Answer:
Given below
Explanation:
Tamarisk, Inc.
Genral Journal
No. Account Titles and Explanation Debit Credit
1. Cash $21,600 Dr
Common Stock $21,600 Cr
Issued common stock for $21,600 cash. Cash is received and stock is issued.
2. Cash $6,300 Dr
Note payable $6,300 Cr
Obtained a bank loan for $6,300 by issuing a note payable. Cash is received and the liability is also increased.
3. Equipment $9,900 Dr
Cash $9,900 Cr
Equipment is bought by paying cash.
4. Office rent $1,100 Dr
Cash $1,100 Cr
Office rent is paid through cash.
5. Supplies $1,300 Dr
Cash $1,300 Cr
Supplies are bought for $1,300 cash.
6. Advertising Expense $540 Dr
Accounts Payable Daily Herald $540 Cr
Advertising is purchased on accounts of Daily Herald for $540
7. Cash $1,800 Dr
Accounts Receivable $14,400 Dr
Revenue $16,200 Cr
Performed services for $16,200, cash of $1,800 is received from customers, and the balance of $14,400 is billed to customers on account.
8. Dividends $360 Dr
Cash $360 Cr
Paid $360 dividend to stockholders.
9. Utilities $1,800 Dr
Cash $1,800 Cr
Utility bill is paid for the month, $1,800.
10. Accounts Payable Daily Herald $540 Dr
Cash $540 Cr
Advertising bought on accounts is paid in cash $ 540.
11. Interest Expense $40 Dr
Cash $40 Cr
Paid $40 of interest on the bank for the loan of $6,300 obtained from the bank.
12. Salaries $5,760 Dr
Cash $5,760 Cr
Salaries for $5,760 are paid in cash.
13. Cash $14,400 Dr
Accounts Receivable $14,400 Cr
Cash is received for the balance of $14,400 billed to customers on account for services performed.
14. Tax Expense $1,350 Dr
Cash $1,350 Cr
Cash $1,350 is paid as Tax.
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.
At year-end, has cash of , current accounts receivable of , merchandise inventory of , and prepaid expenses totaling . Liabilities of must be paid next year. Assume accounts receivable had a beginning balance of and net credit sales for the current year totaled . How many days did it take to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number.)
Answer: 30 days
Explanation:
Days to collect receivables = 365/ Average Receivables turnover
Average Receivables turnover = Net credit sales/ Average receivables
Average receivables = (Beginning receivables + ending receivables) /2
= (40,000 + 120,000)/2
= $80,000
Average Receivables turnover = 960,000/80,000
= 12
Days to collect receivables = 365/12
= 30.42 days
= 30 days
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
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
Item1 1 points eBookPrintReferences Check my work Check My Work button is now enabledItem 1Item 1 1 points Assume the perpetual inventory method is used. 1) The company purchased $13,900 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,400 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $21,800 cash. The amount of gross margin from the four transactions is: Multiple Choice $11,578. $11,510. $7,742. $7,900.
Answer:
$11,510
Explanation:
Calculation for the gross margin amount from the four transactions
First is to find the Cost of goods sold
Cost of goods sold = ($13,900 - $3,400) × (100%-2%)
Cost of goods sold=$10,500*0.98
Cost of goods sold=$10,290
Last step is to find the gross margin amount using this formula
Gross margin amount=Sales revenue - Cost of goods sold
Let plug in the formula
Gross margin amount=$21,800-$10,290
Gross margin amount=$11,510
Therefore the gross margin amount from the four transactions will be $11,510
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%
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
You purchased 4,400 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $45.50 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 1 percent. The underlying assets in this mutual fund appreciate (including reinvested dividends) by 5 percent during 2016, and you sell back your shares at the end of the year. If the operating expense ratio for the New Pacific Growth Fund is 1.05 percent, what is your total return from this investment? (Assume that the operating expense is netted against the fund’s return.)
Answer:
Total return is -2.24%
Explanation:
Calculation of the initial NAV
Initial NAV = Offering price * (1-% of front end load)
Initial NAV = $45.50 * (1 - 5%)
Initial NAV = $45.50 * 0.95
Initial NAV = $43.225
Calculation of the final NAV
Final NAV = Initial NAV * (1 + (Appreciation rate - Operating expenses ratio)
Final NAV = $43.225* (1 + (5% - 1.05%))
Final NAV = $43.225 * 1 + 0.0395
Final NAV = $43.225 * 1.0395
Final NAV = $44.9323875
Calculation of the sales proceeds per share
Sales proceeds per share = Final NAV * (1 - % of back end load)
Sales proceeds per share = $44.9323875 * ( 1 - 1%)
Sales proceeds per share = $44.483063625
Calculation of the total return
Total return = (Sales proceeds per share - Offering price) / Offering price
Total return = ($44.483063625 - $45.50) / $45.50
Total return = -2.24%
The term and supply of economics
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
Tandy Corporation uses a job-order costing system with a single plant-wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $249,000, variable manufacturing overhead of $3.80 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job X784 which was recently completed: Job E's manufacturing cost: Total machine-hours 250 Direct materials $ 470 Direct labor cost $ 5,500 If the company marks up its unit product costs by 30% then the selling price for Job X784 is closest to: Group of answer choices $2,698.50 $12,693.50 $7,761.00 $11,693.50
Answer:
Selling price= $11,693.5
Explanation:
Giving the following information:
TJob X784:
Total machine-hours 250
Direct materials $ 470
Direct labor cost $ 5,500
The company marks up its unit product costs by 30%
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= (249,000/30,000) + 3.8
Predetermined manufacturing overhead rate=$12.1 per machine hour
Now, we can calculate the total cost and selling price:
Total cost= 470 + 5,500 + 12.1*250
Total cost= $8,995
Selling price= 8,995*1.3= $11,693.5
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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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
Pandey Inc. had the following activities during the month:______.
A. Borrowed $890,000 cash, signing a promissory note.
B. Bought a building for $1,180,000, paying $260,000 in cash and signing a promissory note for $920,000.
C. Rented equipment at a cost of $29,000 per month and issued a check covering six months’ rent.
D. Provided $200,000 of services and billed customers.
E. Purchased $68,000 of supplies on account.
F. Received a utility bill for the current period in the amount of $5,000.
G. Raised sales prices on 200 units from $450 per unit to $630 per unit.
H. Received a 50% deposit from a customer on a $58,000 order to be filled next month.
Required:
Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (−) sign before each number to show its effect on the accounting equation. If the activity should not to be recorded as a transaction, enter the word "None" in the first column for that activity. AssetsLiabilitiesStockholders' EquityAccount(s)AmountAccount(s)AmountAccount(s)AmountABCDEFGHWhat will be an ideal response?
Answer:
Based on the analysis, the basic accounting equations holds as follows:
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
Explanation:
Note: See the attached excel file for the horizontal analysis.
For event C: Advance payment for Equipment rentals = $29,000 * 5 months = $145,000
All the items under the shareholders’ fund are income statement items that will affect the retained earnings.
The additional note below the horizontal analysis in the excel file shows that accounting equations holds. That is;
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
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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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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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
Is your boss right? A. Yes, you can tell by the way the income shares for each factor move in opposite directions over time. B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time. C. The production function cannot be determined without knowing how real GDP changed over time. D. No, if it were a Cobb-Douglas production function, the income shares would change in the same direction over time.
Answer: B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time.
Explanation:
The Cobb-Douglas production function is usually used to show the relationship between capital and labor( can be used for other variables) and how much output they can produce at varying levels.
The thing about the Cobb-Douglas function however, is that it assumes a constant rate of income shares overtime. This country's income on the other hand, sees its income shares fluctuating overtime so the Cobb-Douglas function is not a good representation for them.
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:
Cost planning starts with the proposal for the project, at which time project costs are estimated. For budgeting purposes, it is best to keep the work packages or activities small in terms of scope and duration. Once your budget is planned and allocated across your work packages, it is critical to monitor and control your project's cost. What are some of the ways that a project manager can take these budgeting plans and track and compare them to actual data? In what sense is some cost reporting not reflective of the actual work performed? How can a project manager remedy this situation? Why is monitoring and controlling the project cost important for the success of the project? What are some key components to monitor the health of the project, as it relates to earned value?
Answer:
Each question is answered separately with mentioning the question part first in bold letters following with the answer to that part of the question.
Explanation:
What are some of the ways that a project manager can take these budgeting plans and track and compare them to actual data?
The budget plan is the baseline by which the project's progress can be compared with it's actual results. It helps to determine the variance of the project. Moreover, as the project's work and cost can change in the future we need to re-baseline the project's budget in order to keep better track of the comparison data.
In what sense is some cost reporting not reflective of the actual work performed? How can a project manager remedy this situation?
This could be due to many reasons why cost reporting may differ from actual work such as lack of experience in estimating budgeted cost, uncertain events, fluctuations in prices due to economic instability etc.
The best way to resolve this is by consulting with some one who has more experience as a project manager when preparing the budget. Another way is to be prepared to make changes in the estimated budget plan to meet the market dynamics.
Why is monitoring and controlling the project cost important for the success of the project?
When the project's cost has been budgeted and prepared the main issue is to ensure that the actual work done is within the limit of the budgeted cost. If for example it is estimated that the project would incur $10,000 per month resulting in cost of $120,000 at the end of the year. After four months we notice that the project has so far incurred total cost of $60,000, this could be a problem as it has exceeded the estimated project cost. This would ultimately result in either project not being completed on time as the estimated cost has exceeded and no further budget is available or the project's cost would exceed the benefits it would provide in the near future. This is why monitoring and controlling the project cost important for the success of the project.
What are some key components to monitor the health of the project, as it relates to earned value?
The key components to monitor the health of the project are Cost Variance (Difference between what is planned to be spent and what is actually spent), Schedule Variance (Difference between what was planned to be done and what is actually done), Cost Performance Index (Ratio comparing how much you planned to spent and how much you actually spent), and Schedule Performance Index (Ratio comparing how much work you planned to do and how much work you actually did). They will help in estimating the project's current position whether it is operating better or worse than it is expected.
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.
Amy Parker, a 22-year-old and newly hired marine biologist, is quick to admit that she does not plan to keep close tabs on how her 401(k) retirement plan will grow with time. This sort of thing does not really interest her. Amy's contribution, plus that of her employer, amounts to $2,250 per year starting at age 23. Amy expects this amount to increase by 4% each year until she retires at the age of 67 (there will be 45 EOY payments). What is the compounded future value of Amy's 401(k) plan if it earns 6% per year?
Answer:
$1,213,657.685
Explanation:
For computation of compounded future value first we need to find out the present worth which is shown below:-
[tex]Present\ worth = Initial\ amount\ of\ investment\times \frac{(1 - (1 + g)^n \times (1 + i)^{-n}}{i - g}[/tex]
[tex]= \$2,250\times (\frac{(1 - (1 + 0.04)^{45}\times (1 + 0.06)^{-45}}{0.06 - 0.04})\\\\ = \$2,250 \times \frac{1-0.216245988}{0.02}[/tex]
= $88,172.32636
Now, Future value = Present worth × (1 + interest rate)^number of years
= $88,172.32636 × (1 + 6%)^45
= $1,213,657.685
Therefore we have applied the above formula to determine the future value.
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
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 %
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
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
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
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)