Answer:
Earrings Unlimited1a. Sales Budget
April May June Total
Credit Sales in unit 65,800 100,800 50,800 217,400
Selling Price $13 $13 $13 $13
Sales Value $855,400 $1,310,400 $660,400 $2,826,200
April May June Total
Sales Commission 6% $51,324 $78,624 $39,624 $169,572
1b. Expected Cash Collections:
April May June Total
20% month of sale $171,080 $262,080 $132,080 $565,240
70% following month 371,280 598,780 917,280 1,887,340
10% second month 34,840 53,040 85,540 173,420
Total $577,200 $913,900$1,134,900$2,626,000
1c. Merchandise Purchase Budget
April May June Total
Ending Inventory 40,320 20,320 12,320 12,320
Units Sold 65,800 100,800 50,800 217,400
Units available 106,120 121,120 63,120 229,720
Beginning Inventory 26,320 40,320 20,320 26,320
Purchases (units) 79,800 80,800 42,800 203,400
Beginning Inventory $184,240 $282,240 $142,240 $184,240
Purchase ($) $558,600 $565,600 $299,600 $1,423,800
Cost (goods available)$742,840 $847,840 $441,840 $1,608,040
Less Ending Inventory$282,240 $142,240 $86,240 $86,240
Cost of goods sold $460,600$705,600 $355,600 $1,521,800
1d. Expected Cash Disbursements for Merchandise Purchases:
April May June Total
Purchase ($) $558,600 $565,600 $299,600
50% 1st month $279,300 $282,800 $149,800 $711,900
50% 2nd month $177,870 $279,300 $282,800 $739,970
Total Disbursements$457,170 $562,100 $432,600 $1,451,870
2d. Cash Budget
April May June Total
Beginning Balance $130,400 $55,306 $55,282 $130,400
Cash Collections $577,200 $913,900 $1,134,900 $2,626,000
Cash Disbursements:
Merchandise ($457,170) ($562,100) ($432,600) ($1,451,870)
Sales Commission ($51,324) ($78,624) ($39,624) ($169,572)
Other fixed costs($327,800) ($327,800) ($327,800) ($983,400)*
Equipment purchase ($15,400) ($39,200) ($54,600)
Dividends paid ($11,000) ($11,000)
Bank Loan $195,000 $70,000 ($265,000) $0
Loan Interest ($2,650) ($2,650)
Minimum balance $55,306 $55,282 $83,308 $83,308
Earrings Unlimited INCOME STATEMENT for the quarter to June 30:
Sales $2,826,200
Cost of goods sold 1,521,800
Gross Profit $1,304,400
Less: Expenses:
Sales Commission 169,572
Other fixed costs 983,400
Insurance Expenses 6,600
Bank Loan Interest 2,650
Depreciation 39,600 $1,201,822
Net Income $102,578
Retained Earnings b/f $588,000
Dividends ($11,000)
Retained Earnings c/f $679,578
Earrings Unlimited BALANCE SHEET as of June 30:
Assets:
Current Assets:
Cash $83,308
Accounts Receivable $659,360
Inventory $86,240
Prepaid Insurance $15,200 $844,108
Noncurrent Assets:
Property & Equipment $915,800
Depreciation $39,600 $876,200
Total Assets $1,720,308
Liabilities + Equity:
Liabilities:
Accounts Payable $149,730
Dividends Payable $11,000 $160,730
Capital Stock $880,000
Retained Earnings $679,578 $1,559,578
Total Liabilities + Equity $1,720,308
Explanation:
a) March Purchases:
Ending Inventory in units = 26,320(65,800 x 40%)
Units sold = 40,820
Units available for sale = 67,140 (26,320 + 40,820)
Less Beginning Inventory = 16,320 (40,800 x 40%)
Purchases = 50,820 units
Beginning Inventory = $114,240 (40,800 x $7 x 40%)
Purchases = $355,740 (50,820 x $7)
Cost of goods available $469,980
Less Closing Inventory 184,240 (26,320 x $7)
Cost of goods sold $285,740
b) Accounts Receivable
Beginning Balance $459,160
Sales $2,826,200
Cash Receipts ($2,626,000)
Ending Balance $659,360
c) Accounts Payable
Beginning Balance $177,800
Purchases $1,423,800
Cash Disbursements ($1,451,870)
Ending Balance $149,730
d) Sales Budget January February March
Credit sales in unit 20,800 26,800 40,800
Selling price $13 $13 $13
Sales Value $270,400 $348,400 $530,400
e) A master budget combines other smaller budgets within the business and turns them into one overall budget, which gives a comprehensive overview of the entity's finances. The master budget includes the HR, marketing, and all other departmental budgets to produce an overall single budget.
The benefits associated with a nuclear power plant cooling water filtration project located on the Ohio River are $10,000 per year forever starting in year 1. The costs are $50,000 in year 0 and $50,000 in year 2. What is the B/C ratio at i
Answer:
1.1
Explanation:
B/C ratio at i=10% per year?
Benefit= A/i%
Cost= initial cost- present worth
B/C= benefit/ cost
= [10,000/0.1]/[50,000 + 50000](p/f,10%,2)
= [100000/50000 + 50000(0.8264)]
= 1.1
Jayne Butterfield, a single mother with three children, lived in Sacramento, California. Sarah Huckleberry also lived in California until she moved to New York City to open and operate an art gallery. Huckleberry asked Butterfield to manage the gallery under a one-year contract for an annual salary of $90,000. To begin work, Butterfield relocated to New York. As part of the move, Butterfield transferred custody of her children to her husband, who lived in London, England. In accepting the job, Butterfield also forfeited her husband's alimony and child-support payments, including unpaid amounts of nearly $45,000. Before Butterfield started work, Huckleberry repudiated the contract. Unable to find employment for more than an annual salary of $30,000, Butterfield moved to London to be near her children. She filed a suit in an California state court against Huckleberry, seeking damages for breach of contract. Should the court hold, as Huckleberry argued, that Butterfield did not take reasonable steps to mitigate her damages? Why or why not?
Answer:
No, the court should not hold in favor of Huckleberry.
Explanation:
The rule of mitigation that Huckleberry tries to use in her favor states that the non-breaching party (Butterfield) should have taken all the necessary steps to reduce her loss, e.g. take a job in New York. She probably argued that Butterfield leaving for England to meet with her children made things worse.
But in this case, Butterfield relied on Huckleberry's promise to organize her life and the well being of her children. Butterfield made a lot of changes and sacrifices in her life because of this, e.g. forfeiting unpaid alimony, transferring custody of her children , etc.
Moving to a different city or country requires a lot of work, expat life is not easy and not everyone can handle it. Butterfield took decisions that affected the lives of many people and she is not responsible for Huckleberry's breaching, the only party responsible for all this mess is Huckleberry and it is normal that Butterfield would want to go to where her children are.
What provision in an independent contractor agreement states the associate will not hold the broker responsible for claims, demands, suits, costs or expenses based on the associates representation of the agreement
What provision in an independent contractor agreement states the associate will not hold the broker responsible for claims, demands, suits, costs or expenses based on the associates' representation of the agreement?
A) Disputes and Litigation
B) Termination of Agreement
C) Indemnification
D) Regulatory Compliance
Answer:
The correct option is C) Indemnification Clause
Explanation:
This simply means that if the associate is found liable by a third-party due to errors and omissions or any action of tort, the principal or the broker, will not be vicariously held liable.
This clause may seem unfair given that for the most part of the relationship, the associate and the broker are bound by similar interests. However, sometimes one party may become self-focused, and this results in errors which translate to lawsuits.
This clause is a way of protecting the Broker. It is also implied that the associate will also enjoy immunity from any costs and damages which the broke may be held liable to.
Cheers!
Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm issued 32,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 28 percent. a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.) b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Answer:
A.$2.99
B.$1.15
Explanation:
Frantic Fast Foods
A.Computation of the earnings per share for the year 20X
Using this formula
Earnings per Share=Earnings after Taxes/Shares Outstanding
Let plug in the formula
900,000/301,000
=$2.99
The earnings per share for 20X1 will be $2.99
B. Computation of the earnings per share for the year 201X
Earnings after Taxes= 301,000 * 1.28 = 385,280
Shares Outstanding=301,000 + 32,000 = 333,000
Hence,
Earnings after Taxes/Shares Outstanding
385,280 / 333,000 = $1.15
Therefore the earnings per share for 20X1 will
be $1.15 .
A zero-coupon bond is selling at a deep discount price of $450. It matures in 11 years. If the yield to maturity of the bond is 6.2%, what is the duration of the bond (rounded to two places)
Answer:
Duration is 11 years
Explanation:
The Duration of a zero coupon bond is equal to it's maturity. Since it matures at 11 years the duration of the bond is therefore also 11 years.
It is a bond that pays no interest. A zero-coupon bond is a bond where the face value is what is repaid during the time of maturity. There are no periodic interest payments, or have so-called coupons, that is why they are referred to as zero-coupon bond. Investor gets par value when it matures.
If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising.
a. True
b. False
Answer: a. True
Explanation:
Marginal Cost as well known is the cost of producing an extra unit of a good. Average Cost on the other hand is the cost of producing all the goods divided by the number of units that are produced.
It therefore stands to reason that if goods are getting more expensive to produce, the Average Cost will rise.
For example, take 2 scenarios.
Scenario 1.
Cost of producing units 1 to 5 is $2 each.
Average Cost = (2 + 2 + 2 + 2 + 2) / 5
= 10/5
Average Cost = $2
Scenario 2
Cost of Producing Units 1 to 5 are;
Unit 1 - $2
Unit 2 - $2
Unit 3 - $2
Unit 4 - $2
Unit 5 - $4
Average cost at unit 5 = (2 + 2 + 2 + 2 + 4)/5
= 12/5
= $2.40
Average Cost has increased by $0.40
At the beginning of the period, the Cutting Department budgeted direct labor of $136,000, direct materials of $150,000 and fixed factory overhead of $11,900 for 8,000 hours of production. The department actually completed 10,600 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations.
Answer:
Total cost under flexible budgeting is $390,850
Explanation:
Calculation of Standard direct labor Cost
Standard Direct labor Cost=Budgeted Labor cost/Budgeted hour of Production
=$136,000 / 8,000
=$17 per hour
Calculation of Standard material Cost
Standard material Cost = Budgeted material Cost /Budgeted hour of Production
=$150,000 / 8,000
=$18.75 per hour
Calculation of Total cost under flexible budgeting
Direct Material Cost = 10,600 * $18.75 = $198,750
Direct Labour Cost= 10,600 * 17 = $180,200
Fixed factory overhead= $11,900
Total budgeted cost $390,850
Peanuts are an input in the production of peanut butter. If a decrease in the supply of peanuts increases the price of peanuts, what will happen to the equilibrium price and quantity in the peanut butter market?
Answer:
Equilibrium price would rise
Equilibrium quantity would fall
Explanation:
If the supply of peanuts falls, it would lead to a rise in the price of peanuts because the demand for peanuts woild exceed its supply.
The rise in price would increase the cost of production of peanut butter because peanut is an input in the production of peanut butter. This rise in cost would discourage suppliers and supply of peanut butter would fall. As a result equilibrium quantity would fall. As a result of a fall in supply of peanut butter, demand would exceed supply and equilibrium price would rise.
I hope my answer helps you
Answer:
^
Explanation:
Lord Greystroke uses his limited income to purchase fruits and nuts; he is currently buying 10 pounds of fruits at a price of $2 per pound and 5 pounds of nuts at a price of $6 per pound. The last pound of fruits added 10 units to Lord Greystroke's total utility, while the last pound of nuts added 30 units. Lord Greystroke:__________.
1. is making the utility-maximizing choice.
2. should buy more fruits and less nuts because the last pound of fruits cost less than the last pound of nuts.
3. should buy more fruits and less nuts because the last dollar spent on fruits added more to total utility than the last dollar spent on nuts.
4. should buy more nuts and less fruits because the last pound of nuts added more to total utility than the last pound of fruits.
5. should buy more nuts and less fruits because the last dollar spent on nuts added more to total utility than the last dollar spent on fruits.
Answer:
1. Is the answer
Explanation:
the utility-maximizing choice between consumption goods happens where the marginal utility per dollar is the same for both goods, and the consumer has finished his or her budget. By buying 10 pounds of fruits at a price of $2 per pound and 5 pounds of nuts at a price of $6 per pound. The last pound of fruits added 10 units to Lord Greystroke's total utility, while the last pound of nuts added 30 units. Lord Greystroke is utilizing this concept
Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
Answer:
$13,153.15
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $2,468
I = 5%
PV = $13,153.15
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Questions: (A) Explain how it has changed the legal profession (B) Identify a specific legal firm that you see exploiting this particular court ruling (C) Identify some regulatory changes in the area of Clean Environment and resulting opportunities for new venture creation (use specific examples/cases to explain your position)
Answer:
a) Many state bar connections have looked to make their advertising guidelines increasingly stiff, seemingly in the fact that the picture of the legal calling has been lasting of late. for instance attempts to clarify these changes endeavors by looking at whether bar affiliations are reacting to requests of individuals as revealed by mentalities as regards to advertising
(b)Now let us take the case of law firm Bates where U.S Preeminent Court choices are not having their anticipated impacts and that advertising by legal advisors is misleading and worsen, making an atmosphere ready for change.
Also, another alternative may be having their expected impacts of driving down costs and enabling youthful firms/lawyers to look for customers all the more adequately.
(c) Utilizing study information of little firm legal advisors amass in four states before the change development got a lot of contemplation, the proof advocates neither of these clarifications represents endeavors to make advertising progressively troublesome. the little firm legal counselors, those that indicate to profit by Bates and ensuing choices, have not changed their conduct in any assessed or measured way.
Explanation:
Solution
Many state bar affiliations have looked to make their advertising guidelines increasingly rigid, apparently in light of the fact that the picture of the legal calling has been enduring lately.
This example tries to clarify these changes endeavors by looking at whether bar affiliations are reacting to requests of individuals as exhibited by mentalities towards advertising, just as by their advertising practices.
For example let us take the case of law firm Bates where U.S Preeminent Court choices are not having their expected impacts and that advertising by legal advisors is misdirecting and compounding, making an atmosphere ready for change
Then again, the choices may be having their expected impacts of driving down costs and permitting youthful firms/lawyers to look for customers all the more adequately.
Utilizing study information of little firm legal advisors accumulated in four states before the change development got a lot of consideration, the proof recommends neither of these clarifications represents endeavors to make advertising progressively troublesome.
The little firm legal counselors, those suggested to profit by Bates and ensuing choices, have not changed their conduct in any calculable way.
Most advertising is in the business catalog and costs practically nothing, also mentalities toward advertising are not especially ideal.
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $15,300. What is the adjusting entry for the accrued interest at December 31 on the note
Answer:
DebitbAccrued Interest on Note receivable -$311.1
Credit Interest Income -$311.1
Explanation:
Preparation of the adjusting entry for the accrued interest at December 31 on the note for Alan Company
The Interest earned till 31 December will be :
(30+31 days)=61 days
=(15,300×12%×61days)÷360 days
=$111,996÷360 days
=$311.1
The Adjusting Entry for Alan Company will therefore be:
Debit Accrued Interest on Note receivable -$311.1
Credit Interest Income -$311.1
The adjusting entry for the accrued interest on December 31 on the note
Debit - Accrued Interest on Note receivable -$311.1
Credit - Interest Income -$311.1
An adjusting entry is an accounting entry made at the conclusion of an accounting period to update the accounts and put them in line with the accrual accounting method.
It is required because some transactions or occurrences may have been missed or recorded incorrectly throughout the period.
The Interest earned till 31 December will be :
(30+31 days)=61 days
=(15,300×12%×61days)÷360 days
=$111,996÷360 days
=$311.1
Learn more about adjusting entries, here:
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Assume the profit margin is projected to increase to 9 percent while the dividend payout ratio remains constant. If sales increase by 12 percent, what is the projected total retained earnings (hint: add the additional RE onto the current RE)? Currently, the firm’s sales =$4,700, net income is $420, total assets=7890, dividends=125, A/P =790, LTD= 3130, and common stock=2780, and retained earnings =1190.
Answer:
The projected retained earnings are $1538.76
Explanation:
Profit margin=net income/sales
profit margin is 9%
sales growth rate is 12%
9%=net income/($4,700*(1+12%))
9%=net income/5264
9%*5264=net income
net income=$473.76
Projected total retained earnings=$1190+$473.76-$125=$1538.76
A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.30% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments? Assume a 70% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)
Answer:
32.13%
Explanation:
The computation of the break-even corporate tax is shown below:
As we know that
Municipal bond return = preferred stock return before tax × [1 - (1 - dividend exclusion) × Break even corporate tax]
7.5 = 8.30 × [1 - ( 1 - 0.70) × Break even corporate tax ]
7.5 ÷ 8.30 = 1 - 0.30 × Break even corporate tax
0.9036 = 1 - 0.30 × Break even corporate tax
0.30 × Break even corporate tax = 1 - 0.9036
So, Break even corporate tax is
= 0.0964 ÷ 0.30
= 32.13%
Basically we applied the above formula
Take the factors considered by earned value analysis and subtract those considered by tracking Gantt charts. The factor(s) you have remaining are:
a. Cost and schedule.
b. Performance.
c. Schedule and performance.
d. Cost.
Answer: cost
Explanation:
In earned value analysis also referred to as the gold triangle method, the cost, performance and time are considered. A tracking Gantt chart shows the stage of completion for every task. It allows individuals or project team make comparison between two sets of dates in order to track the progress of an acctivity against the original plan. Therefore, the tracking Gantt chart comsiders the performance and time.
Therefore cost is the only factor remaining
The charter of Vista West Corporation specifies that it is authorized to issue 214,000 shares of common stock. Since the company was incorporated, it has sold a total of 146,000 shares (at $16 per share) to the public. It has bought back a total of 19,000. The par value of the stock is $5. When the stock was bought back from the public, the market price was $20.
Required:
1. Determine the authorized shares.
2. Determine the issued shares.
3. Determine the outstanding shares.
Answer:
Requirement 1: 214,000
Requirement 2: 146,000
Requirement 3: 127,00
Explanation:
Requirement 1:
Authorized shares: The maximum number of shares a company can issue are called authorized shares.They include both ordinary and preference shares. Here Visa West Corporation can issue 214,000 shares.
Requirement 2:
Issued shares: The number of shares the company has to issue to publicly
Here Visa West issued 146,000 shares to he public
Requirement 3:
Outstanding shares: The number of shares that need to be paid a dividend are Outstanding shares. Here Visa West Corporation has 127000(146000-19000) outstanding shares .
Webster's Discount Appliances expects sales of $12,000, $15,000, and $25,000 during April, May, and June (big sale in June). To build business, Webster let's all customers buy on credit, and all do so. In the past, 20% of Webster's Discount Appliances sales have been collected during the month of sale, 65% are collected the following month, and 15% the month after that. If this trend continues, what will be Webster's total cash collections in the month of June
Answer:
$16,550
Explanation:
The computation of total cash collections in the month of June is shown below:-
Total cash collections in the month of June = (June sales × Percentage of collection) + (May sales × Percentage) + (April × Percentage)
= ($25,000 × 20%) + ($15,000 × 65%) + ($12,000 × 15%)
= $5,000 + $9,750 + $1,800
= $16,550
So, for computing the total cash collections in the month of June we simply applied the above formula.
Prepare a multiple-step income statement through the calculation of gross profit.
For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as negative values. Upon completion, compare the gross profit with the amount reported on the partial income statement.
Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30,
FOB shipping point, invoice dated July 1.
Jul. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point,
invoice dated July 2. The merchandise had cost $500.
Jul. 3 Paid $125 cash for freight charges on the purchase of July 1.
Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash.
Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB
destination, invoice dated July 9.
Jul. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise
purchased on July 9.
Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
Jul. 16 Paid the balance due to Boden Company within the discount period.
Jul. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB
shipping point, invoice dated July 19.
Jul. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.
Jul. 24 Paid Leight Co. the balance due after deducting the discount.
Jul. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.
Jul. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60,
FOB shipping point, invoice dated July 31.
Answer:
inventory 6,000 debit
account payable 6,000 credit
--to record July 1st--
Acc Rec 900 debit
Sales Revenues 900 credit (+900 income)
--to record sale--
COGS 500 debit (-500 expense)
Inventory 500 credit
--to record cost of sale--
Delivery expense 125 debit (-125 expense)
Cash 125 credit
--to record freight-out --
Cash 1,700 debit
Sales Revenues 1,700 credit (+1,700 income)
--to record sale--
COGS 1,300 debit (-1,300 expense)
Inventory 1,300 credit
--to record cost of sale--
Inventory 2,200 debit
Account Payable 2,200 credit
--to record purchase--
Account Payable 200 debit
Inventory 200 credit
--to record return of goods--
Cash 882 debit
Sales DIscount 18 debit
Accounts Receivables 900 credit
--to record payment from customer--
Account Payable 6,000 debit
Cash 5,940 credit
Inventory 60 credit
--to record payment to supplier--
Cash 1,200 debit
Sales Revenues 1,200 credit (+1,200 income)
--to record sale--
COGS 800 debit (-800 expense)
Inventory 800 credit
--to record cost of sale--
Sales Returns 200 debit
Account Receivables 200 credit
-- to record return from customer--
Account Payable 2,000 debit
Cash 1,960 credit
Inventory 40 credit
--to record payment to supplier--
Cash 980 debit
Sales DIscount 20 debit
Accounts Receivables 1,000 credit
--to record payment from customer--
Cash 7,000 debit
Sales Revenues 7,000 credit (+7,000 income)
--to record sale--
COGS 4,800 debit (-4,800 expense)
Inventory 4,800 credit
--to record cost of sale--
Explanation:
Cheek
900 x 2% = 18
net of discount 900 - 18 = 882
Boden:
6,000 x 1% = 60
Net of discount 6,000 - 60 = 5,940
Leight:
2,200 - 2,000 = 2,000 balance due
2,000 x 2% = 40
net of discount 1,960
Art Co:
1,200 - 200 = 1,000 balance due
1,000 x 2% = 20 discount
net = 1,000 - 20 = 980
For each of the following situations involving annuitities solve for the unknown assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1).
Present Value Annuity Amount i = n =
3000 8% 5
242980 75000 4
161214 20000 9%
500000 80518 8
250000 10% 4
Answer:
A) $11,978.10
B) 9%
C) 15 years
D) 6%
E) $78,866.84
Explanation:
Present Value Annuity Amount i = n =
A 3000 8% 5
242980 75000 B 4
161214 20000 9% C
500000 80518 D 8
250000 E 10% 4
A = $3,000 x 3.9927 = $11,978.10
B: annuity factor = $242,980 / $75,000 = 3.23973
using the annuity table, a 9% annuity for 4 years has a factor = 3.2397
C: annuity factor = $161,214 / $20,000 = 8.0607
using the annuity table, a 9% annuity for 15 years has a factor = 8.0607
D: annuity factor = $500,000 / $80,518 = 6.20979
using the annuity table, a 6% annuity for 8 years has a factor = 6.2098
E: annuity payment = present value / annuity factor = $250,000 / 3.1699 (annuity factor 10%, 4 years) = $78,866.84
Bank fees for check printing are recorded by the bank as: Multiple Choice An increase in the bank’s asset account. A decrease in the bank’s asset account. A decrease in the depositor’s bank account. An increase in the depositor’s bank account.
Answer:
A decrease in the depositor’s bank account
Explanation:
The Bank fees are income to the Banks Financial Statements while they reflect a decrease in the assets of cash in the depositors bank account.
Therefore, Bank fees for check printing are recorded by the bank as a decrease in the depositors bank account.
Jake, a pharmaceutical sales representative, often takes lunch to doctors' offices. Over lunch with the doctors and their staffs, he reviews his company's products. Jake does not try to close a sale during these lunches. What type of personal selling does this describe
Answer:
The correct answer is: order-creaters.
Explanation:
To begin with, the area of personal selling there are three types of different approaches regarding the sales person and his proper way of selling. According to this theory, one of those types is the one named "order-creaters" and that concept comprehends the type of sellers that primarily focos on not to close the sale, but to persuade the regular customer to promote the product to other clients from the same audience. Therefore that Jake, when goes to have launch in the same place as the doctors, even though he does not want to make a sale, he is looking forward to establish a relationship that later favoured him in promoting the product.
D. Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What cost savings do you expect (neglect profit)
Answer:
Hello your question is in complete here is the complete question
NSDC has a contract to produce 7 satellites to support a worldwide telephone system (for Alaska Telecom, Inc.) that allows individuals to use a single, portable telephone in any location on earth to call in and out. NSDC will develop and produce the 7 units. NSDC has estimated that the R&D costs will be NOK (Norwegian Krone) 12,000,000. Material costs are expected to be NOK 7,000,000. They have estimated the design and production of the first satellite will require 100,000 labor hours and a(n) 75 percent improvement curve is expected. Skilled labor cost is NOK 300 per hour. Desired profit for all projects is 20 percent of total costs.
answer: 42022.34
Explanation:
On the new discovery using the formula
T(N) = T( N^log(L)/log(2) ) to calculate labor hours
T = 100000 , N = 1 then labor hours = 100000
T = 100000 , N = 2 then labor hours = 70000
T = 100000, N = 3 then labor hours = 56818.03
T = 100000, N = 4 then labor hours = 49000
T = 100000, N = 5 then labor hours = 43684.64
T = 100000, N = 6 then labor hours = 39772.62
T = 100000, N = 7 then labor hours = 36739.67
Total of labor hours = 396014.97
Therefore the cost savings to except = 438037.3031 - 396014.97 = 42022.34
We use 2,000 electric drills per year in our production process. The ordering cost for these is $100 per order and the Holding( carrying) cost is assumed to be 40% of the per unit cost. Each drill costs $78. What is the optimal quantity that would minimize the sum of Holding and Ordering costs.
Answer:
The Optimal Quantity to minimize Holding and Ordering Costs:
This is also known as the Economic Order Quantity (EOQ).
We can work it out using the EOQ formula.
The formula for EOQ is:
Q = √(2DS)/H
where:
Q=EOQ units
D=Demand in units (typically on an annual basis) = 2,000
S=Order cost (per purchase order) = $100
H=Holding costs (per unit, per year) = $31.20 ($78 x 40%)
Formula and Calculation of Economic Order Quantity (EOQ)
Q = √(2x2,000x $100)/$31.2
Q = √12,820.5 = 113.228 or 113 approximately.
Explanation:
EOQ is an important cash flow management tool. The formula assists a company to control the amount of cash tied up in inventory. For many companies, inventory is their largest asset. Companies hold enough inventory to meet customers' demand. Since EOQ minimizes the level of inventory, the cash savings can be used for some other business purposes or investments.
The goal of the EOQ formula is to identify the optimal number of product units to order. If achieved, a company can minimize its costs for buying, delivery, and storing units, including the costs from running out of inventory.
If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method.
a. True
b. False
A) I think the answer should be True
The duration of copyright protection for works not made for hire is: Select one: a. 20 years from the date of filing. b. Generally perpetually as long as the works are in print. c. One year if no registration has been f
Answer:
Life of the author plus 70 years
Explanation:
Copyright can be defined as the legal ways of protecting an author's work. It is a type of intellectual property right that protect authors from unauthorized individuals from publishing their work.
It is the right to copy given by an author to anyone to copy their work. Content that can be protected by copyright includes; books, poems, plays, songs, films, and artwork and website.
Calculate Payroll An employee earns $25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $239.15. a. Determine the gross pay for the week. $ b. Determine the net pay for the week. Round to two decimal places. $
Answer:
A) 1,400
B) 1,055.85
Explanation:
An employee earns $25 per hour at 2 times the rate for all hours in excess of 40 hours per week
The employee works for 48 hours in that week
Social security tax rate is 6.0%
Medicare tax rate is 1.5%
Federal income tax= $239.15
(a) Gross pay= Regular pay+overtime
The regular pay can be calculated by multiplying the amount earned by the number of hours spent in the week
Regular pay= 40×25
= 1,000
The overtime can be calculated by multiplying the extra hours spent (48 hours-40 hours= 8 hours) by the amount earned and the rate
Overtime = 8× 25× 2
= 400
Gross pay= 1,000+400
= 1,400
(B) Net pay= Gross pay-Federal taxes withheld-Taxes payable
= 1,400-239.15-(6.0% of 1400-1.5% of 1,400)
= 1,400-239.15-84-21
= 1,055.85
Hence the gross pay is 1,400 and the net pay is 1,055.85
How do you find the value of a bond, and why do bond prices change
Answer:
Explanation:
as the discount rate gets larger, the price of the bond will decrease. as the coupon rate increases, the bond price will increase. bond prices are calculated by taking the present value of the coupons and face value of bonds. If the coupons are larger, the present value of the coupons will also be larger.
In Rooney Company, direct labor is $20 per hour. The company expects to operate S at 10,000 direct labor hours each month. In January 2017, direct labor totaling $206,000 b is incurred in working 10,400 hours. Prepare (a) a static budget report and (b) a flexible P budget report. Evaluate the usefulness of each repor.
Answer and Explanation:
The preparation is presented below;
a. For a static budget report
Product line Budget Actual Difference
Direct labor $200,000 $206,000 $6,000 unfavorable
(10,000 direct labor hours × $20 per hour)
It is unfavorable as the budget is less than the actual
b. For a flexible budget report
Product line Budget Actual Difference
Direct labor $208,000 $206,000 $2,000 favorable
(10,400 direct labor hours × $20 per hour)
It is favorable as the budget is more than the actual
Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2021, Clothing Emporium had the following transactions relating to stockholders’ equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is the total stockholders' equity at the end of 2021?
Answer:
The total stockholders' equity at the end of 2021 is $250,000
Explanation:
In order to calculate the total stockholders' equity at the end of 2021 we would have to calculate the transactions relating to stockholders’ equity times the $5 par value common stock as follows:
stockholders' equity at the end of 2021=Issue of 30,000 shares*$5+Issue of 20,000 shares*$5
stockholders' equity at the end of 2021=$150,000+$100,000
stockholders' equity at the end of 2021=$250,000
The total stockholders' equity at the end of 2021 is $250,000
Strawberry Fields purchased a tractor at a cost of $40,000 and sold it two years later for $25,000. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $6,000 residual value.
1. What was the gain or loss on the sale?2. Record the sale using a general journal entry.
Answer:
1.Loss on sale 1,400
2.Dr Cash 25,000
Dr Accumulated Depreciation 13,600
Dr Loss on sale 1,400
Cr Equipment - Tractor 40,000
Explanation:
1.Calculation of the gain or loss on the sale of Strawberry Fields
Using this formula
Depreciation per year = (Cost - Salvage value)/Useful life
= (40,000-6,000)/5
=34,000/5
= 6,800 per year
The Book value after two years will be:
40,000 - (6,800*2)
=40,000-13,600
=26,400
Gain(Loss) = Cash received - Book value
= 25,000 - 26,400
Loss on sale 1,400
2.Record of the sale using a general journal entry
Dr Cash 25,000
Dr Accumulated Depreciation 13,600
Dr Loss on sale 1,400
Cr Equipment - Tractor 40,000