Answer:
$25,700 Underallocated.
Explanation:
Calculation for the manufacturing overhead for the year
First step is to find the Predetermined overhead allocation rate using this formula
Predetermined overhead allocation rate = Manufacturing overhead/ Direct labor hours
Let plug in the formula
Predetermined overhead allocation rate=$200,600/25,600
=7.8359375
Second step is to multiply Predetermined overhead allocation rate by Actual direct labor hours
7.84*20,000
=$156,800
Lasr step is to find the manufacturing overhead for the year
Manufacturing overhead=$182,500-$156,800
Manufacturing overhead=$25,700 Underallocated
Therefore the manufacturing overhead for the year is $25,700 Underallocated
The inflationary spiral explains the causes and effects of high inflation.
The spiral usually begins with an increase in demand. What is the direct effect of this increase?
a. Producers raise prices to continue to make a profit.
b. The government prints more money, lowering the value of money.
c. Workers negotiate with employers to receive more money.
d. Consumers need higher wages to keep up with rising prices.
Answer:
A. Producers raise prices to continue to make a profit.
Explanation:
The direct result of increase in demand is that the producers raise prices to continue to make a profit.
So, option a. is correct.
Inflationary spiralInflation is defined as a broad, gradual increase in the costs of goods and services in a market. An inflationary spiral starts when there is an increase in price, which leads to people requesting pay increases.
The inflationary spiral describes why and how high inflation occurs. Typically, the spiral begins with a rapid growth. The direct result of this increase is that the producers raise prices to continue to make a profit. So, option a. is correct.
Find out more information about inflation here:
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Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct?
I. As the cost driver level increases, total fixed cost remains unchanged
II. As the cost driver level increases, unit fixed cost increases
III. As the cost driver level decreases, unit variable cost decreases
a. I, II and III are correct
b. I and II only are correct
c. I only is correct
d. II and III only are correct
Answer:
The answer is "Option C".
Explanation:
The Unit variable expenses should remain unchanged, paying no attention to what the price operator is doing. Both variable prices will remain constant, paying little attention to adjustments in the costing system, as adjustments in the costing system may not impact all fixed expenses.
Although full fixed costs will remain constant, paying special heed to changes in the cost engine, group fixed costs will not. Unless the amount of a costing system increases, all operating rates will continue as before, however, the full number of items will increase as well as the operating unit price will reduce.
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $719,000. Depreciation and amortization expense of $86,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $ 41,000 Increase in inventory 11,100 Increase in prepaid expenses 10,400 Increase in salaries payable 11,900 Decrease in income taxes payable 17,000 Required: Prepare the operating activities section of the 2021 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)
Answer and Explanation:
The preparation of the operating activities section is shown below:
Particulars Amount
Cash flow from operating activities
Net income for the fiscal year $719,000
Adjustment for non-cash effects:
Depreciation and amortization $86,000
Changes in operating assets and liabilities:
Add: Decrease in accounts receivable $41,000
Less: Increase in inventories ($11,100)
Less: Increase in prepaid expenses ($10,400)
Add: Increase in salary payable $11,900
Less: Decrease in income tax payable ($17,000)
Net cash flows from operating activities $819,400
6.
Question 6
Please state which of the below concepts describe how well a market offering fulfills customer needs.
1 point
Brand feelings
Brand imagery
Brand salience
Brand performance
Answer:
Brand performance
Explanation:
Brand performance is the concept that compares and contrasts the goals a brand sets and how it meets those targets.
Therefore, brand performance is the concept that describe how well a market fulfills customers needs.
The answer is D
During March, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of March and 190,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 50% complete with respect to labor. At the end of March, 27,000 additional units were in process in the production department and were 100% complete with respect to materials and 70% complete with respect to labor. The production department incurred direct materials cost of $255,300 and its beginning inventory included materials cost of $94,200. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.
Answer:
cost per equivalent unit for direct materials is $1.39.
Explanation:
First, calculation of equivalent units of production with respect to Direct materials
Closing Work In Process (27,000 × 100%) = 27,000
Completed and Transferred (225,000 × 100%) = 225,000
Equivalent units of Production with respect to Direct materials = 252,000
Then calculate the cost per equivalent unit for direct materials as follows :
Cost per equivalent unit = Total Costs ÷ Total Equivalent units
= ($255,300 + $94,200) ÷ 252,000
= $1.39
Life, Inc. experienced the following events in Year 1, its first year of operation: Performed counseling services for $26,800 cash. On February 1, Year 1, paid $18,600 cash to rent office space for the coming year. Adjusted the accounts to reflect the amount of rent used during the year. Required Based on this information alone: a. Record the events in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign.) b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. (In statement of cash flows, cash outflows should be indicated with a minus sign.) c. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2?
Answer:
a. I divided the accounting equation in two parts:
Assets = Liabilities + Equity
Cash Prepaid rent
1) $26,800 0 0 $26,800
2) -$18,600 $18,600 0 0
3) 0 -$17,050 0 -$17,050
$8,200 $1,550 0 $9,750
Revenues - Expenses = Net income Type of cash flow
1) $26,800 0 $26,800 OA
2) 0 0 0 OA
3) 0 $17,050 -$17,050 OA
$26,800 $17,050 $9,750
b. Life, Inc.
Income Statement
For the year ended December 31, Year 1
Revenues $26,800
Expenses -$17,050
Net income $9,750
Life, Inc.
Balance Sheet
For the year ended December 31, Year 1
Assets:
Cash $8,200
Prepaid rent $1,550
Total assets = $9,750
Liabilities: $0
Equity: $9,750
Total assets and liabilities = $9,750
Life, Inc.
Statement of Cash Flows
For the year ended December 31, Year 1
Cash flows form operating activities:
Net income $9,750
Adjustments to net income:
Increase in prepaid rent ($1,550)
Cash flows from operating activities $8,200
Cash flows form investing activities $0
Cash flows form financing activities $0
Net increase in cash position $8,200
Initial cash balance $0
Ending cash balance $8,200
c. $1,550
Susanne is interested in saving time when she is making programmed decisions at
work. Which of the following she should focus on?
O Systematically go through the six steps of the decision-making process no
Satisficing
Talk to other people
Be creative
Answer: Systematically go through the six steps of the decision-making process
Explanation:
Programmed decisions are routine and repetitive. In other words, these are decisions that one need not think about as they require and follow the same procedure in making them.
By systematically going through the six steps of the decision-making process, Susanne will save time as the process makes decision making programmable. By following the steps systematically, she would be making programmed decisions as they follow the same steps and therefore making them faster.
Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2014, the following estimates were made for the year. Department D E K Manufacturing overhead $1,200,000 $1,500,000 $900,000 Direct labor costs $1,500,000 $1,250,000 $450,000 Direct labor hours 100,000 125,000 40,000 Machine hours 400,000 500,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used $140,000 $126,000 $78,000 Direct labor costs $120,000 $110,000 $37,500 Manufacturing overhead incurred $ 99,000 $124,000 $79,000 Direct labor hours 8,000 11,000 3,500 Machine hours 34,000 45,000 10,400 Instructions
(a) Compute the predetermined overhead rate for each department.
(b) Compute the total manufacturing costs assigned to jobs in January in each department.
(c) Compute the under- or overapplied overhead for each department at January 31.
Answer:
Agassi Company
Department D E K
a) Predetermined overhead rate $0.80 $1.20 $7.50
b) Total manufacturing costs assigned to jobs in each department:
Department D E K
Direct materials used $140,000 $126,000 $78,000
Direct labor costs $120,000 $110,000 $37,500
Manufacturing overhead
applied $ 96,000 $13,200 $78,000
Total manufacturing costs $356,000 $249,200 $193,500
c) Under-or overapplied overhead for each department:
Department D E K
Manufacturing overhead
incurred $ 99,000 $124,000 $79,000
Manufacturing overhead
applied $ 96,000 $13,200 $78,000
Under-applied $3,000 $110,800 $1,000
Explanation:
a) Data and Calculations:
Estimates:
Department D E K
Manufacturing overhead $1,200,000 $1,500,000 $900,000
Direct labor costs $1,500,000 $1,250,000 $450,000
Direct labor hours 100,000 125,000 40,000
Machine hours 400,000 500,000 120,000
Application of overhead
Department D = Direct labor cost
Department E = Direct labor hours
Department K = Machine hours
Department D E K
Overhead application rate $0.80 $1.20 $7.50
January actual cost data:
Department D E K
Direct materials used $140,000 $126,000 $78,000
Direct labor costs $120,000 $110,000 $37,500
Manufacturing overhead
incurred $ 99,000 $124,000 $79,000
Direct labor hours 8,000 11,000 3,500
Machine hours 34,000 45,000 10,400
Overhead applied:
Department D = Overhead rate * direct labor costs
= $0.80 * $120,000
= $96,000
Department E = Overhead rate * direct labor hours
= $1.20 * 11,000
= $13,200
Department K = Overhead rate * machine hours
= $7.50 * 10,400
= $26,250
Hughes Corporation is considering replacing a machine used in the manufacturing process with a new, more efficient model. The purchase price of the new machine is $150,000 and the old machine can be sold for $100,000. Output for the two machines is identical; they will both be used to produce the same amount of product for five years. However, the annual operating costs of the old machine are $18,000 compared to $10,000 for the new machine. Also, the new machine has a salvage value of $25,000, but the old machine will be worthless at the end of the five years. You are deciding whether the company should sell the old machine and purchase the new model. You have determined that an 8% rate properly reflects the time value of money in this situation and that all operating costs are paid at the end of the year. For this initial comparison you ignore the effect of the decision on income taxes. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. What is the incremental cash outflow required to acquire the new machine
Answer:
50,000
Explanation:
Hughes Corporation can calculate the incremental cash outflow required to acquire the new machine by just deducting the sales proceeds from the cost of the new machine.
DATA
New machine = $150,000
Old machine = 100,000
Cash outflow per year (18,000 - 10,000) = 8,000
Salvage value = 25,000
Annuity factor = 8%
Solution
Incremental Cash outflow = Cost of new machine - Sales proceeds from old machine
Incrementa Cash outflow = 150,000 - 100,000
Incremental Cash outflow = $50,000
Carnes has the following account balances as of December 31, 2017 before an acquisition transaction takes place. Inventory $100,000 Land 400,000 Buildings (net) 500,000 Common stock ($10 par) 600,000 Additional paid-in capital 200,000 Retained earnings 200,000 Revenues 450,000 Expenses 250,000 The fair value of Carnes' Land and Buildings are $650,000 and $550,000, respectively. On December 31, 2017, Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock. Riley paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Riley has $700,000 in its common stock account and $300,000 in its additional paid-in capital account. At the date of acquisition, by how much does Riley's additional paid-in capital increase or decrease? Question 2 options: A) $450,000 increase. B) $640,000 increase. C) $440,000 increase. D) $0. E) $650,000 decrease.
Answer:
C) $440,000 increase.
Explanation:
Particulars Amount
Number of shares issued (a) 30,000
Issued price per shares $25
Less: Par value per shares $10
Paid in capital in excess of par per share (b) $10
Total paid in capital in excess of par (a*b) $450,000
(30,000 shares * $15)
Less: Issue costs $10,000
Increase in additional paid-in-capital $440,000
Civil liberties in Latin America vary. This means that __________. A. everyone across the region has the same civil liberties B. some people have more civil liberties than others C. people in Latin America have no civil liberties D. people in Latin America have the same civil liberties as people in the US
Answer:
Civil liberties in Latin America vary. This means that __________. A. everyone across the region has the same civil liberties B. some people have more civil liberties than others C. people in Latin America have no civil liberties D. people in Latin America have the same civil liberties as people in the US = Answer Is B
Explanation:
Some People Do Have More Rights That Others, Due To Capitalism, And Racism, And Think The Whites Are Most Important, Even Though Some "Not American" People Helped Form What Is Today, I Must Stop Know Before I Start Talking About All That
Answer:
b btw
Explanation:
On May 1, 2021, Cedar Corp. paid $432,000 for rent on warehouse space one year in advance. On November 1, 2021, Cedar Corp. entered into a lease agreement to rent out its old warehouse space it was no longer using. This agreement calls for Cedar to receive $10,000 per month from the lessee, due and payable at the end of the 5-month lease term. At December 31, 2021, none of the rental payments from the lessee had yet been received. If Cedar makes the appropriate adjusting entry, how much will be reported on the December 31, 2021 income statement for rent expense?
Answer: $324,000
Explanation:
Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.
The rent will therefore have to be apportioned to the months that it has paid for in the current period.
Rent for year = $432,000
Rent for month = 432,000/12 = $36,000
April - December = 9 months
Rent for the year = 9 * 36,000
= $324,000
Note; Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received.
For the past two years, Swen Johannsen, owner/general manager of Swen's Fine Duds, a local men's clothing store, has fought to stay in business. In the face of increasing competition, Swen has tried several tactics: aggressively promoting price-slashing sales to drive his competitors' customers to his doors; attempting to cut costs by leveling out sales and inventory through seasonal sales; as well as lining up contracts with wholesalers in advance of seasonal rushes (e.g., summer swimwear) to prevent inventory depletion. He has even recruited the president of the chamber of commerce to sit on his board. None of these tactics have been successful. Now, Swen is considering a deviation from his current business to one that might be more suitable, perhaps a formal wear/tuxedo rental and retail shop or a boutique Western wear store. Swen is using _____ as his final tactic.
Answer:
Swen is using product/service repositioning strategy.
Explanation:
Product Repositioning simply refers to the art of altering the target markets perception of one's product and or services.
Swen is still in the clothing business. He has only changed the way he delivers it to the target consumers.
Of course, this sometimes calls for a change in product mix (which refers to altering the type of products being offered). However, the central idea of the strategy still holds as customers now see the business differently.
This type of strategy is easier to pull off for start-ups, or unpopular businesses trying to make a comeback. Where the business is a well-established brand, it can prove extremely difficult and may be costly.
Cheers.
Use the following information, taken from each of the company's 2016 financial statements to complete the requirements. Cash from Current Company Operations Liabilities CAPEX Logitech International $258.111 $414.930 $56.615 Steelcase Inc 261.400 557.500 93.400 Chico's FAS Inc. 271.991 298.131 84.841 Vista Outdoor Inc 273.002 368.901 41.526 a. Compute the operating cash flow to current liabilities ratios. b. Rank-order each company from low to high liquidity (ability to pay liabilities as they come due). c. Compute the operating cash flow to CAPEX ratio. Compared with the rule of thumb of 1.0, assess the company's solvency as either low, medium, or high. d. Rank-order each company from low to high solvency. Round answers to two decimal places. For ranking, 1 is the highest and 4 is the lowest. Operating Cash Flow to Current Liquidity Operating Cash Solvency Company Liabilities Rank Flow to CAPEX Rank Logitech International Answer 0 Answer Answer 0 Answer Steelcase Inc Answer 0 Answer Answer 0 Answer Chico's FAS Inc. Answer 0 Answer Answer 0 Answer Vista Outdoor Inc Answer 0 Answer Answer 0 Answer
Answer:
A.Logitech International 0.62
Steelcase Inc 0.47
Chico's FAS Inc. 0.91
Vista Outdoor Inc 0.74
B. Logitech International 0.62 MEDIUM
Steelcase Inc 0.47 LOW
Chico's FAS Inc. 0.91 HIGH
Vista Outdoor Inc 0.74 HIGH
C.Logitech International 4.56
Steelcase Inc 2.80
Chico's FAS Inc. 3.20
Vista Outdoor Inc 6.57
D. Logitech International 4.56 HIGH
Steelcase Inc 2.80 LOW
Chico's FAS Inc. 3.20 MEDIUM
Vista Outdoor Inc 6.57 HIGH
Explanation:
A. Computation of the operating cash flow to current liabilities ratios
Using this formula
Operating Cash Flow to Current Liabilities Ratio = Operating Cash Flow / Current Liabilities
Let plug in the formula
Company Operating Cash Flow Current Liabilities Ratio =Liquidity
Logitech International $258.111 /$414.930 =0.62
Steelcase Inc $261.400/$557.500 =0.47
Chico's FAS Inc. $271.991 /$298.131 =0.91
Vista Outdoor Inc $273.002/$368.901 =0.74
B. Ranking -order of each company from low to high liquidity
Company Operating Cash Flow Current Liabilities Ratio Liquidity RANKING ORDER
Logitech International $258.111 $414.930 0.62 MEDIUM
Steelcase Inc $261.400 $557.500 0.47 LOW
Chico's FAS Inc. $271.991 $298.131 0.91 HIGH
Vista Outdoor Inc $273.002 $368.901 0.74 HIGH
C. Computation of operating cash flow to CAPEX ratio
Using this formula
Operating Cash Flow to CAPEX Ratio = Operating Cash Flow / CAPEX Ratio
Let plug in the formula
Company Operating Cash Flow CAPEX Ratio =Solvency
Logitech International $258.111 /$56.615 =4.56
Steelcase Inc $261.400/$93.400=2.80
Chico's FAS Inc. $271.991 /$84.841 =3.20
Vista Outdoor Inc $273.002 /$41.526 =6.57
D. Ranking -order for each company from low to high solvency
Company Operating Cash Flow CAPEX Ratio Solvency RANKING ORDER
Logitech International $258.111 $56.615 4.56 HIGH
Steelcase Inc $261.400 $93.400 2.80 LOW
Chico's FAS Inc. $271.991 $84.841 3.20 MEDIUM
Vista Outdoor Inc $273.002 $41.526 6.57 HIGH
Therefore operating cash flow to current liabilities ratios is:
Logitech International 0.62
Steelcase Inc 0.47
Chico's FAS Inc. 0.91
Vista Outdoor Inc 0.74
And the Ranking -order of each company from low to high liquidity is :
Logitech International 0.62 MEDIUM
Steelcase Inc 0.47 LOW
Chico's FAS Inc. 0.91 HIGH
Vista Outdoor Inc 0.74 HIGH
Operating cash flow to CAPEX ratio is :
Logitech International 4.56
Steelcase Inc 2.80
Chico's FAS Inc. 3.20
Vista Outdoor Inc 6.57
And the Ranking -order of each company from low to high solvency is :
Logitech International 4.56 HIGH
Steelcase Inc 2.80 LOW
Chico's FAS Inc. 3.20 MEDIUM
Vista Outdoor Inc 6.57 HIGH
Jim borrowed 10,000 from Bank X at an annual effective rate of 8%. He agreed to repay the bank with 5 level annual installments at the end of each year. At the same time, he also borrowed 15,000 from bank Y at an annual effective rate of 7.5%. He agreed to pay the bank this loan with 5 level annual installments at the end of each year. He lent the 25,000 to Wayne immediate in exchange for 4 annual level repayments at the end of each year, at an annual effective rate of 8.5%. Jim can only reinvest the proceeds at an annual effective rate of 6%. Immediately after repaying the loans to the banks in full, determine how much Jim has left.
Answer:
$373.43
Explanation:
the cash outflows associated to the first loan are 5 level payments of $2,504.56 each (= $10,000 / 3.992717 PV annuity factor, 8%, 5 periods).
the cash outflows associated to the second loan are 5 level payments of $3,707.47 each (= $15,000 / 4.048857 PV annuity factor, 7.5%, 5 periods).
total cash outflows associated to both loans = $6,212.03
inflows associated with investment are 4 level payments of $7,632.20 each (= $25,000 / 3.275596 PV annuity factor, 8.5%, 4 periods).
net cash flow year 1 = $7,632.20 - $6,212.03 = $1,420.17
net cash flow year 2 = $7,632.20 - $6,212.03 + ($1,420.17 x 1.06) = $2,925.55
net cash flow year 3 = $7,632.20 - $6,212.03 + ($2,925.55 x 1.06) = $4,521.25
net cash flow year 4 = $7,632.20 - $6,212.03 + ($4,521.25 x 1.06) = $6,212.70
net cash flow year 5 = ($6,212.70 x 1.06) - $6,212.03 = $373.43
Booth's fixed assets were used to only 50% of capacity during 2018, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 8% and its payout ratio to be 30%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.
Answer:
AFN = $138
Explanation:
the accounts and balances are missing, so I looked for a similar question:
The Booth Company's sales are forecasted to double from $1,000 in 2010 to $2,000 in 2011. Here is the December 31, 2010, balance sheet:
Cash $ 100 Accounts payable $ 50
Accounts receivable 200 Notes payable 150
Inventories 200 Accruals 50
Net fixed assets 500 Long-term debt 400
Common stock 100
Retained earnings 250
Total assets $1000 Total liabilities and equity $1000
AFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
A/S: $500 / $1,000 = 0.50 ΔSales = $1,000 L/S = $250 / $1,000 = 0.25PM = 0.08 FS = $2,000 1 - d = 1 - 30% = 0.70AFN = (0.5 x $1,000) - (0.25 x $1,000) - (0.08 x $2,000 x 0.7) = $500 - $250 - $112 = $138
Sheridan Co. wishes to enter receipts and payments in such a manner that adjustments at the end of the period will not require reversing entries at the beginning of the next period. Record the following transactions in the indicated manner and give the adjusting entry on December 31, 2020. (Two entries for each part.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
1. An insurance policy for two years was acquired on April 1, 2020 for $23,000.
2. Rent of $16,800 for six months for a portion of the building was received on November 1, 2020
Answer:
April, 1
DR Prepaid Insurance .............................................................$23,000
CR Cash ........................................................................................................$23,000
Dec, 31
DR Insurance Expense.............................................................$8,625
CR Prepaid Insurance................................................................................$8,625
Working
Insurance expense;
April to December = 9 months
= 23,000 * 9/24 months
= $8,625
Nov, 1
DR Cash ......................................................................................$16,800
CR Deferred rent revenue .....................................................................$16,800
Dec, 31
DR Deferred rent revenue ...................................................$5,600
CR Rent Revenue......................................................................................$5,600
Working
= 16,800 * 2/6 months
= $5,600
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:_______.
Opened a business bank account with a deposit of $25,000 from personal funds.
Purchased office supplies on account, $2,600.
Received cash from fees earned for managing rental property, $7,030.
Paid rent on office and equipment for the month, $3,190.
Paid creditors on account, $1,180.
Billed customers for fees earned for managing rental property, $5,910.
Paid automobile expenses (including rental charges) for the month, $710, and miscellaneous expenses, $350.
Paid office salaries, $2,250.
Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,060.
Withdrew cash for personal use, $2,130.
Required:1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
Answer:
Opened a business bank account with a deposit of $25,000 from personal funds.
Dr Cash 25,000
Cr Schatz, Pamela, capital 25,000
the account balances:
Cash 25,000
Schatz, Pamela, capital 25,000
Purchased office supplies on account, $2,600.
Dr Supplies 2,600
Cr Accounts payable 2,600
the account balances:
Supplies 2,600
Accounts payable 2,600
Received cash from fees earned for managing rental property, $7,030.
Dr Cash 7,030
Cr Service revenue 7,030
the account balances:
Cash 32,030
Service revenue 7,030
Paid rent on office and equipment for the month, $3,190.
Dr Rent expense 3,190
Cr Cash 3,190
the account balances:
Cash 28,840
Rent expense 3,190
Paid creditors on account, $1,180.
Dr Accounts payable 1,180
Cr Cash 1,180
the account balances:
Cash 27,660
Accounts payable 1,420
Billed customers for fees earned for managing rental property, $5,910.
Dr Accounts receivable 5,910
Cr Service revenue 5,910
the account balances:
Accounts receivable 5,910
Service revenue 12,940
Paid automobile expenses (including rental charges) for the month, $710, and miscellaneous expenses, $350.
Dr Rent expense 710
Dr Miscellaneous expenses 350
Cr Cash 1,060
the account balances:
Cash 26,600
Rent expense 3,900
Miscellaneous expenses 350
Paid office salaries, $2,250.
Dr Wages expense 2,250
Cr Cash 2,250
the account balances:
Cash 24,350
Wages expense 2,250
Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,060.
Dr Supplies expense 1,060
Cr Supplies 1,060
the account balances:
Supplies 1,540
Supplies expense 1,060
Withdrew cash for personal use, $2,130.
Dr Schatz, Pamela, drawings 2,130
Cr Cash 2,130
the account balances:
Cash 22,220
Schatz, Pamela, capital 22,870
An indication of the effect of each transaction and the account balances are as follows:
Transaction Assets = Liabilities + Capital
1. $25,000 $25,000
Account balances $25,000 $0 $25,000
2. $2,600 $2,600
Account balances $27,600 $2,600 $25,000
3. $7,030 $7,030
Account balances $34,630 $2,600 $32,030
4. -3,190 -$3,190
Account balances $31,440 $2,600 $28,840
5. -$1,180 -$1,180
Account balances $30,260 $1,420 $28,840
6. $5,910 $5,910
Account balances $36,170 $1,420 $34,750
7. -$710 -$710
Account balances $35,460 $1,420 $34,040
8. -$350 -$350
Account balances $35,110 $1,420 $33,690
9. -$2,250 -$2,250
Account balances $32,860 $1,420 $31,440
10. -$1,060 -$1,060
Account balances $31,800 $1,420 $30,380
11. -$2,130 -$2,130
Account balances $29,670 $1,420 $28,250
Transaction Analysis:Cash $25,000 Common Stock $25,000
Office supplies $2,600 Accounts Payable $2,600
Cash $7,030 Rental Fees $7,030
Rent Expenses $3,190 Cash $3,190
Accounts Payable $1,180 Cash $1,180
Accounts Receivable $5,910 Rental Fees $5,910
Automobile Expenses $710 Cash $710
Miscellaneous Expenses $350 Cash $350
Office Salaries Expenses $2,250 Cash $2,250
Supplies Expenses $1,060 Office Supplies $1,060
Drawings $2,130 Cash $2,130
Thus, based on the accounting equation, each transaction affects either the assets, liabilities, or capital.
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Annually, Monet Corp. awards each of its employees two weeks of paid vacation, which can be carried over if not used. As of December 31, Year 1, the company determined that there are 20 vacation weeks eligible for carryover. During Year 1, compensation averaged $1,000 per week. That average compensation amount is expected to increase to $1,030 during Year 2 when that vacation time will be taken. What is the liability that should be reported for vacation pay in the company’s balance sheet prepared as of December 31, Year 1?
Answer:
$20,000
Explanation:
Calculation for the liability that should be reported for vacation pay
Using this formula
Liability=Vacation weeks*Compensation averaged per week for Year 1
Let plug in the formula
Liability=20 weeks × $1,000 per week
Liability = $20,000
Therefore the amount of liability that should be reported for vacation pay will be $20,000
Use the following generalized linear demand relation:
Qe = 680 - 9P + 0.006M - 4PR
Where M is income and PRis the price of a related good, R.
1. From this relation it is apparent that the good is:____.
a. an inferior good.
b. a substitute for good R.
c. a normal good.
d. a complement for good R.
e. both c and d.
2. If M $15,000 and PR $20, the demand function is:______.
A. P = 690 - 9Qd.
B. Qd = 690 - 9P.
C. Qd = 680 - 9P.
D. P = 680 - 9Qd.
E. Qd = 800 - 19 P.
3. If M-$15,000 and Pr- $20 and the supply function is Qs price and quantity are, respectively:______.
A. P $55 and Q = 195.
B. P=$6 and Q = 38.
C. P=$12 and Q = 200.
D. P=$50 andQ = 170.
E. P=$40 and Q =250.
4. If M $15,000 and PR $20 and the supply function is Qs = 30 + 3P, then, when the price of the good is $60:______.
a. there is a shortage of 60 units of the good.
b. there is equilibrium in the market.
c. there is a surplus of 60 units of the good.
d. the quantities demanded and supplied are indeterminate.
5. If M $15,000 and Pr-$20 and the supply function is Qs 30+3P, then, when the price of the good is $40:_____.
a. there is equilibrium in the market.
b. there is a shortage of 180 units of the good.
c. there is a surplus of 180 units of the good.
d. there is a shortage of 80 units of the good.
Answer:
Explanation:
1 .
Qe = 680 - 9P + 0.006M - 4PR
When the price of good R is increased , the demand of good is decreased . That means the demand of another good is increased . It means that goods R is a complement good . Now the coefficient of M is positive that means when income increases , demand of good increases . So the good is a normal good .
Hence good is a normal and complement good of R
option e ) is correct.
2 .
Qe = 680 - 9P + 0.006M - 4PR
Putting the value of M = 15000 and PR = 20
Qe = 680 - 9P + 0.006x 15000 - 4 x 20
Qe = 680 - 9P + 90 - 80 = 690 - 9P
3 .
For equilibrium
supply = demand
30+3P = 690 - 9P
12 P = 660
P = 55
Q = 690 - 9P = 690 - 9 x 55 = 195
4 .
When the price of goods is 60 , it is higher than the equilibrium price , hence demand will shrink and it will be less than supply
quantity demanded = 690 - 9P = 690 - 9 x 60 = 150
quantity supplied = 30+3P = 30 + 3 x 60 = 210
excess supply = 210 - 150 = 60 .
5 .
when price is 40 which is less than equilibrium price
there will be more demand
quantity demanded
= 690 - 9P = 690 - 9 x 40 = 330
quantity supplied = 30+3P = 30 + 3 x 40 = 150
excess supply = 180
1. The good is both a normal as well as a complement for good R.
2. The demand function would be Qd = 690 - 9P.
3. The P is $55 and Q is 195 units.
4. There is a supply surplus of 60 units of the goods.
5. There is a shortage of 180 units of goods due to excess demand.
The good referred to as normal good as M is given positive, which means income increases the quantity of demand would also rise. On the other hand, the good is complementary to R due to the negative relationship that is the price of R increases would create an increase in demand of another good.
The function is given as:
[tex]Qe = 680 - 9P + 0.006M - 4PR[/tex]
Now, by substituting the value of M that is 15000 and PR that is 20 in the above function, it would give:
[tex]Qe = 680 - 9P + 0.006x 15000 - 4*20\\Qe=690 - 9P[/tex]
The equilibrium level is decided when demand equalizes with the supply.
Price at equilibrium would be computed as:
[tex]30+3P = 690 - 9P\\=55[/tex]
Now, equilibrium quantity would be:
[tex]Q = 690 - 9P \\ = 195[/tex]
The excess or surplus of supply would be seen when the price becomes 60. it is because this price would be more than the equilibrium price that is 55, which would decrease the quantity demanded. Thus, it shows that supply in the market is the same but demand falls with increased prices.
Quantity demanded would be:
[tex]Qd = 690 - 9*60 \\ = 150[/tex]
Quantity supplied would be:
[tex]Qs= 30 + 3* 60 \\= 210[/tex]
Finally, the excess supply is:
[tex]Qs-Qd\\=210 - 150 \\= 60[/tex]
When prices fall that is 40 below the equilibrium prices then it would increase the quantity demanded with the same supply in the market.
Calculation of Quantity demanded:
[tex]Qd= 690 - 9 * 40\\ = 330[/tex]
Quantity supplied is computed as:
[tex]Qs = 30 + 3* 40 \\= 150[/tex]
Now the excess of demand would be:
[tex]Qd-Qs\\330-150\\=180[/tex]
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What is an example of a global strategy?
A. McDonald's in Vietnam offering McPork sandwiches specifically for Vietnam consumers
B. Consumer electronics companies developing different marketing strategies for different foreign markets
C. Starbucks standardizing its products across the United States and other countries
D. General Motors creating electric vehicles specifically for the Chinese market
E .International fast food chains refraining from using pork or beef only in the Indian market
Answer:
Seems like it's c
Explanation:
Just because it's the only logical one mentioning other countries and the united states
The following are monthly actual and forecast demand levels for May through December for units of a product manufactured by the D. Bishop Company in Des Moines:_______.
Month Actual Demand Forecast Demand
May 108 100
June 80 104
July 108 101
August 118 104
September 105 104
October 114 104
November 130 105
December 120 107
For the given forecast, the tracking signal = _______ MADs (round your response to two decimal places).
Answer:
4.24
Explanation:
The computation of tracking signal is shown below:-
Month Actual Demand(dt) Forecast Demand (ft) error (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs = 102 ÷ 8
= 12.75
Tracking signal = 54 ÷ 12.75
= 4.24
The tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
What is a tracking signal?A tracking signal is the ratio of the cumulative sum of the deviations between the estimated forecasts and the actual values of demand to the mean absolute deviations (MADs).
The tracking signal determines the larger deviation (in both plus and minus) of Error in Forecast.
The tracking signal can be calculated with this formula:
Tracking Signal = Accumulated Forecast Errors/Mean Absolute Deviation.
What is Mean Absolute Deviation?The mean absolute deviation is the average of values or more specifically, the difference between the actual values and their average value. The mean absolute deviation (MAD) is used for calculating demand variability.
Data and Calculations:Month Actual Forecast Error Difference
Demand(dt) Demand (ft) (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs (Mean Absolute Deviations) = 12.75 (102 ÷ 8)
Tracking signal = 4.24 (54 ÷ 12.75)
Thus, the tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
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Byron Books Inc. recently reported $18 million of net income. Its EBIT was $37.1 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Answer:
Interest expense $13,100,000
Explanation:
The computation of the interest expense is shown below:
EBIT $37,100,000 (a)
Less: Interest expense $13,100,000 (a - c)
EBT($18,000,000 ÷ 0.75) $24,000,000 (c)
Less: Taxes $6,000,000 (c - e)
Net income $18,000,000 (e)
In this way the interest expense is computed
hence, the interest expense is $13,100,000
On May 31, 20X1, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the entity. By the end of the year, the assets have not been sold. The book value of those assets equals $850,000, and the company estimates their fair value to be $1,100,000. The component generated operating income of $450,000 for the year. In its income statement for the year ended December 31, 20X1, for what amount would the company report income from operations of a discontinued component (ignoring taxes).
a. $300,000b. $550,000c. $450,000d. $700,000
Answer: $450,000
Explanation:
There won't be gain or loss as asset haven't been sold. In its income statement for the year ended December 31, 20X1, the amount that would the company report income from operations of a discontinued component will be:
Profit or loss made on the sale of asset = $0
Income from discontinued operations = $450000
Therefore, the income from operations of a discontinued component will be:
= $0 + $450000
= $450,000
In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and other securities with an expected return of and a volatility of . Currently, the risk-free rate of interest is . Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of , a volatility of , and a correlation of with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio. The required return is nothing%. (Round to two decimal places.) Use the result of the above calculation to determine whether you should add the venture capital fund to your portfolio. Should you add the venture fund to your portfolio?
Answer: 6.29%
Explanation:
Required return = Risk free rate + beta ( expected return - risk free rate)
Beta.
[tex]= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493[/tex]
Required return = 3.63% + 0.493(9.03% - 3.63%)
= 6.29%
H. J., Inc., and other customers of Northwestern Bell Corp. alleged that Northwestern Bell had Furnished cash and tickets for air travel, plays, and sporting events and had offered employment to members of the Minnesota Public Utilities Commission in exchange for favorable treatment in rate cases before the commission. A Minnesota statute makes it a felony to bribe public officials. H. J. and other customers brought suit against Northwestern for violation of the criminal bribery statute. Can the customers bring a criminal action?
Answer:
The private cause of action cannot come under the criminal statute. Thus, customers cannot bring the criminal action.
Explanation:
Bribery is an act of providing monetary or non-monetary benefits to an individual in order to influence his decision in one's favor. Bribery is a white collar crime.
The plaintiff are civilians therefore, the action which was alleged under bribery statute of criminal law do not provide any private remedies as it contains no provision for such remedies. Bribery under common law also do not have any cause of action in Minnesota state. Under the Criminal law, the civil action can only be taken if it appears that it was the legislative intent. Since, there was no legislative intent to provide civil cause of action in criminal statute, the customer cannot bring the criminal action.
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:
Accounts Debit Credit
Cash $12,000
Accounts receivable 159,000
Prepaid rent 7,000
Supplies 28,000
Equipment 350,000
Accumulated depreciation $128,000
Accounts payable 12,000
Salaries payable 3,100
Interest payable 1,400
Notes payable (due in two years) 31,000
Common stock 230,000
Retained earnings 140,500
Dividends 27,000
Service revenue 380,000
Salaries expense 180,000
Advertising expense 77,000
Rent expense 15,000
Depreciation expense 33,000
Interest expense 3,000
Utilities expense 35,000
Totals $ 926,000 $ 926,000
Prepare an income statement for China Tea Company for the year ended December 31, 2021:
Answer:
China Tea Company
Income statement for the year ended December 31, 2021:
$
Service revenue 380,000
Less Expenses :
Salaries expense 180,000
Advertising expense 77,000
Rent expense 15,000
Depreciation expense 33,000
Interest expense 3,000
Utilities expense 35,000 (343,000)
Net Income / (loss) 37,000
Explanation:
Net Income shows the Profit or Loss from Operating Activities during the Reporting Period.
The Items found in it comprise of Revenues/Income, Expenses and Profit/Loss.
Profit/ Loss = Sales - Expenses
Rafner Manufacturing identified the following budgeted data in its two production departments. Assembly Finishing Manufacturing overhead costs . $1,200,000 $600,000 Direct labor hours 12,000 DLH 20,000 DLH Machine hours . 6,000 MH 16,000 MH 1. What is the company’s single plantwide overhead rate based on direct labor hours? 2. What is the company’s single plantwide overhead rate based on machine hours? (Round your answer to two decimal places.)
Answer:
Results are below.
Explanation:
Giving the following information:
Total estimated overhead= 1,200,000 + 600,000= 1,800,000
Direct labor hours= 12,000 + 20,000= 32,000
Machine hours= 6,000 + 16,000= 22,000
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Based on direct labor hours:
Predetermined manufacturing overhead rate= 1,800,000/32,000
Predetermined manufacturing overhead rate= $56.25 per direct labor hour
Based on machine hours:
Predetermined manufacturing overhead rate= 1,800,000/22,000
Predetermined manufacturing overhead rate= $81.82 per machine hour
On 1/1/2019, Firm XYZ signs a debt contract. According to the debt contract, Firm XYZ raises $100,000 from an investor and promises to pay the investor $100,000 on 1/1/2020 (i.e., the interest rate is zero). On 1/2/2019, Firm XYZ finds that there are two investment opportunities, and each project costs the firm $100,000:
Project 1: $400,000 with probability 0.4 and $0 with probability 0.6
Project 2: $200,000 with probability 1.
i) Which project exhibits a higher NPV?
ii) Which project does the firm prefer? Firm prefers project 1 because
iii) How about debtholders? Debtholders would prefer project 2 because
iv) Suppose that, on 1/1/2019, the investor knows that the firm will choose a project between project 1 and 2. Would the investor choose to sign the debt contract?
Answer:
i) Which project exhibits a higher NPV?
project 2
ii) Which project does the firm prefer?
project 1 since it has the potential to earn $400,000 (resulting in an NPV of $300,000) and if things go wrong, they will not lose their money. When you gamble with someone else's money, you are willing to take higher risks.
iii) How about debtholders?
project 2 since it guarantees that the loan will be paid back
iv) Suppose that, on 1/1/2019, the investor knows that the firm will choose a project between project 1 and 2. Would the investor choose to sign the debt contract?
This depends on what type of business Firm XYZ is. If it is a corporation, LLC or a LLP, then I doubt that the loan will be made because the firm's owners are not personally liable for the debt. If the firm is a sole proprietorship or a general partnership, then depending on the financial position of the owners, the loan can be made.
Explanation:
since the discount rate is 0:
the NPV of project 1 = [($400,000 x 0.4) + $0] - $100,000 = $160,000 - $100,000 = $60,000
the NPV of project 2 = $200,000 - $100,000 = $100,000
Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery Service during May: Select the accounting equation elements (Assets, Liabilities, Owner's Equity) affected by the transaction. Then, in the "Direction" column, select the impact ("Increases" or "Decreases") on the accounting equation element. Lastly, select the specific account within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Owner's Equity (Katie Wyer, Capital) increases by $18,000.
Element Direction Item
1. Received cash from owner as additional investment, $18,000. Asset Owner's Equity Increases Increases Cash Katie Wyer, Capital
2. Paid advertising expense, $4,850. Liability Increases Katie Wyer, Capital
3. Purchased supplies on account, $2,100. Liability Decreases Accounts Receivable
4. Billed customers for delivery services on account, $14,700. Liability Increases Accounts Payable Liability Decreases Delivery Service Fees
5. Received cash from customers on account, $8,200. Asset Increases Cash Asset Increases Accounts Receivable
Answer:
1. Transaction: Received cash from owner as additional investment $18,000
Accounting equation element: Asset and Equity
Direction: Cash increases Equity increases
Account: Cash and Wyer capital
2. Transaction: Paid advertising expenses $4,850
Accounting equation element: Asset and equity
Direction: Cash decreases Equity decreases
Account: Cash and equity
3. Transaction: Purchase supplies on account $2,100
Accounting equation element: Asset and Liability
Direction: Asset increases Liability increases
Account: Supplies and Accounts payable
4. Transaction: Billed customers for delivery services on account $14,700
Accounting equation element: Asset and Equity
Direction: Asset increases Equity increases
Account: Accounts receivable and equity
5. Transaction: Received cash from customers on account $8,200
Accounting equation element: Asset and Asset
Direction: Cash increases and accounts receivable decreases
Account: Cash and accounts receivable
