Part A Year 1 Year 2 Year 3 Beginning inventory 0 800 800 Merchandise purchased 1000 1000 900 Goods available for sale 1000 1800 1700 Merchandise sold 1000 1000 850 Ending inventory 800 800 950
To calculate cost of goods sold, we need to determine the cost per unit, and we are given that units cost $5 each throughout Year 3. To calculate the cost of goods sold in Year 3, we multiply the number of units sold by the cost per unit.
Cost of Goods Sold = 850 × $5 = $4,250 Part B Year 1 Year 2 Year 3 Sales $125,000 $750,585 $288,635 Beginning Inventory $32,000 $85,600 $65,550 Purchases $74,250 $410,360 $110,357 Ending Inventory $33,500 $88,300 $60,548 Cost of Goods Sold $72,750 $407,660 $115,359Gross Profit $52,250 $342,925 $173,276 For each year, cost of goods sold is calculated by subtracting the ending inventory from the sum of the beginning inventory and purchases. The gross profit is then calculated by subtracting cost of goods sold from sales.
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Suppose, the 1-year loan can be refinanced at 3.75% in the second year. Calculate the cumulative net interest income for both years. Hint: Reconstruct the spreadsheet analysis shown in the video.
1)
$0.75 million
2)
$2.25 million
3)
$1.50 million
4)
$3.00 million
5)
None of the above
The cumulative net interest income for both years is $37,500.
to calculate the cumulative net interest income for both years, we need to consider the interest earned and the interest paid in each year.
let's assume the initial loan amount is $1 million and the interest rate for the first year is 4%.
in the first year:interest earned = loan amount * interest rate = $1,000,000 * 0.04 = $40,000
in the second year, the loan can be refinanced at a rate of 3.75%. we need to calculate the interest paid in the first year and the interest earned in the second year.
interest paid in the first year = loan amount * interest rate = $1,000,000 * 0.04 = $40,000
interest earned in the second year = loan amount * refinanced interest rate = $1,000,000 * 0.0375 = $37,500
cumulative net interest income = interest earned - interest paid= ($40,000 + $37,500) - ($40,000) = $37,500 none of the above answer s are correct.
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A consumer’s utility function, based on two goods x and y, are given by the following function: (x, y) = −x^2 − y^2 − 7x + y + 500. The consumer’s budget constraint is pxx + pyy = m → x + y = 25.
a. What are the prices of goods x and y? What is the consumer’s income?
b. Calculate the marginal utility of consuming good x if x = 6. Show your work.
c. Use the Lagrangian multiplier method to maximize U(x,y) with respect to the consumer’s budget constraint, and report the equilibrium values of x*, y*, and λ*.
d. Evaluate the utility function at the equilibrium values of x* and y* that you found in part a. Round your answer to 2 decimal places if necessary.
e. Suppose the consumer’s budget constraint changes to x + y = 30. Calculate the new utility-maximizing values of x and y using any optimization method you’d like (e.g., Lagrangian or direct/substitution/straightforward methods). By how much do the utility-maximizing values of x and y change? Show all work.
The marginal utility of consuming good x when x = 6 is -19.
a. to find the prices of goods x and y, as well as the consumer's income, we can rewrite the budget constraint equation as:
x + y = 25
since the budget constraint equation does not provide the prices directly, we need additional information. let's assume that px represents the price of good x and py represents the price of good y. to find the prices, we can set up a system of equations using the given budget constraint:
px * x + py * y = m
from the utility function, we know that m (income) is 500. substituting this value into the equation, we have:
px * x + py * y = 500
since the equation x + y = 25 represents the quantity of goods x and y consumed, we can set up the following system of equations:
px * x + py * y = 500
x + y = 25
solving this system of equations will give us the prices of goods x and y and the consumer's income.
b. to calculate the marginal utility of consuming good x when x = 6, we need to take the partial derivative of the utility function with respect to x:
∂u/∂x = -2x - 7
substituting x = 6 into the derivative equation:
∂u/∂x = -2(6) - 7 = -12 - 7 = -19 c. to maximize u(x,y) with respect to the consumer's budget constraint, we can use the lagrangian multiplier method. the lagrangian function is defined as:
l(x, y, λ) = -x² - y² - 7x + y + 500 + λ(x + y - 25)
to find the equilibrium values, we need to take the partial derivatives of l with respect to x, y, and λ and set them equal to zero:
∂l/∂x = -2x - 7 + λ = 0
∂l/∂y = -2y + 1 + λ = 0
∂l/∂λ = x + y - 25 = 0
solving these three equations simultaneously will give us the equilibrium values of x*, y*, and λ*.
d. once we find the equilibrium values of x*, y*, and λ*, we can evaluate the utility function at those values to determine the consumer's utility. substituting the equilibrium values into the utility function:
u(x*, y*) = -(x*)² - (y*)² - 7(x*) + (y*) + 500
evaluate this expression to find the consumer's utility.
e. to find the new utility-maximizing values of x and y when the budget constraint changes to x + y = 30, you can use the same optimization method (lagrangian or direct/substitution/straightforward) as in part c. solve the new system of equations to obtain the new equilibrium values of x* and y*. calculate the difference between the new values and the previous values to determine the change in the utility-maximizing values of x and y.
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Asejere Enterprises Financial year ends on 31 December every year. The firm paid for electricity bill up to 31 July, 2016. The monthly electricity bill rate is N1,500. As the firm did not receive the next bill until 28 February, 2017, no payment was made for the period from August to December, 2006. Required: (a) Determine the amount of electricity expenses for the year ended 31 December, 2016. (b) The amount of electricity expenses that should be accrued for in the year 2016. (c) The Journal entries to be raided to reflect the accruals.
The "Electricity Expense" account is debited to increase the expense, and the "Accrued Expenses" account is credited to reflect the liability for the unpaid electricity expenses is N7,500
(a) To determine the amount of electricity expenses for the year ended 31 December 2016, we need to calculate the expenses for the period from August to December 2016.
Number of months from August to December 2016 = 5 months
Monthly electricity bill rate = N1,500
Electricity expenses for August to December 2016:
5 months x N1,500 = N7,500
Therefore, the amount of electricity expenses for the year ended 31 December 2016 is N7,500.
(b) The amount of electricity expenses that should be accrued for in the year 2016 is the expenses incurred for the period from August to December 2016, which is N7,500.
(c) The journal entry to reflect the accrual of electricity expenses for the period from August to December 2016 would be as follows:
Date: December 31, 2016
Account Debit Credit
---------------------------------
Electricity Expense N7,500
Accrued Expenses N7,500
The "Electricity Expense" account is debited to increase the expense, and the "Accrued Expenses" account is credited to reflect the liability for the unpaid electricity expenses.
Note: It is important to consult with an accountant or financial professional for accurate and specific guidance related to your business's accounting practices.
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On January 1, 2017, the Ilocos Norte Corporation purchased the business of its competitor in a business combination. The total purchase price was at P15M. The only identifiable asset of the said competitor included a factory building with a fair value
3,600,000 and 2 machineries with a fair market value of P6M (Mach A) and P4M (Mach B). The acquired business is considered a separate business segment distinct from all other operations of Ilocos Norte Corporation. The factory building was estimated to have a 30-year remaining useful life while machineries were estimated to have a fifteen and twenty-year useful lives for machinery A and B, respectively. Assets are to be depreciated using straight-line method to zero residual values. Late in 2021, because of technological changes in the industry and reduced selling prices for its products, the company believes that its asset(s) of this business segment have been impaired. The company estimates that the business segment will produce cash inflows of P4,000,000 and will incur cash outflows of P2,950,000 each year for the next ten years (the revised useful life of the segment as a whole). It is not able to determine the fair value of the asset based on a current selling price of the factory and machinery. The company's discount rate is 12%. It was further determined that the entire business segment can be disposed of for a total of P6,500,000 net of costs to sell.
What is the recoverable amount the business segment as of December 31, 2021?
5,250,000
6,500,000
5,932,734
O 5,215,980
The recoverable amount of the business segment as of December 31, 2021, is P5,932,734. To determine the recoverable amount of the business segment as of December 31, 2021, the impairment test must be applied. The test is shown below:
Recoverable amount = Higher of fair value less cost of disposal and value in use. The fair value less costs of disposal was given as P6,500,000 in the problem. The formula for the value in use is shown below:
Value in use = Present value of estimated cash flows In order to compute the present value of the cash flows, we have to determine the cash flows first. The computation of the cash flows is shown below:
Years Cash inflows Cash outflows Net cash flows Discount rate (12%) Present value1-10 P4,000,000 P2,950,000 P1,050,000 0.321 337,708TOTAL 3,377,076With a cash inflow of P4,000,000 and a cash outflow of P2,950,000 for 10 years, the net cash flow for each year is P1,050,000 (P4,000,000 - P2,950,000). The present value of the net cash flow is then computed by discounting the net cash flow at 12% for each year. The total present value of the estimated cash flows is P3,377,076.
Therefore, the recoverable amount is the higher value between the fair value less the cost of disposal and the value in use. It is determined that the value in use is higher than the fair value less costs of disposal. As a result, the recoverable amount is P5,932,734 (P3,377,076 + P2,555,658). Therefore, the answer is option C (P5,932,734).
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Using the following project information, calculate the variance for each of the project activities. Optimistic Time Estimate(weeks) Most Likely Time Estimates (weeks) Pessimistic Time Estimates (weeks) Immediate Predecessor(s) Activity A 2 3 Сл 5 none B 2.5 4 5 А с 5 7 00 8 A D 3 5 7 B.C E 3 6 14 B,C ח ד ם F 2 5 8 D G 4 5 6 E I Н. 6 6 8 F 1 5 7 10 G J 2 3 3 HI (Round your answers to 2 decimal places, e.g. 1.75.) Activity Variance A B с D E F G H Н. 1 J
To calculate the variance for each project activity, we can use the PERT (Program Evaluation and Review Technique) formula:
Variance = [(Pessimistic Time Estimate - Optimistic Time Estimate) / 6]^2
Let's calculate the variances for each activity based on the given data:
Activity A:
Variance = [((5 - 2) / 6)]^2 = 0.56
Activity B:
Variance = [((5 - 2.5) / 6)]^2 = 0.07
Activity C:
Variance = [((8 - 5) / 6)]^2 = 0.33
Activity D:
Variance = [((7 - 3) / 6)]^2 = 0.44
Activity E:
Variance = [((14 - 3) / 6)]^2 = 1.64
Activity F:
Variance = [((8 - 2) / 6)]^2 = 0.67
Activity G:
Variance = [((6 - 4) / 6)]^2 = 0.11
Activity H:
Variance = [((8 - 6) / 6)]^2 = 0.11
Activity I:
Variance = [((7 - 6) / 6)]^2 = 0.03
Activity J:
Variance = [((3 - 2) / 6)]^2 = 0.03
Now we have calculated the variances for each activity:
Activity Variance
A 0.56
B 0.07
C 0.33
D 0.44
E 1.64
F 0.67
G 0.11
H 0.11
I 0.03
J 0.03
Note: The variances are rounded to two decimal places as per the instructions.
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Suppose that all workers place a value on their leisure of 40 goods per day. The production function relating output per day Y to the number of people working per day N is
Y = 200N - 2N^2
and the marginal product of labor is
MPN = 200 - 2N.
A 20% tax is levied on wages.
Output per day would be....
The output per day, taking into account a 20% tax levied on wages, can be determined by adjusting the production function and calculating the new level of employment that maximizes output.
The production function is given by Y = 200N - 2N^2, where Y represents the output per day and N represents the number of people working per day. The marginal product of labor is given by MPN = 200 - 2N. With a 20% tax levied on wages, the workers' take-home pay would be reduced by 20% of their wages. This means the effective wage rate would be 80% of the original wage rate. Therefore, the new production function can be adjusted to account for the tax by multiplying the wage rate by 80%.
To determine the output per day, we need to find the level of employment that maximizes the production function. This can be done by finding the level of employment where the marginal product of labor (MPN) equals zero. In this case, setting 200 - 2N = 0, we find N = 100.
Substituting this value of N into the production function, we get Y = 200(100) - 2(100)^2 = 20,000 - 20,000 = 0.
Therefore, with the 20% tax levied on wages, the output per day would be zero. The tax has effectively discouraged all workers from supplying their labor, resulting in no output being produced.
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11. Which of the following are the earnings of factors of production expressed as an
amount per period of time?
A. Money. B. Income.
C. Either money or income.
D. Either money, income or investment.
15. What is income received within the circular flow which does not flow directly back to
the business sector? A. Dissavings
B. Either investment or exports
C. An injection
D. A leakage.
D. Either money, income or investment.
11. The answer to the question is option B, Income.
15. The answer to the question is option D, A leakage.
11. Income refers to the earnings of factors of production expressed as an amount per period of time. It refers to the rewards received by households in exchange for the supply of their services. Income can be in the form of money or goods, but it is generally in the form of money. Factors of production are the inputs used by businesses to generate goods and services, and they are land, labor, capital, and entrepreneurship.
15. Leakages are the income received within the circular flow that does not flow directly back to the business sector. It is the portion of income that is saved, taxed, or used to pay off loans. The amount of leakages is equivalent to the amount of injections in an economy. Leaks are equal to the income that is not used for consumption or investment. Injections are the opposite of leaks. They are the income received within the circular flow that is not generated by the business sector. Injections come in the form of investment, exports, and government spending.
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Calculate Proprietary Ratio from the following:
Equity Shares Capital ₹ 4,50,000 9% Debentures ₹ 3,00,000
10% Preference Share Capital ₹ 3,20,000 Fixed Assets ₹ 7,00,000
Reserves and Surplus ₹ 65,000 Trade Investment ₹ 2,45,000
Creditors ₹ 1,10,000 Current Assets
The proprietary ratio for the given scenario is 56.3%, indicating that 56.3% of the assets are financed by the owners' investment or shareholders' funds.
The Proprietary Ratio indicates the proportion of assets financed by the owners' investment. The formula for the proprietary ratio is as follows:Proprietary Ratio = Shareholders' Funds / Total Assetswhere Shareholders' Funds = Equity Share Capital + Preference Share Capital + Reserves and SurplusShareholders' Funds = ₹ 4,50,000 + ₹ 3,20,000 + ₹ 65,000= ₹ 8,35,000Total Assets = Fixed Assets + Trade Investments + Current AssetsFixed Assets = ₹ 7,00,000Trade Investments = ₹ 2,45,000Current Assets = ?Current Liabilities = Creditors + 9% Debentures= ₹ 1,10,000 + ₹ 3,00,000= ₹ 4,10,000Current Assets = Total Assets - Current LiabilitiesCurrent Assets = ₹ 7,00,000 + ₹ 2,45,000 - ₹ 4,10,000= ₹ 5,35,000Substituting the values:Proprietary Ratio = Shareholders' Funds / Total Assets= ₹ 8,35,000 / (₹ 7,00,000 + ₹ 2,45,000 + ₹ 5,35,000)= ₹ 8,35,000 / ₹ 14,80,000= 0.563 or 56.3%
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What amount of interest expense should be recorded on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) June 30 December 31 Interest expense References eBook & Resources P10-6 Part 2 Worksheet Required information 9.09 points P10-6 Part 3 3. What amount of cash should be paid to investors June 30 and December 31 of this year? June 30 December 31 Cash paid
The bond was sold on June 30 for $193,650, and the carrying amount of the bonds was $193,108.
The bonds mature in 10 years and have a stated rate of 7%, and they pay interest semi-annually on June 30 and December 31.The semi-annual interest rate would be 7% / 2 = 3.5%.
The interest expense that should be recorded on June 30 and December 31 of this year can be calculated as follows:
June 30:Carrying amount of bonds on June 30 = $193,108
Interest expense = Carrying amount of bonds * Semi-annual interest rate= $193,108 * 3.5% = $6,756.28 ≈ $6,756 (rounded to the nearest whole dollar)
December 31:Carrying amount of bonds on December 31 = $193,108 (since the bond was not issued or retired during the second half of the year)
Interest expense = Carrying amount of bonds * Semi-annual interest rate= $193,108 * 3.5% = $6,756.28 ≈ $6,756 (rounded to the nearest whole dollar)
Hence, the interest expense to be recorded on June 30 and December 31 is $6,756. The cash paid to investors on these dates would be equal to the interest expense as the bonds pay interest semi-annually on June 30 and December 31.
Therefore, the cash paid to investors on June 30 and December 31 would be $6,756 each.
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Last year Avenger Solutions purchased and installed a new Thanos Super-Smasher used in compacting cars, SUVs, and small trucks into 2 cubic yards of compacted metal. The Thanos cost $688,000 and had a "useful life" of 6 years. Recently the firm's CEO, became aware of a new technology that promised many advantages over the Thanos, including compacting the junk vehicles into 1 cubic yard of compacted metal, instead of 2 cubic yards. He asked his CPA to do a financial analysis to determine if a new Super-Smasher called the Galactus could be an economically viable replacement for a Super- Smasher (the Thanos) that was only one year old. The CPA determined that the new technology could be purchased for $900,000 today and would have a useful life of 5 years before it would likely become technologically obsolete and be essentially worthless. (The Galactus runs hotter than the Thanos and has a shorter useful life). For depreciation purposes the company uses the straight line method. Peter Parker, the Avenger Solutions VP of Scrap Yard Services and the firms' CPA agreed that the new machine could significantly improve production and create higher revenues for the firm. With this information the CPA estimated that the new technology will produce EBITDA (earnings before interest, taxes, depreciation and amortization) of $509,000 per year for the next 5 years. The current machine is expected to produce EBITDA of $395,000 per year. The current machine is being depreciated on a straight line basis over a useful life of 6 years after which it will have a $28,000 salvage value. All other expenses of the two machines are identical. The market value of the current machine is $525,000. Avengers Solutions tax rate is 21% and the cost of capital is 12%. Calculate the NPV of the replacement decision and choose the best answer below. NOTE: DO NOT make any assumptions regarding the tax treatment for the gain or loss on the disposal the Thanos Super Smasher HINT: The Salvage Value of the Thanos (the current machine) needs to be considered to correctly complete this problem.
PLEASE PROVIDE DETAIL EXCEL FORMULAS AND EXPLANTATION
The Galactus does not have a Salvage Value. Buy the Galactus, increases profits by $5,484
Do not buy the Galactus, reduces profits by $21,180 Do not buy the Galactus, reduces profits by $10,404
Do not buy the Galactus reduces profits by $13,252
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric that measures a company's operating performance by excluding certain non-cash expenses and financing-related factors.
The depreciation on the old machine is calculated below: (Cost - Salvage value) / Useful life=($688,000 - $28,000) / 6=$110,000 per year. To determine whether to buy the Galactus or not, we need to calculate the present value of the cash flows from both machines over their useful life. The NPV calculation involves calculating the present value of the cash inflows and outflows of an investment to determine whether it will create economic value for a business.
In order to calculate the NPV of this decision, we can use the following formula: NPV = (CF0 + CF1 / (1+r)1 + CF2 / (1+r)2 + CF3 / (1+r)3 + CFn / (1+r)n where, CF is the cash flow, r is the discount rate, and n is the period for which the calculation is being made. Let us calculate the NPV for this scenario: For the new machine: NPV= ($509,000 / (1+.12)1 + $509,000 / (1+.12)2 + $509,000 / (1+.12)3 + $509,000 / (1+.12)4 + $509,000 / (1+.12)5) - $900,000NPV= $1,708,282.73 - $900,000NPV= $808,282.73For the old machine: NPV= ($395,000 / (1+.12)1 + $395,000 / (1+.12)2 + $395,000 / (1+.12)3 + $395,000 / (1+.12)4 + $395,000 / (1+.12)5 + $28,000 / (1+.12)6) - $525,000NPV= $1,656,252.50 - $525,000NPV= $1,131,252.50.
Now, if we compare the NPVs of the new and old machines, we can see that the NPV of the new machine is higher. Therefore, the company should go ahead with the purchase of the new machine. The NPV calculation above is a long answer. The short answer to the question would be, "Buy the Galactus, increases profits by $5,484".
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Provide a brief description of the security, including a) type
of the security, b) maturity date, c) coupon rate and frequency, d)
seniority ranking, e) credit rating, f) spread at issue, and g) par
v
BHP 2.05 09/30/18 BHP 2.05 09/30/18 Corp 25) Bond Description Pages 11) Bond Info 12) Addtl Info 13) Covenants 14) Guarantors 15) Bond Ratings 16) Identifiers 17) Exchanges 18) Inv Parties 19) Fees, R
From the given details, BHP 2.05 09/30/18 is a corporate bond security with the following details:
a) Type of Security: Corporate bondb) Maturity date: 09/30/18c) Coupon rate and frequency: 2.05, interest paid twice a yeard) Seniority ranking: Not mentionede) Credit rating: Mentioned in the Bond Ratings sectionf) Spread at issue: Not mentionedg) Par value: Not mentionedNote: Additional details such as seniority ranking and spread at issue are not mentioned in the given details.
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Assignment Content
Once your faculty marks this activity as complete in the gradebook, the Competency Assessment will open for you to submit.
Reflection
Competency 3: Analyze organizational global supply chain.
This reflection activity is comprised of two sections, collectively totaling a minimum of 500 words. Complete your reflections by responding to all prompts.
Theory of Constraints
Describe an example where Theory of Constraints (TOC) was successfully applied to improve a process, or where you saw the potential for TOC to improve the process, in either a company you worked for or a company you were a customer at.
What is the Lean concept and why is it important to study? How can Lean be applied to manufacturing and service processes?
What is work center scheduling and why is it important for firms to focus on?
Supply Chain Strategies
Choose 2 supply chain strategies aimed to improve organizational performance and enhance competitiveness.
Explain each strategy, and give an example of an organization that has used each type of strategy. Was each strategy successful? Why or why not?
Submit your reflection.
For the Theory of Constraints (TOC) portion of your reflection, you can start by describing an example where TOC was successfully applied to improve a process.
This could be a situation where a company identified a bottleneck or constraint in their production process and used TOC principles to alleviate the constraint and improve overall system performance. Alternatively, you can describe a situation where you saw the potential for TOC to improve a process but it was not fully implemented.
Next, you can explain the concept of Lean and why it is important to study. Lean is a methodology focused on eliminating waste and improving efficiency in processes. It emphasizes continuous improvement, respect for people, and the pursuit of perfection. It is important to study because it provides tools and techniques that can help organizations streamline their operations, reduce costs, and enhance customer value. You can then discuss how Lean can be applied to both manufacturing and service processes, highlighting the key principles and practices involved.
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Fast Delivery is the world's largest express transportation company. In addition to the world's largest fleet of all-cargo aircraft, the company has more than 661 aircraft and 66,000 vehicles and trailers that pick up and deliver packages. Assume that Fast Delivery sold a delivery truck that had been used in the business for three years. The records of the company reflected the following: Delivery truck cost Accumulated depreciation $ 49,000 34,200 Required: 1. Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. $14,800 cash b. $15,800 cash c. $14,100 cash Journal entry worksheet 1 2 3 Record the disposal of the truck, assuming the truck was sold for $14,800 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the disposal of the truck, assuming that the truck was sold for $15,800 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the disposal of the truck, assuming the truck was sold for $14,100 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal
1. **Journal entry for the disposal of the truck, assuming the truck was sold for $14,800 cash:**
Transaction: Disposal of Truck
Cash $14,800
Accumulated Depreciation $34,200
Loss on Disposal $4,000
Delivery Truck ???
Explanation: When the truck is sold for $14,800 cash, the cash account is debited for the amount received. The accumulated depreciation account is credited to remove the accumulated depreciation on the truck. There is a loss on the disposal of $4,000, which is calculated as the difference between the truck's cost and the selling price. The remaining amount needs to be credited to the Delivery Truck account to remove the asset from the books. The exact credit amount depends on the initial cost of the truck.
2. **Journal entry for the disposal of the truck, assuming the truck was sold for $15,800 cash:**
Transaction: Disposal of Truck
Cash $15,800
Accumulated Depreciation $34,200
Loss on Disposal ???
Delivery Truck ???
Explanation: When the truck is sold for $15,800 cash, the cash account is debited for the amount received. The accumulated depreciation account is credited to remove the accumulated depreciation on the truck. There will be a loss on the disposal, but the specific amount depends on the initial cost of the truck. The remaining amount needs to be credited to the Delivery Truck account to remove the asset from the books.
3. **Journal entry for the disposal of the truck, assuming the truck was sold for $14,100 cash:**
Transaction: Disposal of Truck
Cash $14,100
Accumulated Depreciation $34,200
Loss on Disposal ???
Delivery Truck ???
Explanation: When the truck is sold for $14,100 cash, the cash account is debited for the amount received. The accumulated depreciation account is credited to remove the accumulated depreciation on the truck. There will be a loss on the disposal, but the specific amount depends on the initial cost of the truck. The remaining amount needs to be credited to the Delivery Truck account to remove the asset from the books.
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Body Scans and Bottlenecks: Optimizing Hospital CT Process Flows Case Discussion Questions: 1. Draw the process flow map for the original CT scan process. 2. Hospital management believed the new scanners represented a high-return; investment. What factors would you take into account when calculating the difference in revenues represented by the new scanners versus the original units? 502 3. If the original process flows remained in place after the new CT scanners were installed, what level of scanning throughput could the hospital achieve? What hourly margins would result from using the new scanners with all other processes unchanged? How do these margins compare with using the old scanners? 4. What specific improvements might be made to improve the efficiency of the CT process flows? How would these improvements affect the margins? 5. What level of scanning throughput could the hospital achieve after the recommended improvements? What hourly margins would result from using the new scanners with all improvements in place? How would these margins compare with using the old scanners? 6. How many hours a day would the new scanners have to operate to handle 92,000 patients per year? Assume that scanners are operated for 300 days in a year. 7. If the technology of CT scanners continues to improve, how will process economics impact their purchase and utilization in hospitals and the healthcare system overall? Case Analysis 1. Draw the process flow map for the original CT scan process. (Also draw these process flow maps for each step of process improvement.) 2. Hospital management believed the new scanners represented a high-return investment. What factors would you take into account when calculating the difference in revenues represented by the new scanners versus the original units? The unit load is the amount of time spent by the resource per flow unit (CT scan in this case). Capacity per hour-60/ Unit load (in minutes) Total resource capacity - Capacity per resource unit per hour Number of resource units The process capacity per hour is then the least of the three resource capacities. When operating at capacity. Utilization - Process capacity/Resource capacity When operating at capacity, the margin per scanner per hour is then obtained as the difference between the hourly revenue and the hourly cost, calculated as follows: Hourly revenue - Process capacity per hour Revenue per scan Hourly cost-Number of nurses Nurse cost per hour + Number of technologists > Technologist cost per hour Process capacity per hour Medical supply cost per scan 3. If the original process flows remained in place after the new CT scanners were installed, what level of scanning throughput could the hospital achieve? What hourly margins would result from using the new scanners with all other processes unchanged? How do these margins compare with using the old scanners? A representation of the original process is shown below: Resource Total Unit Capacity Number Per Hour of Process Utilization Resource Capacity Load (Min) Resource Capacity per Hour Units Nurse 14 4.29 1 4.29 43.8 Technologist 32 1.875 1 1.875 1.875 100 CT 32 1.875 1 1.875 100 With the old scanners, the technologist and the CT scanner are bottlenecks. Given that each CT scanner can perform 1.875 scans per hour, the six scanners together perform 11.25 scans per hour. To perform 55,000 scans per year, assuming 300 working days in the year, each scanner would have to operate 55,000/ (300 11.25)- 16.3 hours per day, or about 2 shifts of 8 hours daily. Revenue per hour per scanner-$500 1.875-$937.50 Cost per hour per scanner-Nurse + Technologist + Medical supplies-35+ 50+ (50 - 1.875)-$178.75 Margin per scanner per hour-$937.50-$178.75-758.78 4. What specific improvements might be made to improve the efficiency of the CT process flows? How would these improvements affect the margins? 5. What level of scanning throughput could the hospital achieve after the recommended improvements? What hourly margins would result from using the new scanners with all improvements in place? How would these margins compare with using the old scanners? Do the above table for: . New Scanners with Old Process • After Stage 1 Process Improvements After Stage 2 Process Improvements After Stage 3 Process Improvements . 6. How many hours a day would the new scanners have to operate to handle 92,000 patients per year? Assume that scanners are operated for 300 days in a year. 7. If the technology of CT scanners continues to improve, how will process economics impact their purchase and utilization in hospitals and the healthcare system overall?
The factors that we would consider when calculating the difference in revenues represented by the new scanners versus the original units are:Capacity per hour-60/Unit load (in minutes)Total resource capacity
- Capacity per resource unit per hour * Number of resource unitsThe process capacity per hour is then the least of the three resource capacities.
When operating at capacity.Utilization - Process capacity/Resource capacityWhen operating at capacity, the margin per scanner per hour is then obtained as the difference between the hourly revenue and the hourly cost, calculated as follows:Hourly revenue - Process capacity per hour * Revenue per scanHourly cost-Number of nurses * Nurse cost per hour + Number of technologists * Technologist cost per hour + Medical supply cost per scan3. If the original process flows remained in place after the new CT scanners were installed
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I need help with my sales presentation.
Choose a day to day product which has a better value for money, better rating, budget friendly and discuss the following;
1. Describe its three main features.
2. Each feature must be supported by 2 benefits of that feature.
Duration for the sales presentation is 2 minutes.
Good morning/afternoon/evening, ladies and gentlemen,
Today, I would like to introduce you to a day-to-day product that offers exceptional value for money, high ratings, and is budget-friendly.
product I am referring to is the XYZ Brand Electric Toothbrush.
1. Let's delve into its three main features:
Feature 1: Advanced Cleaning Technology - Benefit 1: The XYZ Electric Toothbrush utilizes sonic vibrations to provide a thorough and effective cleaning action, reaching deep between the teeth and along the gumline.
- Benefit 2: With its advanced cleaning technology , the toothbrush removes up to 99% more plaque than manual toothbrushes, ensuring superior oral hygiene and a healthier mouth.
Feature 2: Multiple Brushing Modes - Benefit 1: The XYZ Electric Toothbrush offers different brushing modes, such as Clean, Sensitive, and Whitening, allowing users to customize their brushing experience based on their individual needs.
- Benefit 2: Each brushing mode has been specifically designed to address different oral care concerns, providing users with a tailored approach for optimal cleaning, sensitivity relief, or teeth whitening.
Feature 3: Long Battery Life and Smart Timer - Benefit 1: The toothbrush is equipped with a long-lasting battery that can provide up to two weeks of usage on a single charge, making it convenient for travel or on-the-go use.
- Benefit 2: Additionally, the built-in smart timer ensures that users brush for the recommended two minutes, with 30-second intervals to prompt them to move to different quadrants of their mouth. This promotes thorough and consistent brushing, leading to improved dental health.
In summary, the XYZ Brand Electric Toothbrush offers advanced cleaning technology, multiple brushing modes, and a long battery life with a smart timer. These features provide numerous benefits, including superior plaque removal, customized oral care, and improved brushing habits for a healthier smile.
Thank you for your time and consideration. If you have any questions or would like to learn more about the XYZ Electric Toothbrush, please don't hesitate to ask.
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How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment, 10% coupon bond if nominal rd = 13%.
When semiannual payments are made, the equation for valuing a bond changes by incorporating the semiannual interest payments and adjusting the discount rate accordingly. The formula for valuing a bond with semiannual payments is:
Bond Value = (C / (1 + (rd / 2))) + (C / (1 + (rd / 2))^2) + ... + (C / (1 + (rd / 2))^n) + (F / (1 + (rd / 2))^n)
Where:
C = Semiannual coupon payment
rd = Nominal annual discount rate
F = Face value of the bond
n = Number of semiannual periods (years * 2 in this case)
To find the value of a specific bond, we substitute the values into the formula. In this case, we have a 10-year bond with a 10% coupon rate and a nominal discount rate of 13%. Since the coupon rate is stated as an annual rate, we divide it by 2 to get the semiannual coupon payment. Using the formula, we calculate the present value of each semiannual payment, sum them up, and add the present value of the face value. The resulting value will be the value of the bond.
Please note that for precise calculations, we need the face value of the bond to provide an accurate answer.
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consider the generalized Romer model where the fishing-out effect and the decreasing returns to research are allowed. suppose the number of researchers grows 5% each year and labor-augmenting technology level grows 1% each year. then, there exists an upper limit for the fishing-out effect in steady state. evaluate whether is true, false or uncertain and why?
In the generalized Romer model, suppose the number of researchers grows 5% each year and labor-augmenting technology level grows 1% each year. Then, there exists an upper limit for the fishing-out effect in the steady state. This statement is true in the context of this model.
In the Romer model, researchers produce knowledge using resources like labor and capital. When the number of researchers increases, the research is more productive because researchers can share information and build on each other's discoveries. At the same time, the fishing-out effect occurs when a resource is depleted because the researcher who first discovered the resource is more productive than later researchers who are left with fewer resources to work with.Labor-augmenting technology grows at a constant rate, so there is no limit to how much knowledge can be produced using this resource. On the other hand, the fishing-out effect is limited because there is only so much natural resources available to exploit.In the steady state, the growth rate of the economy is determined by the growth rate of the labor-augmenting technology. When the fishing-out effect is allowed, the steady-state level of knowledge and the steady-state growth rate of the economy are reduced compared to the case when there is no fishing-out effect.The rate of knowledge growth in the steady state is given by the following expression:η = α x (L/K) x (n + δ + g) x (1 - σ)where η is the rate of knowledge growth, α is the share of labor in production, L is the labor force, K is the capital stock, n is the rate of population growth, δ is the rate of depreciation of the capital stock, g is the rate of technological progress, and σ is the elasticity of substitution between knowledge and capital.When the fishing-out effect is allowed, the steady-state level of knowledge is given by the following expression:k = [α x (L/K) x (n + δ + g)/(ρ + λ)] x (1 - σ)where k is the steady-state level of knowledge, ρ is the fishing-out effect parameter, and λ is the effectiveness of research in producing knowledge.Therefore, the statement is true because the fishing-out effect is limited and has an upper limit in the steady state.
In conclusion, the statement that in the generalized Romer model, where the fishing-out effect and the decreasing returns to research are allowed, there exists an upper limit for the fishing-out effect in the steady state is true.
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In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4.5 million purchase of merchandise in 2021 was recorded in 2020 instead. The physical inventory count at the end of 2020 was correct. Assume the company uses a periodic Inventory system. Required: Prepare the journal entry needed in 2021 to correct the error, (ignore income taxes.) (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Since the $4.5 million purchase of merchandise was recorded in 2020 instead of 2021, a journal entry is needed in 2021 to correct the error.
The entry should reflect the correct recording of the purchase in the appropriate year.
The journal entry would be as follows:
Date: 2021
Inventory (Increase) $4.5 million
Accounts Payable (Decrease) $4.5 millionExplanation: The inventory account is increased to reflect the correct purchase of merchandise in 2021. The accounts payable account is decreased by the same amount to adjust for the correction of the timing of the purchase.
This entry ensures that the company's financial records accurately reflect the purchase in the correct accounting period.
Please note that the amounts in the journal entry are rounded to 1 decimal place (i.e., $4,500,000 is entered as $4.5 million).
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Firm K is the auditor of Company J. Company J intends to file their annual report with audited financial statements as of December 31, 2017 with the SEC on February 28th, 2018. An error of $500,000 would be considered material by users of the financial statements.
On February 26th, 2018, Company J received a letter from the lawyers of Steve Canseco. The letter states that Mr. Canseco was drinking hot coffee out of a mug produced by Company J on January 15, 2018. The lawyer alleges that the mug broke and the hot coffee spilled all over Mr. Canseco, causing severe burns. Mr. Canseco is suing for $10 million in damages. Company J does not yet know if the event actually transpired, and they therefore do not know whether they will lose the lawsuit, nor do they have a way of determining how much they would expect to pay if they did lose the lawsuit.
O Company J should not record a journal entry in the 2017 financial statements. Company J should add a disclosure to the 2017 financial statements.
O Company J should not record a journal entry in the 2017 financial statements. Company J should not add a disclosure to the 2017 financial statements.
O Company J should record a journal entry in the 2017 financial statements. Company J should add a disclosure to the financial statements.
O Company J should file a request for filing deadline extension with the SEC, stating that more information is needed on a recent material transaction before the financial statements can be finalized.
Firm K is the auditor of Company J. Company J intends to file their annual report with audited financial statements as of December 31, 2017 with the SEC on February 28th, 2018. An error of $500,000 would be considered material by users of the financial statements.
On February 20th, 2018, Company J acquired Company W, for a purchase price of $100 million.
O Company J should not record a journal entry in the 2017 financial statements. Company J should add a disclosure to the 2017 financial statements.
O Company J should not record a journal entry in the 2017 financial statements. Company J should not add a disclosure to the 2017 financial statements.
O Company J should record a journal entry in the 2017 financial statements. Company J should add a disclosure to the financial statements.
O Company J should file a request for filing deadline extension with the SEC, stating that more information is needed on a recent material transaction before the financial statements can be finalized.
Background: Firm K is the auditor of Company J. Company J intends to file their annual report with audited financial statements as of December 31, 2017 with the SEC on February 28th, 2018. An error of $500,000 would be considered material by users of the financial statements. On February 23rd, 2018, a jury decided that Company J infringed on Z Corporation's patent in 2015. Company J was ordered to pay Z Corporation $3 million by March 31, 2018.
O Company J should not record a journal entry in the 2017 financial statements. Company J should add a disclosure to the 2017 financial statements.
O Company J should not record a journal entry in the 2017 financial statements. Company J should not add a disclosure to the 2017 financial statements.
O Company J should record a journal entry in the 2017 financial statements. Company J should add a disclosure to the financial statements.
O Company J should file a request for filing deadline extension with the SEC, stating that more information is needed on a recent material transaction before the financial statements can be finalized.
For the first scenario regarding the potential lawsuit from Steve Canseco, the appropriate course of action would be:
O Company J should not record a journal entry in the 2017 financial statements. Company J should add a disclosure to the 2017 financial statements.
Since Company J does not yet know if the event actually transpired and the outcome of the lawsuit is uncertain, it is not appropriate to record a journal entry for potential damages. However, it is necessary to provide a disclosure in the financial statements to inform users about the pending and its potential impact on the company.
For the second scenario regarding the acquisition of Company W, the appropriate course of action would be:
O Company J should record a journal entry in the 2017 financial statements. Company J should add a disclosure to the financial statements.
The acquisition of Company W is a material transaction that should be reflected in the 2017 financial statements. A journal entry should be recorded to account for the purchase price and recognize any related assets and liabilities. Additionally, a disclosure should be included to provide further information about the acquisition, such as the terms and impact on the financial statements.
For the third scenario regarding the infringement lawsuit from Z Corporation, the appropriate course of action would be:
O Company J should record a journal entry in the 2017 financial statements. Company J should add a disclosure to the financial statements.
The decision by the jury and the requirement for Company J to pay $3 million by March 31, 2018, indicates a probable loss that should be recorded in the 2017 financial statements. A journal entry should be made to recognize the liability. Additionally, a disclosure should be included to provide information about the lawsuit, the judgment, and its potential impact on the company.
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Andre and Marie are both age 26 and have two children under the age of four. The children are both too young to attend school as yet so Marie is at home with them full-time and expects to remain at home at least until the youngest child, now age two, is in school full-time when she turns five. While Marie is at home Andre is the sole family wage earner, grossing $65,000 annually, as an employee of the local school board. The family rents a midrange condominium but owns two vehicles: a new van, with a $12,000 loan outstanding and a five-year-old sedan and have $7,500 in a spousal RRSP. What is the greatest risk exposure that the couple could face in the event of the premature death of one of them? A) Income taxes B) Debt repayment C) Loss of caregiver services D) Loss of income
The greatest risk exposure that the couple could face in the event of the premature death of one of them is Loss of income.
As Andre is the sole wage earner for the family, his premature death would result in a significant loss of income, leaving the family without his primary source of financial support. This loss of income can have severe financial implications, making it challenging for the surviving spouse, Marie, to meet the family's expenses and maintain their current standard of living.
While income taxes and debt repayment are important considerations, the immediate and substantial impact of losing the primary income earner outweighs these factors. The loss of caregiver services (C) may also pose challenges for the family, but it can be mitigated through alternative caregiving arrangements.
It is crucial for the couple to assess their life insurance needs and consider obtaining adequate life insurance coverage to provide financial support for the surviving spouse and children in the event of an untimely death. Life insurance can help replace the lost income, cover outstanding debts, and provide a financial safety net during a difficult time.
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Successful negotiation relies heavily on planning in the preparation. As a purchasing manager, you are preparing your negotiations with a large supplier who has a strong market position and charged you outrageous prices for his products.
(a) Express your view of this assertion by explaining how you prepare for the negotiation to get the best out of the dealings with this supplier.
(b) Buyers may adopt Kraljic Purchasing Portfolio Matrix in negotiation. Summarize the characteristics of the four types of products that mentioned in the Matrix.
(a) plan the negotiation in advance, developing a strategy and tactics that will help achieve the desired outcome. The strategy should be based on the findings of the research and the BATNA.
(b) Critical Items: Items that are critical to the firm's operations and are difficult to substitute.
Strategic Items: Products that are critical to the company's success and that can be differentiated from those of competitors.
Leverage Items: Items that are plentiful in the market and can be sourced from various suppliers.
Bottleneck Items: Items that are in short supply and are critical to the company's operations.
(a) A negotiation is the process of reaching a mutually satisfactory agreement between two or more parties. It is a technique that purchasing managers use to obtain the best possible outcomes for their organizations. To prepare for a negotiation with a supplier who has a strong market position and is charging outrageous prices for his products, the following are steps that can be taken:
To begin, conduct research to determine the actual value of the product. This may involve comparing prices with other suppliers or conducting a cost analysis to identify where the supplier's prices are excessive. Gather as much information as possible about the supplier, such as its business practices, competition, and so on. This information can be used to determine the supplier's weaknesses, vulnerabilities, and strengths. Prior to the negotiation, determine the most favorable alternative to a negotiated agreement (BATNA). This is the alternative option if negotiations fail or if the outcome is unsatisfactory. Finally, plan the negotiation in advance, developing a strategy and tactics that will help achieve the desired outcome. The strategy should be based on the findings of the research and the BATNA.
(b) The Kraljic Purchasing Portfolio Matrix, named after Peter Kraljic, a consultant at McKinsey, is a procurement tool used by procurement teams to manage risk and optimize purchasing power. The four types of products that are mentioned in the matrix are as follows:
Critical Items: Items that are critical to the firm's operations and are difficult to substitute.
Strategic Items: Products that are critical to the company's success and that can be differentiated from those of competitors.
Leverage Items: Items that are plentiful in the market and can be sourced from various suppliers.
Bottleneck Items: Items that are in short supply and are critical to the company's operations.
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ABC Corp. issued $100,000 of bonds at a premium; as a result, the company: A) received more than $100,000. B) received less than $100,000. C) received $100,000. D) will pay the bondholders more money on the maturity date than it received on the issue date.
ABC Corp. issued $100,000 of bonds at a premium; as a result, the company option A) received more than $100,000.
A bond premium is a situation where a bond's selling price is higher than its par value. The bond premium is the amount by which the bond price exceeds its face value. This phenomenon occurs when the interest rate on the bond is lower than the market interest rate, making it an attractive investment. ABC Corp. issued $100,000 of bonds at a premium. Therefore, the company received more than $100,000. The company would receive more money than the face value of the bond if the bonds were issued at a premium. A bond premium would indicate that the bond's interest rate is lower than the market interest rate, making it an attractive investment. Therefore, option A is correct. ABC Corp. received more than $100,000.
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Get Homework Help ... Oth Scenario Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal stakeholders to share your company's progress over the past month and how it has performed with respect to your cost and budget projections. The investors would like to see the thought process behind your financial strategy and how your company has performed in its first month. They have therefore asked you to present a report that includes the costing and income data from your Project Workbook. Directions Submit a detailed report to your potential investors and other stakeholders to explain and defend your costing strategies and to share your business's performance to date. Your report can be in the form of a PowerPoint presentation or a Word document (based on the templates provided in the What to Submit section). In either format, be sure to effectively communicate with your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence. If you choose to do a PowerPoint presentation, you'll need to include speaker notes for each slide. 1. Introduction: Provide a short overview of your company and the purpose of this report. A. Business Overview: Name your company and describe its business and your vision for its future. B. Purpose of the Report: Explain the purpose of the report and describe why the information is important. C. Methods and Approach: Explain the management accounting methods you used for generating the information that you are about to share in terms of your adherence to industry standards and the American Institute of Certified Public Accountants (AICPA) code of ethics. 2. Financial Strategy: Review your original business plan and costing strategies. A. Costing System: Justify the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. B. Selling Prices: Share and explain the selling prices you established for each of your products. Be sure to reference your cost-volume- profit analysis in your defense. C. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your cost-volume-profit analysis in your defense. D. Target Profits: Identify your break-even points for achieving different target profits. Then explain the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. 3. Financial Statements: Using the information in the Milestone Two Market Research Data Appendix, assess your financial performance to date. A. Statement of Cost of Goods Sold: Share the statement of cost of goods sold and logically interpret the business's performance against the provided benchmarks. B. Income Statement: Share the income statement and logically interpret the business's performance against the provided benchmarks. C. Variances: Illustrate all variances for the direct labor time and the materials price. D. Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning.
Our company has performed well in its first month of operation. We have been able to manage our costs effectively and generate profits. We will continue to monitor our financial performance and take corrective action as required to achieve our long-term financial goals.
A. Business Overview: Our business is called “Fashion Mart” which is a retail store that specializes in selling fashion clothing and accessories for men, women, and kids. Our vision is to become a leading retail store in the fashion industry.B. Purpose of the Report: The purpose of this report is to present the costing and income data of our company for the past month and explain our financial strategy. This information is important as it will help the stakeholders to understand our company’s progress and performance. The report will also defend the costing strategies we used for our business.C. Methods and Approach: We have followed the Generally Accepted Accounting Principles (GAAP) for generating the information presented in this report. We have adhered to industry standards and the American Institute of Certified Public Accountants (AICPA) code of ethics for ensuring the accuracy and integrity of our financial statements.Financial StrategyA. Costing System: We have used job order costing for our business. Job order costing is ideal for our business as we have a wide range of products with varying features and specifications. It helps us to determine the cost of each job or product based on the direct materials, direct labor, and overhead costs associated with that product. By using job order costing, we can identify the actual cost of producing each product, which helps us to price our products competitively. In contrast, process costing or activity-based costing would not be suitable for our business.B. Selling Prices: We have established our selling prices based on our cost-volume-profit analysis. We have analyzed the cost behavior of our products to determine the relationship between the selling price, variable costs, and fixed costs. By using the cost-volume-profit analysis, we were able to set our selling prices to achieve our target profit margins.C. Contribution Margin: Our contribution margin per unit is $20. The contribution margin is the amount of revenue that remains after deducting variable costs associated with the production of a product. It helps us to determine the profitability of each product and make informed decisions about our product mix. By calculating the contribution margin, we were able to identify the most profitable products and focus on selling them to achieve our target profit margins.D. Target Profits: Our target profit for the first month was $10,000. We identified our break-even points for achieving different target profits and set our target profits based on our cost-volume-profit analysis. By setting our target profits, we were able to develop a roadmap for achieving our long-term financial goals.Financial StatementsA. Statement of Cost of Goods Sold: Our cost of goods sold for the past month was $50,000. The industry benchmark for the cost of goods sold is 60% of the revenue. Our cost of goods sold represents 55% of our revenue, which is below the industry benchmark. This indicates that we have been able to manage our costs effectively and operate efficiently.B. Income Statement: Our total revenue for the past month was $90,000, and our net income was $10,000. Our net income margin was 11%, which is above the industry benchmark of 10%. This indicates that we have been able to generate profits and operate profitably.C. Variances: Our direct labor time variance was favorable, which means that our actual direct labor time was less than the standard direct labor time allowed for producing the products. Our materials price variance was unfavorable, which means that the actual cost of materials was higher than the standard cost of materials allowed for producing the products.D. Significance of Variances: The direct labor time variance is not significant as it does not impact our production costs significantly. The materials price variance is significant as it can impact our profit margins in the long run. We will need to investigate the cause of the materials price variance and take corrective action to avoid future variances.
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With imposition of new taxes, the supply curve is expected to a. Decrease, becomes flat b. Stays the same c. Increase, shifts to the right d. Increase, becomes vertical e. Decrease, shifts to the left
With the imposition of new taxes, the supply curve is expected to shift to the left, which means that it will decrease. Therefore, the correct option is e. Decrease, shifts to the left.
In economics, the supply curve is used to represent the quantity of a product or service that a seller is willing to offer to the market at a given price. A change in any variable that influences the quantity supplied can shift the supply curve to the right or left.New taxes are one of the factors that can cause a shift in the supply curve. This is because taxes increase the cost of production for sellers, thus reducing their profit margins. The higher the tax, the higher the cost of production, and the lower the quantity that suppliers are willing to offer at each price level. As a result, the supply curve shifts to the left.
The imposition of new taxes can have significant impacts on the supply curve of goods and services. Taxes can be a major factor in determining the level of production and the quantity of goods and services that are offered in the market.In general, the imposition of new taxes can lead to a decrease in the quantity supplied. This is because taxes increase the costs of production for sellers, reducing their profits. This reduction in profits can lead to lower levels of production, as producers reduce the amount of goods and services that they supply to the market.A decrease in the quantity supplied causes the supply curve to shift to the left. This is because a lower quantity is supplied at each price level. The shift to the left means that the supply curve has moved upward and inward, indicating that sellers are willing to offer fewer goods and services at each price level.In contrast, if taxes are reduced or eliminated, the supply curve will shift to the right. This is because reduce the cost of production, increasing the profits of sellers and encouraging them to supply more goods and services to the lower taxes market. This shift to the right means that the supply curve has moved downward and outward, indicating that sellers are willing to offer more goods and services at each price level.
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According to the ethical standards of the profession, which of the following acts by a CPA is generally prohibited?
Purchasing a product from a third party and reselling it to a client.
Accepting a commission for recommending a product to an audit client.
Accepting engagements obtained through the efforts of third parties.
Writing a financial management newsletter promoted and sold by a publishing company
According to the ethical standards of the profession, accepting a commission for recommending a product to an audit client by a CPA is generally prohibited.
A certified public accountant (CPA) is a professional accountant who has completed a rigorous CPA exam and has met the educational and experience requirements for certification in their jurisdiction of practice. Certified public accountants work in a variety of fields and assist individuals and companies with a variety of accounting tasks. They can also be involved in financial planning, budget analysis, and investment consulting.The ethical principles and standards that CPAs must follow are designed to ensure that their work is performed in a professional and ethical manner. According to the ethical standards of the profession, accepting a commission for recommending a product to an audit client by a CPA is generally prohibited. This act is prohibited since it may create a conflict of interest and undermine the CPA's independence. CPA firms should maintain their objectivity and integrity, which will help them maintain their clients' trust.
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Capital and Revenue Expenditures On December 2, Green River Inflatables Co. paid $2,740 to install a hydraulic lift and $51 for an air filter for one of its delivery trucks. Journalize the entries for the new lift. December 2 Journalize the entry for air filter expenditures. December 2
The journal entries for the new lift and air filter expenditures are as follows: December 2:Equipment (hydraulic lift) (2,740) Cash (2,740), December 2: Repairs and Maintenance Expense (air filter) (51) Cash (51)
The first journal entry on December 2 records the installation of a hydraulic lift for $2,740. The hydraulic lift is considered a capital expenditure because it enhances the value or extends the useful life of the delivery truck. Therefore, the cost is debited to the Equipment account, and the Cash account is credited to reflect the payment made.
The second journal entry on the same day records the expenditure of $51 for an air filter, which is considered a revenue expenditure since it is a routine maintenance expense that does not significantly enhance the value or extend the useful life of the delivery truck. The expense is debited to the Repairs and Maintenance Expense account, and the Cash account is credited for the payment made.
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The president of the retailer Prime Products has just approached the company's bank with a request for a $93.000, 90-day loan The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used a. On April 1, the start of the loan period, the cash balance will be $36.000. Accounts receivable on April 1 will total $179.200, of which $153,600 will be collected during April and $20,480 will be collected during May. The remainder will be uncollectible b Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three- month period follow Sales (011 on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation April $ 232,000 $ 105,000 $ 22,500 $33,469 $ 63,500 5 $ 17,860 May $ 476,000 $ 163,500 $ 22.300 $ 31,400 $63.600 50 $ 37.se June 5 296,000 $ 135,500 $ 25,900 591,409 $ 41,650 S 102.ee $ 17,800 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $162,500. d. In preparing the cash budget, assume that the $93,000 loan will be made in April and repaid in June. Interest on the loan will total $1,280 Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total 2. Prepare a cash budget, by month and in total, for the three-month period. Answer is not complete. Beginning cash balance Add receipts Prime Products Cash Budget S Collections from customers Total cash available Less cash disbursements Merchandise purchases Payroll Loase payments Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing + Borrowings Repayments Interest Total financing Ending cash balance $ April 36,000 223,200 250,200 162.500 162,500 96,700 0 96,700 May 302,480 302,480 0 302,400 $302.400 < Prev June 392.960 392,960 0 392,900 0 $302.960 3 of 6 Quarter 918,640 918,640 D 918.640 0 $910,640 Next > The president of the retailer Prime Products has just approached the company's bank with a request for a $93.000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used a. On April 1, the start of the loan period, the cash balance will be $36,000. Accounts receivable on April 1 will total $179,200, of which $153,600 will be collected during April and $20,480 will be collected during May. The remainder will be uncollectible b. Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three- month period follow April May June $ 476,000 $ 296,000 Sales (all on account) Merchandise purchases Payroll $ 232,000 $ 188,000 $ 163,500 $ 135,500 Lease payments Advertising $ 22,000 $ 31,400 $ 63,600 50 $ 22,000 $31,400 $63,600 $ 00² $ 17,000 $ 26,900 $31,400 $ 41,680 $ 102,000 $ 17,000 Equipment purchases Depreciation $ 17,900 c Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $162,500 d. In preparing the cash budget, assume that the $93,000 loan will be made in April and repaid in June. Interest on the loan will total $1,280 Beginning cash balance Add receipts Prime Products Cash Budget April $ Collections from customers Total cash available Less cash disbursements Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance 36,000 223,200 259,200 162,500 162,500 96,700 0 $ 96,700 › May June 302,480 392,900 302,480 -392,900 0 0 302.400 392,960 0 $302.480 $382.960 Prev 3db #I Quarter 918,640 918,640 0 918,640 0 $918,640
The expected cash collections for April, May, and June, and for the three months in total are as follows April: $176,080, May: $173,080,June: $239,760, Total: $588,920. To prepare the cash budget, we need to consider the beginning cash balance, receipts, cash disbursements, and any financing activities.
Based on the provided data, the expected cash collections for April, May, and June, as well as the three-month total, can be calculated as follows:
April: Collections from customers: $153,600 (collected in April) + $20,480 (collected in May) = $174,080
May: Collections from customers: $232,000 (30% of April sales) + $163,500 (60% of May sales) + $26,900 (8% of April sales) = $422,400
June: Collections from customers: $296,000 (30% of May sales) + $135,500 (60% of June sales) + $31,400 (8% of May sales) = $462,900
Total cash collections for the three-month period:
$174,080 + $422,400 + $462,900 = $1,059,380
To prepare the cash budget, we need to consider the beginning cash balance, receipts, cash disbursements, and any financing activities. The cash budget is as follows:
April: Beginning cash balance: $36,000
Add receipts: $174,080 (collections from customers)
Total cash available: $36,000 + $174,080 = $210,080
Less cash disbursements: $162,500 (merchandise purchases)
Excess (deficiency) of cash available over disbursements: $210,080 - $162,500 = $47,580
Financing: Borrowings of $93,000
Total financing: $93,000
Ending cash balance: $47,580 + $93,000 = $140,580
May and June can be calculated in a similar manner. The final cash budget should include the excess (deficiency) of cash available over disbursements and the ending cash balance for each month.
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Which of the following is considered a reason why Platform-based business is distinctive from pipeline-based business? That is, platform-based business O emphasizes resource ownership, rather than resource orchestration O requires more attention to rivals' competitive attacks o highlights the importance of external interaction over internal optimization O focuses on both of product value and ecosystem value
A Platform-based business is distinctive from pipeline-based business because it highlights the importance of external interaction over internal optimization.
Hence, the correct option is highlighted below.O highlights the importance of external interaction over internal optimizationThe following are the reasons why Platform-based business is distinctive from pipeline-based business:Emphasizes resource ownership:Platform-based business emphasizes resource ownership, not resource orchestration. Unlike pipeline-based business, which focuses on supply chain management and efficient production, platform-based business is more interested in owning its resources.Importance of external interaction:Another reason why Platform-based business is distinctive is that it highlights the importance of external interaction. Unlike pipeline-based business, which prioritizes internal optimization, platform-based business focuses on interactions between itself and its stakeholders, including customers, partners, and suppliers. Platform-based businesses see these external interactions as key to building their ecosystems, which are essential to their success.Product value and ecosystem value:Platform-based business focuses on both product value and ecosystem value, whereas pipeline-based business focuses on product value alone. In order to succeed, a platform-based business must not only create a high-quality product or service but also develop an ecosystem that supports that product or service. This ecosystem must be attractive to other stakeholders who can help the business grow, including partners, customers, and suppliers.
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if exports exceed imports, as in recent years, then __________ exists. if exports exceed imports, as in recent years, then __________ exists.
If exports exceed imports, as in recent years, then a trade surplus exists. A trade surplus occurs when the value of a country's exports exceeds the value of its imports.
Exports refer to the goods, products, or services that are produced in one country and sold to another country. They play a significant role in international trade and contribute to a country's economy by generating revenue, creating jobs, and fostering economic growth. Exporting allows companies to expand their customer base beyond domestic markets and take advantage of international demand. It also promotes specialization and efficiency as countries can focus on producing goods and services in which they have a comparative advantage. Governments often implement policies and incentives to support and encourage exports, such as export subsidies, trade agreements, and export financing programs, to boost their country's export performance and competitiveness in the global mark
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Explain the working of AHP by considering at least one
qualitative and one quantitative criteria while considering a
real-life scenario. Assume hypothetical values for Eigen value
computations.
The Analytic Hierarchy Process (AHP) is a decision-making technique that helps individuals or groups evaluate and prioritize alternatives based on multiple criteria.
It involves both qualitative and quantitative factors to make informed decisions Let's consider a real-life scenario of choosing a car for purchase and explore the working of AHP with one qualitative and one quantitative criterion.
Qualitative Criterion: Safety Rating
In this scenario, safety is an important qualitative criterion to consider when choosing a car. We can assign three car models, A, B, and C, with corresponding safety ratings as follows:
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