Answer:
d. $192,200
Explanation:
Preparation for What is the segment margin for the Domestic division
DOMESTIC division FOREIGN division
Sales revenues $640,000 $493,900
Less Variable expenses ($371,300) ($281,800)
Contribution margin $268,700 $212,100
($640,000-$371,300) ($493,900-$281,800)
Less Traceable fixed expenses ($76,500) ($63,900)
SEGMENT MARGIN $192,200 $148,200
(268,700-$76,500) (212,100-$63,900)
Therefore the segment margin for the Domestic division will be $192,200
Why does Steve Jobs perfectly reflect the downside of a charismatic leader? a. After he left Apple in 1985, employees felt too free and became too innovative. b. When he left Apple, 50% of the employees followed him to another business venture. c. After he left Apple in 1985, Apple stagnated. d. After he left Apple in 1985, employees felt a lack of compassion in the company.
Answer: d. After he left Apple in 1985, employees felt a lack of compassion in the company
Explanation:
A Charismatic leader is a form of leader who typically utilizes their persuasiveness, charm and communication skills, to influence other people.
Charismatic leaders are of immense benefit to organizations as they connect well with the people around them on a deep level.
Steve Jobs perfectly reflect the downside of a charismatic leader because he left Apple in 1985, employees felt a lack of compassion in the company. This is because charismatic leaders typically bond well with other workers and motivates them to achieve a particular goal. In this case, the person who motivates them and have a deep connection with them is gone which resulted in the lack of compassion.
At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production. The department actually completed 10,000 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is
Answer:
Assembly Department
The appropriate total budget for the department, under flexible budgeting is:
$335,500.
Explanation:
a) Data and Calculations:
Estimated Direct labor = $110,000
Estimated Direct materials = $170,000
Estimated Fixed factory overhead = $28,000
Total budget = $308,000
Estimated Production hours = 8,000
Actual Production hours = 10,000
Based on flexible budget,
The Direct labor = $137,500 ($110,000 * 10,000/8,000)
Direct materials = $170,000
Fixed overhead = $28,000
Total budget = $335,500
The first-year NOI for an office building is $150,000. A lender is willing to provide financing up to a 1.5 debt-coverage ratio. If the mortgage has a 5-year maturity, 25-year amortization period, and 6% rate of interest, what is the maximum loan size that you can obtain assuming that payments are made on an annual basis?
Answer:
the maximum loan size is $1,278,335.62
Explanation:
The computation of the maximum loan size is as follows:
= (NOI first year ÷ debt coverage rate) × 1 ÷ (rate of interest) × (1 - 1 ÷ (1 + rate of interest)^number of years)
= ($150,000 ÷ 1.5) × 1 ÷ (6%) × (1 - 1 ÷ (1 + 6%)^(25))
= $1,278,335.62
hence, the maximum loan size is $1,278,335.62
We simply applied the above formula
____are not very liquid because you cannot take out money
when you want or pay a penalty or lose interest; however, the longer the
term the higher the return.
A. Stocks
B. Certificates of Deposit
C. Treasury Securities
D. Savings Accounts
Answer:
My answer is A) C) and D)
Explanation:
If I am wrong please tell me.
Certificates of Deposit are not very liquid because you cannot take out money when you want or pay a penalty or lose interest; however, the longer the term the higher the return. The correct option is B.
What are the weaknesses of a CD?Low liquidity and possible inflation-related loss of purchasing power are two CD drawbacks. A CD account cannot be partially or completely redeemed without losing some of the interest that has already accumulated as well as possibly the principal.
Compared to savings accounts, CDs are less liquid. Throughout the term, neither can you add to or subtract from them. Instead, you must make a single, full deposit to purchase a CD. You usually incur fees and lose some of the interest you have accrued if you redeem your CD before it matures.
Thus, the ideal selection is option B.
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Which of the following is NOT a step involved in creating a budget?
Gather financial records
O Track spending
O Expand earning avenues
Balance the budget
Answer:
expand earning avenues
Explanation:
Expand Earning Avenues is not a step involved in creating a budget. Hence, option C is appropriate.
What does it mean to Create a Budget?Creating a Budget is one of the most important things, which signifies that during a particular fiscal year or for a short time, a company, an institute, or something of much more importance does follow a certain type of Budget related behavior.
Creating a Budget is being done for a lot of things including the most important thing is to keep proper track of the proceedings which are being gone on.
Budget creation is done annually in the parliament to produce a lot of things on which the Government will run the country. The other most important factor is the process of combining the percentage of the money which is going to be spent.
Hence, option C is correct.
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Suppose a food pantry received a donation and allowed volunteers to vote on how the funds were to be spent. Three options were provided, with the donation only covering the cost of one project. The projects included improvements to the building, additional purchases of food, and purchasing a vehicle for food delivery. The majority of volunteers voted for purchasing a vehicle for food delivery with building improvements coming in second. Since only one project could be funded, what is the opportunity cost of the decision to purchase a vehicle
Answer:
improvements to the building
Explanation:
As we know that the opportunity cost is the cost that gives the benefit in the altnernative when the other thing is sacrifice. Now the
As the second best choice is that there should be an improvement in the building so here the opportunity cost related to the purchase of a vehicle is building improvement
Hence, the same is to be considered
You've recently noticed attendance issues with your team and suspect that team mates aren't getting along with one another. This is causing low team morale and associates do not seem to care as much about the team's performance Assuming all options are possible, what would you be most and least likely to do?
A. Set specific objectives for your team. Let them know that you are all in this together and that you will succeed or fail together.
B. Spend time with each of your team members and learn about their perspectives. Incorporate their ideas into an action plan. .
C. Show your confidence in your associates by explaining the problem and challenging them to turn the situation around.
D. Consult with your manager and other leaders from high-performing teams. Ask them for suggestions for working through conflicts within the team.
Answer:
For the issue with the team, the most likely action or decision to take would be:
A. Set specific objectives for your team. Let them know that you are all in this together and that you will succeed or fail together.
On the other-hand, the least likely action to take would be:
D. Consult with your manager and other leaders from high-performing teams. Ask them for suggestions for working through conflicts within the team.
Explanation:
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Carlita studied mechanics in school and has a background in sales. What company in the Transportation and Logistics cluster might be interested in hiring Carlita?
a large port looking for a logistical engineer
a company that makes and sells railway cars looking for a representative
a government agency in need of a safety inspector
a shipping company looking for a warehouse manager
Answer:
A company that makes and sells railway cars looking for a representative.
Explanation:
This answer is exactly what she studied in school and the background she has in sales.
How decarbonisation will affect the demand for and price of oil, cobalt, nickel and lithium (noting that cobalt, nickel and lithium are three metals used in vehicle batteries to charge electric vehicles)
Answer:
The overview of the explanation provided has been provided in the following section.
Explanation:
This could reduce the purchasing power of so many of these manufactured goods to improve, and indeed such proportion of that will therefore increase. These would adjust the supply curve for petroleum products, reducing revenue although with a smaller percentage of optimum. Autonomously, the aggregate income elasticity among all goods would significantly raise.
Trident Office is considering remodeling the office building it leases to Robert Roberts, CPA. The remodeling costs are estimated at $225,000. If the building is remodeled, Robert Roberts, CPA has agreed to pay an additional $75,000 per year in rent for the next five years. The discount rate is 10 percent. What is the benefit of the remodeling project to Professional Properties
Answer:
$59,309
Explanation:
Years Cash flow PV Factor at 10% Present value of cash flows
0 225,000 1.00000 225,000
1 75,000 0.90909 68,182
2 75,000 0.82645 61,983
3 75,000 0.75131 56,349
4 75,000 0.68301 51,226
5 75,000 0.62092 46,569
Benefit of remodeling project $59,309
Note: Year 0 PV factor = 1/(1+10%)^0 = 1
Bonds of Francesca Corporation with a par value of $1,000 sell for $930, mature in five years, and have a 8% annual coupon rate paid semiannually. Do not round intermediate calculations. Round your answers to two decimal places. Calculate:
Answer:
Current yield = 8.60%
Explanation:
Missing question "Calculate the current yield annually"
Current yield = Annual Coupon / Current Price
Annual Coupon = C%*Par = 8%*1000 = $80
Current yield = $80 / $930
Current yield = 0.086022
Current yield = 8.60%
Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The exercise price of these options is $3.75. The company also has $200,000 of convertible bonds with an effective conversion price of $4.00. The average market share price for the reporting period is $7.50. What is the diluted shares outstanding using the treasury stock method
Answer:
c. 342,000
Explanation:
Missing question and Multiple Option " & if-converted methods? 305,000, 292,000, 342,000, 345,333"
Proceeds expected if option are exercised = No of outstanding options and warrants * Per share exercise price
Proceeds expected if option are exercised = 26,000 * $3.75
Proceeds expected if option are exercised = $97,500
Number of treasury shares expected to be purchased = Proceeds expected if option are exercised / Average market price per share
Number of treasury shares expected to be purchased = $97,500 / $7.50
Number of treasury shares expected to be purchased = $13,000
Number of new shares issued if conversion is effected = Amount of convertible bonds reported / Effective conversion price per share
Number of new shares issued if conversion is effected = $200,000 / $4
Number of new shares issued if conversion is effected = 50,000
Calculation of the Diluted Share Outstanding
Number of basic shares outstanding 279,000
Add: Number of new shares through options 26,000
Add: Number of new shares through conversion issued 50,000
Less: Number of treasury shares to be purchased (13,000)
Diluted Share Outstanding 342,000
The diluted shares outstanding using the treasury stock method is 342,000 shares.
Diluted Share Outstanding
Basic shares outstanding 279,000
Add Options shares 26,000
Add Conversion shares 50,000
($200,000/$4)
Less Treasury shares (13,000)
[(26,000 ×$3.75)/$7.50]
Diluted Share Outstanding 342,000
Inconclusion the diluted shares outstanding using the treasury stock method is 342,000 shares.
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Data for Yipuum207, a large merchandiser, is below:
a. Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January.
b. Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
The cost of goods sold is 80% of sales.
Yipuum207 desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Other monthly expenses to be paid in cash are $22,600.
Monthly depreciation is $28,500.
Ignore taxes.
(ID#80825)
Assets
Cash $29,000
Accounts receivable 78,000
Merchandise inventory 182,400
Property, plant and equipment, net of $624,000 accumulated depreciation 1,006,000
Total assets $1,295,400
Liabilities and Stockholders' Equity
Accounts payable $241,000
Common stock 742,000
Retained earnings 312,400
Total liabilities and stockholders' equity $1,295,400
Required:
What are the expected cash collections for Yipuum207 in December?
Answer:
$318,000
Explanation
Calculation of expected cash collections in December
Expected cash collections in December = ($305,000*35%) + ($325,000*65%)
Expected cash collections in December = $106,750 + $211,250
Expected cash collections in December = $318,000
So, the expected cash collections for Yipuum207 in December is $318,000
If you receive a job offer, why is it important to write an acceptance message, and what should it include?
Answer: See explanation
Explanation:
Writing an acceptance letter is important as it shows that the job seeker is interested in the job and wants to take the job offer. It also shows ones professionalism.
The acceptance letter should include basic things related to the job such as ones salary and other benefits, supervisor, insurance packages, job title, and starting date.
i'll give brainliest!!! Which descriptions offer examples of Governance workers? Check all that apply.
Tia writes and votes on federal legislation.
Herman prepares and oversees responses to earthquakes.
Isaiah performs basic office tasks for a court of law.
Willis makes sure that people and businesses pay their taxes.
Valerie analyzes public opinions and voting results.
Chong maintains weapons and armored vehicles for the US Army.
Answer:
A, B, and E
Explanation:
Answer:
A,B,E
Explanation:
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A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $57,000; the land at $49,000, and the parking lot at $19,000. Land should be recorded in the accounting records with an allocated cost of:
Answer:
the land recorded with an allocated cost is $39,200
Explanation:
The computation of the land recorded with an allocated cost is
Total appraised value is
= $57,000 + $49,000 + $19,000
= $125,000
Now for land, the allocated value is
= $100,000 × 49000 ÷ 125000
= $39,200
Hence, the land recorded with an allocated cost is $39,200
The same is to be considered by doing above calculations
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $450,000 to its supplier using a 12-month, 12% note.
Required:
a. The loan of $450,000 and acceptance of the note receivable on April 1, 2021.
b. The adjustment for accrued interest on December 31, 2021.
c. Cash collection of the note and interest on April 1, 2022.
Record the above transactions for Shoemaker Corporation.
Answer and Explanation:
The journal entries are given below:
1. Notes receivable A/c Dr $450,000
To Cash A/c $450,000
(To record the notes receivable acceptance)
2. Interest receivable A/c Dr $40,500
To Interest revenue $40,500
(to record the interest is collected)
Interest = Principal × rate of interest × number of months ÷ (total number of months in a year)
= $450,000 × 12% × (9 months ÷ 12 months)
= $40,500
The 9 months is calculated from April 1 to December 31
3. Cash A/c Dr $504,000
To Notes receivable A/c $450,000
To Interest receivable A/c $40,500
To Interest revenue A/c $13,500
(To record the cash collected)
Interest revenue = Principal × rate of interest × number of months ÷ (total number of months in a year)
= $450,000 × 12% × (3 months ÷ 12 months)
= $13,500
The 3 months is calculated from December 31 to April 1
A governmental audit may extend beyond an examination leading to the expression of an opinion on the fairness of financial statement presentation to include
Answer:
A governmental audit may extend beyond an examination leading to the expression of an opinion on the fairness of financial statement presentation to include
investigation of the economy, efficiency and effectiveness of operations.
Explanation:
This is known as a value for money audit. It is an independent evidence-based investigation which examines and reports on whether economy, effectiveness, and efficiency have been achieved in the use of governmental funds, which are public funds. This is how many audits for governmental funds are conducted, by expanding the scope to include these three important operational elements.
If equilibrium GDP is $250 billion less than the targeted level of GDP, and the Multiplier Model has an mpe of 0.75, then we can predict that the targeted level of GDP can be attained by_______ government spending______billion.
a. decreasing; $62.5
b. increasing; $95.5
c. increasing; $62.5
d. increasing; $250
Answer:
c. increasing; $62.5
Explanation:
The computation is shown below;
As we know that
Multiplier = 1 ÷ 1 - MPC
= 1 ÷ 1 - 0.75
= 1 ÷ 0.25
= 4
Now if the equilibrium GDP is $250 billion less than the expected level of GDP
So, the government spending would be increased by
= $250 billion ÷ 4
= $62.5
Hence, the correct option is c.
Heedy Company is trying to decide how many units of merchandise to produce each month.The company policy is to have 20% of the next month's sales in inventory at the end of each month.Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively.How many units must be produced in September?A) 24,000B) 18,000C) 28,000D) 22,000
Answer:
Production= 24,000 units
Explanation:
Giving the following information:
Desired ending inventory= 20% of next month's sales
Sales:
August= 30,000
September= 20,000
October= 40,000
To calculate the production for September, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 20,000 + 40,000*0.2 - 20,000*0.2
Production= 24,000 units
Susan Orman wants to pay $1,550 semiannually to her granddaughter for 10 years for helping her around the house. If Susan can invest money at 4% compounded semiannually, how much must she invest today to meet this goal
Answer:
She needs to deposit $25,344.72
Explanation:
Giving the following information:
Semiannual payment= $1,550
Number of periods= 20 semesters
Interest rate= 0.04/2= 0.02
First, we need to calculate the future value of the payments:
FV= {A*[(1+i)^n-1]}/i
A= Semiannual payment
FV= {1,550*[(1.02^20) - 1]} / 0.02
FV= $37,660.92
Now, the present value (initial investment):
PV= FV/(1+i)^n
PV= 37,660.92/1.02^20
PV= $25,344.72
She needs to deposit $25,344.72
Prove:
Annual payment= (PV*i) / [1 - (1+i)^(-n)]
Annual payment= (25,344.72*0.02) / [1 - (1.02^-20)]
Annual payment= $1,550
When a firm cannot raise financing for a project under any circumstances, the firm is facing a situation known as: Group of answer choices hard rationing. soft rationing. scenario analysis. contingency planning. sensitivity analysis.
Answer: Hard Rationing
Explanation:
Hard rationing is a type of Capital rationing which is a term used to explain the cutting back on projects by companies that have limited access to funds.
When Hard Rationing is implemented, it is because the firm is unable to raise financing for a project under any circumstance due to factors that are out of their own hands for instance debt covenants that limit new debt being acquired.
Present and future value tables of $1 at 3% are presented below:N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $11 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861 5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 Jose wants to cash in his winning lottery ticket. He can either receive twelve, $8,000 annual payments starting today, or he can receive a lump-sum payment now based on a 3% annual interest rate. What would be the lump-sum payment?A. $82,021.B. $77,911.C. $80,300.D. $79,632.
Answer:
A
Explanation:
The lumpsum he would receive can be determined by calculating the present value of the series of cash flows Jose would receive in the first option
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 11 = $8000
I = 3%
Present value = $82,021
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
In choosing between the range of alternative investments typically available to U.S. households, which of the following will play a role in influencing their selection of a particular investment type?
a. the expected rate of return, risk, and liquidity of each kind of investment
b. the interest rate and the expected rate of return
c. whether or not the majority of households are early stage investors
d. the form of dividends, angel investors, future expectations
Answer: B. the interest rate and the expected rate of return
Explanation:
What most firms and Industries look out for when going into a business is the interest rate and the expected return on investment. This is a guide for anyone carrying out a study on any business. If these are not considered it'll be assumed the firm is running a charity organization and would run at a loss sooner or later. What will influence the decision of any investment is the interest rate and the expected rate of return
The only thing a firm can and should do to balance the conflicting demands of being agile in a dynamic environment is to design systems and processes that can identify, assess, and develop technology based opportunities.
a. True
b. False
Answer:
B) false
Explanation:
This is false because the statement from the question is not the only option.
To balance the conflicting demands by firm could be challenging but can be achieved,
✓Look out for the communication needs, then data can as well be turned to information.
✓The only thing a firm can and should do to balance the conflicting demands of being agile in a dynamic environment is to design systems and processes that can identify, assess, and develop technology based opportunities.
Farm Equipment, Inc., produces tractors and other farm machinery. Each piece of equipment is built to customer specifications. During May, its first month of operations, Farm Equipment, Inc., began working on three customer orders: jobs 1, 2, and 3. The following transactions occurred during May:
Purchased production materials on account totaling $450,000
Processed material requisitions for the following items:
Job 1 direct materials $77,600
Job 2 direct materials $38,600
Job 3 direct materials $45,000
Indirect materials $87,000
Processed timesheets showing the following:
Job 1 direct labor hours (700 hours) $14,800
Job 2 direct labor hours (550 hours) $11,800
Job 3 direct labor hours (300 hours) $ 6,500
Indirect labor $ 9,700
Applied overhead using a predetermined rate of 160 percent of direct labor cost
Completed job 1 and transferred it to finished goods
Delivered job 1 to the customer and billed her $140,000. (Hint: Two entries are required—one for the cost of the goods and another for the revenue.)
Required: Calculate the production costs incurred in May for each of the three jobs. (Answers must be entered as numbers only. No spaces, dollar signs, commas, decimals, etc. Example: 50000)
Job 1
Job 2
Job 3
Total
Direct Materials
A. $
D. $
G. $
$161,200
Direct Labor
B. $
E. $
H. $
$33,100
Manufacturing Overhead
C. $
F. $
I. $
$52,960
Total Cost Per Job:
$116,080
$69,280
$61,900
$247,260
Using the previous information, make the appropriate journal entry for each item described above. Assume all payments will be made next month. You will use the following accounts at least once: Raw Materials Inventory, Accounts payable, WIP Inventory, Manufacturing Overhead, Raw Materials Inventory, Wages Payable. (Answers must be entered as numbers only. No spaces, dollar signs, commas, decimals, etc. Example: 50000)
05/01/20XX
J.
$450,000
K.
$450,000
Purchased Production Materials on Account
05/XX/20XX
WIP Inventory
L. $
Manufacturing O/head
M. $
Raw materials Inventory
$248,200
Transfer Raw Materials into WIP
05/XX/20XX
WIP Inventory
N. $
Manufacturing Overhead
$9,700
Wages Payable
$42,800
Apply labor costs to Inventory
05/01/20XX
WIP Inventory
$52,960
Manufacturing Overhead
$52,960
Apply Man. Overhead to Inventory costs
Answer:
true
Explanation:
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QV-TV, Inc. provided the following items in its notes to the financial statements for the year-end 2019:
Cost of goods sold was $22 billion under FIFO costing and the inventory value under FIFO costing was $2.1 billion. The LIFO Reserve for year-end 2018 was $0.6 billion and at year-end 2019 it had increased to $0.8 billion. What is the LIFO inventory value at year-end 2014?
Answer:
the LIFO inventory value at 2014 year end is $1.3 billion
Explanation:
The computation of the LIFO inventory value at 2014 year end is as follows
LIFO inventory value at year-end 2014 is
= FIFO inventory - LIFO reserve
= $2.1 billion - $0.8 billion
= $1.3 billion
Hence, the LIFO inventory value at 2014 year end is $1.3 billion
The same is to be determined by applying the above formula
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $130,800; total liabilities, $82,000; Turner, Capital, $2,900; Roth, Capital, $14,200; and Lowe, Capital, $31,700. Cash received from selling the assets was sufficient to repay all but $30,000 to the creditors. Exercise 12-13 Liquidation of partnership LO P5 Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.
Answer:
Turner, Roth, and Lowe
a. Loss from selling the assets = $78,800
b. Loss allocation to the partners:
Turner Roth Lowe
Loss sharing ($78,800) $7,880 $31,520 $39,400
c. Capital contribution to cover deficiency:
Turner Roth Lowe
Contribution to cover deficiency $3,000 $12,000 $15,000
Explanation:
a) Data and Calculations:
Turner Roth Lowe
Income and loss sharing ratio: 1 4 5
Assets before liquidation = $130,800
Liabilities = $82,000
Capital balances $2,900 $14,200 $31,700
Cash received from sale of assets = $52,000 ($82,000 - $30,000)
Loss from sale of assets = $78,800 ($130,800 - $52,000)
Loss sharing ($78,800) $7,880 $31,520 $39,400
Contribution to cover deficiency $3,000 $12,000 $15,000
If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?
a. This program would reduce the incentive to work to earn any wage up to $25,000.
b. The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
c. If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.
d. All of the above are correct.
Answer:
d. All of the above are correct.
Explanation:
In the case when the government decided that each kind of family required atleast income i.e. $25,000 so it would decrease the work incentive for earning till to $25,000 also it should be taxed by the government. In addition to this, in the case when the workers are discouraged so they miss on the job training and limits their capability for improving out their skills
So as per the given scenario, the option d is correct
A project begins in January 2014; it is to be completed in October 2016. The contract price is $3,900 and the estimated total cost of the project is $3,000. Additional data for the project is provided below:
2014 2015 2016
Costs Incurred To Date $300 $2,400 $4,200
Estimated cost to Complete 2,700 1,600
Estimated Total Cost $3,000 $4,000 $4,200
Percentage of completion [PC]= (Costs incurred to date)/(Estimated total cost)
Required:
Compute the gross profit/loss recognized for each year under the PC method.
Answer:
Particulars 2014 2015 2016
Contract Price A 3,900 3,900 3,900
Cost Incurred to date B 300 2,400 4,200
Cost Incurred during the year C 300 2,100 2,100
Estimated total cost E 3,000 4,000 4,200
Percentage complete 10% 60% 100%
Revenue to be recognized G 390 1,950 1,560
Gross Profit/(Loss) H=G-C 90 (150) (540)
Notes
Percentage Complete = Cost Incurred to date / Estimated cost to complete
Gross Profit calculation:
Gross Profit = (Contract Price*Percentage complete) - Revenue previously recognized
Year 2014
10% completed
Revenue recognized = 10% * $ 3,900 = $390.
Year 2015
60% completed
Revenue recognized = 60% * $ 3,900 - $390 (previously recognized) = $1,950.
Year 2016
100% completed.
Revenue recognized = 100% x $3,900 - $390 - $1,950 (previously recognized) = $1,560.
