Match the vocabulary word with the correct definition
system for gathering and organizing marketing
information used in decision-making
specific actions which advance the strategy and achieve
an end result
specific, measureable, short-term expectations
objectives
goals
broad, long-term expectations for future achievements
structured research which uses the scientific method and
standardized questions to make generalizations and
predictions, includes questionnaires, surveys and
experiments
statements describing the overall approach to how goals
and objectives will be achieved
:: marketing information system
:: quantitative research
:: strategies
:: tactics
Answer:
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Cullumber Co. invested $1,100,000 in Riverbed Co. for 25% of its outstanding stock. Riverbed Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Riverbed to answer the following questions. Investment in Riverbed Co. 1,100,000 108,000 32,400
(a) How much was Cullumber Co.’s share of Sub Co.’s net income for the year?
Net income $Cullumber Co. invested $1,000,000 in Sub Co. for
(b) How much was Cullumber Co.’s share of Sub Co.’s dividends for the year?
Dividends $Cullumber Co. invested $1,000,000 in Sub Co. for
(c) What was Sub Co.’s total net income for the year?
Total net income $Cullumber Co. invested $1,000,000 in Sub Co. for
(d) What was Sub Co.’s total dividends for the year?
Total Dividends $Cullumber Co. invested $1,000,000 in Sub Co. for
Answer and Explanation:
The computation is shown below:
a. The net income is $108,000
b. The dividend for the year is $32,400
c. The total net income is
= $108,000 ÷ 0.25
= $432,000
d. And, the total dividend is
= $432,000 × 0.30
= $129,600
hence, the same would be considered and relevant too
The focus groupis meeting on Tuesday.The policy is too old; itneeds to be revised.The management teamwants to hire new warehouse workers.If the customerbuys four or more items from the catalog, offer a price reduction.We should bothfeel comfortable with the final decision.The corporate directorsrecommends a full investigation.The board of directorshas approved the current ethics policy.The regional manager and the district supervisormakes all purchasing decisions.The writer of a well-designed e-mail messageuse correct grammar and spelling.The initial proposals the team submitted how hard they have worked.
Answer:
The verbs in these sentences are:
1. is
2. needs
3. wants
4. buys
5. feel
6. recommend
7. has
8. makes
9. uses
10. shows
Explanation:
Verb is a word in a sentence which describes an action of a person. It is the word which gives understanding about the task performance in a sentence. The verb can be single or multiple in a single sentence. The choice of verb is dependent on the noun. There are 4 forms of verb which are used in a sentence.
Explain two potential advantages to an airline of outsourcing inflight catering
Answer: See explanation
Explanation:
In-flight catering simply has to do with the delivery of food that have been already prepared and packaged for consumption while a particular airplane is in flight.
The two potential advantages to an airline of outsourcing inflight catering is that it helps in the reduction and of cost in the part of the airline. Outsourcing will help the airline cut costs.
Also, another reason is that the airline can focus on other aspects which are more important and work towards achieving organizational goals.
People of lower socioeconomic status are more likely to smoke tobacco, but the data collected does not indicate why. However, with a naturalist/constructivist approach, the exposures that people are subjected to (or choose) are better understood in the context of their personal circumstances and the significance that people attribute to things in their environment." Which type of study you will undertake to answer this research question?A. QualitativeB. Quantitative
Answer:
Option A "Qualitative" is the right option.
Explanation:
Qualitative approaches usually involve data analysis models and techniques from some kind of wide range of functional professional disciplines. This same occurrence we were also willing to take part though is that smoker's behavior patterns with a relatively low socio-economic designation have been qualitative. Individual qualities as well as other qualities are indeed qualitative research.And the above response is the appropriate one.
Deborah would like to invest a certain amount of money for two years and considers investing in a one-year bond that pays 4% and a two-year bond that pays 7%. Deborah is considering the following investment strategies:
Strategy A: Buy a one-year bond that pays 4% and in one year buy another one-year bond.
Strategy B: Buy a two-year bond that pays 7% this year and 7% next year.
If the one-year bond that Dina can purchase in one year pays 9%, Deborah will choose:_______
Answer:
If the one-year bond that Dina/Deborah can purchase in one year pays 9%, Deborah will choose:_______
Strategy B.
Explanation:
a) Data:
Interest on one-year bond = 4%
Interest on a two-year bond = 7%
Investment strategies:
Strategy A: Buy a one-year bond that pays 4% and in one year buy another one-year bond.
Strategy B: Buy a two-year bond that pays 7% this year and 7% next year.
b) Although choosing a fixed income investment is a conservative strategy because returns are generated from low-risk securities that pay predictable interest, this strategy may be preferred by Deborah instead of another that pays at variable interest rates. The variable-interest bond will need to pay higher varying interest rates to be attractive to Deborah. Paying 4% in year one and another 9% in year two will not make the bond investment more attractive than a straight two-year bond that pays at 7% per year.
As the field of OSCM has advanced, new concepts have been applied to help companies compete in a number of ways, including the advertisement of the firm's products or services. One recent concept to gain the attention of companies is promoting sustainability. Discuss how you have seen the idea of sustainability used by companies to advertise their goods or services.
Explanation:
Sustainability can be implemented in different ways in an organization, it can be a set of procedures and policies, through environmental management, environmental management systems, etc.
In the case of products and services, it is very common for the end consumer to realize that a company adopts sustainability through environmental certifications, which is generally represented in the form of a seal on the product packaging.
Environmental certifications are a way for the company to demonstrate its sustainability values to its stakeholders, which strengthens the brand, creates value and reliability in the organization's products and services.
A company is targeting its marketing by running an advertising campaign showing a Hmong family celebrating its traditions during the 4th of July holiday. The ad campaign features the company products being used by the children. What area of consumer decision influence is the marketing campaign using?
a. American culture, an ethnic subculture, and family
b. psychological aspects of belief and attitude
c. social class and word-of-mouth influence
Answer:
American culture, an ethnic subculture, and family
Explanation:
According to the circular-flow diagram GDP
A local manufacturing business has announced that it will be closing its factory in your area and opening a new factory outside of the US. In one or more fully formed paragraphs, weigh the advantages and disadvantages of this action to your community, the business, and/or the global economy. Identify at least three advantages and three disadvantages. Do you support this change
Answer:
The disadvantages are in the first paragraphs and the advantages are in the second paragraphs.
Explanation:
One the one hand, the fact that the company has decided to close the local factory and open another one abroad indicates a serious of factors to have in mind when it comes to the community and the local area. To start, the local area will be affected obviously by this decision by losing jobs and also by losing money that will not longer be injected in the economy. Moreover, the business itself will have to do it all over to find new employers and calculate every cost and every aspect of the new factory abroad. And finally, in terms of the global economy this decision will affect as well the interaction that the company will now have from outside when it comes to doing business with local companies.
On the other hand, the decision will also bring advantages. When it comes to the business, the most quickly thought is that they will be able to lower the cost of producing if the choose a good country. In the case of the global economy this will also improve the movement of money from one country to another and more important the rise of new jobs in another place abroad. And finally, for the local community the most quickly advantage could be the case of the reduction in the polution of the area regarding the fact that the company is no longer working there.
Help please! Business questions
Answer:
1. National FFA.
2. DECA.
3. BPA
4. FEA (Educators Rising).
Explanation:
A career and technical student organization (CTSO) is an extracurricular group for students in CTE pathways to further their knowledge and skills by participating in activities, events, and competitions. The nine national CTSOs in the United States of America are;
National Future Farmers of America (National FFA). Distributive Education Clubs of America (DECA). Business Professionals of America (BPA). Health Occupations Students of America (HOSA) Family, Career, and Community Leaders of America (FCCLA). Future Business Leaders of America-Phi Beta LAMBDA (FBLA-PBLA). Technology Student Association (TSA). SkillsUSA. Future Educators of America (FEA).1. Marilyn is a middle-school student who wants to prepare for a career in farming: Therefore, Marilyn should join the National Future Farmers of America (FFA) organization.
2. Janice is a high-school student who wants to start her own business: she should join the Distributive Education Clubs of America (DECA) because they prepare students for business management and administration.
3. Abe is a high-school student who wants to become an information technology worker: Thus, Abe should join the Business Professionals of America (BPA) because they train students on citizenship and leadership in career clusters such as information technology.
4. Rene wants to teach middle-school classes: Therefore, Rene should join the Future Educators of America (FEA) because they prepare students who are interested in teaching.
Answer:
1) National FFA!
2) DECA!
3) BPA!
4) FEA!
Explanation:
Do I look like Dababy be honest
Answer:
No
Explanation:
he does not have a head that looks like a dam football and just NOOOO
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the___using_____by the____using_____and multiplying by 100. However, the CPI reflects only the prices of all goods and services______. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
Shows up in the... GDP
Scenario Deflator CPI
A decrease in the price of a Treewood Equipment feller
buncher, which is a commercial forestry machine made
in the U.S. but not bought by U.S. consumers.
An increase in the price of a Japanese-made television
that is popular among U.S. consumers.
Answer:
GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy using this year's prices by the value of all goods and services produced in the economy using the base year's prices. However, the CPI reflects only the prices of all goods and services bought by the consumers.
1. Scenario: A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
Shows up: In the GDP Deflator not CPI
2. Scenario: An increase in the price of a Japanese-made television that is popular among U.S. consumers.
Shows up: In the CPI not GDP Deflator
Statement of stockholders' equity Financial information related to All Seasons Company for the month ended June 30, 20Y7, is as follows:_______.
Common stock, June 1, 20Y7 $30,000
Stock issued in June 20,000
Net income for June 87,500
Dividends during June 15,000
Retained earnings, June 1, 20Y7 145,000
Prepare a statement of stockholders' equity for the month ended June 30, 20Y7. If an amount is zero, enter "0"
Answer:
Stockholders' equity is $267,500.
Explanation:
Note: See the attached excel file for the statement of stockholders' equity.
The following are used to confirm the figures in the ayyached excel file:
Seasons Company
Statement of Stockholders' Equity
for the month ended June 30, 20Y7
Particular Amount ($)
Common stock (w.1) 50,000
Retained earnings (w.2) 217,500
Stockholders' equity 267,500
Workings:
w.1: Common stock June 30, 20Y7 = Common stock, June 1, 20Y7 + Stock issued in June = $30,000 + $20,000 = $50,000
w2: Retained earnings June 30, 20Y7 = Retained earnings, June 1, 20Y7 + Net income for June - Dividends during June = $145,000 + $87,500 - $15,000 = $217,500
Roberto and Reagan are both 25-percent owner/managers for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light generated a $131,300 profit companywide made up of a $76,800 profit from the Sacramento store, a ($29,500) loss from the San Francisco store, and a combined $84,000 profit from the remaining stores. If Bright Light is taxed as a partnership and it is decided that both Roberto and Reagan will be allocated 70 percent of his own store's profit, with the remaining profits allocated pro rata among all the owners, how much income will be allocated to Reagan in total
Answer: $3,897.50
Explanation:
The profit that is to be shared on a pro rata basis will include:
a. The $84,000 profit from the remaining stores
b. 30% of the profit from Sacramento
c. 30% of the loss from San Francisco
= 84,000 + (0.3 * 76,800) + (0.3 * -29,500)
= $98,190
Reagan is to get 25% of the above as well as 70% of San Francisco losses.
= (0.25 * 98,190) + (0.7 * -29,500)
= 24,547.50 - 20,650
= $3,897.50
Which of the statements is the best description of a business cycle? the relationship between the returns on Treasury securities and the time to maturity the time it takes a firm to convert raw materials into a final good or service alternating periods of increasing and decreasing economic output a calendar year divided into four quarters, each containing three months
Answer:
alternating periods of increasing and decreasing economic output
Explanation:
The business cycle represent the boom and recession period. At the time of boom, the company earned huge profits while at the time of recession period this situation would be reverse that leads to rise and reduction in the economic output
Therefore according to the options given, the last second option is correct as it denotes the business cycle
upper and lower extremity of bursitis
Answer:
the answer is your bookjdjhmmBooynoheCNN
Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $22,500. This revision, which willreduce the interest rate earned on your deposited funds, will adjust your earned interest rate to
Answer: reduce; 2.67%
Explanation:
The original interest rate was:
= Annual Cashflow/ Present value
= 600 / 15,000
= 4%
The new interest rate is:
= 600 / 22,500
= 2.67%
We can see that the interest rate reduced from 4% to 2.67%.
This revision, which will reduce the interest rate earned on your deposited funds, will adjust your earned interest rate to 2.67%.
Moath Company reports the following for the month of June.
Date Explanation Units Unit Cost Total Cost
June 1 Inventory 200 $5 $1,000
12 Purchase 400 6 2,400
23 Purchase 300 7 2,100
30 Inventory 100
Assume a sale of 440 units occurred on June 15 for a selling price of $8 and a sale of 360 units on June 27 for $9.
Required:
Calculate cost of goods available for sale.
Answer: $5,500
Explanation:
The Cost of Goods available for sale is the price of the inventory and purchases that the company intends to sell.
June 1 Inventory = $1,000
June 12 Purchase = $2,400
June 23 Purchase = $2,100
Cost of goods available for sale = 1,000 + 2,400 + 2,100
= $5,500
[The following information applies to the questions displayed below.]
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow.
Process Activity Overhead cost Driver Quantity
Department 1 Mixing $ 5,900 Machine hours 2,300
Cooking 12,500 Machine hours 2,300
Product testing 113,900 Batches 850
$ 132,300
Department 2 Machine calibration $ 320,000 Production runs 500
Labeling 19,000 Cases of output 150,000
Defects 8,000 Cases of output 150,000
$ 347,000
Support Recipe formulation $ 83,000 Focus groups 50
Heat, lights, and water 46,000 Machine hours 2,300
Materials handling 79,000 Container types 8
$ 208,000
Additional production information about its two product lines follows.
Extra Fine Family Style
Units produced 34,000 cases 116,000 cases
Batches 340 batches 510 batches
Machine hours 950 MH 1,350 MH
Focus groups 32 groups 18 groups
Container types 5 containers 3 containers
Production runs 250 runs 250 runs
Required:
1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa.
2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $10 per case of Extra Fine and $9 per case of Family Style.
3.a. If the market price of Extra Fine Salsa is $19 per case and the market price of Family Style Salsa is $13 per case, determine the gross profit per case for each product.
3.b. What might management conclude about the Family Style Salsa product line?
Answer:
1.$4.58 per cases
2. Extra Fine $14.58
Family Style $13.58
3a. Extra Fine $4.42
Family Style $0.58
3b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may inturn make the company to stop the production of the product in a situation where the cost are not reduced
Explanation:
1. Computation for the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa using Plantwide overhead rate
Using this formula
Overhead cost=Total overhead cost/Total volume
Let plug in the formula
First step is to calculate the Total overhead cost
Total overhead cost = $132,300+ $347,000+$208,000
Total overhead cost =$687,300
Second step is to calculate the Total volume
Total volume= 34,000 +116,000
Total volume=150,000 cases
Now let calculate the Overhead cost
Overhead cost=$687,300/150,000 cases
Overhead cost=$4.58 per cases (rounded)
Therefore since we are making use of plantwide rate which means that same overhead cost of the amount of $4.58per cases will be assigned to each of the two case .
2. Calculation to determine the total cost per case for the two products
Extra Fine Family Style
Direct materials + Direct Labor $ 10.00 $ 9.00
Add Overhead $4.58 $4.58
Manufacturing cost per case $ 14.58 $ 13.58
Therefore the the total cost per case for the two products will be:
Extra Fine $14.58
Family Style $13.58
3-A Calculation to determine the gross profit per case for each product.
Extra Fine Family Style
Selling price per case $ 19.00 $ 13.00
Less Manufacturing cost per case $14.58 $13.58
Gross profit (loss) per case $ 4.42 $ (0.58 )
Therefore the gross profit per case for each product will be ;
Extra Fine $4.42
Family Style $0.58
3-b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit because they are not profitable which may inturn make the company to stop the production of the product In a situation where the cost are not reduced .
The following are the typical classifications used in a balance sheet:
a. Current assets f. Current liabilities
b. Investments and funds g. Long-term liabilities
c. Property, plant, and equipment h. Paid-in-capital
d. Intangible assets i. Retained earnings
e. Other assets
Required:
For each of the following 2016 balance sheet items, use the letters above to indicate the appropriate classification category.
1. Equipment
2. Accounts payable
3. Allowance for uncollectable accounts
4. Land held for investment
5. Notes payable due in 5 years
6. Deferred rent revenue for the next 12 months
7. Notes payable due in 6 months
8. Income less dividend accumulated
9. Investment in xyz corporation
10. Inventories
11. Patents
12. Land in use
13. Accrued liabilities
14. Prepaid rent for next 9 months
15. Common stock
16. Cash
17. Building in use
18. Taxes payable
Answer:
a. Current assets
Allowance for uncollectable accounts
Inventories
Prepaid rent for next 9 months
Cash
b. Investments and funds
Investment in xyz corporation
c. Property, plant, and equipment
Equipment
Land in use
Building in use
d. Intangible assets
Patents
e. Other assets
Land held for investment
f. Current liabilities
Accounts payable
Deferred rent revenue for the next 12 months
Notes payable due in 6 months
Accrued liabilities
Taxes payable
g. Long-term liabilities
Notes payable due in 5 years
h. Paid-in-capital
Common stock
i. Retained earnings
Income less dividend accumulated
Explanation:
A Balance Sheet shows the balances of Assets, Liabilities and Equity as at the reporting date.
Assets
There are two major asset categories which are Current Assets and Non- Current Assets. Current Assets are assets not exceeding 12 months examples are Inventories and Cash. Whilst Non-Current Assets are assets exceeding a period of 12 months examples are Property, Plant and Equipment items such as Land, Investments and Intangible Assets
Liabilities
There are two major asset categories which are Current Liabilities and Non- Current Liabilities. Current Liabilities are liabilities due to be paid within a period not exceeding 12 months examples are Accrued liabilities and Accounts payable. Whilst Non-Current Liabilities are assets liabilities payable in a period exceeding 12 months examples are Notes payable due in 5 years.
Equity
We have Paid In Capital such as Common Stock and Retained Earnings comprising of Profits and dividends.
Classification of items as will be shown in the balance sheet will be done as above.
Kristin Company sells 300 units of its products for $20 each to Logan Inc. for cash. Kristin allows Logan to return any unused product within 30 days and receive a full refund. The cost of each product is $12. To determine the transaction price, Kristin decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Kristin estimates that (1) 10 products will be returned and (2) the returned products are expected to be resold at a profit. Indicate the amount of (a) net sales, (b) estimated liability for refunds, and (c) cost of goods sold that Kristen should report in its financial statements (assume that none of the products have been returned at the financial statement date).
Answer:
a. Net Sales = (300 units - 10 units return) * $20 each
Net Sales = 290 units * $20 each
Net Sales = $5,800
b. Liability for refunds = (10 units expected to be returned * $20 each)
Liability for refunds = $200
c. Cost of Goods Sold = (300 units - 10 return) * $12 per unit
Cost of Goods Sold = 290 units * $12 per unit
Cost of Goods Sold = $3,480
Consider the following comments about absorption- and variable-costing income statements:
I. A variable-costing income statement discloses a firm's contribution margin.
II. Cost of goods sold on an absorption-costing income statement includes fixed costs.
III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.
Which of the above statements is (are) true?
a. I only.
b. II only.
c. I and II.
d. II and III.
e. I, II, and III.
Answer:
E) I, II, and III.
Explanation:
Variable costing can be regarded as a concept of managerial accounting cost
whereby during the period of producing the product there is incurred
manufacturing overhead.
Absorption costing income statement, utilize absorption costing when creating income statement. The income statement focus on the cost through sectioning of cost into period cost and product.
It should be noted that
I. A variable-costing income statement discloses a firm's contribution margin.
II. Cost of goods sold on an absorption-costing income statement includes fixed costs.
III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.
Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2021, a fire resulted in the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records:
Fruit Toppings Marshmallow Toppings Chocolate Toppings
Inventory, January 1, 2013 $22,000 $7,200 $3,200
Net purchases through Nov. 17 160,000 38,000 12,200
Net sales through Nov. 17 210,000 57,000 20,200
Historical gross profit ratio 20% 30% 30%
Required:
Calculate the estimated cost of each of the toppings lost in the fire.
Answer:
Estimated cost of Fruit Toppings lost in the fire = $14,000
Estimated cost of Marshmallow Toppings lost in the fire = $5,300
Estimated cost of Chocolate Toppings lost in the fire = $1,260
Explanation:
Fruit Marshmallow Chocolate
Toppings Toppings Toppings
Inventory, January 1, 2013 [a] 22,000 7,200 3,200
Net purchases through Nov. 17 [b] 160,000 38,000 12,200
Net sales through Nov. 17 [c] 210,000 57,000 20,200
Historical gross profit ratio [d] 20 30 30
Gross Profit [c*d%] [e] 42000 17,100 6,060
Cost of Good Sold [c-e] [f] 168,000 39,900 14,140
Inventory, Nov 17, 2013 [a+b-f] [g] 14,000 5,300 1,260
Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $320 for the meal and separately paid $238 for the theater tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Holly deduct as a business expense
Answer:
The Tax Cuts and Jobs Act changed how meals and entertainment can be deducted:
The C.O.V.I.D Relief Bill allows businesses to deduct up to 100% of the cost of business meals (regularly it would be 50% only) = $320
But entertainment is not deductible, so $0
total deduction (for 2020) = $320
A computer sends a packet of information along a channel and waits for a return signal acknowledging that the packet has been received. If no acknowledgment is received within a certain time, the packet is re-sent. Let X represent the number of times the packet is sent. Assume that the probability mass function of X is given byp(x) ={ cx , for x=0,1,2,...50 , otherwieFind P(X = 2).
Answer:
The answer is "[tex]\frac{2}{15}[/tex]" .
Explanation:
[tex]\to x = 0, 1, 2, 3, 4, 5\\\\\to p(x) \ for \ x \ = 0, 1, 2, 3, 4, 5 = 0\\\\ \to c, 2c, 3c , 4c, 5c = 1\\\\\to 0 + c + 2c + 3c + 4c + 5c = 1\\\\\to 15c = 1\\\\\to c = \frac{1}{15}\\[/tex]
[tex]\to p(x) \ for \ x \ = 0, 1, 2, 3, 4, 5 = 0\\\\ \to \frac{1}{15}, \frac{2}{15}, \frac{3}{15}, \frac{4}{15}, \frac{5}{15}[/tex]
[tex]\to P(X=2)=\frac{2}{15}[/tex]
4) (Economies of Scale) Suppose a firm has chosen its quantity so that its marginal cost is equal to the market price, and is making positive profits because its revenues exceed its costs. Is this firm operating in a range where it production exhibits economies of scale or diseconomies of scale
Answer:
The firm is operating in a product range that exhibits diseconomies of scale. A further explanation is given below.
Explanation:
The company operates within a target area where there have been efficiency gains throughout production. Since the company makes benefits and opportunities, which means that the profitability outweighs the amount, the price could perhaps outweigh the estimated price at either the amount of development. As well as the valuation is equivalent to the cost, and marginal cost should therefore significantly increase the overall value.Researchers understand exactly this because when market forces are already in place, marginal cost is already below the estimated price, such that, marginal cost would be below the estimated price. After all, once government subsidies have been in place because when efficiency gains are in place, marginal cost should be above total value, which indicates that sometimes marginal cost exceeds average cost whenever economies of level have been in place.Transactions for Sunland Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $4,080 cash.
2 Buys equipment on account for $1,720.
3 Pays $910 to landlord for June rent.
12 Bills Wil Wheaton $800 for welding work done.
Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Answer:
Date Account Detail Debit Credit
June 1 Cash $4,080
Common Stock $4,080
Date Account Detail Debit Credit
June 2 Equipment $1,720
Accounts Payable $1,720
Date Account Detail Debit Credit
June 3 Rental expense $910
Cash $910
Date Account Detail Debit Credit
June 12 Accounts Receivable $800
Welding Revenue $800
Which of the following statements is not correct?
multiple choice
When a periodic system is in use, the Purchases account must be credited for its account balance to close this account to the Income Summary account.
When a periodic inventory system is in use, the Merchandise Inventory account is both debited and credited in the closing entry process.
When a periodic system is in use, the Purchases Returns and Allowances, the Purchases Discounts, and the Transportation-In accounts must be debited to close their account balances to the Income Summary account.
When a periodic system is in use, each Purchases, Purchases Return and Allowance, Purchases Discount, and Transportation-In transaction is recorded in a separate temporary account.
Answer:
When a periodic system is in use, the Purchases Returns and Allowances, the Purchases Discounts, and the Transportation-In accounts must be debited to close their account balances to the Income Summary account.
Explanation:
In the case of the periodic system, the following statements are true:
a. While using this method, the purchase would be credited to its balance also the account would be closed by using the income summary account
b. The inventory would be debited and credited while processing the closing entry
c. Also the purchase, purchase return, etc would be recognized as a distinct temporary account
Refer to the following financial statements for Crosby Corporation:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 20X2
Sales $ 3,880,000
Cost of goods sold 2,620,000
Gross profit $ 1,260,000
Selling and administrative expense 656,000
Depreciation expense 300,000
Operating income $ 304,000
Interest expense 87,900
Earnings before taxes $ 216,100
Taxes 155,000
Earnings after taxes $ 61,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 51,100
Shares outstanding 150,000
Earnings per share $ .34
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2 $ 855,400
Add: Earnings available to common stockholders, 20X2 51,100
Deduct: Cash dividends declared and paid in 20X2 153,000
Retained earnings, balance, December 31, 20X2 $ 753,500
Comparative Balance Sheets
For 20X1 and 20X2
Year-End
20X1 Year-End
20X2
Assets
Current assets:
Cash $ 134,000 $ 66,500
Accounts receivable (net) 526,000 531,000
Inventory 649,000 719,000
Prepaid expenses 66,800 39,100
Total current assets $ 1,375,800 $ 1,355,600
Investments (long-term securities) 99,500 82,900
Gross plant and equipment $ 2,520,000 $ 3,000,000
Less: Accumulated depreciation 1,450,000 1,750,000
Net plant and equipment 1,070,000 1,250,000
Total assets $ 2,545,300 $ 2,688,500
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 315,000 $ 558,000
Notes payable 510,000 510,000
Accrued expenses 76,900 58,000
Total current liabilities $ 901,900 $ 1,126,000
Long-term liabilities:
Bonds payable, 20X2 198,000 219,000
Total liabilities $ 1,099,900 $ 1,345,000
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 855,400 753,500
Total stockholders’ equity $ 1,445,400 $ 1,343,500
Total liabilities and stockholders’ equity $ 2,545,300 $ 2,688,500
a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.)
b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.)
c. If the market value of a share of common stock is 3.6 times book value for 20X2, what is the firm’s P/E ratio for 20X2? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
Crosby Corporation
a. Statement of Cash Flows
Operating activities:
Operating Income $304,000
Add Depreciation 300,000
Cash from operations $604,000
Changes in working capital items:
Accounts receivable (net) (5,000)
Inventory (70,000)
Prepaid expenses 27,700
Accounts payable 243,000
Notes payable 0
Accrued expenses (18,900)
Interest expense (87,900)
Taxes (155,000)
Net cash from operations $537,900
Investing Activities:
Purchase of plant (480,000)
Investments
(long-term securities) 16,600
Financing Activities:
Bonds payable 21,000
Preferred stock dividends (10,000)
Common stock dividends (153,000)
Net cash flows ($67,500)
Reconciliation with cash:
Beginning Cash Balance 134,000
Ending Cash Balance $66,500
b. The book value per common share for both 20X1 and 20X2:
= Total stockholders’ equity/Common stock outstanding
20X1 20X2
= $ 1,445,400/150,000 $ 1,343,500/150,000
= $9.636 = $8.957
= $9.64 = $8.96
Market value = $8.96 * 3.6 = $32.256
c. If the market value of a share of common stock is 3.6 times book value for 20X2, P/E ratio =
P/E ratio = Market price/EPS
= $32.256/$ .34
= 94.87 times
Explanation:
a) Data and Calculations:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 20X2
Sales $ 3,880,000
Cost of goods sold 2,620,000
Gross profit $ 1,260,000
Selling and administrative expense 656,000
Depreciation expense 300,000 956,000
Operating income $ 304,000
Interest expense 87,900
Earnings before taxes $ 216,100
Taxes 155,000
Earnings after taxes $ 61,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 51,100
Shares outstanding 150,000
Earnings per share $ .34
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2 $ 855,400
Add: Earnings available to common stockholders, 20X2 51,100
Deduct: Cash dividends declared and paid in 20X2 153,000
Retained earnings, balance, December 31, 20X2 $ 753,500
Comparative Balance Sheets
For 20X1 and 20X2
Year-End 20X1 Year-End 20X2
Assets
Current assets:
Cash $ 134,000 $ 66,500
Accounts receivable (net) 526,000 531,000
Inventory 649,000 719,000
Prepaid expenses 66,800 39,100
Total current assets $ 1,375,800 $ 1,355,600
Investments (long-term securities) 99,500 82,900
Gross plant and equipment $ 2,520,000 $ 3,000,000
Less: Accumulated depreciation 1,450,000 1,750,000
Net plant and equipment 1,070,000 1,250,000
Total assets $ 2,545,300 $ 2,688,500
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 315,000 $ 558,000
Notes payable 510,000 510,000
Accrued expenses 76,900 58,000
Total current liabilities $ 901,900 $ 1,126,000
Long-term liabilities:
Bonds payable, 20X2 198,000 219,000
Total liabilities $ 1,099,900 $ 1,345,000
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 855,400 753,500
Total stockholders’ equity $ 1,445,400 $ 1,343,500
Total liabilities and
stockholders’ equity $ 2,545,300 $ 2,688,500
Changes in working capital items:
20X1 20X2 Changes
Accounts receivable (net) 526,000 531,000 5,000
Inventory 649,000 719,000 70,000
Prepaid expenses 66,800 39,100 -27,700
Accounts payable $ 315,000 $ 558,000 243,000
Notes payable 510,000 510,000 0
Accrued expenses 76,900 58,000 -18,900
Bonds payable, 20X2 198,000 219,000 21,000
Investments (long-term securities) 99,500 82,900 16,600
Plant and equipment 252,000 300,000 -48,000