Answer:
Today SIPRI estimated that global military expenditure in 2015 was $1676 billion, about 2.3% of the world's total Gross Domestic Product (GDP). Such high levels of spending frequently raise concerns as to the 'opportunity cost' involved in military spending—the potential civilian uses of such resources that are lost.
Explanation:
Hope this helps. Have a nice day!
Skolnick Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.40 Direct labor $ 3.60 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 112,000 Sales commissions $ 1.50 Variable administrative expense $ 0.50 Fixed selling and administrative expense $ 32,200 Required: a. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? (Do not round intermediate calculations.) b. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred?
Answer:
Direct cost= $63,000
Indirect cost= $123,900
Explanation:
Giving the following information:
Direct materials $ 5.40
Direct labor $ 3.60
Variable manufacturing overhead $1.70
Fixed manufacturing overhead $112,000
The overhead component of production is an indirect cost.
Direct cost= (5.4 + 3.6)*7,000= $63,000
Indirect cost= (1.7*7,000) + 112,000= $123,900
Masters, Hardy, and Rowen are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Masters, $15,000; Hardy, $15,000; Rowen, $(2,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $28,000 in cash to be distributed. Rowen pays $2,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
Answer:
a. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
Explanation:
Given options:
a. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
b. Debit Masters, Capital $14,000; debit Hardy, Capital $14,000; credit Cash $28,000.
c. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Rowen, Capital $2,000; credit Cash $28,000.
d. Debit Cash $28,000; debit Rowen, Capital $2,000; credit Masters, Capital $15,000; credit Hardy, Capital $15,000.
e. Debit Masters, Capital $9,334; debit Hardy, Capital $9,333; debit Rowen, Capital $9,333; credit Cash $28,000.
The journal entry to record the final distribution is shown below:
Master capital Dr $15,000
Hardy capital Dr $15,000
To Cash $30,000
(Being the final distribution is recorded)
Here debited both capital as it reduced the stockholder equity also it decreased the assets
Hence, the correct option is a.
The general journal entry to record the final distribution would be: Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
Based on the information given the appropriate journal entry is:
Debit Masters, Capital $15,000
Debit Hardy, Capital $15,000
Credit Cash $30,000
($28,000+$2,000)
(To record final distribution)
Inconclusion the general journal entry to record the final distribution would be: Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
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The records of Bentler Shoppers, Inc. for December 2018 shows the following information:
Sales $2,050,000
Selling and administrative expenses 250,000
Direct materials purchases 205,000
Direct labor 298,000
Factory overhead 350,000
Direct materials, December 1 50,000
Work-in-process, December 1 85,000
Finished goods, December 1 64,000
Direct materials, December 31 41,000
Work-in-process, December 31 72,000
Finished goods, December 31 55,000
The net income for the month of December is:__________.
Answer:
The net income for the month of December is: $916,000.
Explanation:
First Prepare a Manufacturing Schedule as follows :
Note : this gives us cost of goods manufactured
$
Direct Materials ( 50,000 + 205,000 - 41,000) 214,000
Direct labor 298,000
Factory overhead 350,000
Add Opening Work-in-process Inventory 85,000
Less Closing Work-in-process Inventory (72,000)
Cost of goods manufactured 875,000
Then Prepare a Finished Goods Account as follows :
Note : This gives us the cost of goods sold
Finished Goods T - Account
$
Debit :
Opening Balance 64,000
Transfer from Manufacturing Account 875,000
Totals 939,000
Credit:
Ending Balance 55,000
Transferred to Trading Account (Balancing figure) 884,000
Totals 939,000
Lastly, Prepare the Income Statement for the Year Ended December 2018.
Note : This gives us the required Net Income
Income Statement for the Year Ended December 2018
Sales $2,050,000
Less Cost of Goods Sold ($884,000)
Gross Profit $1,166,000
Less Expenses :
Selling and administrative expenses ($250,000)
Net Income/ (Loss) $916,000
Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $238,900 Actual manufacturing overhead cost $244,100 Estimated machine hours 20,000 Actual machine hours 23,000 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The amount of manufacturing overhead allocated for the year based on machine hours would have been _____ . (Round intermediary calculations to the nearest cent and final answer to the nearest dollar.) A. $274,850. B. $238,900. C. $244,100. D. $212,261.
Answer:
Allocated MOH= $274,850
Explanation:
Giving the following information:
Estimated manufacturing overhead cost $238,900
Estimated machine hours 20,000
Actual machine hours 23,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 238,900/20,000
Predetermined manufacturing overhead rate= $11.945 per machine-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 11.95*23,000
Allocated MOH= $274,850
A contingent liability is an obligation that should be: Question 2 options: A) Recorded in the accounts and classified in a contingent liabilities section of the balance sheet between current liabilities and long-term liabilities B) Classified in the owners' equity section of the balance sheet when the future event creating the liability is not likely to occur C) Disclosed in a footnote to the balance sheet when the contingency is remote D) Recorded in the accounts if the amount may be reasonably estimated and it is probable that the future event creating the obligation will occur
Answer:
D) Recorded in the accounts if the amount may be reasonably estimated and it is probable that the future event creating the obligation will occur
Explanation:
This is the best answer to the question
When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When the price rises to $1.50, the quantity demanded falls to 60,000 bars. Calculate the price elasticity of demand using the mid-point method. Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is: -1.25 . b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is: -1.25 .
Answer:
a. -1.25
b. -1.25
Explanation:
Price elasticity is used to measure the change in demand as a result of a change in price.
Formula is;
= % change in Quantity/ % change in Price
a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is:
% change in Quantity using the midpoint formula;
[tex]=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{60,000 - 100,000}{\frac{100,000 + 60,000}{2}} \\\\= -0.5[/tex]
% Change in Price using midpoint formula
[tex]=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.5 - 1.00}{\frac{1.00 + 1.50}{2} } \\\\= 0.4[/tex]
= -0.5/0.4
= -1.25
b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is:
% change in Quantity using the midpoint formula;
[tex]=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{100,000 - 60,000}{\frac{100,000 + 60,000}{2}} \\\\= 0.5[/tex]
% Change in Price using midpoint formula
[tex]=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.00 - 1.50}{\frac{1.00 + 1.50}{2} } \\\\= -0.4[/tex]
= 0.5/-0.4
= -1.25
Honda Motor Company is considering offering a rebate on its minivan, lowering the vehicle's price from to . The marketing group estimates that this rebate will increase sales over the next year from to vehicles. Suppose Honda's profit margin with the rebate is per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits.
Answer:
the numbers are missing, so I looked fro a similar question:
"Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $30,000 to $28,000. The marketing group estimates that this rebate will increase sales over the next year from 40,000 to 55,000 vehicles. Suppose Honda's profit margin with the rebate is $6,000 per vehicle."
additional revenue generated by the rebate = 15,000 minivans x $6,000 = $90 million
the total economic cost of the rebate (money lost due to the rebate) = number of minivans sold without the rebate x rebate = 40,000 x $2,000 = $80 million, since the rebate includes all minivans, not just the additional 10,000 units.
Honda will gain = $90 - $80 = $10 million with the rebate, so it is a good idea.
A first-rate SWOT analysis is a way to measure whether a company's value chain is longer or shorter than the chains of key rivals. is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors. reveals whether a company is competitively stronger than its closest rivals. provides a good basis for crafting a strategy. identifies the reasons a company's strategy is or is not working very well.
Answer:
The answer is "provides a good basis for crafting strategy".
Explanation:
The SWOT analysis creates the foundation for something like a plan that also builds mostly on advantages of the business, tries to acquire the maximum opportunities for the industry, which defends it against threats to its well-being.
This strategic thinking uses to support an individual in identifying strengths, weaknesses, opportunities, and threats associated with both the competition of enterprises or programs.
Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31. Sales revenue $ 500,000 Cost of goods sold 272,000 Warranty expense 34,000 Inspection costs 15,000 Scrap and rework 10,600 Product returns due to defects 6,000 Depreciation expense 32,000 Machine maintenance expense 11,000 Wage expense 135,000 Machine breakdown costs 5,400 Estimated lost sales due to poor quality 10,000 a. Classify each of the above costs into the four quality cost categories and prepare a cost of quality report for Nogain. b. What percentage of sales revenue is being spent on prevention and appraisal activities? c. What percentage of sales revenue is being spent on internal and external failure costs?
Answer:
a)
Prevention costs: costs incurred in order to prevent failures or minimize defects, they include maintenance expenses = $11,000 Appraisal costs: costs incurred in order to make sure that the products meet quality standards and customers' expectations, they include inspection costs = $15,000 Internal failure costs: costs incurred due to faulty products or procedures that occur before any good is actually taken out of the facilities, they include scrap and rework ($10,600) and machine breakdown costs ($5,400) = $16,000External failure costs: costs incurred after the goods leave the facilities, they include warranty expenses ($34,000), product returns due to defects ($6,000) and lost sales due to low quality ($10,000) = $50,000Quality cost report:
Prevention costs
Machine maintenance expense $11,000 $11,000Appraisal costs
Inspection cost $15,000 $15,000Internal failure cost :
Scrap & rework $10,600 Machine breakdown costs $5,400 $16,000External failure costs :
Warranty expense $34,000 Product returns due to defects $6,000 Estimated lost sales due to poor quality $10,000 $50,000Total quality cost $92,000
b) What percentage of sales revenue is being spent on prevention and appraisal activities?
total sales revenue = $500,000
prevention and appraisal costs = $26,000
% = $26,000 / $500,000 = 5.2%
c) What percentage of sales revenue is being spent on internal and external failure costs?
internal and external failure costs = $66,000
% = $66,000 / $500,000 = 13.2%
1 point
6. A combination of stocks and bond portfolio offers Mike Spangler a rate of return of 8.5%. Considering the inflation rate of
395, what is the actual (real) rate of return?
O 7.33%
5.330
3.33%
Answer:
5.33%
Explanation:
From the question,
We have the following:
Nominal rate was put at = 8.5% = 0.085
Rate of inflation = 3% = 0.03
The formula for actual or real rate of return =
= [(1 + nominal rate)/(1+inflation rate)]-1
= (1 + 0.085/1+0.03)-1
= (1.085/1.03)-1
= 1.0533-1
= 0.0533 x 100
= 5.33%
In conclusion, the actual or real rate of return is 5.33 percent
Is the percentage of Flying Cow’s expected long-term cash flows consistent with the value cited in the professional studies? No, because only 50.05% of the firm’s share price is derived from its expected long-term free cash flows. Yes, because 75.42% of the firm’s share price is derived from its expected long-term free cash flows. No, because the percentage of Flying Cow’s expected long-term cash flows is actually 14.30%. Yes, because 85.70% of the firm’s share price is derived from its expected long-term free cash flows.
Answer: The question is incomplete. The complete question is :
The multi-stage valuation model Consider the case of Flying Cow Aviation Inc.: Flying Cow Aviation Inc. is expected to generate a free cash flow (FCF) of $1,180,000 this year, and the FCF is expected to grow at a rate of 14% over the following two years (FCF 2 and FCF3). After the third year, however, the company's FCFs are expected to grow at a constant rate of 6% per year, which will last forever (FCF 4-0). If Flying Cow's weighted average cost of capital (WACC) is 12%, complete the following table and compute the current value of Flying Cow's operations. Round all dollar amounts to the nearest whole dollar, and assume that the firm does not have any nonoperating assets in its balance sheet and that all FCFs occur at the end of each year. Year PV(FCF) CFt $1,180,000 FCF1 FCF2 FCF3 FCF4 Horizon Value4 Vop= Flying Cow's debt has a market value of $16,875,959, and Flying Cow has no preferred stock in its capital structure. If Flying Cow has 100,000 shares of common stock outstanding, then the total value of the company's common equity is $ , and the estimated intrinsic value per share of its common stock is $ per share. Assume the following: • The end of Year 3 differentiates Flying Cow's short-term and long-term FCFs. • Professionally-conducted studies have shown that more than 80% of the average company's share price is attributable to long-term- rather than short-term-cash flows.
Assume the following: • The end of Year 3 differentiates Flying Cow's short-term and long-term FCFs. • Professionally-conducted studies have shown that more than 80% of the average company's share price is attributable to long-term- rather than short-term-cash flows.
Is the percentage of Flying Cow’s expected long-term cash flows consistent with the value cited in the professional studies? No, because only 50.05% of the firm’s share price is derived from its expected long-term free cash flows. Yes, because 75.42% of the firm’s share price is derived from its expected long-term free cash flows. No, because the percentage of Flying Cow’s expected long-term cash flows is actually 14.30%. Yes, because 85.70% of the firm’s share price is derived from its expected long-term free cash flows.
The answer is : Percentage of long term cash flow is 85.70 %
Explanation:
Cash flow may be defined as the net amount of the cash and all cash-equivalents that is transferred into a business as well as out of the business.
In other words, the ability of the company to create some value for the shareholders is calculated or estimated by the ability of the company to generate a positive cash flows, to be specific, to maximize long-term free cash flow (FCF).
In the given question, the long term cash flow percent is 85.70 %
Boilermaker House Painting Company incurs the following transactions for September.
1. Paint houses in the current month for $15,000 on account. Assets increase and stockholders' equity increases.
2. Purchase painting equipment for $16,000 cash. One asset increases and another asset decreases.
3. Purchase office supplies on account for $2,500. Assets increase and liabilities increase.
4. Pay employee salaries of $3,200 for the current month. One asset increases and another asset decreases.
5. Purchase advertising to appear in the current month, $1,200. Assets increase and stockholders' equity increases.
6. Pay office rent of $4,400 for the current month. Assets decrease and stockholders' equity decreases.
7. Receive $10,000 from customers in (1) above. One asset increases and another asset decreases.
8. Receive cash of $5,000 in advance from a customer who plans to have his house painted in the following month. Assets increase and liabilities increase.
For each transaction, describe the dual effect on the accounting equation. For example, for the first transaction, (1) assets increase and (2) stockholders' equity increases.
The description of the dual effects of the transactions on the accounting equation is as follows:
1. Asset increases (Accounts Receivable) and stockholders' equity (Retained Earnings) increases.
2. One asset (Equipment) increases and another asset (Cash) decreases.
3. Assets (Supplies) increase and liabilities (Accounts Payable) increase.
4. Assets (Cash) decrease and stockholders' equity (Retained Earnings) decreases.
5. Assets (Cash) decrease and stockholders' equity (Retained Earnings) decreases.
6. Assets (Cash) decrease and stockholders' equity (Retained Earnings) decreases.
7. One asset (Cash) increases and another asset (Accounts Receivable) decreases.
8. Assets (Cash) increase and liabilities (Deferred Revenue) increase.
What is the Accounting Equation?The accounting equation is a depiction that assets equal liabilities and equity at every given time and with every transaction. This equation gives each transaction the dual effect.
Data Analysis:1. Accounts Receivable $15,000 Service Revenue $15,000
2. Equipment $16,000 Cash $16,000
3. Supplies $2,500 Accounts Payable $2,500
4. Salaries Expense $3,200 Cash $3,200
5. Advertising Expense $1,200 Cash $3,200
6. Rent Expense $4,400 Cash $4,400
7. Cash $10,000 Accounts Receivable $10,000
8. Cash $5,000 Deferred Revenue $5,000
Thus, the dual effect means that each transaction affects, at least, two accounts of the accounting equation.
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Beaver Construction purchases new equipment for $50,400 cash on April 1, 2015. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 84 months ($600/month). (1) Record the purchase of equipment on April 1. (2) Record the adjusting entry for depreciation on December 31, 2015. (3) Calculate the year-end adjusted balances of Accumulated Depreciation and Depreciation Expense (assuming the balance of Accumulated Depreciation at the beginning of 2015 is $0).
Answer:
Beaver Construction
1. Journal Entry:
April 1, 2015:
Debit Equipment $50,400
Credit Cash Account $50,400
To record the purchase of new equipment for cash.
2. December 31, 2015:
Debit Depreciation Expense-Equipment $5,400
Credit Accumulated Depreciation - Equipment $5,400
To record the depreciation expense for the period.
3. Adjusted balances of Accumulated Depreciation and Depreciation Expense at December 31, 2015:
a) Accumulated Depreciation - Equipment
Beginning balance $0
Depreciation Expense $5,400
Ending balance $5,400
b) Depreciation Expense-Equipment $5,400
Explanation:
The depreciation expense for equipment is $5,400 ($600 x 9) since the depreciation charge for each month is $600. The equipment was used from 9 months from April 1 to December 31 in 2015. This implies that only $5,400 will be charged to Income Statement for the period.
Wenlowe Company had the following income statement for the most recent year:
Sales (17,000 units)........................ $357,000
Variable Expenses......................... 255,000
Contribution Margin. ... ................ $102,000
Fixed Expenses............ .................. 68,000
Net Operating Income . ................. $34,000
Given this data, the unit contribution margin was:__________
A. $2 per unit
B. $15 per unit
C. $6 per unit
D. $4 per unit
Answer:
C. $6 per unit
Explanation:
The contribution margin per unit is the amount contributed by each unit's sales revenue towards covering the fixed costs of the business after the variable cost per unit related to that product or business have been deducted. Thus, it is calculated as follows,
Contribution margin per unit = Selling price per unit - Variable cost per unit
As we are given the total contribution margin and we know the number of units, we can calculate the unit contribution margin by dividing the total contribution by the number of units.
Unit contribution margin = 102000 / 17000
Unit contribution margin = $6
Answer T for true or F for false.There can be no gains from trade between two countries if one of them has an absolute advantage in the production of all goods. Two individuals can benefit from specialization and trade if they agree upon a price that lies between their opportunity costs of producing the good. When a country opens to trade, people working in industries producing goods that the country exports are harmed by the trade. When two countries decide to engage in specialization and trade, the prices of all goods sold in each country will fall.
Answer:
Sentence One: False
Explanation:
Absolute advantage does not necessarily trump comparative advantage. Comparative advantage takes into consideration the principle of opportunity cost. The country with the absolute advantage may not be the country with the highest comparative advantage (that is, it is not the country with the least opportunity cost in the production of that same good).
Sentence Two: True
Specialization of trade occurs when countries specialize based on their absolute advantage then trade it with the goods from other countries which they have specialized in the production of same. When two of such countries agree on prices between their opportunity costs of producing the goods, it is usually more beneficial.
Sentence Three: False
Increased exports translate to increased revenue. Increased revenue means more business, the ability of the firms in such industry to retain and pay their workers and even hire more people as their operations expand.
Sentence Four: False
Specialization of trade simply means that a country focuses on improving its efficiency with regard to the production of CERTAIN production, not ALL its products. The fall in price is likely, however, to be seen in the goods in which it specialises in, subject to the laws of demand and supply as well as other economic factors.
Cheers
Imagine that a small manufacturing company decides to invest in a materials resources planning (MRP) system. This is a computerized information system that improves efficiency by automating such work as planning needs for resources, ordering materials, and scheduling work on the shop floor. The company hopes that with the new MRP system, it can grow by quickly and efficiently processing small orders for a variety of products. Which of the human resource functions are likely to be affected by this change? How can human resource management help the organization carry out this change successfully?
The correct answer to this open question is the following.
Although there are no options attached, we can say the following,
The human resource functions that are likely to be affected by this change are Resource Management, Personal Data Management, Training, and Performance Management.
Human Resource Management helps the organization carry out this change successfully, explaining how these modifications can benefit the employees and the entire organization. HR has to use the proper means of internal communication to explain in advance the kinds of oof changes that are coming. This will prevent fear and anxiety, and eliminate rumors about the situation of the employees in the organization.
HR has to be careful in confirming that nobody is going to be fired by the arrival of new technologies. Then, HR has to explain in detail the many benefits in planning, scheduling, organizing, inventory, and many other benefits for each department. If employees do not feel threatened by this new technology they would welcome changes that allow them to do their work more productively.
The human resource functions that are likely to be affected by this change are Resource Management, Personal Data Management, Training, and Performance Management.
What is human resource?Human resources (HR) is the department within a business that is responsible for all things worker-related. That includes recruiting, vetting, selecting, hiring, onboarding, training, promoting, paying, and firing employees and independent contractors.
In simplest terms, the HR department is a group who is responsible for managing the employee life cycle (i.e., recruiting, hiring, onboarding, training, and firing employees) and administering employee benefits.
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Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,600 to the Roth IRA ($4,200 a year). The current value of the Roth IRA is $17,600. In the current year, Sherry withdraws $15,300 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $15,300 withdrawal will she retain after taxes to fund her car purchase
Answer:
$14,382
Explanation:
The computation of the withdrawal amount is shown below:-
Amount Subject to tax= Amount of Withdrawal + Non-Taxable Amount
= $15,300 + $12,600
= $2,700
After Tax withdrawal Retained = Non-Taxable Amount - Tax - Penalty
= $12,600 + ($2,700 - ($2,700 × 24%) - ($2,700 × 10%))
= $12,600 + ($2,700 - $648 - $270)
= $14,382
In a large sample of customer accounts, a utility company determined that the average number of days between when a bill was sent out and when the payment was made is 31 with a standard deviation of 3 days. Assume the data to be approximately bell-shaped. Approximately 37% of all customer accounts have the average number of days between two values A and B. What is the value of B?
Answer:
B = 32.44 = 32 days
Explanation:
Given the following :
Mean number of days between when Bill was sent out and when payment was made = 31
Standard deviation = 3 days
Approximately 37% of all customer accounts have the average number of days between two values A and B. What is the value of B?
Interval A and B contains 37% of all customer accounts have average number of days with values :
Zscore of the (100-37)% / 2 at the extremes ; = 63%/2 = 0.315 ; from z table 0.315 = -0.48
Interval:
(-0.48 * sd) + mean and (0.48 * sd) + mean
(-0.48 * 3) + 31 and (0.48 * 3) + 31
-1. 44 + 31 and 1.44 + 31
29.56 and 32.44
Value of A and B
A = 29.56 ; B = 32.44
The Townson Manufacturing Company has gathered the following information for the month of September: 9,900 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs). 99,000 units were started into production. 66,900 units were completed and transferred to the next department. The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs. What are the equivalent units of production (EUPs) for the conversion costs in the month of September assuming Townson uses weighted-average process costing?
Answer: 82,650 units
Explanation:
Equivalent Units of Production (EUPs) for the conversion costs = Units transferred out + Percentage of completed Ending Inventory
Ending Inventory = Beginning Work-In-Process + Units started into production - Units transferred out
= 9,900 + 99,000 - 66,900
= 42,000 units
Equivalent Units of Production (EUPs) for the conversion costs = 66,900 + (3/8 * 42,000)
= 82,650 units
) A homeowner is considering putting solar panels on the roof of his house. The installed cost of putting 3 kW of solar panels is $6000 and the panels come with a 25 year guarantee. The panels would be able to meet the average monthly electrical consumption of 850 kW-hrs for the house. a) If the homeowner has the $6000 available for the project, what would the cost of electricity from the power company need to be greater than ($/kW-hr) to make the project viable if other investments are providing 8% interest. ($0.0545/kW-hr) b) If the homeowner had to borrow the $6000 from the bank at 5% interest for 10 years (monthly payments) what would the cost of electricity need to be greater than in $/kWhr from the power company to make the project viable if other investments are providing 8% interest. ($0.0476/kW-hr)
Answer:
a) If the homeowner has the $6000 available for the project, what would the cost of electricity from the power company need to be greater than ($/kW-hr) to make the project viable if other investments are providing 8% interest. ($0.0545/kW-hr)
we can use the present value of an annuity formula:
PV = monthly savings x annuity factor
PV = $6,000Annuity factor, 300 periods, 0.6667% = 129.52005monthly savings = $6,000 / 129.52005 = $46.3249
price of kW-hr = $46.3249 / 850 = $0.054499851 ≈ $0.0545
b) If the homeowner had to borrow the $6000 from the bank at 5% interest for 10 years (monthly payments) what would the cost of electricity need to be greater than in $/kWhr from the power company to make the project viable if other investments are providing 8% interest. ($0.0476/kW-hr)
the monthly payment to cover the loan = PV / annuity factor
PV = $6,000Annuity factor, 120 periods, 0.4167% = 94.28033monthly payment = $6,000 / 94.28033 = $63.64
price of kW-hr = $63.64 / 850 = $0.074870588 ≈ $0.0749
Which of the following is a duty of a personal finance manager?
A. Selling property insurance
B. filing tax returns
C. tracking clients' investments
D. selling houses
Answer:
Filling rax return is a duty of a personal finance manager
During 2022, Skysong Corp. entered into the following transactions.
1. Borrowed $55,200 by issuing a note.
2. Paid $8,280 cash dividend to stockholders.
3. Received $11,960 cash from a previously billed customer for services performed.
4. Purchased supplies on account for $2,852.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. For retained earnings, use separate columns for revenues, expenses, and dividends if necessary. (If a transaction results in a decrease in Assets, Liabilities or Stockholder's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Answer:
4,890
Explanation:
The following data relate to the operations of Slick Software, Inc., during 2018. Continuing operations:
Net sales $ 19,850,000 Costs and expenses (including applicable income tax) 16,900,000
Other data:
Operating income during 2018 on segment of the business discontinued near year-end (net of income tax) 140,000 Loss on disposal of discontinued segment (net of income tax benefit) 550,000 Prior period adjustment (increase in 2017 depreciation expense, net of income tax benefit) 350,000 Cash dividends declared 950,000
Required:
a. Prepare a condensed income statement for 2018, including earnings per share figures. Slick Software, Inc., had 200,000 shares of $1 par value common stock and 80,000 shares of $6.25, $100 par value preferred stock outstanding throughout the year.
b. Prepare a statement of retained earnings for the year ended December 31, 2018. As originally reported, retained earnings at December 31, 2017, amounted to $7,285,000.
c. Compute the amount of cash dividend per share of common stock declared by the board of directors for 2018. Assume no dividends in arrears on the preferred stock.
d. Assume that 2019 earnings per share is a single figure and amounts to $8.00. Assume also that there are no changes in outstanding common or preferred stock in 2019. Do you consider the $8.00 earnings per share figure in 2019 to be a favorable or unfavorable figure in comparison with 2018 performance?
Answer:
A. $5.70
B. $7,625,000
C. $2.25
D. UNFAVORABLE amount of $4.25
Explanation:
a.Preparation of a condensed income statement for 2018,
SLICK SOFTWARE, INC.Condensed Income StatementFor the Year Ended December 31, 2018
Net sales $19,850,000
Costs and expenses $16,900,000
Income from continuing operations$2,950,000
Discontinued operations:
Operating income $140,000
Loss on disposal (net of income tax benefit)(550,000)
Income before extraordinary item $2,540,000 Extraordinary loss (net of income tax benefit)(900,000)
(550,000+350,000)
Net income$1,640,000
($2,540,000-900,000)
Earnings per share:
Earnings from continuing operations$12.25
[($2,950,000 - $500,000) ÷200,000]
Loss from discontinued operations (2.05)
($410,000 ÷ 200,000 shares)
Earnings before extraordinary items $10.20
[($2,540,000 - $500,000 preferred dividends) ÷ 200,000]
Extraordinary loss (4.50)
($900,000 ÷200,000 shares)
Net earnings $5.70
[($1,640,000 - $500,000 preferred dividends)÷200,000 shares]
Calculation for Preferred dividends:
Preferred dividends: 80,000 shares x $6.25 =$500,000
b.Preparation of a statement of retained earnings for the year ended December 31, 2018
SLICK SOFTWARE, INC.Statement of Retained Earnings For the Year Ended December 31, 2018
Retained earnings, December 31 2017 $7,285,000
Less: prior period adjustment350,000
Restated$6,935,000
Net income1,640,000
Subtotal$8,575,000
($6,935,000+1,640,000)
Cash dividends(950,000)
Retained earnings, December 31, 2017 $7,625,000
($8,575,000-$7,625,000)
c.Computation for the amount of cash dividend per share of common stock
Total cash dividends declared during 2018 $950,000
Less: Preferred stock dividend 500,000
(80,000 shares x $6.25 per share)
Cash dividends to common stockholders $450,000
Number of common shares outstanding 200,000
Cash dividend per common share $2.25
($450,000 ÷ 200,000 shares)
D. The amount of $8.00 earnings per share figure in 2019 will have unfavorable figure when compared with the year 2018 reason been that
the year 2019 has one Earnings Per Share amount which is why we should compared it to the earnings per share from continuing operations in year 2018, which gave us the amount of $12.25 per share[($2,950,000 - $500,000) ÷200,000] which inturn makes Slick Software, Inc.’s earnings per share from continuing operations to reduce to the amount of $4.25 per share ($12.25-$8.00) from the year 2018 to 2019
Mary's last bank statement showed an ending balance of $. This month, she deposited in her account and withdrew a total of $. Furthermore, Mary wrote a total of five checks, two of which have cleared. The two checks that have cleared total $. The three remaining checks total $. Mary pays no fees at her bank. What is the balance shown this month on Mary's bank statement? What is the adjusted bank balance?
Answer:
1. $305.05
2. $217.71
Explanation:
The computation of balance shown this month on Mary's bank statement is shown below:-
Balance as per bank book (ending)
= Opening balance + Deposit - Withdrawal - Cheque cleared
= $129.97 + $476.23 - $185.54 - $115.61
= $305.05
The computation of adjusted bank balance is shown below:-
Adjusted bank balance = Ending bank balance - Uncleared cheque
= $305.05 - $87.34
= $217.71
The Gorman Group issued $970,000 of 13% bonds on June 30, 2021, for $1,042,973. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate).
Answer:
Entries are given below
Explanation:
Cash should be recorded as an asset on the issuance of bonds and bonds should be credited as it is a liability for the company. Interest expense should be debited on a semiannual basis
June 30, 2021 ( issuance of bonds)
DEBIT CREDIT
Cash 1,042,973
Bonds payable 970,000
Premium on bonds payable 72,973
December 31, 2021 ( interest expense)
DEBIT CREDIT
Interest Expense 62,578
(1,042,973 x 12% x 6/12)
Premium on bonds payable 472
Cash 63,050
(970,000 x 13% x 6/12)
June 30, 2022 (interest expense)
DEBIT CREDIT
Interest Expense 62,550
(1,042,973-472) x 12% x 6/12)
Premium on bonds payable 500
Cash 63,050
(970,000 x 13% x 6/12)
"The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5×, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5×), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places."
Answer: ROE will increase by 5.54% if inventory is sold off
Explanation:
Return on Equity before the inventories are sold of;
= Net Income/ Equity
= 15,000 / 200,000
= 7.5%
Inventories sold off
Inventories were sold off such that Current ratio is now 2.5 and the funds reduced equity, the inventory sold is;
Current ratio = Current Assets / Current Liabilities
2.5 = (Cash + Receivables + Inventories ) / (Accounts Payable + Other Current Liabilities)
2.5 = 10,000 + 50,000 + Inventories / 30,000 + 20,000
50,000 * 2.5 = 60,000 + Inventory
Inventory = $65,000
Inventory decreased by = 150,000 - 65,000
= $85,000
Equity therefore reduced by $85,000 as well to;
= 200,000 - 85,000
= $115,000
New Return on Equity = 15,000/115,000
= 13.04%
ROE will therefore change by;
= 13.04% - 7.5%
= 5.54%The City of Park Ridge reported appropriations in the amount of $40,000,000 for its General Fund for the fiscal year ended December 31, 2020. During that year, expenditures amounted to $37,900,000 (related to current year purchase orders that have been filled). In addition, $1,600,000 in encumbrances had been issued this year, but not filled. The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2020 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances (GAAP Basis) would be:
Answer: $37,900,000
Explanation:
Encumbrances simply means the money that is saved or reserved in order to use it for a particular thing.
The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2020 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances (GAAP Basis) would be $37,900,00.
This is because we are informed that during that year, the expenditures of $37,900,000 which related to the current year purchase orders that have been filled.
The cycle view of the supply chain is useful when considering operational decisions, because Select one: a. it focuses on processes that are external to the firm. b. processes are identified as either reactive or speculative. c. it specifies the roles and responsibilities of each member of the supply chain. d. it focuses on processes that are internal to the firm. e. it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
Answer:
c. it specifies the roles and responsibilities of each member of the supply chain.
Explanation:
Supply chain management (SCM) can be defined as the effective and efficient management of the flow of goods and services, as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.
The key principle of supply chain management can be best summed up as collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.
Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.
Hence, the supply chain comprises of processes which are typically divided into four (4) cycles;
1. Customer order cycle: it involves the process of receiving an order from a customer, entry and fulfillment of orders.
2. Replenishment cycle: it includes receiving, entry and fulfillment of retail orders.
3. Manufacturing cycle: it includes the process of converting raw materials into finished products.
4. Procurement cycle: this includes shipping or receiving raw materials and production schedules.
The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain.
Presented below are changes in all account balances of ABC inc. during the current year, except for retained earnings. Increase (Decrease) Cash 20,000 Accounts Receivable (net) (31,000) Inventory 65,000 Investments 19,000 Accounts Payable 30,000 Bonds Payable (23,000) Common Stock 7,000 Paid-In Capital in Excess of Par-Common Stock 48,000 Assume there were no entries in the Retained Earnings except for net income and a dividend declaration of $1,000 which was paid in the current year. What did ABC report for net income during the current year
Answer:
Net income $12,000
Explanation:
The computation of the amount of net income reported is shown below:
Increase in cash $20,000
Less: Increase in Accounts Payable -$30,000
Less: Decrease in Accounts Receivable -$31,000
Add: Decrease in Bonds Payable $23,000
Add: Increase in inventory $65,000
Less: Increase in common stock -$7,000
Add: Increase in investments $19,000
Less: Increase in paid-in capital -$48,000
Add: dividend declared $1,000
Net income $12,000
The term and supply of economics
