Answer:
d.For each $2,500 payment received in the first year, Todd must include $1,000 in gross income
Explanation:
The computation is shown below:
As we know that
Exclusion Ratio is
= Cost ÷ Benefit
= $150,000 ÷ ($2,500 × 100)
= 0.6
Now
= 0.6 × $2,500
= $1,500 Excludible
So, the involved amount is
= $2,500 - $1,500
= $1,000 Includible
Hence, the correct option is d. and the same is to be considered
The other options are wrong
Computing unit and inventory costs under absorption costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations.
Direct materials $15 per unit
Direct labor $16 per unit
Overhead costs for the year
Variable overhead $80,000 per year
Fixed overhead $160,000 per year
Units produced this year 20,000 units
Units sold this year 14,000 units
Ending finished goods inventory
in units 6,000 units
1. Compute the cost per unit using absorption costing
Cost per unit of finished goods using: Absorption costing
Cost per unit of finished goods
2. Determine the cost of ending finished goods inventory using absorption costing.
Cost per unit of finished goods using: Absorption costing
Number of units in finished goods
Total cost of finished goods inventory
3. Determine the cost of goods sold using absorption costing
Cost per unit of goods sold using: Absorption costing
Number of units in sold goods
Total cost of sold goods
Answer:
a. $43
b. $258,000
c. $602,000
Explanation:
Variable overhead per unit = Variable overhead / Units produced this year
Variable overhead per unit = $80,000 / 20,000
Variable overhead per unit = $4
Fixed overhead per unit = Fixed overhead / Units produced this year
Fixed overhead per unit = $160,000/ 20,000
Fixed overhead per unit = $8
a. Cost per unit of finished goods using Absorption costing
Direct material per unit $15
Direct labor per unit $16
Variable overhead per unit $4
Fixed overhead per unit $8
Cost per unit of finished goods $43
b. Number of units in finished goods = 6,000
Total cost of finished goods inventor = $43 * 6,000 units = $258,000
c. Number of units in sold goods 14,000
Total cost of finished goods inventory = $43 * 14,000 units = $602,000
Perteet Corporation's relevant range of activity is 4,800 units to 10,000 units. When it produces and sells 7,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.70 Direct labor $ 3.40 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 3.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.20 Sales commissions $ 0.30 Variable administrative expense $ 0.35 If 5,200 units are produced, the total amount of manufacturing overhead cost is closest to:
Answer:
$36,000
Explanation:
The computation of the total amount of manufacturing overhead is shown below:
But before that determine the following amounts
Fixed manufacturing overhead is
= 7,400 × $3.6
= $26,640
ANd, the Variable manufacturing overhead is
= 5,200 × $1.80
= $9,360
So,
Total manufacturing overhead is
= $26,640 + $9,360
= $36,000
You are the store manager at a large furniture store, FurnitureLand. One of your products is a study desk. The demand for study desks is relatively steady and inventory replenishments are ordered from the assembly plant whenever the quantity drops to the reorder level. The lead time from the assembly plant to your store is two weeks, and the ordering cost is $500. Weekly demand for the desk is normally distributed with mean of 50and a standard deviation of 10. Your internal cost of capital is 15 percent per yearand each desk costs $200. (Assume there are 52 weeks in oneyear).(a)Suppose you want to target a 98 percent service level. What should the safety stock and reorder point be
Answer:
safety stock = 33 desks
reorder point = 133 desks
Explanation:
safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)
Z-score for 98% confidence level = 2.326 standard deviation of demand = 10 √lead time = √2 = 1.414we are not given any standard deviation of lead time, so we can assume that it is 0safety stock = (2.326 x 1.414 x 10) + (2.326 x 0 x 50) = 32.89 ≈ 33 desks
reorder point = lead time demand + safety stock = (50 x 2) + 33 = 133
Kingston Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipment’s 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. The annual lease payment is $35,000 at the beginning of each year, and Kingston’s incremental borrowing rate is 6%, which is the same as the lessor’s implicit rate. Prepare all the necessary journal entries for Falls Company (the lessor) for 2020, assuming the equipment is carried at a cost of $200,000
Answer:
The following are the answer to this question:
Explanation:
There really is no Naming Convention accessible, that may differentiate noticeably:
It lease doesn't really follow any one of the criteria of a leased asset and is therefore classified as a lease:
Date Account title and explaination Debit Credit
1-1-17 Asset right of use $99,169 $99,169
[tex](35000 \times 2.83339)[/tex]
1-1-17 Liability lease cash $35,000 $35,000
12-31-17 Leasing Expenses $35,000 $3,850
Liability for leasing
[tex](99169-35000) \times 6%[/tex] $ 31, 150
Activity Right to Use (plug)
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $45,000 Current assets $70,470 Long-term debt $48,600 Costs 28,800 Fixed assets 38,880 Equity 60,750 Taxable income $16,200 Total $109,350 Total $109,350 Taxes (23%) 3,726 Net income $12,474 Assets and costs are proportional to sales. The company maintains a constant 28 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued
Answer:
$7,808
Explanation:
Calculation for the maximum increase in sales that can be sustained assuming no new equity is issued
First step is to calculate for the return on equity using this formula
Return On Equity = Net income / Equity
Let plug in the formula
Return On Equity=$12,474 / $60,750
Return On Equity= 20.53%
Second step is to find the retention ratio using this formula
Retention ratio= 1 - Dividend payout ratio
Let plug in the formula
Retention ratio= 1 - 0.28
Retention ratio= 0.72
Third step is to find the sustainable growth rate using this formula
Sustainable growth rate= (ROE × b) / [1 - (ROE × b)]
Let plug in the formula
Sustainable growth rate= ( 0.2053x 0.72 ) / [ 1 - ( 0.2053x 0.72 ) ]
Sustainable growth rate=0.147816/1-0.147816
Sustainable growth rate= 0.147816/0.852184
Sustainable growth rate=17.35%
Therefore the maximum dollar increase in sales is
Maximum dollar increase= $ 45,000 x 0.1735
Maximum dollar increase= $7,808 Approximately
Therefore the maximum dollar increase in sales will be $7,808
Note:28%-100% will give us 72%
Carmen’s Beauty Salon has estimated monthly financing requirements for the next six months as follows: January $ 8,600 April $ 8,600 February 2,600 May 9,600 March 3,600 June 4,600 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January 5 % April 12 % February 6 May 12 March 9 June 12 What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. Input your answer as a percent rounded to 2 decimal places.)
Answer:
9.70% annual or 0.808% per month
Explanation:
month financing requirements interest rate interest charged
January 8,600 5% 35.83
February 2,600 6% 13
March 3,600 9% 27
April 8,600 12% 86
May 9,600 12% 96
June 4,600 12% 46
total 37,600 303.83
break even annual rate = 12 months x (total interest charged / total financial requirements) = 12 x (303.83 / 37,600) = 0.096967 = 9.70% or 0.808% per month
we can check our answer:
month financing requirements interest rate interest charged
January 8,600 9.7% 69.49
February 2,600 9.7% 21.01
March 3,600 9.7% 29.09
April 8,600 9.7% 69.49
May 9,600 9.7% 77.57
June 4,600 9.7% 37.17
total 37,600 303.82
The L.L. Bean men’s cotton chambray shirt comes in the following colors: blue, stone, rust, green, red, orange, plum, and indigo. In addition, shirt sizes are small (S), medium (M), large (L), extra large (XL), and extra extra large (XXL), and the shirt comes with either short sleeves, medium sleeves, or long sleeves. As the inventory manager for L.L. Bean’s eastern U.S. operations, you are concerned about physical, basically shelf, space, as well as inventory system space, basically computer memory. For example, products with many varieties, or styles, require more physical (shelf) space, as well as more inventory system space. How many types of the cotton chambray shirt can be produced?
Answer:
120 different types can be produced
Explanation:
there are 5 sizes:
small (S)medium (M)large (L)extra large (XL)extra extra large (XXL)there are 8 possible colors:
bluestonerustgreenredorangeplumindigothere are 3 different models (sizes of sleeves):
short sleevesmedium sleeves long sleevesthe total possible combinations = 5 (size options) x 8 (color options) x 3 (sleeves options) = 120 different types can be produced
e.g. a short sleeve can be blue and small, but it can also be large, medium, and so on. Each short sleeve shirt can be produced in 40 different ways and this also applies to medium sleeves and long sleeves shirts.
5. Dan was suspected by customs and immigration officers of having
information concerning the smuggling of drugs into the United States.
Acting undercover, a customs and immigration official went to Dan
and suggested that he bring illegal drugs into this country. Dan
refused, but at the official's insistence he later agreed. After the drugs
entered this country, Dan was arrested. Does Dan have a valid defense
to the charge of smuggling? Explain.
Answer:
No one can have a valid defense when there is no proof, the undercover officers could not blame someone without proof (evidence he was smuggling drugs) but dan may have a valid defense if they dont find any evidence
Hope this helps <3
Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 515,520 52,500 machine-hours Processing orders $ 62,763 1,950 orders Inspection $ 86,089 1,960 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales 600 Annual machine-hours 1,160 Annual number of orders 240 Annual inspection hours 190 Direct materials cost $ 54.74 per unit Direct labor cost $ 27.45 per unit According to the activity-based costing system, the unit product cost of product L19B is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$127.96
Explanation:
The computation of unit product cost of product L19B is shown below:-
Particulars Total pool cost Total activity Activity rate
Assembly $515,520 52,500 9,82
Processing orders $62,763 1,950 32.19
Inspections $86,089 1,960 43.92
For determining the activity rate we simply divide the total pool cost by total activity for assembly and in the same manner for others too.
Particulars Activity rate Activity Overhead allocated
Assembly 9,82 1,160 11,391.2
Processing orders 32.19 240 7,725.6
Inspections 43.92 190 8,344.8
Total 27,462
For determining the overhead allocated we simply multiply the activity rate with activity.
Overhead cost per unit = 27,462 ÷ 600
= $45.77
So,
Unit product cost = Overhead cost per unit + Direct material + Direct labor
= $45.77 + $54.74 + $27.45
= $127.96
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold every year at a price of $6 per bottle. After the tax, 23 billion bottles of wine are sold every year; consumers pay $9 per bottle (including the tax), and producers receive $4 per bottle. The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
Answer:
The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
Explanation:
The amount of the tax on a bottle of wine is $5 ($3 + $2).
The burden on consumers is $3 ($9 - $6), which is the difference between the after-tax purchase price and the before-tax purchase price for consumers. This implies that the burden passed to consumers is $3 out of the total tax burden of $5.
The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers. This means that the burden passed to producers is $2 out of the total tax burden of $5.
If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5). This would have reduced demand for wine as consumers would have been forced to bear the total burden. This would have made the tax unequitable. This would have been the case unless demand is inelastic. That means that the total demanded is not sensitive to price increases.
Which of the following statements is correct? Select one: a. Financial institutions in other countries generally are less regulated than in the United States. b. One reason domestic firms "go global" is to sell products in saturated markets. c. One of the advantages associated with doing business in international markets is that all countries report their financial statements in the U.S. dollar. d. Often firms can avoid labor laws that apply to foreign manufacturers by establishing manufacturing units in the country where the hurdles apply. e. A multinational firm takes advantage of the cultural differences among countries and uses the same marketing strategy in every country in which it operates.
Answer:
A
Explanation:
Domestic firms go global in order to enter unsaturated markets
Not all countries report their financial statements in US dollars
Firms can avoid labour laws that apply to foreign manufacturers by establishing manufacturing units in the country where the hurdles don't apply
Due to cultural differences, different marketing strategies have to be applied
Refer to the original data.
Sales (19,500 units at $30 per unit) $585,000
Variable expenses 409,500
Contribution margin 175,500
Fixed expenses 180,000
Net operating loss $(4,500)
By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 each month. Assume that the company expects to sell 26,000 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are:_____.
Answer:
Contribution income statement - Assuming that operations are not automated.
Sales (26,000 units at $30 per unit) $780,000
Variable expenses ($409,500/ 19,500 × 26,000) ($546,000)
Contribution margin $234,000
Fixed expenses ($180,000 )
Net operating loss $54,000
Contribution income statement - Assuming that operations are automated.
Sales (26,000 units at $30 per unit) $780,000
Variable expenses ($18 × 26,000) ($468,000)
Contribution margin $312,000
Fixed expenses ($180,000 + $72,000 ) ($252,000 )
Net operating loss $60,000
Explanation:
A contribution Income Statement Shows the contribution (Sales less Variable Costs).
See the Statements for the Assumptions above.
An appliance company has two warehouses and two retail outlets. Warehouse A has 400 refrigerators and warehouse B has 300 refrigerators. Outlet I needs 200 refrigerators, and outlet II needs 300 refrigerators. It cost $36 to ship a refrigerator from warehouse A to outlet I and $30 to ship a refrigerator from warehouse A to outlet II. It costs $30 to ship a refrigerator from warehouse B to outlet I and $25 to ship a refrigerator from warehouse B to outlet II. How should the company ship the refrigerators to minimize the cost
Answer:
Warehouse B:
ship 200 refrigerators to outlet 1ship 100 refrigerators to outlet 2Warehouse A:
ship 200 refrigerators to outlet 2Explanation:
Outlet 1 Outlet 2 Availability
Warehouse A 36 30 400
Warehouse B 30 25 300
Requirements 200 300
You should ship 200 refrigerators from warehouse B to outlet 1, total distribution costs = 200 x $30 = $6,000
You should ship 100 refrigerators from warehouse B to outlet 2, and 200 refrigerators from warehouse A to outlet 2, total distribution costs = (100 x $25) + (200 x $30) = $8,500
total distribution costs = $14,500
The difference in distribution costs from warehouses to outlet 1 is $6, and the difference in distribution costs from warehouses to outlet 2 is $5, so you should send all the refrigerators from warehouse B to outlet 1 to incur in the lowest possible cost.
Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be:
Answer:
$10,500 units
Explanation:
Calculation of equivalent units of production for conversion cost
First step is to find the Units started and completed during the period using this formula
Units started and completed during the period = Units transferred to the next processing department- Beginning inventory in the mixing department units
Let plug in the formula
Units started and completed during the period = = 12,000 - 6,000
Units started and completed during the period = = 6,000
Second step is to find the Equivalent units of production
Equivalent units of production=6,000 * 25% + 6,000*100% + 5,000*60%
Equivalent units of production=1,500+6,000+3,000
Equivalent units of production=10,500 units
Therefore the equivalent units of production for conversion cost will be $10,500 units
GRECO RESORT
TRIAL BALANCE
AUGUST 31, 2017
Debit Credit
Cash $19,600
Prepaid Insurance 4,500
Supplies 2,600
Land 20,000
Buildings 120,000
Equipment 16,000
Accounts Payable $4,500
Unearned Rent Revenue 4,600
Mortgage Payable 60,000
Common Stock 91,000
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 76,200
Salaries and Wages Expense
44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense
3,600
$ 245,300 $245,300
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017.
2. An inventory count on August 31 shows $450 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,800 was earned prior to August 31.
5. Salaries of $375 were unpaid at August 31.
6. Rentals of $800 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.
Instructions:
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1 - August 31 (omit explanations.)
(b) Prepare an adjusted trial balance on August 31.
Answer:
GRECO RESORT
a) Journal Entries on August 31:
1. Debit Insurance Expense $1,125
Credit Prepaid Insurance $1,125
2. Debit Supplies Expense $2,150
Credit Supplies $2,150
3. Debit Depreciation Expense-Buildings $4,800
Credit Accumulated Depreciation - Buildings $4,800
Debit Depreciation Expense- Equipment $1,440
Credit Accumulated Depreciation- Equipment $1,440
4. Debit Unearned Rent Revenue $3,800
Credit Rent Revenue $3,800
5. Debit Salaries Expense $375
Credit Salaries Expense Payable $375
6. Debit Accounts Receivable $800
Credit Rent Revenue $800
7. Debit Mortgage Interest Expense $1,200
Credit Mortgage Interest Payable $1,200
b. GRECO RESORT
Adjusted TRIAL BALANCE
AUGUST 31, 2017
Debit Credit
Cash $19,600
Accounts Receivable 800
Prepaid Insurance 3,375
Supplies 450
Land 20,000
Buildings 120,000
Equipment 16,000
Accounts Payable $4,500
Mortgage Interest Payable 1,200
Unearned Rent Revenue 800
Mortgage Payable 60,000
Common Stock 91,000
Retained Earnings 9,000
Accumulated Depreciation-Buildings 4,800
Accumulated Depreciation-Equipment 1,440
Dividends 5,000
Rent Revenue 80,800
Salaries & Wages Expense Payable 375
Salaries and Wages Expense 45,175
Utilities Expenses 9,200
Maintenance & Repairs Expense 3,600
Insurance Expense 1,125
Supplies Expense 2,150
Depreciation Expense- Buildings 4,800
Depreciation Expense- Equipment 1,440
Mortgage Interest Expense 1,200
Total $ 253,915 $253,915
Explanation:
a) Data and Calculations:
GRECO RESORT
TRIAL BALANCE
AUGUST 31, 2017
Debit Credit
Cash $19,600
Prepaid Insurance 4,500
Supplies 2,600
Land 20,000
Buildings 120,000
Equipment 16,000
Accounts Payable $4,500
Unearned Rent Revenue 4,600
Mortgage Payable 60,000
Common Stock 91,000
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 76,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance & Repairs Expense 3,600
Total $ 245,300 $245,300
b) Mortgage Interest Expense = $60,000 * 8% * 3/12 = $1,200
a. Depreciation on the company's equipment for the year is computed to be $15,000.
b. The Prepaid Insurance account had a $9,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $870 of unexpired insurance coverage remains.
c. The Office Supplies account had a $360 debit balance at the beginning of the year; and $2,680 of office supplies were purchased during the year.
d. The December 31 physical count showed $425 of supplies available.
e. One-third of the work related to $15,000 of cash received in advance was performed this period.
f. The Prepaid Rent account had a $5,100 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,230 of prepaid rent had expired.
g. Wage expenses of $1,000 have been incurred but are not paid as of December 31.
Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations.
Answer: Please see explanation column for answers
Explanation:
a) To record Depreciation on equipments
Date Account title Debit Credit
Dec 31st Depreciation expenses $15,000
Accumulate depreciation $15,000
b) To record insurance expenses
Date Account title Debit Credit
Dec31 Insurance Expenses $8,130
Prepaid insurance $8,130
Calculation
Prepaid Insurance =Prepaid Insurance Debit Balance−Unexpired Insurance Coverage
=$9,000−$870
=$8,130
c)To record office supplies expenses
Date Account title Debit Credit
Dec 31 Office Supplies Expenses $2,615
Office supplies $2,615
Calculation:
Office Supplies=Office Supplies Debit Balance+
Amount of Office Supplies Purchased−
Office Supplies Existing
=$360+$2,680−$425
=$2,615
d)To record Adjustment in unearned revenue
Date Account title Debit Credit
Dec 31 Unearned fee revenue $5,000
Fee revenue $5,000
Fees Revenue=Cash Received For Fees×Portion of Fees Earned
=$15,000 x 1/3= $5,000
e)To record Adjustment in insurance expenses
Date Account title Debit Credit
Dec 31 Insurance expenses $4,230
Prepaid expenses $4,230
f)To record wages payable
Date Account title Debit Credit
Dec 31 Wages expenses $1,000
Wages Payable $1,000
Sheffield Corporation had income from continuing operations of $10,745,300 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $198,600. Prior to disposal, the division operated at a loss of $317,300 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Sheffield had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Sheffield beginning with income from continuing operations.
Answer: Please see explanation column for answers
Explanation:
Partial income statement for Sheffield Corporation
Income from continuing operations $10,745,300
Discontinued operations:
Loss from operation of discontinued $317,300
restaurant division, net of tax
Loss of disposal of restaurant division, $198,600
net of tax
Total of the losses $515,900
Net income $10,229,400
(Income from continuing operations -Losses from Discontinued operations)
Earnings per share
Income from continuing operations $10,745,300/10,000,000 shares
=$1.07453
Discontinued operations $515,900 /10,000,000 shares
=$0.05159
Earnings per share of net income ($1.07453-$0.05159) =$1.02294≈$1.02
Net Income for Sheffield Corporation is $10,229,400 with Earnings per share $1.02
Amy Corporation, which applies manufacturing overhead on the basis of direct labor hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $264,040 Estimated direct labor hours 2,300 Actual manufacturing overhead $258,000 Actual direct labor hours 2,260 The estimates of the manufacturing overhead and of direct labor hours were made at the beginning of the year. The applied manufacturing overhead for the year is closest to:
Answer:
$259,448
Explanation:
Estimated manufacturing overhead $264,040
Estimated direct labor hours 2,300
predetermined overhead rate = $114.80 per labor hour
Actual manufacturing overhead $258,000
Actual direct labor hours 2,260
actual overhead rate = $114.16
applied overhead for the year = actual direct labor hours x predetermined overhead rate = 2,260 hours x $114.80 = $259,448 overapplied ($259,448 ˃ $258,000)
Yoshihiko Kikuchi, a communication specialist from Japan, was recently hired by a U.S. company to accompany negotiating teams throughout the world. Her specialty is non-verbal communication and her job on these negotiating teams is to carefully observe the behavior of the individuals on the opposing negotiating teams. After the negotiating is completed during the day, she then meets with the team and reports her observations. This situation illustrates the fact that Japan is clearly a __________ culture, while the United States is a __________ culture. Group of answer choices low-context, high-context low-context, polychronic high-context, low-context monochronic, polychronic not enough information to determine
Answer:
high-context low-context,
Explanation:
A high-context culture is a type of cultures that relies on non verbal clues such as body language, posture and tone.
Cultures considered to be high context cultures are : Asians, Africans, Arabs and Latin Americans
A low-context culture relies on explicit communication and not on non verbal cues. Culture considered to be low context cultures is United States.
Monochronic cultures carry out one activity at a time.
Polychronic cultures carry out multiple activities at the same time
John Budd is the sole shareholder of Ral Corp., an accrual-basis taxpayer engaged in wholesaling operations. Ral’s retained earnings at January 1, 2020, amounted to $1 million. For the year ended December 31, 2020, Ral’s book income, before federal income tax, was $300,000. Included in the computation of this $300,000 was the following: On 12/1/20, Ral received prepaid rent of $27,000 from a tenant for a 3-year lease commencing 1/1/21 to cover rents for the years 2021, 2022, and 2023. In conformity with GAAP, Ral did not include any part of this rental in its income statement for the year ended 12/31/20. What amount should Ral include in its 2020 taxable income for rent revenue?
Answer: $27,000
Explanation:
Even though for GAAP reasons, revenue is to be recognized only when earned as per the Accrual principle of accounting, this is not so for the calculation of taxable income.
Taxable income is to be calculated on cash basis which means that taxes are to be paid on revenue when the revenue is received in cash and not when it is earned.
As Ral Corp. received the money in 2020, they are to include the entire amount of $27,000 in their 2020 taxable income for rent revenue.
Why is it important to focus on others' needs when communicating online?
Answer:
Why is it important to focus on others' needs when communicating online? It is important to consider others needs so that your online communication is not harmful to others and to your relationships. ... The rules and guidelines for effective Internet communication.
Explanation:
The today's all are connected to the online and the communicating to the online. There are the involved to the groups and the gossips.
What is communicating?
The term communicating refers to communicate to the one person to the another person. The term communicating is to communicate to the mass level as well as to share the ideas and the thoughts. The communicating are to share the preferences to the one person to the another.
Nowadays, the youth are the involved to the social media in the groups. They are the communicating to the one person to the another person is the safe. The internet are the all are the used to the one social media, it was the connected to the each. The communicating the connected to the online and the gossips.
As a result, the today's all are connected to the online and the communicating to the online.
Learn more about on communicating, here:
https://brainly.com/question/28347989
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The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers.
Activity Cost Pool Budgeted Overhead Cost Cost Driver Budgeted Level for Cost Driver Pool Rate
Machine setups $ 250,000 Number of setups 125 $ 2,000 per setup
Material handling 75,000 Weight of raw material 37,500 lb. $2 per pound
Hazardous waste control 25,000 Weight of hazardous chemicals used 5,000 lb. $ 5 per pound
Quality control 75,000 Number of inspections 1,000 $ 75 per inspection
Other overhead costs 200,000 Machine hours 20,000 $ 10 per machine hour
Total $ 625,000
Required:
1. Calculate the unit cost of a production order for 100 specially coated plates used in cancer testing. In addition to direct material costing $120 per plate and direct labor costing $40 per plate, the order requires the following: (Round intermediate calculations and final answer to 2 decimal places.)
Machine setups 3
Raw material 900 pounds
Hazardous materials 300 pounds
Inspections 3
Machine hours 50
Answer:
Tulsa Medical Supply Company
1. Calculation of the unit cost of a production order for 100 specially coated plates used in cancer testing:
Direct materials $120 * 100 plates = $12,000
Direct labor 40 * 100 plates = 4,000
Overhead:
Machine setups $2,000 * 3 setups $6,000
Material handling $2 * 900 pounds 1,800
Hazardous control $5 * 300 pounds 1,500
Quality control $75 * 3 inspections 225
Other overheads $10 * 50 machine hours 500
Total overheads applied $10,025
Total manufacturing cost for 100 plates $26,025
Unit cost = $26,025/100 = $260.25 per plate
Explanation:
a) Data and Calculations:
Activity Cost Pool Budgeted Cost Driver Budgeted Level for
Overhead Cost Cost Driver Pool Rate
Machine setups $ 250,000 Number of setups 125 $ 2,000 per setup
Material handling 75,000 Weight of raw material 37,500 lb. $2 per pound
Hazardous waste control 25,000 Weight of hazardous chemicals used 5,000 lb. $ 5 per pound
Quality control 75,000 Number of inspections 1,000 $ 75 per inspection
Other overhead costs 200,000 Machine hours 20,000 $ 10 per machine hour
Total $ 625,000
In a competitive bid, Multiple Choice the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer. long-term suppliers of a firm compete to do business with the firm to increase flexibility and spur innovation. if different suppliers’ quality, dependability, and delivery schedules all meet the buyer’s specifications, the buyer will select the high-price bid. the terms of sale are offered by a buyer after product specifications are posted by the seller. as the number of suppliers competing for the business increases, the ability to drive down prices or provide beneficial terms of sale is lost.
Answer:
the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer.
Explanation:
Competitive bid is when an entity that wants to buy a product or service requests for proposals from suppliers stating how well they meet the requirements of the buyer.
Suppliers also state the price at which the product or service can be delivered.
Buyers review the bids and choose the one that is best for at the lowest price.
A competitive bid is a transparent process where all the most qualified suppliers are chosen to execute a project.
The performance history of suppliers may also be used when buyer is deciding on the best fit.
The following transactions occurred during Year 2: Issued common stock for $19,000 cash. ABC borrowed an additional $11,000 from Chris Bank. ABC earned $9,000 of revenue on account. ABC incurred $4,000 of operating expenses on account. Cash collections of accounts receivables were $6,000. ABC provided additional services to customers for $1,000 cash. ABC purchased land for $14,000. ABC used $3,000 in cash to make a partial payment on its accounts payable. ABC declared and paid a $200 dividend to the stockholders On December 31 ABC had accrued salaries of $4,000. What is the net cash flow from operating activities shown on the statement of cash flows for the year ending December 31, Year 2
Answer: $2000
Explanation:
The net cash flow from operating activities shown on the statement of cash flows for the year ending December 31, Year 2 can be calculated below:
Revenue: = $9000 + $1000 = $10,000
Less: Expenses
Operating expenses: $4000
Accrued salary expenses: $4000
Total expense: $8000
Net income = Revenue - Expense
= $10000 - $8000
= $2000
A(n) _____ is any activity that provides goods or services to consumers for the purpose of making a profit.
Answer:
Trade
Explanation:
Answer:
A Business
Explanation:
This is exactly what businesses do they provide goods and/or services in hopes of making money!
A stationery company plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cost the company $8 million, although the company expects general revenues of $280 million next year from sources other than sales of the new pen. If the company has a corporate tax-rate of 35% on its pretax income, what effect will the advertising for the new pen have on its taxes? It will increase taxes by $8 million. It will increase taxes by $2.8 million. It will have no effect on taxes. It will reduce taxes by $2.8 million.
Answer: It will reduce taxes by $2.8 million.
Explanation:
Expenses are tax deductible which means that the advertising expense will reduce tax by 35% of it's value.
= 8,000,000 * 35%
= $2,800,000
Expenses of $8,000,000 will reduce pre-tax profit by the same amount which would lead to taxes being $2,800,000 lower.
You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem? Multiple Choice Hold a series of supervisory manager meetings. Establish metric-based performance measures. Evaluate personality indicators to ensure inter-departmental worker compatibility. Evaluate and increase manager salaries and benefits.
Answer:
Establish metric-based performance measures.
Explanation:
In the given scenario the line managers are not taking corporate objectives into consideration in their decision making.
As a upper-level manager can resolve this by introducing metric based performance measures that will show clearly productivity of the line managers.
The Key Performance Indicators should be tailored to the organisation's objectives.
The line managers that are not performing well according to the KPIs will need to align and perform better in the specific areas.
This is an effective way of disseminating the corporate objectives in the organisation.
Exercise 1-15A Calculate amounts related to the balance of retained earnings (LO1-3) Below are approximate amounts related to retained earnings reported by five companies in previous years. Coca-Cola reports an increase in retained earnings of $3.2 billion and net income of $6.9 billion. PepsiCo reports an increase in retained earnings of $3.4 billion and dividends of $2.6 billion. Alphabet reports an increase in retained earnings of $1.6 billion and net income of $1.6 billion. Sirius XM Satellite Radio reports beginning retained earnings of −$1.6 billion, net loss of $1.0 billion, and $0 dividends. Abercrombie & Fitch reports ending retained earnings of $1.56 billion, net income of $0.43 billion, and dividends of $0.06 billion. (Enter your answers in billions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.) Required: What is the amount of dividends of Coca-Cola? What is the amount of net income of PepsiCo? What is the amount of dividends of Alphabet? What is the amount of ending retained earnings of Sirius XM Satellite Radio? What is the amount of beginning retained earnings of Abercrombie & Fitch?
Answer:
1) $3.7 billion
2) $6 billion
3) 0
4) -$2.6 billion
5) $1.19 billion
Explanation:
(1) The amount of dividend of Coca-cola can be calculated as follows
Net income - increase in retained earnings
= $6.9 billion - $3.2 billion
= $3.7 billion
(2) The net income of PepsiCo can be calculated as follows
= increase in retained earnings + dividend
= $3.4 billion + $2.6 billion
= $6 billion
(3) The dividend of Alphabet can be calculated as follows
= increase in retained earnings -net income
= $1.6 billion - $1.6 billion
= 0
(4) The ending retained earnings of Sirius XM satellite radio can be calculated as follows
= beginning retained earnings - net loss-dividends
= -$1.6 billion -$1.0 billion - 0
= -$2.6 billion
(5) The amount of beginning retained earnings of Abercrombie and Fitch can be calculated as follows
Ending retained earnings - net income + Dividend
= $1.56 billion - $0.43 billion + $0.06 billion
= $1.19 billion
The biggest U.S. stock exchange is located in which city?
O A. New York
B. Los Angeles
C. Washington, D.C.
D. Chicago
Dividend discount model.
Consider 3 stocks:
a. Stock A is expected to provide a dividend of $10/share forever.
b. Stock B is expected to pay a $5 dividend next year. Thereafter, dividend growth is expected to be 4% a year forever.
c. Stock C is expected to pay a $5 dividend next year. Thereafter, growth is expected to be 20% a year for 5 years (years 2 through 6) and 0 thereafter.
If the market capitalization rate for each stock is 10%, which stock is the most valuable?
Answer:
stock A is the most valuable since it is worth $100
Explanation:
Price of stock A = $10 / 10% = $100
Price of stock B = $5 / (10% - 4%) = $83.33
Price of stock C:
P₁ = $5 / 1.1 = $4.5454
P₂ = $6 / 1.1² = $4.9587
P₃ = $7.20 / 1.1³ = $5.4095
P₄ = $8.64 / 1.1⁴ = $5.9012
P₅ = $10.368 / 1.1⁵ = $6.4377
P₆ = terminal value = $12.4416 / 0.1 = $124.416, now we discount it at 10% per year = $124.416 / 1.1⁶ = $70.2296
P₀ = P₁ + P₂ + P₃ + P₄ + P₅ + P₆ = $97.48
