Answer:
1. Current Assets would be understated by $1,720 .
2.Net income for the period will be understated by $1,720.
Explanation:
When the service is performed, the following entry has to be made :
Account Receivable $1,720 (debit)
Service Revenue $1,720 (credit)
Thus if the no adjusting entry has been made the following will happen :
1. Current Assets would be understated.
2.Net income for the period will be understated.
A stock has a beta of 1.12, the expected return on the market is 10 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be
Answer:
The expected return on this stock will be 10.84 %.
Explanation:
The return that is expected from this stock is the cost to the company. The equity cost of the company can the calculated using the Capital Asset Pricing Model.
The Capital Asset Pricing Model calculate the expected return on an equity stock by adding a market premium on the return that is provided by the government bond or risk free stock.
Cost of Equity Stock = Risk Free Rate + Company`s Beta × Risk Premium
= 0.03 + 1.12 × (0.10 - 0.03)
= 0.1084 or 10.84 %
Conclusion :
The expected return on this stock will be 10.84 %.
Requirement 3. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end of the year? By how much? (
Answer:
hello your question lacks the required data attached is the required data
answer : A) $513500,
B) manufacturing overhead is under allocated by $57500
Explanation:
A) How much Manufacturing overhead was incurred during the year
= depreciation on manufacturing plants and equipment + property taxes on plant + plant janitors wages
= $485000 + $19000 + $9500 = $513500
B) Is manufacturing overhead under allocated or over allocated
to check if it is over allocated or under allocated we use this formula
= actual overheads - allocated overhead
= $513500 - $456000 = $57500
therefore manufacturing overhead is under allocated by $57500
An aging of a company's accounts receivable indicates that $3140 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $820 debit balance, the adjustment to record bad debts for the period will require a:__________
a. debit to Bad Debt Expense for $3140.
b. credit to Allowance for Doubtful Accounts for $820.
c. debit to Bad Debt Expense for $3960.
d. debit to Bad Debt Expense for $2320.
Answer:
c. debit to Bad Debt Expense for $3960.
Explanation:
The journal entry to record the bad debt expense is shown below;
Bad debt expense Dr ($3,140 + $820) $3,960
To Allowance for doubtful debts $3,960
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the assets
Therefore option c is correct
Prepare the Budgets given the following information Budgeted sales are expected to be: January 200 Units February 300 Units March 400 Units April 300 Units May 400 Units Selling Price $10 Per unit A. Prepare the sales Budget (5 points) Sales Budget January February March Quarter Budgeted sales in units 200 300 400 900 Times selling price per unit $10 $10 $10 $10 Budgeted sells in dollars $2,000 $3,000 $4,000 $9,000 B. Prepare the Production Budget (5 points)
Answer:
Sales Budget
January February March April May
Units Sold 200 300 400 300 400
Price per unit $10 $ 10 $ 10 $ 10 $ 10
Sales Rev $ 2.000 $ 3.000 $ 4.000 $ 3.000 $ 4.000
Explanation:
We have to multiplithe amount of units sold each month by the sales price per unit of each month.
For the second question, which is the production budget we require the beginning inventory at Jan 1st and the desired inventory policy else, we cannot complete it. Please add this as details for the question Thank you =)
A firm has common stock of $97, paid-in surplus of $340, total liabilities of $445, current assets of $460, and net fixed assets of $670. What is the amount of the shareholders' equity?
Answer:
Shareholders Equity = $685
Explanation:
Net Fixed assets $670
Add: Current assets $460
Total assets $1,130
Less: Total liability $445
Shareholders Equity $685
Panera Bread develops and produces its own dough-based products, but it works with manufacturing partners to create new soups. Panera Bread is therefore:
Answer:
pursuing innovation through both internal and cooperative strategies
Explanation:
Based on this scenario, it seems that Panera Bread is pursuing innovation through both internal and cooperative strategies. Internal strategy by producing its own dough-based products and cooperative strategy by partnering with different companies in order to make new soup. Both of these strategies combined allow Panera Bread to open new options for the company, thus pursuing innovation within the market.
A company either performs a service, sells inventory that it purchases from others, or manufacturers a product; it cannot serve more than one of these functions. True or False
Answer:
False
Explanation:
The company either provides a service to its clients and sell its goods to the customers so that it can accomplish their targets and can achieve a maximum share in the market
In the given situation, it is mentioned that the company either performed a service, sells inventory i.e purchase from others but this is a wrong statement as it provides a service and sells its goods but not perform a service
Hence, the given statement is false
Imagine you are writing a classroom management program. In which of the following scenarios will dynamic data structures approach make your program more efficient? Group of answer choices
a. A classroom with a MAX of 24 students, being assigned 24 students.
b. A classroom with a MAX of 24 students, being assigned 15 students.
c. A school building with a MAX of 50 classrooms being assigned 30 classes.
d. A school building with a MAX of 50 classrooms being assigned 50 classes both
e. Both b and c
Answer: e. . Both b and c
Explanation:
When using a Dynamic Data Structure, the structure in place is not fixed but rather has an allowance for growth or shrinkage. The capacity has an allowance to take more data or less data as it is operated on.
When using the Dynamic data structure approach for the classroom management program therefore, there must be an allowance for an increase in students. This is why options B and C are correct because the classroom has more capacity than students and the school has more classroom capacity than classrooms utilized respectively.
Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia.
The store has both a movie (DVD) section and a music (CD) section.
BBE reports revenues for the movie section separately from the music section.
Required:
Classify the following Costs that are found in the Merchandising sector.
Cost Direct/ Indirect Variable / Fixed
A. Annual retainer paid to a video distributor
B. Cost of store manager's salary
C. Costs of DVDs purchased for sale to customers
D. Subscription to DVD Trends magazine
E. Leasing of computer software used for financial budgeting at the BBE store
F. Cost of popcorn provided free to all customers of the BBE store
G. Cost of cleaning the store every night after closing
H. Freight costs of DVDs purchased by BBE
Answer:
Direct Costs are those costs that are directly linked to the production of a good or service.
Indirect Costs are not directly related but help facilitate the production of a good.
Fixed Costs are constant throughout the production life of a good.
Variable Costs change per quantity of goods Produced.
A. Annual retainer paid to a video distributor.
DIRECT and FIXED cost.
Video distributors are directly related to the amount of DVDs that will be sold. The amount is also a constant one so it is Fixed.
B. Cost of store manager's salary.
INDIRECT and FIXED Cost.
The manager is not directly related to the buying or selling of DVDs and CDs but is a constant cost that does not change by production.
C. Costs of DVDs purchased for sale to customers.
VARIABLE and DIRECT cost.
The cost of DVDs sold will have a direct impact on the sale of said DVDs because it can determine their price. It also changes as DVD numbers change.
D. Subscription to DVD Trends magazine.
DIRECT and FIXED cost.
Subscriptions enable the store know what to get meaning it is directly related to the DVDs. It will also be a fixed amount that does not change as more DVDs are bought.
E. Leasing of computer software used for financial budgeting at the BBE store.
INDIRECT and FIXED costs.
The computer software is not directly related to the sale or procurement of the DVDs. It is also a fixed amount as it is a lease that will not change regardless of how many DVDs are bought or sold.
F. Cost of popcorn provided free to all customers of the BBE store.
INDIRECT and VARIABLE.
These costs are not directly related to the DVDs being sold. Also they change per customer that comes in so they are Variable as well.
G. Cost of cleaning the store every night after closing.
INDIRECT and FIXED.
Costs again are not directly related to the DVDs and CDs. They are however fixed as they do not change per units sold.
H. Freight costs of DVDs purchased by BBE.
DIRECT and VARIABLE.
Freight Costs to ship DVDs is a cost that can be directly associated with selling the DVDs because they determine how the DVDs will be delivered. They are variable because they depend on the number of DVDs sold.
Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is also a 50% partner in AMI Partnership which also holds 50 shares of Sharon. How many shares is Kevin treated as owning prior to the redemption
Answer:
75 shares
Explanation:
In this specific scenario, it seems that Kevin is treated to 75 shares prior to the redemption. This is calculated by adding the 50 shares that Kevin holds directly prior to the redemption itself as well as the 25 extra shares that are held by AMI. These 25 shares are 50% of the total 50 shares that AMI holds since Kevin is a 50% partner.
Calculator For the current year ending April 30, Philip Company expects fixed costs of $70,000, a unit variable cost of $45, and a unit selling price of $95. a. Compute the anticipated break-even sales (in units). units b. Compute the sales (in units) required to realize an operating profit of $8,000. units
Answer:
a. 1,400 units
b. 1,560 units
Explanation:
The computation is shown below:
a. For break even sales in units
= Fixed cost ÷ (Unit selling price - unit variable cost)
= $70,000 ÷ ($95 - $45)
= $70,000 ÷ ($50)
= 1,400 units
b. In case when the firm wants to realize an operating profit, the required sales is
= (Fixed cost + operating profit) ÷ (Unit selling price - unit variable cost)
= ($70,000 + $8,000) ÷ ($95 - $45)
= ($78,000 ÷ ($50)
= 1,560 units
Answer:
1,560
Explanation:
For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Twix Dots Skor Net income $4,000 $100,000 $72,000 Depreciation expense 30,000 8,000 24,000 Accounts receivable increase (decrease) 40,000 20,000 (4,000 ) Inventory increase (decrease) (20,000 ) (10,000 ) 10,000 Accounts payable increase (decrease) 24,000 (22,000 ) 14,000 Accrued liabilities increase (decrease) (44,000 ) 12,000 (8,000 )
Answer:
Net cash flow from operating activities for Twix $34,000, Dots=$108,800, Skot = $108,000
Explanation:
Twix$ Dots$ Skot$
Net income 4,000 100,000 72,000
Adjustments to reconcile net income
to net cash provided by operations
Depreciation expense 30,000 8,000 24,000
Account receivable increase (decrease) 40,000 20000 -4,000
Inventory increase (decrease) -20,000 -10,000 10,000
Account payable increase (decrease) 24,000 -22,000 14.000
Accrued liabilities increase (decrease) -44,000 12,000 -8,000
Net cash flow from operating activities $34,000 $108,800 $108,000
A two-asset portfolio with a standard deviation of zero can be formed when Group of answer choices the assets have a correlation coefficient equal to negative one. the assets have a correlation coefficient equal to zero. the assets have a correlation coefficient less than zero. the assets have a correlation coefficient greater than zero. the assets have a correlation coefficient equal to one.
Answer:
the assets have a correlation coefficient equal to negative one.
Explanation:
Portfolio variance can be defined as the measurement of risk or dispersion of returns of a set of securities that makes up a portfolio fluctuate over a period of time.
Simply stated, portfolio variance is typically the total returns of the portfolio over a specific period of time.
In order to calculate the portfolio variance, the standard deviations of each security in the portfolio with their respective correlations security pair in the portfolio would be used. Portfolio variance is the square of standard deviation.
A two-asset portfolio with a standard deviation of zero can be formed when the assets have a correlation coefficient equal to negative one (-1) because this defines the efficiency frontier. In Economical portfolio theory, the efficient frontier is a group of optimal portfolios that offers an investor the highest expected return for a specific risk level or offers the lowest risk for a defined level of expected return.
The amounts indicated pertain to Royal Fairmont’s trading debt investments, which were purchased on 1/1/21: Cost: $16,000 12/31/21 Fair Value: $15,000 12/31/22 Fair Value: $11,000 The amount included in 2022 Comprehensive Income will be:
Answer:
loss of $5,000 on adjustment of trading debt investments
Explanation:
The comprehensive income statement records gains and losses on the trading debt investments.
By the end of 2022 the trading debt investments had fallen in value to $11,000 from $15,000 representing a loss of $5,000 to be adjusted in the income statement.
You have a portfolio that is equally invested in Stock F with a beta of .94, Stock G with a beta of 1.36, and the market. What is the beta of your portfolio
Answer:
Beta protfolio= 1.15
Explanation:
Giving the following information:
Stock F:
Beta= 0.94
Stock G:
Beta= 1.36
To calculate the beta of the portfolio, we need to use the following formula:
Beta protfolio= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta protfolio= (0.5*0.94) + (0.5*1.36)
Beta protfolio= 1.15
Sony has a better opportunity to reach the potential Millennial market segment, compared to unestablished manufacturers, because of its:_______
Answer:
full spectrum of product offerings
Explanation:
Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers.
An investment of $110 comma 000110,000 was made by a business club. The investment was split into three parts and lasted for one year. The first part of the investment earned 8% interest, the second 6%, and the third 9%. Total interest from the investments was $ 8280.$8280. The interest from the first investment was 22 times the interest from the second. Find the amounts of the three parts of the investment.
Answer:
X = amount invested in 8% interest = $54000
Y =amount invested in 6% interest = $36000
Z = amount invested in 9% interest = $20000
Explanation:
Given that:
The amount of investment = $110,000
The investment was split into three parts and lasted for one year.
The first part of the investment earned 8% interest
The Second part of the investment earned 6% interest
The third part of the investment earned 9% interest
Total interest from the investments was $ 8280.
The interest from the first investment was 2 times the interest from the second.
The objective is to find the amounts of the three parts of the investment.
Let XYZ be the first,second and third part of the investment earned respectively.
So; we can say :
X + Y + Z = 110000 --------- (1)
From the total amount of interest from the investment; we have :
[tex]X(\dfrac{8}{100}) + Y (\dfrac{6}{100}) + Z( \dfrac{9}{100}) = 8280[/tex]
0.08 X + 0.06 Y + 0.09 Z = 8280 -------- (2)
Similarly; let's not forget that the interest from the first investment was 2 times the interest from the second investment.
So;
0.08 X = 2(0.06 )Y
0.08 X = 0.12 Y
0.08 X - 0.12 Y = 0 ------------ (3)
From equation (3); let make X, the subject of the formula; by doing so, we have:
0.08 X - 0.12 Y = 0
0.08 X = 0.12 Y
[tex]X = (\dfrac{0.12 }{0.08})Y[/tex]
X = 1.5Y
Replace the value of X into equation (1), we have :
X + Y + Z = 110000 --------- (1)
1.5Y + Y + Z = 110000
2.5Y + Z = 110000 ------- (4)
Replace the value of X = 1.5Y into equation (2), we have :
0.08 X + 0.06 Y + 0.09 Z = 8280 -------- (2)
0.08(1.5 Y) + 0.06 Y + 0.09 Z = 8280
0.12 Y + 0.06 Y +0.09 Z = 8280
0.18 Y + 0.09 Z = 8280 ----- (5)
By Elimination method; we can determine the value of Y from equation 4 and 5 as follows:
Let's multiply Z by (0.09) in equation (4);
2.5Y + Z = 110000
-
0.18 Y + 0.09 Z = 8280
So;
0.225Y + 0.09Z = 9900
-
0.18 Y + 0.09 Z = 8280
0.045 Y + 0 = 1620
0.045 Y = 1620
Y = 1620/0.045
Y = 36000
From;
X = 1.5Y
X = 1.5 ( 36000)
X = 54000
From equation (1)
X + Y + Z = 110000 --------- (1)
54000 + 36000 + Z = 110000
Z = 110000 - 54000 - 36000
Z = 20000
Hence;
X = amount invested in 8% interest = $54000
Y =amount invested in 6% interest = $36000
Z = amount invested in 9% interest = $20000
Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and cash payments for merchandise for the next three months follow: Budgeted April May June Sales $ 30,500 $ 41,500 $ 25,500 Cash payments for merchandise 23,200 15,300 15,700 Sales are 75% cash and 25% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $13,500 in cash, $13,500 in accounts receivable, $11,000 in accounts payable, and a $3,500 balance in loans payable. A minimum cash balance of $13,500 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% per month based on the beginning of the month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and include sales commissions (5% of sales), shipping (3% of sales), office salaries ($4,500 per month), and rent ($6,500 per month). Prepare a cash budget for each of the months of April, May, and June. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
Answer:
Castor, Inc.
Cash Budget for the quarter ended June 30,
April May June
Beginning cash balance $13,500 $16,165 $31,795
Cash collection (25%) 13,500 7,625 10,375
Cash collection (75%) 22,875 31,125 19,125
Total cash receipts $49,875 $54,915 $61,295
Cash payments for goods 23,200 15,300 15,700
Sales commission (5% sales) 1,525 2,075 1,275
Shipping cost (3% sales) 915 1,245 765
Office salaries 4,500 4,500 4,500
Cash Disbursements $30,140 $23,120 $22,240
Loans Payable (Repayment) -3,570
Cash balance $16,165 $31,795 $39,055
Explanation:
A cash budget is a tool used by a company's management to forecast of the cash receipts and cash disbursements for a future period of time. It is an important financial management tool that can be used to decide when to borrow cash to meet shortages and when to invest excess cash to generate income. Through its preparation, management avoids liquidity problems which can ruin a business.
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $37,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $47,000. Variable manufacturing costs are $33,700 per year for this machine. Information on two alternative replacement machines follows.
Alternative A Alternative B
Cost $ 123,000 $ 113,000
Variable manufacturing costs per year 22,700 10,000
1. Calculate the total change in net income if Alternative A is adopted.
ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
2. Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.)
ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
3. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
(a) Keep the manufacturing machine.
(b) Alternative A.
(c) Alternative B.
Answer:
1.$32,000
2.$28,800
3. Alternative A should be selected
Explanation:
Xinhong Company
1.Calculation of the total change in net income if Alternative A is adopted
ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine (123,000)
Cash received to trade in old machine 47,000
Reduction in variable manufacturing costs 44,000
[(33,700-22,700)*4]
Total change in net income (32,000)
2.Calculation of the total change in net income if Alternative B is adopted
ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine (113,000)
Cash received to trade in old machine 47,000
Reduction in variable manufacturing costs 94,800
[(33,700-10,000)*4]
Total change in net income 28,800
3.Alternative A should be selected by Xinhong because it has a higher amount of $32,000 than Alternative B which has a lower amount of $28,800
Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. What is the direct labor time variance?
Answer:
Direct labor time (efficiency) variance= $9,300 favorable
Explanation:
Giving the following information:
actual costs are 10,200 hours at $15.75 per hour.
standard costs are 10,800 hours at $15.50 per hour.
To calculate the direct labor time (efficiency) variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (10,800 - 10,200)*15.5
Direct labor time (efficiency) variance= $9,300 favorable
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive industries?
Answer:
1. In a Perfectly Competitive Market firms will always copy the products of other firms to make profit which will drive down the Profitability of the original firm. If firms in a Perfect Competition engage in Research and Development for new products and Technology, they would be incurring a massive expense on their part because such undertakings are not cheap. Were they to succeed and come up with a new product, that Product would be copied within a short period of time by their competitors who did not put up the amount of Investment that the original company did. This is what firms in Perfectly Competitive Markets are trying to avoid.
b. Government Intervention in the form of enforcing Patents, Copyright Protection and Intellectual Property will be needed. If firms can be sure that when they come with a new product, their rights to it will be protected in such a way that they make enough returns from it, they will engage in these R&D endeavors to be able to have an edge over their competitors in the market.
A customer owns 100 shares of ABC stock and owns 1 ABC Put option. The customer wishes to sell the stock by exercising the put, but wishes to retain a recently declared cash dividend. The first date that the customer can exercise the put and still retain the dividend is:
Answer:
July 15th
Explanation:
Hope this helps :)
What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%? a. $17,690 b. $18,621 c. $19,601 d. $20,633 e. $16,806
Answer:
PV= $20,632.89
Explanation:
Giving the following information:
Annual payments= $4,700
Interest rate= 4.5%
Number of years= 5
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {4,700*[(1.045^5) - 1]} / 0.045
FV= $25,712.34
Now, we can determine the present value:
PV= FV/(1+i)^n
PV= 25,712.34/(1.045^5)
PV= $20,632.89
Under activity-based costing, selling and administrative expenses are a.allocated to products based on how each product consumes activities. b.allocated to the top-selling products only. c.allocated to all products at the same rate. d.treated as period expenses.
Answer:
The answer is A.
Explanation:
Activity-based costing is a costing method that assigns indirect costs(e.g selling and administrative expenses) to activities based on each product’s use of activities. It focuses attention on cost drivers, the activities that cause costs to increase
It identifies the activities generating costs and assigns costs to those activities.
A comparison of leadership and management suggests that leadership is about creating a vision, while management is about carrying out that vision.
A. True
B. False
Answer:
A. True
Explanation:
Vision refers to what gives the organization a sense of purpose and a set of values that unite workers to achieve a common goal.
Leadership can be defined as the creation of vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business in order to improve effectiveness and efficiency.
Management on the other hand, can be defined as the process used to accomplish organizational goals through planning, organizing, leading, and controlling organizational resources. Management functions includes planning, controlling, directing, organizing, etc....
According to James Bresseau, which of the following is an important difference between corporate social responsibility theory (CSR) and shareholder value theory (SHV)?
-While CSR also holds that corporate decisionmakers have an ethical obligation to pursue profitability, unlike SHV, it does not necessary require MAXIMIZATION of profits.
-Unlike SHV, CSR holds that a corporation should comply not only with the letter of the laws, but also with their "spirit" (i.e., their broader objectives).
-Unlike SHV, CSR holds that corporations have a philanthropic obligation.
-All of the above
Answer: All of the Above
Explanation:
James Bresseau teaches that Corporations have a duty to be Corporately Responsible in terms of the Economy, Legal wise, Ethically, and Philanthropically.
He argues that money and profits are very important for a business to run but do not need to be maximised unlike in the Shareholder Value Theory where profits must be maximised for the benefit of the shareholder.
He argues that as much as they should abide by the law, they should also go a step further and act in moral ways by listening to their spirit and taking decisions that they know will be right for the society at large.
The Shareholder Value Theory does not speak of philanthropic ventures but rather ventures to bring wealth to the shareholder. CSR on the other hand believes that the society at large is a shareholder and so Corporations should engage in Philanthropic ventures to share wealth and help the people.
At the beginning of the year, a firm has current assets of $328 and current liabilities of $232. At the end of the year, the current assets are $493 and the current liabilities are $272. What is the change in net working capital?
Answer:
$125
Explanation:
Computation for the change in net working capital
Using this formula
Change in net working capital =( Ending Current asset- Ending Current liabilities) - (Beginning Current asset- Beginning Current liabilities)
Let plug in the formula
Change in net working capital =
($493 – $272) – ($328 – $232)
Change in net working capital = $221-$96
Change in net working capital =$125
Therefore the Change in net working capital will be $125
The following table shows a tool and die company's quarterly sales for the current year. What are sales for the first quarter of next year? Quarter 1 2 3 4 1 Sales 88 99 108 141.4 Seasonal Relatives 1.1 0.99 0.9 1.01 Deseasonalized 80 100 120 140 Trend 1. Deseasonalize 2. Naïve forecast of trend 3. Reseasonalize
Answer:
Quarter 1, Sales 88. seasonal relatives 1.1
Deseasonalized = 88 / 1.1 = 80
Quarter 2, Sales 99. seasonal relatives 0.99
Deseasonalized = 99 / 0.99 = 100
Trend = 80+(100-80) = 100
Reseasonalized = 100*0.99 = 99
Quarter 3, Sales 108, seasonal relatives 0.9
Deseasonalized = 108 / 0.9 = 120
Trend = 1000+ (120-100) = 120
Reseasonalized = 1120*0.9 = 108
Quarter 4, Sales 141.4, seasonal relatives 1.01
Deseasonalized = 141.1 / 1.01 = 140
Trend = 120+ (140-120) = 140
Reseasonalized = 140*1.01 = 141.4
Now to get the Naive trend forecast for the next year first quarter, we say
140 + (140 - 120) = 160
Also to get the Re-seasonalized forecast for the next year first quarter, we say
160*1.1 = 176
As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to whether target costing can be applied to the banking industry in Ghana. They further require you to advise them on what products or services can target costing be applied.
Answer:
Explanation:
Target costing is a costing system used to determine the life cycle cost of a product or service while the quality and profit on such products are still maintained.
It relies on the external market condition as the desired profit margin is deducted from the market price to arrive at it.
It is relevant to every every organisation that utilizes cost in the process of producing or providing a service . This means that it can be utilized by banks , looking at the various modern services that banks produce , with the focus shifted to service delivery system.
It can also be applied to the IT industry and the manufacturing industry , every organisation that uses cost with the aim of reducing cost while the quality of products and services are still maintained,
Example of services include provision of savings account , production of IT components , manufacturing of cars etc.
What management function is production manager Cedric Stein using when he orders aluminum component parts (bumpers, drive trains, etc.) to be used in the production of Audi cars in Audi's Neckarsulm plant
Answer:
Purchasing
Explanation:
In the purchasing function, the company purchased the products and services from the manufacturer at a lesser cost and then sell the goods at higher prices in order to earn the profit.
When someone purchases, when the price is less and quality is best as compared with the competitors dealing in the same industry
Therefore in the given case, Cedric Stein orders aluminum component parts that are used in the Audi card production so here the purchasing function is used