A costs = $350
Cash flows =$250 and $250 (next 2 years)
Project B
Project B costs =$300
Cash flow = $300 and $100
Now what is the crossover rate for these projects.
Thus
Year Project A Project B A-B B-A
0 -350 -300 -50 50
1 250 300 -50 50
2 250 100 150 -150
IRR 27% 26% 30% 30%
So,
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$-50 = $-50/(1+r)^1 + $150/(1+r)^2
r = 30%
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$50 = $50/(1+r)^1 + $-150/(1+r)^2
r = 30%
Hence, the cross over rate for these project is 30%
Note:
IRR =Internal rate of return
CF =Cash flow
r = rate
Lasting Summer Inc. has $2,290 in the October 1 balance of the accounts receivable account consisting of $1,050 from Champion Co. and $1,240 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 20Y5 are as follows:
Oct.
3. Issued Invoice No. 622 for services provided to Palace Corp., $2,890.
5. Received cash from Champion Co., on account, for $1,060.
8. Issued Invoice No. 623 for services provided to Sunny Style Inc., $1,940.
12. Received cash from Wayfarer Co., on account, for $1,450.
18. Issued Invoice No. 624 for services provided to Amex Services Inc., $2,970.
23. Received cash from Palace Corp. for Invoice No. 622 of October 3.
28. Issued Invoice No. 625 to Wayfarer Co., on account, for $900.
30. Received cash from Rogers Co. for services provided, $120.
Required:
a. Prepare a single-column revenue journal and a cash receipts journal to record these transactions.
b. Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 20Y5.
c. Why does Lasting Summer Inc. use a subsidiary ledger for accounts receivable?
Answer:
Lasting Summer Inc.a1) Revenue Journal
Date Description Invoice Ref Amount
Oct. 3 Palace Corp. 622 $2,890
Oct. 8 Sunny Style Inc. 623 1,940
Oct. 18 Amex Services Inc. 624 2,970
Oct. 28 Wayfarer Co. 625 900
Oct. 31 Accounts Receivable $8,700
a2) Cash Receipts Journal
Date Description Ref Amount
Oct. 5 Champion Co. $1,060
Oct. 12 Wayfarer Co. 1,450
Oct. 23 Palace Corp. 622 2,890
Oct. 30 Rogers Co. 120
Oct. 31 Accounts Receivable $5,400
Oct. 31 Cash Account $120
b1) Listing of the Account Receivable Customer Balances:
Champion Co. -$10
Wayfarer Co. 690
Sunny Style Inc. 1940
Amex Services 2,970
Total $5,590
b2) Verification of agreement with Accounts Receivable Control Account:
The total of accounts receivable listing and the Accounts Receivable Control Account agree.
c) Use of a Subsidiary Ledger for Accounts Receivable:
Subsidiary Ledger for the Accounts Receivable is kept in order to record the individual customers' accounts and their business transactions with the entity. The general ledger account for the same is a total account that summarizes the individual accounts and acts as a control measure to ensure accuracy.
Explanation:
a) Account Balances:
1. Accounts Receivable
Beginning balance $2,290
Revenue Journal 8,700
Cash Journal -5,400
Ending balance $5,590
2. Champion Co.
Beginning balance $1,050
Oct. 5 Cash -1,060
Ending balance $10 CR
3. Wayfarer Co.
Beginning balance $1,240
Oct. 28 Inv.625 900
Oct. 14 Cash -1,450
Ending balance $690
4. Palace Corp.
Oct. 3 Revenue Inv. 622 $2,890
Oct. 23 Cash 622 2,890
5. Sunny Style Inc.
Oct. 8 Revenue Inv.623 1,940
6. Amex Services Inc.
Oct. 18 Revenue Inv.624 2,970
b) A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. In the general ledger, there is an account that summarizes a subsidiary ledger account balances. It is called a control account or master account.
Rick, who is single, has been offered a position as a city landscape consultant. The position pays $141,800 in cash wages. Assume Rick has no dependents. Rick deduct the standard deduction instead of itemized deductions and he is not eligible for the qualified business income deduction. (Use the tax rate schedules.)
Required:
a. What is the amount of Rick’s after-tax compensation (ignore payroll taxes) and his income tax liability?
b. Suppose Rick receives a competing job offer of $102,500 in cash compensation and nontaxable (excluded) benefits worth $4,900.
Answer:
I used the 2020 standard deduction and income tax brackets to calculate the answer.
a. What is the amount of Rick’s after-tax compensation (ignore payroll taxes) and his income tax liability?
Rick's gross income $141,800
- standard deduction $12,400
taxable income $129,400
income taxes = (10% x $9,875) + (12% x $30,250) + (22% x $45,400) + (24% x $43,875) = $25,135.50
after tax income = $141,800 - $25,135.50 = $116,664.50
b. Suppose Rick receives a competing job offer of $102,500 in cash compensation and nontaxable (excluded) benefits worth $4,900.
Rick's gross income $102,500
- standard deduction $12,400
taxable income $90,100
income taxes = (10% x $9,875) + (12% x $30,250) + (22% x $45,400) + (24% x $4,575) = $15,703.50
after tax income = $102,500 - $15,703.50 + $4,900 = $91,696.50
An investment had a nominal return of 11.1 percent last year. If the real return on the investment was only 7.3 percent, what was the inflation rate for the year
Answer:
inflation rate= 3.8%
Explanation:
Giving the following information:
Nominal return= 11.1 percent
Real return= 7.3 percent
The real return on investments is the difference between the nominal return and the inflation rate.
Real return= nominal return - inflation rate
inflation rate= nominal return - real return
inflation rate= 11.1 - 7.3
inflation rate= 3.8%
Swifty snowboards converts regulat snowboards by adding outriggers and seats so that people who use wheel chairs can snowboard. the income statement for lasst yeaar in which 500 snowboards were produced and sold, appears here.
Revenue $150,000
Expenses:
Variable production costs $60,000
Fixed production costs 25,000
Variable selling and administration 10,000
Fixed selling and administration 35,000 130,000
$20.000
Income
Required:
A. What vołume of snowboards must be sold to ean pretax profits of $30,000?
B. Snowbird's supplier of snowboards is unable to ship more than 500 boards for the upcoming season. Snowbird has been paying the supplier $85 for each snowboard. (The cost of the snowboards is incłuded in variable production costs). More expensive snowboards are available from other manufacturers for conversion. If Snowbird's managers expect to sell more than 500 converted snowboards in the upcoming season, what is the most they would be willing to pay outside suppliers for each additional snowboard?
C. Suppose Snowbird pays the price you calculated in part (B) and sells an additional 200 snowboards. What is the commany's incremental profit on the 200 snowboards?
Answer:
A. 563 snowboards
B. $120
C. Incremental Profit:$32,000
Explanation:
Volume to meet target profit = (Target Profit + Fixed Cost) / Contribution per unit
Calculation of Contribution per unit
Revenue $150,000
Less Variable Costs ;
Variable production costs ($60,000)
Variable selling and administration ($10,000)
Contribution $80,000
Contribution per unit = $80,000 / 500 snowboards
= $160
Volume to meet target profit = ($30,000 + $25,000 + $35,000) / $160
= 562.50 or 563 snowboards
For the Additional Snowboats,Snowbird's managers are willing to pay a price close to cost of making the regular snowboards internally.
Cost of Making :
Variable production costs ($60,000 / 500) = $120
Total Cost = $120
Therefore, Snowbird's managers are willing to pay $120
For Incremental Profit or Loss, prepare a differential analysis for the additional 200 snowboards.
Differential analysis for the additional 200 snowboards
Sales (200 snowboards × $300) $60,000
Less Incremental Production Costs ( 200 × $120) ($24,000)
Less Incremental selling and administration (200 × $20) ($4,000)
Incremental Profit $32,000
Often in business the greater the risk, the __________.
Answer:
greater the potential reward
Explanation:
Challenges that has made some of them go into liquidation with takeovers all over the country. Examine the processes for the acquisition of licence by Banks and other financial institutions in Ghana establishing the role of the regulator in this industry. In your opinion, do we still need a regulator if the banks are collapsing anyway?
Answer:
The given statement is true, that can be defined as follows:
Explanation:
They continue always to have a supervisor unless the financial are all, which collapses to regulation is criticized in constructing practices and regulations for the divestiture lock, so if the international banks repatriate throughout a nation, which results in monetary uncertainty in the world, they take the required measures to cope with both the problems faced by the moon inside the economic system.
The financial and monetary system of a nation is controlled and corrective actions are taken to resolve moon-facing financial problems through the liquidation of banks. Its national economy is collapsing with just a regulator, but any money problems emerge in a difficult area unit to control.
Your father has $500,000 invested at 8%, and he now wants to retire. He wants to withdraw $50,000 at the end of each year, beginning at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero
Answer:
The number of years is about 21 years
Explanation:
A scheme that allows the withdraw fixed amount of money for a number of years is referred to as annuity
The number of years required to exhaust the fund can be determined using the present of annuity formula
PV = A × (1 - ((1+r)^(-n))/n)
where- PV- Present value, A- annual cash flow, n- number of years , r- interest rate
500,000= 50000 × (1- (1.08)^(-n)/0.08
500,000/50,000= (1- (1.08)^(-n)/0.08
10 =(1- (1.08)^(-n)/0.08
n = 21
The number of years is about 21 years
. Journalize the purchase transactions. Explanations are not required. 2. In the final analysis, how much did the inventory cost Green?
Complete Question:
Feb.2: Green buys $21,500 worth of inventory on account with credit terms of 1/15, n/60 FOB shipping point.
Feb.4: Green pays a $140 freight charge.
Feb.7: Green returns $5,600 of the merchandise due to damage during shipment.
Feb. 14: Green paid the amount due, less return and discount.
Journalize the purchase transactions. Explanations are not required. 2. In the final analysis, how much did the inventory cost Green?
Answer:
General Journal:
a) Feb. 2:
Debit Inventory Account $21,500
Credit Accounts Payable $21,500
To record the purchase of inventory on account, terms 1/15, n/60 FOB shipping point.
b) Feb.4:
Debit Freight-In Expense $140
Credit Cash Account $140
To record the payment of freight-in.
c) Feb.7:
Debit Accounts Payable $5,600
Credit Inventory $5,600
To record the return of damaged goods.
c) Feb. 14:
Debit Accounts Payable $15,900
Credit Cash Discount $159
Credit Cash Account $15,741
To record payment on account.
Explanation:
Journal entries are very useful in the initial recording of transactions into the accounting books. They show the accounts that will be debited and the other one that will be credited in the general ledger to comply with the double entry system of bookkeeping.
During the month, merchandise is sold for $80,500 cash and for $119,000 on account. The cost of merchandise sold is $101,500. What is the amount of revenue? a.$199,500 b.$80,500 c.$119,000 d.$101,500
Answer:
Value of revenue = $98,000
Explanation:
Here, we are interested in calculating the revenue.
Firstly, we add the sales on cash with the sales on account.
Mathematically that would be;
80,500 + 119,000 = $199,500
The value of the revenue = Amount in sales - cost of merchandise = 199,500-101,500 = $98,000
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:Direct materials used $87,000Direct labor used 160,000Predetermined overhead rate (based on direct labor)155%Goods transferred to finished goods 432,000Cost of goods sold 444,000Credit sales 810,000a. Debit Factory Payroll Payable $160,000; credit Cash $160,000.b. Debit Work in Process Inventory $160,000; credit Factory Payroll Payable $160,000.c. Debit Cost of Goods Sold $160,000; credit Factory Payroll Payable $160,000.d. Debit Work in Process Inventory $160,000; credit Raw Materials Inventory $160,000.e. Debit Work in Process Inventory $160,000; credit Cash $160,000.
Answer:
b. Debit Work in Process Inventory $160,000; credit Factory Payroll Payable $160,000.
Explanation:
In order to record the cost of goods manufactured, once the goods are finished, you add up all the work in process debits. The following journal entry would be:
Dr Finished goods inventory
Cr Work in process inventory (all added up)
In this case, since you are recording labor usage, you must also credit wages or payroll payable (that correspond to the amount of labor used to manufacture the goods).
The potential sources of noise and bias in accounting data are: Group of answer choices Rigidity in accounting rules Random forecast errors Systematic reporting choices made by corporate manager to achieve specific objectives All of the above None of the above
Answer: All of the above
Explanation:
Accounting data can have bias or data that should not necessarily be included due to a couple of factors.
Accounting rules are too rigid because when they are applied, the Accountants will ibe unable to remove the noise and entries made by Management without removing a substantial part of Accounting records. There is need for more flexible rules so that Accountants can restrict how easily Management can introduce bias.
Accounting works a lot of forecasted information and it is impossible to make completely accurate forecasts as events can simply happen out of nowhere and disrupt operations. Also there is Human error in the forecasts so this can lead to noise and bias.
Finally, Accounting bias and noise can be linked to pressure from Corporate management to report data in a certain way for a myriad of reasons such as to improve management benefits if they are performance related, to avoid taxes, and to avoid Government regulations amongst others.
On June 1, Carla Vista Co. Ltd. borrows $108,000 from Acme Bank on a 6-month, $108,000, 4% note. The note matures on December 1.
1. Prepare the entry on June 1.
2. Prepare the adjusting entry on June 30.
3. Prepare the entry at maturity (December 10)
4. What was the total fancing (interest expence)?
Answer:
a) Journal entry
Date Account and explanation Debit Credit
June 1 Cash $108,000
Notes payable $108,000
b) Adjusting entry
Date Account and explanation Debit Credit
June 30 Interest expense $360
(108,000*4%*1/12)
Interest payable $360
c) Journal entry
Date Account and explanation Debit Credit
Dec 10 Notes payable $108,000
Interest payable (360*6) $2,160
Cash $110,160
d) Total (interest expenses)
Interest payable = $360 * 6
= $2160
During a Value-Added Flow Analysis, the team studied a process step where they checked the customer's credit. What is the best label for this step?
Answer:
Non-Value-Adding but required.
Explanation:
A Value-Added flow analysis is a graphical visualization tool that is used for identifying non-essential activities or steps within a process. It basically, allows individuals or team to analyze, identify and separate value-adding activities from non-value-adding activities or steps in an organization. This simply means that, it avails an organization or business the ability to separate activities that add value for the user from the activities that are non-value-adding.
The value-adding activities are the steps that adds value to an organization's product or project while the non-value-adding activities are those steps which do not add any value to the organization's product.
In this scenario, during a value-added flow analysis, the team studied a process step where they checked the customer's credit. The best label for this step is Non-value-adding but required.
The process of checking a customer's credit is a necessary task or a required step but in the real sense of lean, it is considered as a non-value-adding activity. This is simply because, it is required to check the customer's credit in order to update the balance sheet and to know the amount that is granted to these customers.
However, it does not add any value to the organization.
addresses unknown parameters in the real world that parallel descriptive measures of very large population? A. The sample mean / B. Statistic Inference C. The central Limit Theorem
Answer:
The answer is "Option B".
Explanation:
Inferential statistics was its process through which data collection is used to conclude the property or even an implicit wave function. Its analysis infers these same features of inhabitants. Its purpose is to use statistical strategies to determine important assumptions regarding sample size, and other choices were wrong which can be defined as follows:
In option A, it defines the average of the given values, that's why it is wrong.In option C, It is used to0 describes a number of samples that's why it is wrong.Suppose GDP in this country is $900 million. Enter the amount for consumption. National Income Account Value (Millions of dollars) Government Purchases ( G ) 250 Taxes minus Transfer Payments ( T ) 325 Consumption ( C ) Investment ( I )
Answer:
Consumption ( C ) = $325 million
Explanation:
Given:
GDP = $900 million:
Government Purchases ( G ) = $250 million
Taxes minus Transfer Payments ( T ) = $325 million
Investment ( I ) = $275 million
Find:
Consumption ( C )
Computation:
GDP = C + I + G
$900 million = Consumption ( C ) + $250 million + $325 million
Consumption ( C ) = $900 million - [$250 million + $325 million]
Consumption ( C ) = $325 million
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $54,000 per ton, one-fourth of which is allocated to product X15. Six thousand three hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $17 each, or processed further at a total cost of $8,700 and then sold for $20 each.
Required
1. What is the financial advantage (disadvantage) of further processing product X15?
2. Should product X15 be processed further or sold at the split-off point?
1.
2. Product X15 should be
Answer:
1. What is the financial advantage (disadvantage) of further processing product X15?
financial advantage of further processing X15 = $10,2062. Should product X15 be processed further or sold at the split-off point?
X15 should be processed furtherExplanation:
processing costs for every batch of X15 (6,300 units) = $54,000 x 1/4 = $13,500
production cost per unit $13,500 / 6,300 = $2.14286 = $2.14 per X15
contribution margin per unit without further processing = $17 - $2.14 = $14.86
costs of further processing $8,700, per unit = $8,700 / 6,300 = $1.38
total costs per unit $2.14 + $1.38 = $3.52
contribution margin with further processing = $20 - $3.52 = $16.48
total financial advantage of further processing X15 = ($16.48 - $14.86) x 6,300 = $10,206
Burt has come across an excellent recipe for a new beer, and he and 20 college friends decide to go into business. They form a corporation named New Brew Inc., issuing stock only to the 21 of them and not selling any stock outside the group. The beer is a huge success, and they soon need to expand. They decide to sell stock to members of the public to raise capital. What type of corporation is New Brew before the sale of stock to the public
Answer: Private Limited Company
Explanation:
From the question, we are informed that Burt has come across an excellent recipe for a new beer, and he and 20 college friends decide to go into business and they form a corporation named New Brew Inc., issuing stock only to the 21 of them and not selling any stock outside the group.
We are further told that the beer is a huge success, and they soon need to expand and decide to sell stock to members of the public to raise capital.
Before the sale of stock to the public, the corporation is a private limited company. The limited number of shareholders in this type of business is 50 and it does not trade its shares publicly.
"An order for a New York Stock Exchange listed issue is routed by the member firm to a Third Market Maker rather than to the exchange floor. This practice is:"
Answer: Permitted if the price offered by the Third Market Maker is better.
Explanation:
The Securities and Exchange Commission (SEC) requires that when executing trades, the trader should seek for execution at the best market. This means that the trader should trade in the market that is most price efficient.
Should the stock in question be available for trade in various markets, best practice would indicate that the dealer find the market that is offering the best prices and route the order to it.