Answer:
Present value of the cash inflow= $69,086.97
Explanation:
An annuity is a series of annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity.
To work out the the present value of a growing annuity, we use the formula:
PV = A/(r-g) × (1- (1+g/1+r)^n)
A- annual cash flow - 20,000
r- rate of return - 8%
g- growth rate - 3%
n- number of years- 4
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.
A/(r-g) = 20,000/(0.08-0.03) = $400,000
(1- (1+g/1+r)^n) = 1 -(1.03/1.08)^4 =0.17271
PV = A/(r-g) × (1- (1+g/1+r)^n) =400,000 × 0.17271 =69,086.97
Present value of the cash inflow = $69,086.97
The Better Business Buniau is a consumer protection organization sponsored by consumer groups.
O a. True
O b. False
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 92,000 92,000 Units in Ending Work in Process: Direct Materials (9,000 * 100%) 9,000 Conversion (9,000 * 60%) 5,400 Equivalent Units of Production 101,000 97,400 Cost per Equivalent Unit Costs of beginning work in process $ 42,400 $ 62,300 Costs incurred this period 141,900 190,900 Total costs $ 184,300 $ 253,200 Cost per equivalent unit $ 1.82 per EUP $ 2.60 per EUP
The total conversion costs transferred out of the Canning Department should be:_______.
Answer:
$239,200
Explanation:
The computation of total conversion costs transferred out of the Canning Department is shown below:-
Total conversion costs transferred out = Equivalent units × Cost per equivalent unit of conversion cost
= 92,000 × $2.60
= $239,200
Therefore for computing the total conversion costs transferred out we simply applied the above formula.
Jack explains that he has strong potential in social analytics. He says, "I like to find out what customers want and make sure I meet their needs, and I think that’s the basis for good marketing. I’ve always done that, as a leasing agent, as a sales associate, and as a restaurant host. Using social analytics lets me identify the needs of customers on a scale that is really exciting, where I can see what entire consumer groups are thinking and feeling about various products." He is demonstrating credibility primarily in what ways?
Explanation:
He is demonstrating credibility in stating that the basis for an effective marketing strategy is to discover customers' wants and needs and be able to meet them.
Social anaylitcs is a tool for collecting data from users of social networks and identifying behaviors and characteristics that can help marketers to interpret data regarding their potential audience, their needs, their interaction, feelings, identify consumption trends, etc. .
This ability helps to identify patterns that can assist an organization to develop personalized marketing strategies and actions aligned with its potential audience to engage, generate more sales, assist in the decision-making process, etc.
Penny Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $ 157,800 Estimated machine-hours 4,650 Actual manufacturing overhead $ 157,500 Actual machine-hours 4,880 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The predetermined overhead rate is closest to: Multiple Choice $32.27 $33.94 $33.87 $42.62
Answer:
POAR = $33.94 per machine hour
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c.
The overheads are charged to units produced using the pre-determined overhead absorption rate, which is computed as follows:
Pre-determined overhead absorption rate (POAR)= Estimated Overhead/Estimated machine hours
POAR = 157,800/4,650 machine hours = $ 33.94 per machine hour
POAR = $33.94 per machine hour
Campbell Corporation, an accrual basis calendar year corporation, had income of $450,000 for financial statement purposes in year 7. This amount included book depreciation of $50,000. The related tax depreciation was $65,000. Further, the financial statements reported $100,000 of municipal bond interest income, an expense of $2,000 for life insurance premiums on the corporation's president, charitable contributions of $5,000, excess capital losses over capital gains of $3,000, income tax penalties of $10,000, state income tax of $40,000, and Federal income tax expense of $175,000. What is the amount of Campbell's taxable income for year 7
Answer:
The amount of Campbell's taxable income for year 7 is $525,000
Explanation:
Accrual basis income $450,000
Less: Excess depreciation as per ($15,000)
tax purpose ($65,000 - $50,000)
Less: Interest income ($100,000)
Add: Federal income tax expense $175,000
Add: Excess capital loss over capital gain $3,000
Add: LIC on corporation president $2,000
Add: Income tax penalties (not allowed) $10,000
Taxable Income $525,000
Former Senate Majority Leader George Mitchell responded to a white supremacist rally in Charlottesville, Virginia, with this argument: "Amazon was created by Jeff Bezos, whose adoptive father was born in Cuba. Google was co-founded by Sergey Brin, who was born in Russia. Would we be a better country if they had not been admitted? Of equal importance, what are the chances that if Steve Jobs had lived his life in Syria he would have created Apple? Or Jeff Bezos in Cuba? Or Sergey Brin in Russia?" He argued that
Options are;
- America should come first in negotiations with other countries
- diversity should only include geniuses
-diversity is America's strength
Answer:
-diversity is America's strength
Explanation:
Note, we are to consider the context in which the Former Senate Majority Leader George Mitchell was speaking. Remember, we are told he was responding to a group that is often known for their anti-immigration/diversity sentiments.
Hence, his statements were more of an argument in support of diversity. In other words, diversity is America's strength.
Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has five years to maturity, whereas Bond Dave has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave % If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave %
Answer:
a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave?
Bond Sam's price will change by -7.54% Bond Dave's price will change by -14.33%b. If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave?
Bond Sam's price will change by 8.32% Bond Dave's price will change by 20.29%Explanation:
Bond Sam
if market interest rates increase by 2%:
11% / 2 = 5.5% semiannual payments
5 years to maturity = 10 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 5.5%)¹⁰ = $585.43PV of coupon payments = 45 x 7.53763 (PV annuity factor, 5.5%, 10 periods) = $339.19new market price = $585.43 + $339.15 = $924.62
if interest increases by 2%, present value (market value) will decrease by $75.38 ⇒ 7.54% decrease
if market interest rates decrease by 2%:
7% / 2 = 3.5% semiannual payments
5 years to maturity = 10 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 3.5%)¹⁰ = $708.92 PV of coupon payments = 45 x 8.31661 (PV annuity factor, 3.5%, 10 periods) = $374.25new market price = $708.92 + $374.25 = $1,083.17
if interest decrease by 2%, present value (market value) will increase by $83.17 ⇒ 8.32% increase
Bond Dave
if market interest rates increase by 2%:
11% / 2 = 5.5% semiannual payments
18 years to maturity = 36 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 5.5%)³⁶ = $145.52PV of coupon payments = 45 x 18.80474 (PV annuity factor, 5.5%, 36 periods) = $711.21new market price = $145.52 + $711.21 = $856.73
if interest increases by 2%, present value (market value) will decrease by $143.27 ⇒ 14.33% decrease
if market interest rates decrease by 2%:
7% / 2 = 3.5% semiannual payments
18 years to maturity = 36 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 3.5%)³⁶ = $289.83 PV of coupon payments = 45 x 20.29049 (PV annuity factor, 3.5%, 36 periods) = $913.07new market price = $289.83 + $913.07 = $1,202.90
if interest decrease by 2%, present value (market value) will increase by $202.90 ⇒ 20.29% increase
if you have good judgment and can handle pressure on the job, you show
Answer: professionalism
Explanation: This is because, it is expected of every professional person to have all these characteristics in the work place
On October 1, Sponge Bob, Inc. received $240 up front from a customer for a yearly magazine subscription. Magazines are provided one per month.
Record the following journal entries.
a. Record the initial receipt of payment from the customer on October 1.
b. Record the adjusting entry for three months of magazines provided to the customer by December 31
Answer:
a.
Oct 1 Cash $240 Dr
Unearned Subscription Revenue $240 Cr
b.
Dec 31 Unearned Subscription Revenue $60 Dr
Subscription Revenue $60 Cr
Explanation:
a.
The receipt of $240 upfront in advance from a customer is a liability for the business as the business has received cash for service that is yet to be provided. The business will record this as a debit to the cash account and credit to a liability account of Unearned Service Revenue.
b.
On 31 december, the business has provided magazines for 3 months thus it has earned revenue for 3 months. The revenue for 3 months is,
Revenue per month = 240 / 12 = 20
For 3 months = 20*3 = 60
The business will record this as a credit to the subscription revenue and a debit to the unearned subscription revenue
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs 2,900,000 Total overhead 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2.
Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
Answer:
Employee costs for year 2 should be $2,436,000.
Total costs in year 2:
$35,200+$2,436,000+$480,000+$735,000=$3,686,200
b) Total costs per billable hour for year 2=$3,686,200/20000=$184.31
Explanation:
New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $1,000,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. The firm does not need to retain any earnings, so all of its after-tax income will be paid out as dividends to its investors. The investors will have to pay personal taxes on whatever they receive. How much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation? Group of answer choices $26,078 $20,332 $22,763 $19,006 $22,100
Answer:
$22,100
Explanation:
Calculation for the additional spendable income
First step is to find the Corporation Spendable income amount
Corporate taxes$340,000
($1,000,000*34%)
Income after corporate tax $660,000
($1,000,000-$340,000)
Tax on dividends $231,000
($660,000*35%)
Spendable income $429,000
($660,000-$231,000)
Second step is to find the Partnership Spendable income amount
Taxes paid by business $0
Income received by investors $1,000,000
Taxes paid by partners as personal income $350,000
($1,000,000*35%)
Spendable income $650,000
($1,000,000-$350,000)
Last step is to find the Difference between Corporation Spendable income amount and the Partnership Spendable income amount
Using this formula
Difference in Spendable income=Corporation Spendable income amount - Partnership Spendable income amount
Let plug in the formula
Difference in Spendable income=$429,000-$650,000
Difference in Spendable income=$221,000
Which means that the amount of $221,000 is the
Total gain amount from being a partnership.
Hence, the Individual investor gain will be calculated as $221,000*10%
Individual investor gain=$22,100
Therefore the amount of spendable income that each investor will have if the business is organized as a partnership rather than as a corporation will be $22,100
The additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation is $22,100.
The calculation is as follows:Income if formed as corporation in hands of each shareholder should be
= 1,000,000 × 10% × ( 1- .34 ) × (1- .35)
= 100,000 × .66 × .65
= $42,900
Now
Income will be taxable in hands of partner = 1,000,000 ×10% ×(1-.35)
= 100,000 ×.65
= 65000
Now
Additional income should be
= $65,000 - $42,900
= $22,100
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Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Jan. 1: Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business issued common stock to Murphy.
Answer and Explanation:
The journal entry is shown below:
Cash Dr $78,000
To Common stock $78,000
(Being the common stock is issued)
According to the given situation, the journal entry for issuance of the stock is presented above and the same is to be considered. The cash account is debited and shown on the debit side while the common stock is credited and the same shown on the credit side
Suppose that consumers have an average MPC of 0.75. However, 20% of their income goes to the government in the form of taxes. Furthermore, 25% of disposable income is spent on foreign goods and services rather than domestic goods. Suppose that the government consumes $750 billion, investment is $500 billion, and exports are $250 billion. Autonomous consumption is also $500 billion. How large is the expenditure multiplier
Answer: 1.67
Explanation:
The following can be gotten from the question:
MPC = 0.75
Taxes = 20% = 0.2
Income spent for foreign goods = 25% = 0.25
Then we slot the values into the GDP formula. This will be:
GDP = C+I+G+NX
GDP = C+0.75(Y-0. 2Y)+G+I+NX-0. 25(Y-0. 2Y)
Y = C+0.75(0.8Y)+G+I+NX-0.25(0.8Y)
Y = C+0.6Y+G+I+NX-0. 2Y
Collect like terms
Y = C+I+G+NX+0.6Y-0.2Y
Y= C+I+G+NX+0.4Y
Y-0. 4Y = C+I+G+NX
Y(1-0.4) = C+I+G+NX
0.6Y = C+I+G+NX
Divide through by 0.6
0.6Y/0.6 = 1/0.6(C+I+G+NX)
Y = 1.67(C+I+G+NX)
The expenditure multiplier is 1.67
Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts $ 349,800 Factory machinery depreciation 56,500 Factory supervisor salaries 140,000 Factory direct labor 240,192 Factory supplies 46,400 Factory property tax 27,750 Advertising cost 27,500 Administrative salaries 50,500 Administrative-related depreciation 21,200 Total expected costs $ 959,842 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.51 per hour. 2. Determine the amount of applied overhead if 18,000 actual hours are worked in the upcoming year.
Answer:
See answers below
Explanation:
1 The predetermined overhead rate
= Cost of manufacturing overhead / Cost driver.
Where cost driver
= labor cost / labor rate
= $240,192 / $12.51
= 19,200 hours
Expected overhead
= depreciation + supervisor + supplies + property tax
= 56,500 + 140,000 + 46,400 + 27,750
Total overhead = 270,650
Overhead rate = 270,650 / 19,200
= 14.10 per hour
2. The amount t of applied overhead for of 18,500 actual hours were worked on
= 18,500 hours × $14.10
= $260,850
An entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
a. a community banker.
b. an investment banker.
c. a commercial banker.
d. an executive banker.
Answer:
The answer is B. Investment banker.
Explanation:
An entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
: b. an investment banker.
Who is an investment banker?An investment banker is a person or company which help in the following:
Provide financial services They act as financial advisoryHelp to raise capital etcAn entrepreneur or corporation who is in need of capital can reach out or visit an Investment banker reason being they help to raise capital for those who does not have money to start up their own business.
Inconclusion an entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
: b. an investment banker.
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6.3) Annie Lennox recently took over a cleaning supply store. Her predecessor always ordered carpet shampoo in quantities of 100 units. Annie is reevaluating this policy. Based on her analysis, the cost to place each order is $35 and the holding cost is $8 per shampoo bottle per year. The annual demand for this product is 2500 bottles. Should Anne change the current order policy and, if so, how much can she save
Answer:
Annie should increase the order size to 148 bottles per order and she will be able to save $91.85 per year.
Explanation:
we must calculate the economic order quantity (EOQ) in order to determine the size of the order that reduces costs:
EOQ = √[(2 x S x D) / H]
S = cost per order = $35D = annual demand = 2,500 bottles of shampooH = holding cost per unit) = $8EOQ = √[(2 x 35 x 2,500) / 8] = √(175,000 / 8) = √21,875 = 147.90 ≈ 148 bottles of shampoo
total cost when ordering 100 bottles = (25 orders x $35) + (100/2 x $8) = $875 + $400 = $1,275
total cost when ordering 148 bottles = (16.89 orders x $35) + (148/2 x $8) = $591.15 + $592 = $1,183.15
Annie will save $1,275 - $1,183.15 = $91.85 per year
Which of the following is an example of offshoring? Treat Corp. is a food and beverage manufacturer based in Texas. It decided to move from Houston to Fort Worth in Texas to cut production costs. The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India. Lin, a Chinese citizen, decides to move to the U.K. after her application for scholarship is accepted by a leading university in London. Fahad, a resident of the UAE, can share his views—data and information—about the country's construction industry with his friends in the U.S. 2.5 points Save Answer QUESTION 21
Answer: The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India.
Explanation:
Offshoring is when the operations of business is being outsource to another country in order to minimize cost and also benefit from economies of scale.
From the explanation of what offshoring means, we can see that the option "The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India". qualifies as the best option.
From here, we can see that the IT support services is situated in another country. This may be as a result of wanting to take advantage of cheaper production cost or economies of scale.
xercise 2-11 (Algo) Adjusting entries; fiscal year [LO2-6] The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $8,400 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $137,500 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $28,800 representing rent for the 2021 calendar year and credited deferred rent revenue. Depreciation on the office building is $21,000 for the fiscal year. Employee salaries for the month of June 2021 $21,000 will be paid on July 20, 2021. Prepare the necessary year-end adjusting entries at the end of June 30, 2021, for the above situations. (If no entry is requir
Answer:
1. Dr Insurance expense 2,100
Cr Prepaid insurance2,100
2. Dr Interest expense 2,750
Cr Interest payable 2,750
3. Dr Deferred rent revenue 7,200
Cr Rent revenue 7,200
4. Dr Depreciation expense 5,250
Cr Accumulated depreciation-building 5,250
5. Dr Salaries and wages expense 21,000
Cr Salaries and wages payable 21,000
Explanation:
Preparation of Journal entries
1. Based on the information given we were told that the company paid for its yearly fire insurance premium of the amount of $8,400 which means that the Journal entry will be:
Dr Insurance expense 2,100
($8,400 × 3/12)
Cr Prepaid insurance2,100
2. Based on the information given we were told that the company borrowed the amount of $137,500 from a local bank that include a principal and interest at 8% which means that the Journal entry will be:
Dr Interest expense 2,750
($137,500 × 8% × 3/12)
Cr Interest payable 2,750
3. Based on the information given we were told that the company collected the amount of $28,800 which represent rent for the year 2021 which means that the Journal entry will be:
Dr Deferred rent revenue 7,200
($28,800 × 3/12)
Cr Rent revenue 7,200
4. Based on the information given we were told that Depreciation on the office building cost the amount of $21,000 which means that the Journal entry will be:
Dr Depreciation expense 5,250
($21,000 × 3/12)
Cr Accumulated depreciation-building 5,250
5. Based on the information given we were told that the company employee salaries for the month of June 2021 which is the amount of $21,000 will be paid on July 20, 2021 which means that the Journal entry will be:
Dr Salaries and wages expense 21,000
Cr Salaries and wages payable 21,000
We made a distinction between pro-business policies and pro-market policies. Which of the following is a way to put that distinction? Pro-market policies mean businesses can earn profit and loss; pro-business policies means businesses only make profit. Pro-business policies means companies only make money while pro-market policies means businesses also help the environment. Pro-market policies means all businesses must fail while pro-business policies means businesses never fail. Pro-business policies deal with entrepreneurship and innovation while pro-market policies only deal with exchange.
Answer:
The correct answer is: Pro-market policies mean businesses can earn profit and loss; pro-business policies means businesses only make profit.
Explanation:
Pro-market policies are those that establish norms that help the free market to operate in balance, without any kind of benefit in favor of a specific company, in this way it benefits both companies and consumers, therefore it sets up in a normal market situation where companies cannot make profits and losses.
In a pro-business policies, the government offers advantages to specific companies to increase profitability, such as tax incentives, privileges, etc.
An industrial system has two industries with the following input requirements. (a) To produce $1.00 worth of output, Industry A requires $0.20 of its own product and $0.50 of Industry B's product. (b) To produce $1.00 worth of output, Industry B requires $0.40 of its own product and $0.30 of Industry A's product. Find D, the input-output matrix for this system. A B D = A B Solve for the output matrix X in the equation X = DX + E, where E is the external demand matrix E = 10,000 20,000 . (Round to the nearest whole number.)
Answer:
X = 1/11 * [ 250000; 575000]
Explanation:
To find D we need to build the equation first by working out the equation further we will get the value of x then we can easily work out the equation of matrix X
X = DX + E
Let the matrix X be x,y
The equation will be
x - (0.10x + 0.20y) = 10000
y -(0.50x+0.40y) = 20000
0.9x - 0.2y = 10000
-0.5x+0.6y = 20000
The value of x is equal to 250000/11 and y is equal to 575000/11
Hence the matrix X will be
X = 1/11 * [ 250000; 575000]
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A company adopts an advertising campaign to weekly add to its customer base. It assumes that as an average fifty percent of its new customers, those added the previous week, will bring in one friend, but those who have been customers longer will not be very effective as recruiters and can be discounted. A media campaign brings in 10,000 customers initially. What is the expected total number of customers with whom the company can expect to have dealings
Answer:
20,000 customers
Explanation:
The campaign initially brought in 10,000 new customers. These 10,000 customers should bring 5,000 more. Then these 5,00 should bring 2,500 more customers and so on. in order to solve this question, we can calculate a customer multiplier = 1 / % of customers who bring additional new customers = 1 / 50% = 2
the total number of new customers = 10,000 x 2 = 20,000
Faldo, Inc., provides medical coverage to employees through a self-insured plan. Nick, the president of Faldo, receives $3,400 in medical expense reimbursements from the plan during the current year. What are the tax consequences to Nick under the following circumstances? a. All employees are fully covered by the plan. If all employees are covered by the plan, it is . As such, payments made to employees from self-insured medical reimbursement plans are from the employee's income. So, Nick's $3,400 payment is in his gross income. b. All employees are covered by the plan. However, only Faldo's executive officers are fully reimbursed for all expenses. All other employees are limited to a maximum reimbursement of $1,000 per year. As reimbursements are in favor of highly compensated employees, the rei
Answer:
a. All employees are fully covered by the plan.
Since all the company's employees are covered by the health plan in a similar way, then reimbursements are excluded from gross income. The plan treats all the employees int he same way, so the benefits are the same for everyone, which means that it is company perk and it doesn't discriminate.
b. All employees are covered by the plan. However, only Faldo's executive officers are fully reimbursed for all expenses. All other employees are limited to a maximum reimbursement of $1,000 per year.
Since the health plan discriminates between normal employees and executives, the additional payments made to Nick for being president of the company will be considered as part of his gross income. In this case, the first $1,000 is not included, but the rest, $2,400, must be considered as part of his income.
Linden, Inc. uses a 5,400 square foot factory space that it rents for $3,300 a month for all its manufacturing activities. Linden has decided to switch to an activity-based costing system, and has identified its activities as follows: Preparation and Setup, Machining, Finishing, and Quality Control. 2,900 square feet of the factory are used for machining, while 1,000 square feet (each) are used for Preparation and Setup and Quality Control. Finishing uses 500 square feet. When assigning indirect costs to each activity, how much factory rent should be assigned to the Preparation and Setup cost pool
Answer:
$611
Explanation:
We can easily calculate the rate assigned to the preparation and setup department by dividing the total rent in total space and multiplying it to the space assigned to the preparation and setup department.
DATA
Total space = 5400 sq foot
total rent = $3,300
Space used for preparation and setup = 1,000 sq foot
Solution
Rent assigned to preparation and setup = (Total Rent/Total space) x Space used by preparation and setup department
Rent assigned to preparation and setup = ($3.300/5400) x 1,000
Rent assigned to preparation and setup = $611
You have been working at Saxet Consulting for the past year and are expected to complete three client reviews per week. You have been very productive and have been completing two extra reviews per week. At a recent team meeting, you expected to receive praise from the President for this extra work; however, your manager took credit for the extra work and received the praise from the President. What has your manager violated and what is your likely reaction
Explanation:
In this situation, you can perceive an unethical attitude from your manager, because he has taken credit for the extra work done by you before the president of the company.
So in this situation, it is ideal to have a dialogue between you and your manager in order to clarify the situation that has occurred. Because many managers can act dishonestly with their subordinates because many feel cornered to question the manager's attitudes for fear of reprisals.
It is also ideal that there is support from the rest of the team for a collaborator who is truly unfair because of a situation of abuse of authority, because this way bad behaviors are inhibited and an organizational climate is created, focused on transparency and ethical behaviors.
Initially, in a borrowing and lending market, or a loanable funds market, there is an equilibrium. Suppose entrepreneurs' aggregate expectations are that the economy is going to be good next year (i.e. opportunities for investment). What is likely to happen to the equilibrium interest rate under the following scenarios: 1. There is no change in the loan supply curve; 2. Potential lenders disagree with entrepreneurs, lenders view the future economic outlook as negative/riskier. Answer both cases using the theory of loanable fund markets.
Answer:
At the inception of a borrowing and lending market or a loan-able funds market, there was an equilibrium and the entrepreneurs expect the economy to be good both presently and in the subsequent years. For instance, increase in opportunities for investment which says that the demand for loans will increase in near future. The theory of the loan-able funds market says that " the rate of interest for lending is determined by the demand for and supply of loan-able funds".
1. As the main source of demand is a demand for investment which is likely to increase it will shift the demand curve towards right. The loan supply curve doesn't change as mentioned in the question. Hence, the equilibrium will shift upward i.e. the price of the funds which is the interest rate will increase.
2. Potential lenders disagreeing with entrepreneurs with having a pessimistic view will lead to a reduction of supply of funds in the market which will take the supply curve towards left. And the entrepreneurs have the opposite view which has already shifted the demand curve to right. So ultimately the new equilibrium interest rate will be much higher than the previous equilibrium interest rate.
If the absence of an agreement to the contrary in partnership, what are the all partners entitled?
a) A share in running of the business
b) An equal share of profits I
c) Equally contribute to any losses
d) All of above
Answer:
d) All of above
Explanation:
A partnership agreement provides guidelines on how two or more partners will manage their partnership business. It is the contract that dictates each partner's roles, profit and loss sharing formula, and personal liability of each in case of insolvency.
In the absence of a partnership agreement, the law prescribes that partners share profits and losses equally. All partners assume equal rights to responsibilities and liabilities.
Prompt What are three ways to increase productivity?
Answer:
Administrar bien tu tiempo...
Definir bien lo que vas a hacer durante el día...
Seleccionar tus prioridades del día...
Answer:
Manage your time well...
Define well what you are going to do during the day...
Select your priorities for the day...
Explanation:
your welcome for the English
"If common stock was issued to acquire an $8,000 machine, how would the transaction appear on the statement of cash flows?" It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities. "It would be a negative $8,000 in the financing section and a positive $8,000 in the investing section." It would depend on whether you are using the direct or the indirect method. "It would be a positive $8,000 in the financing section and a negative $8,000 in the investing section."
Answer: It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities.
Explanation:
The Statement of Cashflows only contains transactions that spent or brought in cash. It therefore only deals with cash transactions. This is a noncash investing and financing activity and so it will not be recorded in the Cashflow statement.
The way to record this transaction would be to either record it on a schedule of noncash investing and financing activities or it can be included as a footnote at the bottom of the Cashflow statement.
Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product.
Beginning raw materials $ 5,700
Ending raw materials 4,200
Direct labor 12,450
Raw material purchases 7,600
Depreciation on factory equipment 6,700
Factory repairs and maintenance 3,500
Beginning finished goods inventory 10,400
Ending finished goods inventory 9,100
Beginning work in process inventory 5,900
Ending work in process inventory 6,500
Answer:
$31,150
Explanation:
Computation for cost of goods manufactured
Using this formula
Cost of goods manufactured=(Beginning raw materials+Raw Materials Purchased−Ending Raw Materials) +Direct Labor + (Depreciation on Factory Equipment + Factory Repairs and Maintenance) + Beginning Work in Process−Ending Work in Process
Let plug in the formula
Cost of Goods Manufactured =($ 5,700+7,600-4,200) +12,450+(6,700+3,500) +5,900-6,500
Cost of Goods Manufactured=9,100+12,450+10,200-600
Cost of Goods Manufactured=$31,150
Therefore the cost of goods manufactured will be $31,150
Required information SB (Static) Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process [LO 3-2, 3-3, 3-S1] [The following information applies to the questions displayed below.] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) 52,000 units Direct materials $ 80,000 Conversion cost $ 110,000 Number of units started 158,000 units April costs Direct materials $ 226,000 Conversion cost $ 336,000 Work in process, April 30 (100% complete for materials, 20% for conversion) 80,000 units E3-7 (Static) Weighted-Average Method [LO 3-2, 3-3] Required: Using the weighted-average method, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process.
Answer:
1)
beginning WIP April 1 52,000 units
units started 158,000
ending WIP 80,000 units
units completed = 158,000 + 52,000 - 80,000 = 130,000
2) equivalent units:
for direct materials = 130,000 + 80,000 = 210,000
for conversion costs = 130,000 + (80,000 x 0.2) = 146,000
3) cost per equivalent unit:
direct materials = ($80,000 + $226,000) / 210,000 = $1.45714
conversion costs = ($110,000 + $336,000) / 146,000 = $3.05479
total cost per EUP = $4.51193
4) ending work in process
Material Conversion Total
Beginning WIP $80,000 $110,000 $190,000
Cost incurred $226,000 $336,000 $562,000
Total Cost $306,000 $436,000 $752,000
Equivalent Units 210,000 145,000
Cost per EUP $1.45714 $3.05479 $4.51193
Ending WIP EUP 80,000 16,000
Cost of ending WIP $116,571.20 $48,876.64 $165,447.84
