Answer:
Elastic demand means there is a substantial change in quantity demanded when another economic factor changes typically the price of the good or service, whereas inelastic demand means that there is only a slight or no change in quantity demanded of the good or service when another economic factor is changed.
Explanation:
Hope this helps
From,
1kvibing
Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, she intends to make you 9 more similar gifts, at the end of this year, next year, etc. If the savings account pays 8% interest, how much will you have
accumulated at the end of 10 years (one year after the last gift)?
Answer:
$156,454.87
Explanation:
Future Value of an annuity due: FV = Pmt x ((1+r)n -1))/r) x (1+r)
When Payment per period (PMT) = $10,000, Discount Rate per period= 8%,Number of periods (n) = 10
Future Value = $10,000 * ((1+0.08)^10 -1))/0.08) * 1.08
Future Value = $10,000 * [(1.08)^10 - 1 ]/ 0.08 * 1.08
Future Value = $10,000 * 2.15892499727-1/0.08 * 1.08
Future Value = $10,000 * 1.15892499727/0.08 * 1.08
Future Value = $10,000 * 14.486562465875 * 1.08
Future Value = 156454.87463145
Future Value = $156,454.87
The worth of a collection of regular payments at a future date, assuming a given discount rate, or rate of return (ROR) is called the future value of an annuity. (FAPThe present value (PV) of an annuity is the amount of money required to fund a series of future annuity payments (FAP) today.
COMPUTATION OF FUTURE VALUE OF ANNUITY DUE:
[tex]\text{Future Value of an annuity due (FV)} =[ \frac{\text{Pmt} \text{ x } ((1+r)^{n}}{r} -1] \text{ x } (1+r)[/tex]
[tex]\text{Where,}\\\text{Payment per period (PMT)} = 10,000, \\\text{Discount Rate per period(r)} = 0.08,\\\text{Number of periods (n)} = 10[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } ((1+0.08)^{10}}{0.08} -1] \text{ x } (1+0.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } ((1.08)^{10}}{0.08} -1] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } 2.1589}{0.08} -1] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } 1.15892499727}{0.08} ] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ 10,000 \text{ x } 14.486562465875} ] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} = 156454.87463145[/tex]
[tex]\text{Future Value} = 156,454.87[/tex]
Therefore, the accumulated amount at the end of 10 years is $156,454.87.
For more information regarding the future value (FV), refer to the link:
https://brainly.com/question/13369387
Jordan Sports Inc. has labor costs and overhead totaling $1.3 million during a given period. The company purchased $9.4 million of materials during the period and used $8.6 million of this amount. What is the amount of total manufacturing cost for the period?
Answer:
Jordan Sports Inc.
The amount of total manufacturing cost for the period is:
= $9.9 million
Explanation:
a) Data and Calculations:
Labor and overhead costs = $1.3 million
Cost of materials used - $8.6 million
Total manufacturing cost = $9.9 million
Cost of materials purchased = $9.4 million
Less Cost of materials used 8.6 million
Ending inventory of materials = $0.8 million
b) The total manufacturing cost for the period is the aggregate of costs of direct materials, direct labor, and manufacturing overheads incurred by Jordan Sports, Inc. to produce its products. It does not include the cost of ending inventory of materials of $0.8 million, which will be consumed in the following period.
You paid $100 for a ticket to the Broadway show Hamilton, for which your value of
attending is $250. In NYC the day the show, you legally sell your ticket on the secondary
market for $1,000. This is an example of?
Answer:
avoiding the hidden or sunk cost fallacy.
Explanation:
The hidden or sunk cost fallacy refers to not realizing that a sunk cost has occurred and no matter what you do, you will not recover it or in this case, enjoy it. A classic example are all you can eat buffets and people simply eating too much because they paid for it.
In this case, if you had not sold the ticket and not earned the profit, you would have incurred in the sunk cost fallacy by not recognizing that you could benefit more from selling the ticket instead of just insisting on going to see the play.
Suppose that at a local farmers' market there are a large number of vegetable sellers. Some sell zucchini, some sell broccoli, some sell Brussels sprouts, and so on. This week, the zucchini sellers decide to gang together and fix the price of zucchini at a price higher than they would sell otherwise. Which of the following statements is most likely true?
a. The zucchini sellers will not sell any zucchini.
b. The zucchini sellers will be able to earn a lot more money.
c. The zucchini sellers have limited market power because consumers have many alternatives.
d. The zucchini sellers will enjoy a large degree of market power.
Answer: c. The zucchini sellers have limited market power because consumers have many alternatives.
Explanation:
As the Zucchini sellers have fixed the price such that it is the same for all of them, they will have market power in the sale of Zucchini.
In terms of the whole market however, they will have only limited power because even though they control the pricing of Zucchini, there are other alternatives there that they do not control and can be switched to by other consumers.
The true statement is the zucchini sellers have limited market power because consumers have many alternatives.
What is a monopolistic competition?A monopolistic competition is when there are plenty sellers of unidentical goods and services in an industry.
A monopolistic competition has characteristics of both a monopoly and a perfect competition. The demand curve in a monopolistic competition is downward sloping.
Broccoli is a substitute for zucchini. So, if zucchini sellers increase the price of their good, consumers can begin to consumer more broccoli.
To learn more about monopolistic competition, please check: https://brainly.com/question/1622043
A primary reason for a company to change from traditional costing to activity-based costing (ABC) is that ABC:___________
A. Is a simpler costing method to use.
B. Identifies the nonvalue-added costs of production.
C. Reduces product undercosting or overcosting.
D. Eliminates indirect cost application to products.
Answer:
C. Reduces product undercosting or overcosting.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
A primary reason for a company to change from traditional costing to activity-based costing (ABC) is that ABC reduces product undercosting or overcosting. One of the most widely used activity-based costing technique is the time-driven activity-based costing.
Time-driven activity-based costing (TDABC) avails business owners the opportunity of reporting their costs on an ongoing basis (real time) which give details about the various cost of doing business, as well as the time spent on them respectively.
This ultimately implies that, TDABC gives entrepreneurs or employers all the necessary information on the actual cost of manufacturing, service delivery and other tasks associated with the business. Under the TDABC, the relationship between time and cost measurement is used to determine the cost price of goods and services.
Time-driven activity-based costing (TDABC) does not assume employees will self-report idle time but it overcomes some important limitations of activity-based costing (ABC) because it can be used by both the employees and their employers.
Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of the year for the next 18 years if the funds can earn 5 percent. If she can earn 7 percent, how much less will she have to invest each year?
Answer:
The amount Holly will have to invest less each year is $1,226.72.
Explanation:
This can be calculated using the following 3 steps:
Step 1: Calculation of monthly payment at 5% interest rate
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = P_5% * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value or the amount Holly wants to have = $200,000
P_5% = Annual investment at 5% = ?
r = Annual interest rate = 5%, or 0.05
n = number of years = 18
Substituting the values into equation (1), we have:
$200,000 = P_5% * (((1 + 0.05)^18 - 1) / 0.05)
$200,000 = P_5% * 28.1323846738217
P_5% = $200,000 / 28.1323846738217
P_5% = $7,109.24
Step 2: Calculation of monthly payment at 7% interest rate
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = P_7% * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FV = Future value or the amount Holly wants to have = $200,000
P_7% = Annual investment at 7% = ?
r = Annual interest rate = 7%, or 0.07
n = number of years = 18
Substituting the values into equation (2), we have:
$200,000 = P_7% * (((1 + 0.07)^18 - 1) / 0.07)
$200,000 = P_7% * 33.9990325104648
P_7% = $200,000 / 33.9990325104648
P_7% = $5,882.52
Step 3: Calculation of the amount Holly will have to invest less each year
Amount to invest less each year = P_5% - P_7%
Amount to invest less each year = $7,109.24 - $5,882.52
Amount to invest less each year = $1,226.72
Therefore, the amount Holly will have to invest less each year is $1,226.72.
Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020.
Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity Ordering and receiving$94,72012,800 orders Food processing 492,00060,000 machine hours Packaging 1,695,450445,000 labor hours For 2020, the company had 11,800 orders and used 51,100 machine hours, and labor hours totaled 497,000.
Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.)
Overhead Rates
Ordering and receiving
$Entry field with incorrect answer
per order
Food processing
$Entry field with correct answer
per machine hour
Packaging
$Entry field with correct answer
per labor hour
LINK TO TEXT
Spud, Inc. a manufacturer of gourmet potato chips,
Spud, Inc. a manufacturer of gourmet potato chips,
What is the total overhead applied?
Total overhead applied
$Entry field with incorrect answer now contains modified data
Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.
Budgeted
Actual
Overhead cost $975,000 $950,000
Machine hours 50,000 45,000
Direct labor hours 100,000 92,000
Overhead is applied on the basis of direct labor hours.
Spud, Inc. a manufacturer of gourmet potato chips,
Spud, Inc. a manufacturer of gourmet potato chips,
Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)
Predetermined overhead rate
$Entry field with incorrect answer now contains modified data
per direct labor hour
LINK TO TEXT
Spud, Inc. a manufacturer of gourmet potato chips,
Spud, Inc. a manufacturer of gourmet potato chips,
Determine the amount of overhead applied for the year.
Amount of overhead applied
$Entry field with incorrect answer now contains modified data
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $150,000, $375,000, and $87,500, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.
Compute the overhead rate for each activity.
Machine setups
$Entry field with correct answer
per setup
Machining
$Entry field with incorrect answer
per machine hour
Inspections
$Entry field with correct answer
per inspection
Answer:
a. Spud, Inc.
1. Overhead rates:
Ordering and receiving $7.40 ($94,720/12,800) per order
Food processing $8.20 (492,000/60,000)per machine hour
Packaging $3.81 (1,695,450/445,000) labor hour
2. Total overhead applied = $2,399,890
b. Digger Inc.
Overhead rate = $9.75 per DLH
Total overhead cost applied = $897,000
c. Morgana Company
Overhead rates:
Machine setups $60 ($150,000/2,500) per setup
Machining $15 ($375,000/25,000) per machine hour
Inspections $50 ($87,500/1,750) per inspection
Explanation:
a) Data and Calculations:
Spud, Inc. budgeted data:
Activity Cost Pools Estimated Estimated Use of Cost Drivers
Overhead per Activity
Ordering and receiving $94,720 12,800 orders
Food processing 492,000 60,000 machine hours
Packaging 1,695,450 445,000 labor hours
Actual data:
Actual orders = 11,800
Machine hours = 51,100
Labor hours = 497,000
Overhead rates for each activity:
Ordering and receiving $94,720/12,800 = $7.40 per order
Food processing 492,000/60,000 = $8.20 per machine hour
Packaging 1,695,450/445,000 = $3.81 labor hour
Actual data:
Actual orders = 11,800 * $7.40 = $87,320
Machine hours = 51,100 * $8.20 = 419,020
Labor hours = 497,000 * $3.81 = 1,893,570
Total overhead applied = $2,399,890
Digger Inc:
Budgeted Actual
Overhead cost $975,000 $950,000
Machine hours 50,000 45,000
Direct labor hours 100,000 92,000
Overhead is applied on the basis of direct labor hours
Overhead rate = $975,000/100,000 = $9.75 per DLH
Total overhead cost applied = $897,000 (92,000 * $9.75)
Morgana Company:
Activity Cost Pool Estimated Overhead Cost Driver
Machine setups $150,000 2,500 number of setups
Machining 375,000 25,000 machine hours
Inspections 87,500 1,750 number of inspections
Overhead rates:
Machine setups $60 ($150,000/2,500) per setup
Machining $15 ($375,000/25,000) per machine hour
Inspections $50 ($87,500/1,750) per inspection
The following information applies to the questions below.
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.
Additional Information Items
1. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,349 are available at year-end.
3. Annual depreciation on the equipment is $15,458.
4. Annual depreciation on the professional library is $7,729.
5. On September 1, WTI agreed to do five courses for a client for $2,800 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $14,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $12,000 of the tuition has been earned by WTI.
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit Credit
Cash $ 27,849
Accounts receivable 0
Teaching supplies 10,710
Prepaid insurance 16,068
Prepaid rent 2,143
Professional library 32,133
Accumulated depreciation—Professional library $ 9,641
Equipment 74,968
Accumulated depreciation—Equipment 17,139
Accounts payable 36,341
Salaries payable 0
Unearned training fees 14,000
T. Wells, Capital 68,123
T. Wells, Withdrawals 42,845
Tuition fees earned 109,254
Training fees earned 40,702
Depreciation expense—Professional library 0
Depreciation expense—Equipment 0
Salaries expense 51,415
Insurance expense 0
Rent expense 23,573
Teaching supplies expense 0
Advertising expense 7,498
Utilities expense 5,998
Totals $ 295,200 $295,200
a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
b. Prepare an adjusted trial balance.
Answer:
1. T-accounts:
Cash
Account Titles Debit Credit
Unadjusted Trial Balance $ 27,849
Accounts receivable
Account Titles Debit Credit
Unadjusted Trial Balance $ 0
Training fees earned 12,000
Teaching supplies
Account Titles Debit Credit
Unadjusted Trial Balance $10,710
Supplies Expense $7,361
Balance 3,349
Totals $10,710 $10,710
Prepaid insurance
Account Titles Debit Credit
Unadjusted Trial Balance $16,068
Insurance Expense $3,864
Balance 12,204
Totals $16,068 $16,068
Prepaid rent
Account Titles Debit Credit
Unadjusted Trial Balance $2,143
Rent expense $2,143
Professional library
Account Titles Debit Credit
Unadjusted Trial Balance $32,133
Accumulated depreciation—Professional library
Account Titles Debit Credit
Unadjusted Trial Balance $ 9,641
Depreciation expense 7,729
Balance $17,370
Totals $17,370 $17,270
Equipment
Account Titles Debit Credit
Unadjusted Trial Balance $74,968
Accumulated depreciation—Equipment
Account Titles Debit Credit
Unadjusted Trial Balance $17,139
Depreciation expense 15,458
Balance $32,597
Totals $32,597 $32,597
Accounts payable
Account Titles Debit Credit
Unadjusted Trial Balance $36,341
Salaries payable
Account Titles Debit Credit
Unadjusted Trial Balance $0
Salaries expense 400
Unearned training fees
Account Titles Debit Credit
Unadjusted Trial Balance $14,000
Training Fees Revenue $5,600
Balance 8,400
T. Wells, Capital
Account Titles Debit Credit
Unadjusted Trial Balance $68,123
T. Wells, Withdrawals
Account Titles Debit Credit
Unadjusted Trial Balance $42,845
Tuition fees earned
Account Titles Debit Credit
Unadjusted Trial Balance $109,254
Training fees earned
Account Titles Debit Credit
Unadjusted Trial Balance $40,702
Unearned Training fee 5,600
Accounts receivable 12,000
Balance $58,302
Depreciation expense—Professional library
Account Titles Debit Credit
Unadjusted Trial Balance $ 0
Accumulated depreciation 7,729
Depreciation expense—Equipment
Account Titles Debit Credit
Unadjusted Trial Balance $ 0
Accumulated depreciation 15,458
Salaries expense
Account Titles Debit Credit
Unadjusted Trial Balance $51,415
Salaries payable 400
Balance $51,815
Insurance expense
Account Titles Debit Credit
Unadjusted Trial Balance $0
Prepaid Insurance 3,864
Rent expense
Account Titles Debit Credit
Unadjusted Trial Balance $23,573
Prepaid rent 2,143
Balance $25,716
Teaching supplies expense
Account Titles Debit Credit
Unadjusted Trial Balance $0
Teaching supplies $7,361
Advertising expense
Account Titles Debit Credit
Unadjusted Trial Balance $7,498
Utilities expense
Account Titles Debit Credit
Unadjusted Trial Balance $5,998
b. WELLS TECHNICAL INSTITUTE
Adjusted Trial Balance
December 31
Account Titles Debit Credit
Cash $ 27,849
Accounts receivable 12,000
Teaching supplies 3,349
Prepaid insurance 12,204
Professional library 32,133
Accumulated depreciation—Professional library $17,370
Equipment 74,968
Accumulated depreciation—Equipment 32,597
Accounts payable 36,341
Salaries payable 400
Unearned training fees 8,400
T. Wells, Capital 68,123
T. Wells, Withdrawals 42,845
Tuition fees earned 109,254
Training fees earned 58,302
Depreciation expense—
Professional library 7,729
Depreciation expense—
Equipment 15,458
Salaries expense 51,815
Insurance expense 3,864
Rent expense 25,716
Teaching supplies expense 7,361
Advertising expense 7,498
Utilities expense 5,998
Totals $330,787 $330,787
Explanation:
a) WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit Credit
Cash $ 27,849
Accounts receivable 0
Teaching supplies 10,710
Prepaid insurance 16,068
Prepaid rent 2,143
Professional library 32,133
Accumulated depreciation—Professional library $ 9,641
Equipment 74,968
Accumulated depreciation—Equipment 17,139
Accounts payable 36,341
Salaries payable 0
Unearned training fees 14,000
T. Wells, Capital 68,123
T. Wells, Withdrawals 42,845
Tuition fees earned 109,254
Training fees earned 40,702
Depreciation expense—Professional library 0
Depreciation expense—Equipment 0
Salaries expense 51,415
Insurance expense 0
Rent expense 23,573
Teaching supplies expense 0
Advertising expense 7,498
Utilities expense 5,998
Totals $ 295,200 $295,200
how stockholders can earn a return on their investments
Answer:
Dividends Capital gainsExplanation:
When people buy shares in a company, they become stockholders. These shares mean they have an ownership interest in the company and when the company makes a certain amount of profit, it may decide to share some of that profit with its shareholders as Dividends.
Another way is through Capital Gains. Capital gains are the result of the shares increasing in value after the stockholder has bought it. For instance, if you bought a Tesla share in December 2016 it would have cost you $50. Today it would be worth $872. That difference of $822 is the capital gain.
Choose the response that correctly completes the following sentence about the Harrisons' refund or balance due. The Harrisons will:
a. Receive a refund that is greater than $ 4,500 but less than $4,800
b. Receive a refund that is greater than $4,200 but less than $4,500
c. Have a balance due that is greater than $200 but less than $500
d. Have a balance due that is greater than $500 but less than $800
Answer:
ni
Explanation:
bnn
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 6,400 Variable costs per unit: Direct materials $ 60 Direct labor $ 54 Variable manufacturing overhead $ 4 Variable selling and administrative expense $ 17 Fixed costs: Fixed manufacturing overhead $ 236,800 Fixed selling and administrative expense $ 492,800 There were no beginning or ending inventories. The absorption costing unit product cost was:
Answer:
$155 per unit
Explanation:
Calculation for what The absorption costing unit product cost was:
Using this formula
Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overheads + (Fixed manufacturing overheads / Number of units produced)
Let plug in the formula
Absorption costing unit product cost = $60+ $54+ $4 + ( $ 236,800/6,400 )
Absorption costing unit product cost =$60+ $54+ $4 + $37
Absorption costing unit product cost = $155 per unit
Therefore The absorption costing unit product cost was:$155 per unit
Assume that a manufacturing company incurred the following costs: Direct labor $ 90,000 Advertising $ 40,000 Factory supervision $ 36,000 Sales commissions $ 15,000 Depreciation, office equipment $ 4,000 Indirect materials $ 5,000 Depreciation, factory building $ 20,000 Administrative office salaries $ 1,000 Utilities, factory $ 2,500 Direct materials $ 106,000 Insurance, factory $ 10,000 Property taxes, factory $ 7,000 What is the total amount of manufacturing overhead
The manufacturing overhead is calculated by taking all the costs that are incurred directly for the manufacturing process of goods.
Costs incurred are as follows:
Direct labor $90,000
Indirect Material $5,000
Depreciation factory building $20,000
Utilities (Factory) $2,500
Direct Materials $106,000
Factory $,7000
Total Manufacturing Overhead = $230,500
Therefore the answer to the question is $230,500
Learn more at https://brainly.com/question/7870499
Productivity is defined as the Group of answer choices amount of goods and services produced from each unit of labor input. number of workers required to produce a given amount of goods and services. amount of labor that can be saved by replacing workers with machines. actual amount of effort workers put into an hour of working time.
Answer:
A,)amount of goods and services produced from each unit of labor input.
Explanation:
Productivity can be regarded as the measure of efficiency in production. It can be calculated by dividing aggregate output by single input over a particular period of time. It should be noted that Productivity is the amount of goods and services produced from each unit of labor input.
Makers Corp. had additions to retained earnings for the year just ended of $298,000. The firm paid out $178,000 in cash dividends, and it has ending total equity of $4.83 million. The company currently has 140,000 shares of common stock outstanding.
What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Earnings $ per share
What are dividends per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Dividends $ per share
What is the book value per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Book value $ per share
If the stock currently sells for $70 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Market-to-book ratio times
What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16.)
Price-earnings ratio times
If the company had sales of $4.27 million, what is the price-sales ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Price-sales ratio times
Answer:
Makers Corp.
a. Earnings per share = $3.40
b. Dividends per share = $1,27
c. Book value per share = $34.50
d. Market to book ratio times = 2.03 times
e. Price-earnings ratio times = 20.59 times
f. Price-Sales ratio times = 2.30 times
Explanation:
a) Retained Earnings = $298,000
Cash Dividends paid = $178,000
Total earnings = $ 476,000 ($298,000 + $178,000)
Ending total equity = $4.83 million
Outstanding common stock = 140,000 shares
Earnings per share = $476,000/140,000 = $3.40 per share
Dividends per share = $178,000/140,000 = $1.27 per share
Book value per share = $4.83 million/140,000 = $34.50
Market-to-book ratio = $70/$34.50 = 2.03 : 1
Price-earnings ratio = $70/$3.40 = 20.59 : 1
Sales per share = $4.27 million /140,000 shares = $30.50
Price-sales ratio = $70/$30.50 = 2.30 : 1
Claremore Industries uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000. The cost of the ending work in process is: Multiple Choice $54,000. $78,000. $114,000. $195,000. None of the answers is correct.
Answer:
$78,000
Explanation:
Calculation for The cost of the ending work in process
First step is to calculate the Material cost per unit.
Material cost per unit = $220,000 / (40,000+15,000)
Material cost per unit= $220,000 / 55,000
Material cost per unit= $4
Second step is to calculate the Conversion cost per unit
Conversion cost per unit= $414,000 / (40,000 + (15,000*40%)
Conversion cost per unit= $414000 / 46000
Conversion cost per unit= $9
Third step is to calculate total cost per equivalent unit
Total cost per equivalent unit= $4 + $9
Total cost per equivalent unit= $13
Fourth step is to calculate the equivalent unit of the ending work in process
Equivalent unit of the ending work in process= 15,000 × 40%
Equivalent unit of the ending work in process= 6,000
Now let calculate cost of the ending work in process
Cost of the ending work in process = 6,000 × $13
Cost of the ending work in process = $78,000
Therefore The cost of the ending work in process is $78,000
Swifty Corporation’s weekly payroll of $22,000 included FICA taxes withheld of $1,683, federal taxes withheld of $2,940, state taxes withheld of $840, and insurance premiums withheld of $230. Prepare the journal entry to record Swifty’s payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Date Account Titles and Explanation Debit Credit
Salaries Wages expense $22,000
Cash $16,307
Withholding taxes payable (2940+840) $3,780
FICA taxes payable $1,683
Insurance premiums payable $230
(To record Swifty’s payroll)
What pathway in the Arts av technology a communication cluster does Jason work in
Simon Company’s year-end balance sheets follow.
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $31,800 $35,625 $37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $523,000 $445,000 $377,500
Liabilities and Equity:
Accounts payable $129,900 $75,250 $51,250
Long-term notes payable secured by
mortgages on plant assets 98,500 101,500 83,500
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities and equity $523,000 $445,000 $377,500
Required:
a. Express the balance sheets in common-size percents.
b. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable?
c. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?
Answer:
Simon Company
a. Expressing the balance sheets in common-size percents:
Simon Company's Year-end Balance Sheet:
At December 31 Current Yr % 1 Yr Ago % 2 Yrs Ago %
Assets
Cash $31,800 6% $35,625 8% $37,800 10%
Accounts receivable, net 89,500 17% 62,500 14% 50,200 13.3%
Merchandise inventory 112,500 22% 82,500 19% 54,000 14.3%
Prepaid expenses 10,700 2% 9,375 2% 5,000 1.3%
Plant assets, net 278,500 53% 255,000 57% 230,500 61.1%
Total assets $523,000 100% $445,000 100% $377,500 100%
Liabilities and Equity:
Accounts payable $129,900 25% $75,250 17% $51,250 14%
Long-term notes payable 98,500 19% 101,500 23% 83,500 22%
Common stock, $10
par value 163,500 31% 163,500 37% 163,500 43%
Retained earnings 131,100 25% 104,750 23% 79,250 21%
Total liabilities & equity $523,000 100% $445,000 100% $377,500 100%
b. The change in accounts receivable has been unfavorable. It has increased year on year, showing that the management has not improved on its collection policies and practices. This conclusion is based on the assumption that annual sales have not changed in the last three years.
c. The change in merchandise inventory has been unfavorable. It has increased in its percentages over total assets over the last three years. It shows that the management is increasingly keeping excess inventory. Again, this conclusion is based on the assumption that annual sales have not changed in the last three years.
Explanation:
a) Data and Calculations:
Simon Company's Year-end Balance Sheet:
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $31,800 $35,625 $37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $523,000 $445,000 $377,500
Liabilities and Equity:
Accounts payable $129,900 $75,250 $51,250
Long-term notes payable 98,500 101,500 83,500
Common stock, $10
par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities & equity $523,000 $445,000 $377,500
b) The common-size percents are determined by taking a balance sheet account and expressing it as percentage of the total assets. For example, the common stock for the current year is $163,500. When this is expressed as a percentage of total assets, which is equal to total liabilities and equity, we have it as 31% ($163,500/$523,000 * 100) approximately.
a. The balance sheet of Simon Company is expressed in common-size percentages.
b. The shift in accounts receivable has been negative. It has risen year after year, indicating that management has not changed its collection policies and practices.
c. The merchandise inventory change has been unfavorable. Over the last three years, its percentage of total assets has risen. It demonstrates that management is progressively stockpiling excess goods.
a. Expressing the balance sheets in common-size percentages:
Simon Company's Year-end Balance Sheet:
At December 31 Current Yr % 1 Yr Ago % 2 Yrs Ago %
Assets
Cash $31,800 6% $35,625 8% $37,800 10%
Accounts receivable, net 89,500 17% 62,500 14% 50,200 13.3%
Merchandise inventory 112,500 22% 82,500 19% 54,000 14.3%
Prepaid expenses 10,700 2% 9,375 2% 5,000 1.3%
Plant assets, net 278,500 53% 255,000 57% 230,500 61.1%
Total assets $523,000 100% $445,000 100% $377,500 100%
Liabilities and Equity:
Accounts payable $129,900 25% $75,250 17% $51,250 14%
Long-term notes payable 98,500 19% 101,500 23% 83,500 22%
Common stock, $10
par value 163,500 31% 163,500 37% 163,500 43%
Retained earnings 131,100 25% 104,750 23% 79,250 21%
Total liabilities & equity $523,000 100% $445,000 100% $377,500 100%
For expressing the common-size percentage the amount for total asset is taken as base value.
To learn more on balance sheet, here:
https://brainly.com/question/28446946
#SPJ6
Tax evasion versus tax avoidance
Money Management and Tax Planning
Money management includes effective tax planning. Your financial plan should include ways to lower your tax liability so you have more money to spend, invest, or donate. The key to effective tax planning is to reduce your taxable income, rather than your gross income, through all appropriate and legally available opportunities.
The act of reducing taxes by deliberately understating income or overstating deductions is called ______
Tax evasion or tax avoidance?
Ayesha is preparing her tax return for the year and is looking at ways to save on her tax bill Ayer women ur time in the day and tended bar at night. Her daytime employer reported her income for her job, but her tips from tending bar at night were not reported to the IRS. Ayesha is thinking about leaving the tip earnings out of her income on her tax return. Is this tax evasion or tax avoidance?
Tax avoidance
Tax evasion
Answer:
1. The act of reducing taxes by deliberately understating income or overstating deductions is called ______
Tax evasion
2. Leaving the tip earnings out of her income on her tax returns is
Tax evasion
Explanation:
Tax evasion is deliberate reduction of gross income either by excluding, understating, omitting income, or overstating deductions. It is not legal. Tax avoidance is managing taxable income by effective tax planning (e.g. through investments, insurance, etc.) so that less tax is paid. It is legal and allowed.
Speedy Delivery Company purchases a delivery van for $36,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 148,000 miles.
Required:
Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar.
1. Straight-line.
2. Double-declining-balance.
3. Activity-based.
Actual miles driven each year were 40,000 miles in year 1 and 46,000 miles in year 2.
Answer:
Straight line method
Year 1. $7,400
Year 2. $7,400
Double - Declining Balance method
Year 1= 18,000
Year 2= 9,000
Activity Based method
Year 1= 8,000
Year 2=9,200
Explanation:
Calculation for the annual depreciation for the first two years using Straight line method for year 1 & 2
STRAIGHT LINE METHOD
Year 1 =(36,000 - 6400) / 4 year
Year 1 =29,600/4 year
Year 1= 7,400
Year 2 =(36,000 - 6400) / 4 year
Year 2 =29,600/4 year
Year 2= 7,400
Calculation for the annual depreciation for the first two years using Double - Declining Balance method
DOUBLE DECLINE BALANCE METHOD
Year 1= (2/4) x (36,000 - 0)
Year 1= (2/4) x 36,000
Year 1= 18,000
Year 2= (2/4) x (36,000 - 18,000)
Year 2= (2/4) x18,000
Year 2= 9,000
Calculation for the annual depreciation for the first two years using Activity Based method
ACTIVITY BASED METHOD
Year 1= [ (36,000 - 6,400) / (148,000) ] x (40,000 miles)
Year 1=( 29,600/148,000)×40,000 miles
Year 1=0.2×40,000 miles
Year 1= 8,000
Year 2= [ (36,000 - 6,400) / (148,000) ] x (46,000 miles)
Year 2 =(29,600/148,000)×46,000 miles
Year 2=0.2×46,000 miles
Year 2 = 9,200
Therefore the annual depreciation for the first two years is:
Straight line method
Year 1. $7,400
Year 2. $7,400
Double - Declining Balance method
Year 1= 18,000
Year 2= 9,000
Activity Based method
Year 1= 8,000
Year 2=9,200
Initially, suppose Bellissima uses 1 million hours of labor to produce rye and 3 million hours to produce jeans, while Dolorium uses 3 million hours of labor to produce rye and 1 million hours to produce jeans. Consequently, Dolorium produces 32 million pairs of jeans and 24 million bushels of rye, and Bellissima produces 72 million pairs of jeans and 12 million bushels of rye. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.
Dolorium's opportunity cost of producing one bushel of rye is_________ of jeans, and Bellissima's opportunity cost of producing one bushel of rye is _______ of jeans. Therefore, ________ has a comparative advantage in the production of rye and ________ has a comparative advantage in the production of jeans.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce_________ bushels, and the country that produces jeans will produce _____ pairs. In the table at the end of this problem, enter each country's production decision on the second row (marked "Production").
Answer:
Bellisima's opportunity cost:
Production of rye per million hours of labor = 24 / 12 = 2 pairs of jeans
Production of jeans per million hours of labor = 12 / 24 = 0.5 bushels of rye
Dolorium's opportunity cost:
Production of rye per million hours of labor = 32 / 8 = 4 pairs of jeans
Production of jeans per million hours of labor = 8 / 32 = 0.25 bushels of rye
Dolorium has a comparative advantage in the production of jeans while Bellisima has a comparative advantage in the production of rye.
If both countries specialize:
Bellisima will produce 48 million bushels of rye.
Dolorium will produce 128 million pairs of jeans.
Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 24 million pairs.
Dodson Company traded in a manual pressing machine for an automated pressing machine and gave $8,000 cash. The old machine cost $93,000 and had a net book value of $71,000. The old machine had a fair market value of $60,000. Which of the following is the correct journal entry to record the exchange?
a. Equipment 68,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000
Equipment 93,000
Cash 8,000
b. Equipment 68,000
Equipment 60,000
Cash 8,000
c. Cash 8,000
Equipment 60,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000
Equipment 101,000
d. Equipment 123,000
Accumulated Depreciation 22,000
Equipment 93,000
Cash 8,000
Answer:
a. Dr Equipment 68,000
Dr Loss on Exchange 11,000
Dr Accumulated Depreciation 22,000
Cr Equipment 93,000
Cr Cash 8,000
Explanation:
Preparation of the correct journal entry to record the exchange
Based on the information given the correct journal entry to record the exchange will be
Dr Equipment 68,000
(60,000+8,000)
Dr Loss on Exchange 11,000
(71,000-60,000)
Dr Accumulated Depreciation 22,000
(93,000-71,000)
Cr Equipment 93,000
Cr Cash 8,000
(Being to record the exchange)
Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?
Liza's average total cost changes from $4.50 to $2.20 when she increases salad production from 7 to 9 an hour. Sam's average total cost changes from $1.30 to $2.80 when he increases smoothie production from 5 to 8 gallons an hour. Tina's average total cost remains at $3 when she increases pizza production from 12 to 13 an hour.
a. Sam faces economies of scale; Liza faces diseconomies of scale; Tina faces constant returns to scale.
b. Sam faces economies of scale; Tina faces diseconomies of scale; Liza faces constant returns to scale.
c. Tina faces economies of scale; Sam faces diseconomies of scale; Liza faces constant returns to scale.
d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scal
Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale
Explanation:
Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.
Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".
Dmitri lives in Houston and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Dmitri does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Charles's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
a. The wages and utility bills that Charles pays
b. The wholesale cost for the guitars that Charles pays the manufacturer
c. The rental income Charles could receive if he chose to rent out his showroom
d. The salary Charles could earn if he worked as a financial advisor
Answer:
Implicit costs are opportunity costs. They are the cost of the next best alternative that one could have taken from the one they took.
Explicit costs are normal accounting costs which represent the expenses involved in running a business.
a. The wages and utility bills that Charles pays. EXPLICIT COSTS.
These are normal accounting expenses so they are explicit costs.
b. The wholesale cost for the guitars that Charles pays the manufacturer. EXPLICIT COSTS.
Another cost of doing business so this is explicit as well.
c. The rental income Charles could receive if he chose to rent out his showroom. IMPLICIT COST.
By not renting out his showroom and using it instead, he is losing the rental income he could be making so this is an implicit cost.
d. The salary Charles could earn if he worked as a financial advisor. IMPLICIT COST.
Another income he could be making if he wasn't selling guitars. This make it an implicit cost.
Chuck, a single taxpayer, earns $79,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)
Income and $19,900 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.)
Required:
a. How much federal tax will he owe?
b. What is his average tax rate?
c. What is his effective tax rate?
d. What is his current marginal tax rate?
Complete this question by entering your answers in the tabs below Req B Req D Req A Req C What is his average tax rate? (Do not round intermediate calculations. Round total tax to 2 decimal places.) Average Tax Rate Choose numeratorChoose denominator Total tax Taxable income 8,479.50 14.88% 57,000
Answer:
Base 98900 79000
tax excess 85525 40125
Excess 13375 38875
% 24% 22%
tax 1 3210 8552.5
tax 2 additional 14605.5 plus 24% of the excess 85.525
4617.5 plus 22% of the excess 40.125
total tax (tax1+tax2) 17815.5__13170
Change in tax
(17.815 - 13.170) / (98,900 - 79,000) =
4.645,5 / 19.900 = 23.34%
Explanation:
Base 98900 79000
tax excess 85525 40125
Excess 13375 38875
% 24% 22%
tax 1 3210 8552.5
tax 2 additional 14605.5 4617.5
total tax 17815.5 13170
Change in tax
(17.815 - 13.170) / (98,900 - 79,000) =
4.645,5 / 19.900 = 23.34%
Discuss the economic landscape in Philippines?
Answer:
Low economic mobility, poverty and income inequality, poor health care and nutrition.
Explanation:
Use the following information to work Problems 8 and 9.
Consumer prices drop as falling oil costs push inflation lower Falling oil prices pushed the CPI down 0.1 percent in December 2015. Energy prices fell 2.4 percent and the price of gasoline fell by 3.9 percent.
Source: Los Angeles Times, January 20, 2016
Given the further information that the weight on energy prices in the CPI is 8 percent, by how much would the CPI have changed in December 2015 if energy prices had not changed?
Answer:
Change in CPI = 0.092%
Explanation:
As we know that ,
CPI - Consumer price index
As given,
CPI is fell down by 0.1%
the weight on energy prices in the CPI is 8%
If energy is not changed means energy is constant , then
Change in CPI = 0.1% - (0.1%)(8%)
= 0.001 - (0.001)(0.08)
= 0.001 - (0.00008)
= 0.00092
= 0.092%
⇒Change in CPI = 0.092%
Culver Corporation was organized on January 1, 2022. It is authorized to issue 22,800 shares of 6%, $50 par value preferred stock and 468,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan.10 Issued 74,000 shares of common stock for cash at $6 per share.
Mar.1 Issued 1,280 shares of preferred stock for cash at $54 per share.
May1 Issued 119,000 shares of common stock for cash at $5 per share.
Sept.1 Issued 5,800 shares of common stock for cash at $4 per share.
Nov.1 Issued 3,800 shares of preferred stock for cash at $60 per share.
Required:
Post to the stockholders' equity accounts.
Answer:
Date Account title and explanation Debit Credit
Jan-10 Cash (74,000*$6) $444,000
Common Stock (74,000*$3) $222,000
Paid in capital in excess of stated value $222,000
Mar-01 Cash (1,280*$54) $69,120
Preferred Stock (1,280*$50) $64,000
Paid in capital in excess of par value $5,120
May-01 Cash (119,000*$5) $595,000
Common Stock (119,000*$3) $357,000
Paid in capital in excess of stated value $238,000
Sep-01 Cash (5,800*$4) $23,200
Common Stock (5,800*$3) $17,400
Paid in capital in excess of stated value $5,800
Nov-01 Cash (3,800*$60) $228,000
Preferred Stock (3800*$50) $190,000
Paid in capital in excess of par value $38,000
Hardigree Corporation uses a job-order costing system. Beginning balance in Work in Process $ 36,000 (1) Raw materials purchased on account $207,000 (2) Direct materials requisitioned for use in production $161,000 (3) Indirect materials requisitioned for use in production $ 42,000 (4) Direct labor wages incurred $ 87,000 (5) Indirect labor wages incurred $101,000 (6) Depreciation recorded on factory equipment $ 42,000 (7) Additional manufacturing overhead costs incurred $ 57,000 (8) Manufacturing overhead costs applied to jobs $219,000 (9) Cost of jobs completed and transferred from Work in Process to Finished Goods $403,000 The total amount of manufacturing overhead actually incurred was: Multiple Choice
Answer:
$242,000
Explanation:
Calculation of the total amount of manufacturing overhead actually incurred:
Particulars Amount
Indirect Materials $42,000
Indirect labor $101,000
Depreciation On factory equipment $42,000
Additional Manufacturing Overhead $57,000
Total Manufacturing Overhead incurred $242,000
3) Express 420cm as a percentage of 2m.
Answer:
210%
Explanation:
Answer:
[tex]210 \: {\%}[/tex]
Explanation:
2m = 200cm
[tex]\dfrac{420}{200} \cdot 100 {\%} =210 \: {\%}[/tex]
