a) Production Cost Schedule for the Assembly Department at the end of September using the weighted average method of process costing:
Units Materials ($). Conversion Costs ($)
Beginning work-in-process inventory (BWIP) 6,400 $328,320 $487,680
Units started 8,000 - -
Total units accounted for (BWIP + Units) 14,400 - -
Units completed 12,800 - -
Ending work-in-process inventory (EWIP) 1,600 - -
Equivalent Units of Production 14,400 - -
Cost per equivalent unit
Materials $22.83
Conversion costs - $91.67
Costs accounted for
Materials $292,800
Conversion costs - $1,173,333
Total costs $292,800 $1,173,333
b) Journal Entries:
1. To record the transfer of costs from beginning work-in-process inventory (BWIP) to production:
Debit: Work-in-Process Inventory (Assembly) - Materials: $328,320
Debit: Work-in-Process Inventory (Assembly) - Conversion Costs: $487,680
Credit: Beginning Work-in-Process Inventory (Assembly): $816,000
2. To record the transfer of costs from production to ending work-in-process inventory (EWIP):
Debit: Ending Work-in-Process Inventory (Assembly): $146,133.33 (Materials) + $586,200 (Conversion Costs)
Credit: Work-in-Process Inventory (Assembly) - Materials: $146,133.33
Credit: Work-in-Process Inventory (Assembly) - Conversion Costs: $586,200
3. To record the completion of units:
Debit: Finished Goods Inventory: $292,800 (Materials) + $1,173,333 (Conversion Costs)
Credit: Work-in-Process Inventory (Assembly) - Materials: $292,800
Credit: Work-in-Process Inventory (Assembly) - Conversion Costs: $1,173,333
Please note that the values in the production cost schedule and journal entries are based on the information provided and calculations specific to the weighted average method of process costing.
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Organizational Design includes these key elements except...
A. Chain of command
B. Span of control
C. Formalization
D. Rules and policies
Organizational Design includes these key elements except rules and policies.The design of an organization is referred to as organizational design.
The different components and subcomponents of a company are set up and configured as a system in this process. This system aids in the development of a cohesive, efficient, and effective organizational structure. It is a method of developing or modifying the organizational structure that aids in achieving strategic goals.Organizational Design includes these key elements:Chain of command is a hierarchical organizational structure in which each employee, with the exception of the CEO, is responsible to one supervisor or boss.
This hierarchy also specifies the chain of control from the CEO or President to the lowest level employee.Span of control refers to the number of subordinates that a supervisor or boss is responsible for overseeing. It defines the maximum number of subordinates that a manager or supervisor can manage effectively.Formalization refers to the degree of written documentation and rules, guidelines, and procedures in an organization. It specifies how activities should be conducted, who is responsible for what tasks, and who reports to whom.Rules and policies are directives that explain how work should be performed and what behaviors are permissible and unacceptable in an organization. They assist in the development of uniformity and consistency in performance throughout the company.
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Suppose actual real GDP is $15 trillion and potential real GDP is $16 trillion. If the marginal propensity to consume (MPC) is 0.80 and government purchases increase by $100 billion, then lump- billion to sum taxes should change by $ 250 close this gap. Just enter a value. Do not include the "$" sign. Answer 1: 250 125 125.00
The lump-sum taxes should change by $4.9 trillion to close the GDP gap.
To close the GDP gap of $1 trillion ($16 trillion potential real GDP minus $15 trillion actual real GDP), we need to use fiscal policy to stimulate the economy.
The fiscal policy tools at our disposal are changes in government purchases and changes in taxes. According to the problem, government purchases increase by $100 billion. To calculate the required change in taxes, we can use the spending multiplier.
The spending multiplier is given by the formula:
Multiplier = 1 / (1 - MPC)
Given that the marginal propensity to consume (MPC) is 0.80, we can calculate the multiplier:
Multiplier = 1 / (1 - 0.80) = 1 / 0.20 = 5
To close the GDP gap of $1 trillion, we need to stimulate the economy by $1 trillion. Since government purchases increase by $100 billion, the remaining amount needs to be achieved through changes in taxes.
Change in taxes = (Multiplier x Change in GDP) - Change in government purchases
Change in taxes = (5 x $1 trillion) - $100 billion
Change in taxes = $5 trillion - $100 billion
Change in taxes = $4.9 trillion
Therefore, the lump-sum taxes should change by $4.9 trillion to close the GDP gap.
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following occurs if there is excess demand in a free and unregulated market?
In a free and unregulated market, excess demand results in shortage. Excess demand occurs in a free and unregulated market when the quantity of a good that people want to purchase exceeds the quantity of the good that is available for sale in the market.
What happens in a free and unregulated market with excess demand?
In such a market, there is a higher demand for goods than there is supply, which implies that there are more buyers than goods available for purchase.
This creates a shortage of goods in the market. Excess demand is commonly referred to as a market imbalance or disequilibrium.
In such a situation, suppliers may raise the prices of goods in the market because the available quantity of goods is inadequate to meet the high demand for the goods, and they have a captive market.
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Service quality begins with people. All of our measurements to detect nonconformance do not produce a quality service; instead, quality begins with the development of positive attitudes among all people in the organization. How is this accomplished? Positive attitudes can be fostered through a coordinated program that begins with employee selection and progresses through training, initial job assignments, and other aspects of career advancements. To avoid complacency, an ongoing quality-improvement program is required. W. Edwards Deming believed that management was responsible for 85 percent of all quality problems and, therefore, had to provide the leadership in changing the systems and processes that created them. Management needed to refocus attention on meeting customer needs and on continuous improvement to stay ahead of the competition. His philosophy is captured in a 14-point program. Review Deming’s 14-Point Program on p. 194 and then compare/contrast his points to where you are in your organization. For example, #9 states, "Break down barriers between departments. Encourage problem-solving through teamwork and use of quality-control circles" (Bordoloi, p. 194). What does this look like in your organization? How do you plan on making sure this happens in your organization? How about the other points? Try to address 4-5 of these points in your post relevant to your organizational design.....PLEASE USE A CUSTOMER SERVICE ENVIRONMENT
The service quality starts with people; it begins with developing positive attitudes among all people in the organization through a coordinated program that starts with employee selection, progresses through training, initial job assignments, and other aspects of career advancements. Deming’s 14-Point Program comprises of a philosophy of quality management and includes an action plan to accomplish it.
In a customer service environment, Deming’s 14-Point Program can be used as a reference to bring in improvement in quality service. The points can be compared to the organization to understand where it stands and how it can improve. For example, #9 of Deming’s 14-Point Program states, "Break down barriers between departments. Encourage problem-solving through teamwork and use of quality-control circles" (Bordoloi, p. 194).
In a customer service environment, it means that each department must be well informed and coordinated with the other departments. Departments must be ready to share information and resources to serve customers better. Problem-solving through teamwork will help improve overall customer service quality. Another point is, "Drive out fear so everyone may work effectively for the company." It means that employees must feel safe while speaking their minds without the fear of any retribution. The customer service environment must foster an open culture where employees can share their feedback, opinions, and ideas for service improvements. For this to happen, an effective grievance handling process and performance appraisal system must be in place. The other points can also be addressed relevant to organizational design. For example, #1 states, "Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business." To implement this in the customer service environment, the organization must focus on customer satisfaction, continuously improving customer service, and introducing new services to stay competitive. The organization must create an environment of continuous improvement where all employees contribute to the success of the organization.
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Using one of the many financial apps (most of them free) that are available for your tablet or smartphone these days, you can become your own banker. In fact, trips to the bank or even to an ATM could soon become a thing of the past. The new apps let you do all the functions that you could do on a bank’s Web site and more. For example, to deposit a check into your banking account, you can simply take a photograph of the front and back of the check, after which the app will ask you for the amount you want to deposit. Then you type the account number and then press "OK" to complete the deposit. With the mint app (mint.com) from Intuit, you can even perform all sorts of analytics on your account. For example, you can establish a budget and keep track of the expenses in various categories such as food, gas and groceries. Another app that offers similar services is HelloWallet from hellowallet.com. Still other apps help you track and report work-related travel expenses. An example is an iPhone app called QuickShot. It allows you to take photos of your receipts, and the photos are automatically stored in an account on Dropbox, an internet file-storage service. Banks, brokerage firms and other financial institutions have developed their own apps that simplify their customers’ financial interactions with the institution.
Case study Questions: 2 – 1
1. Using your smartphone and a financial app, how do you deposit a check into your checking account? (2.5 marks).
2. Name some financial apps introduced in this case study (2.5 marks).
3. What are some examples of analytics that can be done using financial apps? (2.5 marks).
4. What are some other examples of financial apps? What are their applications? (2.5 marks).
Investment apps help users manage their investments and track their performance.
1. To deposit a check into your checking account using a smartphone and a financial app, you need to follow these steps:
Open the app and navigate to the check deposit feature.
Click on “deposit.”
Capture a photo of the front and back of the check using the app.
Enter the amount you want to deposit and select the account where you want to deposit the check.
Tap “submit” to deposit the check.
2. Some of the financial apps that are mentioned in the case study include:
Mint app from Intuit, HelloWallet from hellowallet.com, and QuickShot app for iPhone.
3. Some of the analytics that can be done using financial apps include establishing a budget, keeping track of expenses in different categories such as food, gas, and groceries, and tracking and reporting work-related travel expenses.
4. Other examples of financial apps include banking apps, brokerage apps, and investment apps. Banking apps allow users to access their bank accounts and make transactions, while brokerage apps enable users to buy and sell securities.
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Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.
The statement that contracts must be in writing to be enforceable is not entirely accurate. While written contracts are generally preferred and provide greater certainty, enforceable contracts can exist in oral or implied form.
However, certain types of contracts are required by law to be in writing to be enforceable, such as contracts involving the sale of real estate or agreements that cannot be performed within one year.
In contract law, enforceability is not limited to written contracts. Oral contracts, also known as verbal contracts, can be enforceable if they meet the essential elements of a contract: offer, acceptance, consideration, capacity, and intention to create legal relations. These oral agreements may be more challenging to prove in court compared to written contracts, as they often rely on the credibility and recollection of the parties involved.
However, there are exceptions where written contracts are specifically required for enforceability. For example, contracts involving the sale or transfer of real estate typically need to be in writing to comply with the statute of frauds. Similarly, contracts that cannot be performed within one year from the time of formation generally require written documentation.
In summary, while written contracts are generally preferred for clarity and evidentiary purposes, enforceable contracts can exist in oral or implied form. However, specific situations and types of contracts may require written documentation to meet legal requirements for enforceability.
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Blossom Company must decide whether to make or buy some of its components. The costs of producing 65,700 switches for its generators are as follows. Direct materials $31,000 Variable overhead $45,900 Direct labor $34,229 Fixed overhead $84,000 Instead of making the switches at an average cost of $2.97 ($195,129 + 65,700), the company has an opportunity to buy the switches at $2.71 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. $ Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Blossom Company should buy the switches as it saves $23,735 ($195,129 - $171,394) in total costs.
The incremental analysis shows that if Blossom Company makes the 65,700 switches, the total cost will be $195,129. On the other hand, if they buy the switches, they will save the variable costs of $45,900 and one-fourth of the fixed costs which amount to $21,000 ($84,000/4).
Therefore, the total cost of buying the switches will be $171,394 ($170,000 + $1,394 freight cost).
The company will save $23,735 ($195,129 - $171,394) in total costs if they choose to buy the switches.
As a result, buying the switches is the better option for Blossom Company as it will lead to significant cost savings.
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1. What are the fundamental reasons (ten) for starting a successful business in OMAN with good examples? 2. Elaborately discussed any prime factors (ten factors with examples) in social media marketing to help to develop the business in OMAN? 3. In 2040 Vision of Sultanate of OMAN. Elaborately discuss the various economics reforms and strategies. 4. As you are a businessman, how will you develop and flourish the businesses from the debt: elaborately discuss the ten strategies: 5. How Price / outputs determination under various Markets? (Perfect Imperfect Graph and explanations are needed).
Fundamental reasons for starting a successful business in Oman is a country with a very strategic geographical location, being a bridge between Asia, Europe, and Africa.
This makes it easier to transport goods between these continents. For example, Oman Shipping Company is one of the largest shipping companies in the world and has helped make Oman a major trading hub. Oman has a large young population with a high level of education. Oman has a well-established infrastructure, which makes it easier to do business. For example, Oman has a modern port in Salalah that has helped make Oman a major logistics hub. Oman has a very stable political environment, which makes it easier for businesses to operate Prime factors in social media marketing to help develop businesses .
Some of the prime factors that businesses should consider when developing their social media marketing strategy area Understanding their target audience: Businesses need to understand their target audience and develop content that resonates with them. Consistency: Businesses need to be consistent with their social media posts. Analytics: Businesses need to track their social media metrics and use this data to refine their social media strategy. For example, if a business sees that a particular post is performing well, they may want to create more content around that topic. Collaboration: Businesses can collaborate with other businesses or influencers to reach a wider audience. For example, a restaurant may collaborate with a food blogger to promote their new menu.
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A US company expects €1,250,000 in repatriated profits from its German subsidiary six months from today. Currently, the spot rate is US $1.0550/€, and the six-month forward rate is US $1.0300/€. Suppose that in the options market, the six-month put option premium is US $0.0012 per euro and the exercise price is $1.0310.
(a) Describe the strategies the US company can undertake to hedge the currency risk with forwards and options. What are pros and cons of each strategy?
(b) If in six months the spot rate is US $1.02/€, what are the profits and losses on the hedging strategies? What if the spot rate turns out to be US $1.04/€?
(c) If euro futures are also available, how will the firm hedge the currency risk with futures? What are the differences between futures and forwards?
a) Hedging the currency risk with forwards:If the US company decides to hedge with forward contracts, it will sell the €1,250,000 at the six-month forward rate of $1.0300/€, guaranteeing that it will receive $1,287,500 at the expiration date of the contract.
The advantage of using forwards is that there is no upfront cost, only a change in the expected cash flows that could occur due to movements in the exchange rate. The disadvantage is that the company would lose out on potential profits if the spot exchange rate was more favorable than the forward rate.
The US company can also hedge using a put option on euros. If the spot rate falls below the strike price of $1.0310, the company can exercise the put option and sell €1,250,000 at the strike price, guaranteeing a minimum of $1,288,750 ($1.0310 x €1,250,000).
If the spot rate is higher than the strike price, the company can simply let the option expire. The advantage of using options is that there is a capped upfront cost, unlike forwards where there is no upfront cost but the company is guaranteed a certain rate. The disadvantage is that if the spot rate remains above the strike price, the company loses the premium paid for the put option
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If demand for good 1 Is x₁= (2m)/3p₁, the demand curve Is a(an) downward sloping curve with flat segment O upward sloping curve O horizontal line O downward sloping curve Question 4 Sir Plus has a demand function for mead that is given by the equation D(p)=20-2p. If the price of mead is 9$, how much is Sir Plus's net consumer's surplus?
The given demand function for Sir Plus’s mead is:
D(p)=20-2p.
Sir Plus’s consumer’s surplus is equal to the difference between the amount a customer is willing to pay for a good or service and the amount they actually pay. When the consumer’s surplus is large, it implies that consumers are receiving value at a price less than what they would be willing to pay.
Therefore, the formula for consumer surplus is calculated as shown below;
Consumer Surplus (CS) = Maximum Willingness to Pay - Amount Paid by the Consumer
If the price of mead is 9 dollars, then the quantity demanded will be calculated by substituting p with 9 in the demand function and therefore:
D(9) =20-2(9) = 20 - 18= 2 units
Therefore, the maximum price Sir Plus’s customers are willing to pay is equal to the consumer surplus plus the price of the good. Hence, Consumer Surplus (CS) = 20 - 9 = 11 dollars
Therefore, Sir Plus’s net consumer surplus is 11 dollars.
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please answer my question thanks alot
Exercise #4 (30%) Slate Corporation had the following balances in its stockholders' equity accounts at December 31, 2021: Common Stock, $10 par, 500,000 shares authorized, 20,000 shares issued $200,00
Slate Corporation's stockholders' equity accounts at December 31, 2021, included Common Stock with a par value of $10 per share.
The company had authorized 500,000 shares, out of which 20,000 shares were issued. The total amount of Common Stock issued was $200,000.
To calculate the number of shares that can still be issued, we subtract the number of issued shares from the number of authorized shares.
Authorized shares - Issued shares = Unissued shares
500,000 shares - 20,000 shares = 480,000 shares (Unissued shares)
The total amount of Common Stock issued, $200,000, represents the par value of the issued shares.
The par value is the nominal value assigned to each share by the company. In this case, each share has a par value of $10.
To find the total value of the authorized shares, we can multiply the par value by the number of authorized shares.
Par value per share × Authorized shares = Total value of authorized shares
$10 per share × 500,000 shares = $5,000,000 (Total value of authorized shares)
In conclusion, Slate Corporation had 20,000 shares of Common Stock issued at a par value of $10 per share, resulting in a total value of $200,000.
The company still had 480,000 shares that could be issued based on the authorized shares of 500,000. The total value of the authorized shares is $5,000,000.
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Strategic resources are vital to a company and its processes of earning capital. What is NOT one of the four categories do Strategic resources reflect qualities of? Strategic resources reflect the qualities of four categories. Which is not one of the four?
1) Valuable
2) 2) Difficult to imitate
3) 3) Controlled
4) 4) Rare
5) 5) Organized to capture value
The category that is not reflected by strategic resources is "Organized to capture value". Explanation:A strategic resource is a valuable asset that is owned by a company, such as a patent, a license, or a trademark. These resources are usually very valuable and hard to replicate, making them a crucial aspect of a company's ability to make money. There are four categories of strategic resources that companies need to focus on when developing their business strategy. These categories are:Valuable - A resource that is valuable has the potential to generate significant income for the company. This could be anything from a patent on a new product to a highly skilled workforce.Difficult to imitate - Resources that are difficult to imitate are those that are unique or specialized to a particular company. For example, a company might have developed a proprietary manufacturing process that cannot be replicated by others.Controlled - Resources that are controlled by a company are those that are fully owned or have some level of exclusivity. This could include things like a trademark or a patent. Rare - A resource that is rare is one that is not easily available to other companies or competitors. For example, a particular mineral might be rare and only found in certain parts of the world.The category that is not reflected by strategic resources is "Organized to capture value." This is because this category is not related to the qualities of the resource itself, but rather how the company uses it to generate income. Learn more about Rare here,https://brainly.com/question/3072648 #SPJ11
Bark Ages, a famous pet shop, issued 90296 at-the-money stock options to its employees on January 1, 2021. The options vest on January 1, 2023 and expire onJanuary 1, 2026. Bark Age's share price was $55 on the grant date and $47 on the vesting date. Estimates of the fair value of the options showed they were worth $10
on the grant date and $22 on the vesting date.
Bark Ages estimates the forfeitures of 5% in 2021; actual forfeitures were 10%.
What is the compensation expense the year ended December 31, 2022?
The compensation expense for the year ended December 31, 2022, for Bark Ages is $348,092.
To calculate the compensation expense, we need to consider the number of options vested and the fair value of the options on the vesting date.
The number of options vested is calculated by multiplying the total options granted by the forfeiture rate. In this case, the total options granted is 90,296, and the forfeiture rate is 10%, resulting in 90,296 * (1 - 0.10) = 81,266 options vested.
The fair value of the options on the vesting date is $22 per option. Therefore, the compensation expense is calculated by multiplying the number of options vested by the fair value per option: 81,266 * $22 = $1,787,852.
However, we need to consider the period from January 1, 2021, to December 31, 2022. Since the options vest on January 1, 2023, the compensation expense needs to be recognized over the two-year period.
Therefore, we divide the total compensation expense by the vesting period in years: $1,787,852 / 2 = $893,926.
Finally, we need to account for the overestimation of forfeitures. The estimated forfeitures were 5%, but the actual forfeitures were 10%. To adjust for this, we multiply the calculated compensation expense by the difference in forfeiture rates: $893,926 * (1 - 0.05) / (1 - 0.10) = $348,092.
Thus, the compensation expense for the year ended December 31, 2022, is $348,092 for Bark Ages.The compensation expense for the year ended December 31, 2022, for Bark Ages is $348,092.
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Explain how you intend to limit the number of mark-downs. Section 2: Merchandise management: Describe your merchandise philosophy. Outline your plan for your merchandise range. Construct a diagram depicting one of your product category lifecycles. Section 3: Stakeholders Identify your top three stakeholder types. Justify your selection.
The philosophy behind merchandise management is the idea of determining the type of products that best cater to customers while at the same time increasing profitability.
What happens in this strategy?In this strategy, the goal is to ensure that the products available in the store are relevant to the customers, and they are of high quality.
The first step in implementing the strategy is by identifying the target audience and selecting the merchandise based on their needs and preferences.
Outline your plan for your merchandise range. A plan for a merchandise range should include the following steps:Determine customer needs and preferences- Ensure merchandise meets quality standardsEvaluate inventory levels regularly to identify gaps in the product range.Update the product range based on feedback from customers and sales data.Ensure the products offered are relevant to the target audience.Construct a diagram depicting one of your product category lifecycles.A product lifecycle can be illustrated in four stages: Introduction stage:During this stage, sales are low, and there is a need for product promotion and investment to create awareness.
Growth stage: At this point, the product sales begin to pick up, and customers begin to recognize the value of the product.
Maturity stage: During this stage, sales are high, but growth starts to slow down, and there is a need to focus on retaining customers.
Decline stage: The last stage is when sales begin to decline, and products are eventually phased out.
Section 3: Stakeholders Identify your top three stakeholder types.The three most crucial stakeholders in a business include shareholders, employees, and customers.
Justify your selection.Customers are one of the essential stakeholders since they provide the revenue that drives the business. Satisfied customers translate to increased profits, which ultimately benefits the shareholders and the employees. Employees play a significant role in the success of the business since they are responsible for product development and ensuring customer satisfaction. Finally, shareholders are also vital stakeholders since they provide the funds needed to invest in the business.To know more on business visit:
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The Affordable Care Act was enacted in 2010. It contains a clause requiring everyone to carry some type of health insurance. This requirement is referred to as the h O individual mandate risk permium moral hazard Onone of the answers listed
The Affordable Care Act (ACA) is a healthcare reform law that was passed in 2010. The ACA contains a clause called the individual mandate that requires everyone to carry some type of health insurance. The correct option is 1st "individual mandate risk premium moral hazard."
The individual mandate is intended to help ensure that everyone has access to affordable healthcare by spreading the cost of healthcare across the entire population. This is done by requiring everyone to purchase health insurance, which helps to reduce the risk of adverse selection.
The individual mandate has been controversial since it was first introduced. Some people argue that it is a violation of individual freedom and that people should be allowed to choose whether or not they want to purchase health insurance. Others argue that the individual mandate is necessary to ensure that everyone has access to affordable healthcare.
The individual mandate was challenged in court, and in 2012 the Supreme Court upheld its constitutionality. However, in 2017 the individual mandate was effectively repealed as part of the Tax Cuts and Jobs Act. While the individual mandate is no longer in effect, other provisions of the ACA remain in place, including protections for people with pre-existing conditions and the availability of subsidies to help people purchase health insurance.
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Black Instrument Company replenishes highly specialized replacement (service) parts based on statistical reorder point. One part is a 40-mm thumbscrew. Relevant data for the thumbscrew are: ·
Planned stock out frequency= Six per year. Planned lead time = 2 weeks
Forecast for next week= 300 Batch size = 400
Standard deviation of demand = 20 (per week)
What is the reorder point?
What would be the effect on the ROP if lead time were five weeks instead of two?
What other factors might impact your decision on when to reorder parts?
Reorder Point (ROP) refers to the inventory level at which a new order should be placed to ensure that the inventory does not stock out. The Black Instrument Company replenishes highly specialized replacement (service) parts based on a statistical reorder point.
One such part is a 40-mm thumbscrew. Relevant data for the thumbscrew is planned stock out frequency, planned lead time, forecast for next week, batch size, and standard deviation of demand.
The reorder point for the thumbscrew is calculated as: ROP = (Planned stock out frequency × Planned lead time) + (Z × Standard deviation of demand × Square root of planned lead time) ROP = (6 × 2) + (1.645 × 20 × √2)ROP = 12 + 29.38ROP = 41.38 ≈ 42 units.
Therefore, the reorder point is 42 units. If the lead time increases from 2 weeks to 5 weeks, the reorder point would be affected. The reorder point is directly proportional to lead time. As the lead time increases, the reorder point also increases.
Other factors that might impact the decision on when to reorder parts include the carrying cost of inventory, the cost of placing an order, the cost of stock-out, the ordering policy of the company, and the demand pattern of the parts.
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Based the general dependency postulate, how will you use this concept to gain power in your job as a Manager?
Note:Please Provide This answer without plagiarism and 250-300 words.
The general dependency postulate suggests that individuals or groups who have control over resources that are valuable, rare, or difficult to replace have power over others who depend on those resources. As a manager, understanding and applying this concept can help me gain power and influence within my job. However, it is important to note that using power in an ethical and responsible manner is crucial for maintaining positive relationships and fostering a productive work environment.
To gain power in my role as a manager, I would focus on the following strategies:
1. Acquiring and Controlling Key Resources: By identifying and controlling critical resources within the organization, such as information, budgets, or specialized knowledge, I can establish myself as a valuable asset. This can be achieved through building relationships, networking, and continuously developing my expertise in specific areas.
2. Building a Strong Network: Developing a wide network of contacts and alliances both within and outside the organization can enhance my power base. Collaborating and building mutually beneficial relationships with influential individuals or teams can provide support and leverage in decision-making processes.
3. Developing Expertise: Becoming an expert in my field and staying updated with industry trends and best practices can enhance my credibility and influence. Sharing knowledge and providing guidance to others can establish me as a go-to person, thereby increasing my power within the organization.
4. Cultivating Relationships: Building positive relationships with colleagues, subordinates, and superiors is vital for gaining power. By demonstrating strong interpersonal skills, actively listening, and offering support, I can create a network of individuals who trust and respect me, increasing my ability to influence outcomes.
5. Empowering Others: Empowering team members and fostering a collaborative work environment can also contribute to my power as a manager. By delegating tasks, providing opportunities for growth, and recognizing and rewarding achievements, I can gain support and loyalty from my team, enhancing my overall influence.
It is important to note that while seeking power, it should be done in an ethical and fair manner, with the intention of benefiting the organization and its stakeholders. Using power to manipulate or exploit others will lead to negative consequences and damage trust, ultimately hindering long-term success.
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What elements of culture do you expect to be challenging with respect to your country of choice? (exporting cocoa chocolate to Germany)
Choice Country: Germany
Product: Cocoa Chocolate
Exporting cocoa chocolate to Germany may pose cultural challenges related to taste preferences, labeling requirements, and consumer expectations.
German culture values high-quality and organic products, strict adherence to labeling regulations, and a preference for dark chocolate. Understanding these cultural elements is crucial to successfully market and sell cocoa chocolate in Germany. German consumers prioritize products that are sourced sustainably and produced with minimal additives or artificial ingredients. Exporters of cocoa chocolate to Germany should ensure that their products meet these expectations by highlighting the use of natural ingredients, sustainable sourcing practices, and any relevant certifications such as organic or fair trade.
Another cultural aspect to consider is Germany's strict labeling regulations. German consumers value transparency and expect clear and accurate product labeling, including information on ingredients, nutritional values, allergens, and any potential health claims. Exporters should ensure that their cocoa chocolate packaging complies with German labeling requirements to build trust and credibility among consumers.
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With construct validity, ______ refers to the degree of correlation among constructs and tests whether constructs that should be related actually are related.
a.convergent validity
b.discriminant validity
c.predictive validity
d.content validity
The option that correctly fills the blank in the given statement "With construct validity, convergent validity refers to the degree of correlation among constructs and tests whether constructs that should be related actually are related" is a) convergent validity.
What is Construct validity? Construct validity is a term in psychometrics that measures the degree to which an instrument (such as a test or questionnaire) measures what it is intended to measure, and not anything else.
Construct validity refers to the test's ability to measure the intended psychological idea. In simple words, it tells us whether the test has measured the right concepts or not.
What is convergent validity? Convergent validity is a type of construct validity. This validity is the degree to which different procedures intended to measure the same construct are highly correlated with each other.
In other words, it measures whether the test is associated with other tests that it is theoretically expected to be associated with. For a test or questionnaire to have good construct validity, it should demonstrate high levels of convergent validity, which means that it should correlate well with other tests that measure similar constructs.
Therefore, we can conclude that with construct validity, convergent validity refers to the degree of correlation among constructs and tests whether constructs that should be related actually are related.
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When comparing the perfect competition model to the real-world markets, what can you surmise that is true? The perfect competition model and real-world markets both attain allocative and productive efficiency on a consistent basis. Incorrect. Real world markets may not always attain full efficiency. The perfect competition model in the long run is a hypothetical benchmark, while real-world markets firms do not always attain allocative and productive efficiency. Neither the perfect competition model nor the real world markets attain allocative and productive efficiency on a consistent basis.
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The perfect competition model is a hypothetical benchmark used to explain the performance of real-world markets. It postulates a set of conditions that must hold for markets to be perfectly competitive.
It assumes that all firms are small relative to the industry, that entry and exit are costless, that all firms produce identical goods, and that buyers and sellers have perfect information among other conditions. However, the real world markets differ from this model since all these conditions do not hold. For example, real-world firms are typically larger than those assumed in the perfect competition model, and entry and exit may be costly.Real-world markets may not always attain full efficiency. This can be due to the presence of monopolies or other market structures that do not satisfy the conditions of perfect competition.
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Welfare effects of free trade in an exporting country Consider the New Zealand market for lemons. The following graph shows the domestic demand and domestic supply curves for lemons in New Zealand. Suppose New Zealand's government currently does not allow international trade in lemons. use the black point (plus symbol) to indicate the equilibrium price of a ton of lemons and the equilibrum quantity of lemons in New Zealand in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple triangle (diamond symbol) to shade the area representing producer surplus in equilibrium. 1100 Domestic Demand Domantic 3000 900 800 100 600 500 400 300 300 70 106 140 175 210 245 290 335 250 QUANTITY (Tansa lumore) PRICE (Dollars per 0 |8b| Eqalbrim without Trade Consumer S Roducer Surplus Based on the previous graph, total surplus in the absence of international trade is $ The following graph shows the same domestic demand and supply curves for lemons in New Zealand. Suppose that the New Zealand government changes its international trade policy to allow free trade in lemons. The horizontal black line (Pw) represents the world price of lemons at $800 per ton. Assume that New Zealand's entry into the world market for lemons has no effect on the world price and there are no transportation or transaction costs associated with international trade in lemons. Also assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Use the green triangle (triangle symbol) to shode consumer surplus, and then use the purple triangle (diamond symbol) to shade producer surplus. 1100 Domestic Demand Domestic Supply 1000 Communer Surplus 9900 800 700 Producer Surplus 600 500 400 300 200 300 O 5 70 100 140 175 210 245 280 315 360 QUANTITY (Tons of lemons) tons of When New Zealand allows free trade of lemons, the price of a ton of lemons in New Zealand will be $800,. At this price, lemons will be demanded in New Zealand, and tons will be supplied by domestic suppliers. Therefore, New Zealand will export tons of lemons PRICE (Dollars parton) Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade (Dollars) With Free Trade (Dollars) Consumer Surplus Producer Surplus When New Zealand allows free trade, the country's consumer surplus by S and producer surplus by S So, the net effect of international trade on New Zealand's total surplus is a of $
The welfare effects of free trade in an exporting country are the impact of removing trade barriers on a country's welfare. The government of New Zealand does not allow international trade in lemons.
The equilibrium price of a ton of lemons and the equilibrium quantity of lemons in New Zealand in the absence of international trade is represented by the black point. Consumer surplus is represented by the green triangle, and producer surplus is represented by the purple triangle. Welfare effect of allowing free trade:
When New Zealand allows free trade, the price of a ton of lemons in New Zealand will be $800. At this price, lemons will be demanded in New Zealand, and tons will be supplied by domestic suppliers. Therefore, New Zealand will export tons of lemons.The impact of international trade on New Zealand's total surplus is a net benefit of $100,000.
The table below analyses the welfare effect of allowing free trade.
Welfare Effect of Allowing Free Trade Without Free Trade (Dollars) With Free Trade (Dollars) Consumer Surplus 290,0001,015,000 Producer Surplus 60,0000 Net Benefit (Total Surplus)350,0001,015,000
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Describe the effectiveness of visual imagery when communicating
information to diverse audiences
Visual imagery is an effective tool when communicating information to diverse audiences because it helps to create a shared experience, improves recall, and enhances understanding and comprehension.
When communicating information, the audience needs to be able to understand and process the information given. Different people process information differently. Some learn better through visual aids, while others learn better through written words or by listening. Here are some ways in which visual imagery is effective when communicating information to diverse audiences.
Shared experience: Visual imagery creates a shared experience because everyone can see the same thing. If there is a picture or graph, everyone can view it at the same time and draw the same conclusion. It also provides context for the information being communicated, making it more accessible to everyone.
Improved recall: Visual imagery can improve recall because it can help people remember information better. For example, a chart or graph can make it easier to remember statistics or facts.
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Management accounting information supports internal decision makers. Which of the following is necessary for management accounting information to be useful?
a.It must report to external users.
b.It must develop a framework of principles and guidelines.
c.Some other activity not listed here
d.It must be exclusively drawn from the organisation's basic accounting system.
e. it must focus on the enterprise in its entirety.
The necessary requirement for management accounting information to be useful is that it must focus on the enterprise in its entirety.
Management accounting information is specifically designed to support internal decision makers within an organization. To be useful, this information should encompass a comprehensive view of the entire enterprise. By focusing on the enterprise in its entirety, management accounting information provides decision makers with a holistic understanding of the organization's operations, performance, and financial standing. This broad perspective allows managers to make informed decisions that consider the overall impact on the organization. It helps them assess the organization's strengths, weaknesses, opportunities, and threats, enabling them to develop effective strategies and allocate resources efficiently. Therefore, the focus on the enterprise as a whole is crucial for management accounting information to be valuable and relevant to internal decision makers.
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Compute the price elasticities of demand between points A and B, B and C, C and D, and so on. Indicate whether demand is elastic (E), unit elastic (U), or inelastic (I). Be sure to use average prices and quantities when computing the percentage changes. (Enter your responses rounded to two decimal places.) Elasticity Elastic = 'E' Unit Elastic = of Quantity Demanded Price Demand А $25 410,000 $30 380,000 C $35 350,000 D $40 320,000 E $45 300,000 F $50 260,000 G $55 220,000 H $60 180,000 A B 'U' Inelastic = 'I' I I I כ כ U
A to B: Inelastic (I) ,B to C: Inelastic (I), C to D: Inelastic (I),D to E: Inelastic (I),E to F: Elastic (E),F to G: Elastic (E)
G to H: Elastic (E).
Elasticity of Demand = (Percentage change in quantity demanded) / (Percentage change in price)
Between points A and B: Quantity change: 380,000 - 410,000 = -30,000
Percentage change in quantity demanded: (-30,000 / 410,000) * 100 = -7.32%
Price change: $30 - $25 = $5
Percentage change in price: ($5 / $25) * 100 = 20%
Elasticity of Demand (A to B): -7.32% / 20% ≈ -0.37
Interpretation: Inelastic (I)
Between points B and C:
Quantity change: 350,000 - 380,000 = -30,000
Percentage change in quantity demanded: (-30,000 / 380,000) * 100 = -7.89%
Price change: $35 - $30 = $5
Percentage change in price: ($5 / $30) * 100 = 16.67%
Elasticity of Demand (B to C): -7.89% / 16.67% ≈ -0.47
Interpretation: Inelastic (I)
Between points C and D:
Quantity change: 320,000 - 350,000 = -30,000
Percentage change in quantity demanded: (-30,000 / 350,000) * 100 = -8.57%
Price change: $40 - $35 = $5
Percentage change in price: ($5 / $35) * 100 = 14.29%
Elasticity of Demand (C to D): -8.57% / 14.29% ≈ -0.60
Interpretation: Inelastic (I)
Between points D and E:
Quantity change: 300,000 - 320,000 = -20,000
Percentage change in quantity demanded: (-20,000 / 320,000) * 100 = -6.25%
Price change: $45 - $40 = $5
Percentage change in price: ($5 / $40) * 100 = 12.5%
Elasticity of Demand (D to E): -6.25% / 12.5% = -0.50
Interpretation: Inelastic (I)
Between points E and F:
Quantity change: 260,000 - 300,000 = -40,000
Percentage change in quantity demanded: (-40,000 / 300,000) * 100 = -13.33%
Price change: $50 - $45 = $5
Percentage change in price: ($5 / $45) * 100 = 11.11%
Elasticity of Demand (E to F): -13.33% / 11.11% = -1.20
Interpretation: Elastic (E)
Between points F and G:
Quantity change: 220,000 - 260,000 = -40,000
Percentage change in quantity demanded: (-40,000 / 260,000) * 100 = -15.38%
Price change: $55 - $50 = $5
Percentage change in price: ($5 / $50) * 100 = 10%
Elasticity of Demand (F to G): -15.38% / 10% = -1.54
Interpretation: Elastic (E)
Between points G and H:
Quantity change: 180,000 - 220,000 = -40,000
Percentage change in quantity demanded: (-40,000 / 220,000) * 100 = -18.18%
Price change: $60 - $55 = $5
Percentage change in price: ($5 / $55) * 100 ≈ 9.09%
Elasticity of Demand (G to H): -18.18% / 9.09% ≈ -2.00
Interpretation: Elastic (E)
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What is a continuous budget? O It is a budget that is constantly being revised as new information is gained. It is a budget that covers every aspect of the production process from the purchase of raw materials to the collection of revenue from sales It is a budget where the time period just completed is dropped and an equal future time period is added. It is a term used to describe a budget that is prepared by a budget committee that meets on a continuous basis
A continuous budget is a type of budget which is revised on a continuous basis as new information is gained. In the given options, option (a) is the correct answer.
It helps the business in controlling their expenses and profits effectively. This type of budget allows businesses to prepare a rolling forecast which means they can analyze the information that they gather and make necessary changes to the budget accordingly.
This type of budget is ideal for businesses where sales are volatile, and the profits fluctuate
.The concept of a continuous budgeting system was first introduced in the early 1920s. With the advent of computers, continuous budgeting has become more popular, as it is easier to make changes to the budget when new information is gained.
Usually, the continuous budget period is divided into smaller periods such as a quarter or a month. This helps in identifying the changes required for the next period and allows the businesses to take necessary corrective measures.
A continuous budget is a more flexible approach to budgeting as compared to traditional budgeting systems. It allows the businesses to react to the ever-changing economic environment.
Hence, Option (a) is the correct answer.
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Suppose the government needs to generate $100,000 for a public project where they will use private sector returns to estimate a discount rate. After contentious discussions, they've decided $20,000 will come from consumers and $80,000 will come from firms. If consumers can earn 4% in interest and firms have a 9% return on investments, what will be the prevailing discount rate used in cost-benefit analysis? A. F = 4% B. = 6.5% C. = 7.75% D. F-8% E. There isn't enough information to answer this question.
The prevailing discount rate used in cost-benefit analysis will be 8%. Option D, "F-8%," aligns with this calculation.
To determine the prevailing discount rate used in cost-benefit analysis, we need to calculate a weighted average of the interest rate for consumers and the return on investments for firms, based on the proportions of funds contributed.
In this case, consumers contribute $20,000 (20% of the total) and can earn 4% interest, while firms contribute $80,000 (80% of the total) and have a 9% return on investments.
To calculate the weighted average discount rate, we multiply each rate by its corresponding proportion and sum them up:
(0.20 * 4%) + (0.80 * 9%) = 0.80% + 7.20% = 8%
Therefore, the prevailing discount rate used in cost-benefit analysis will be 8%. Option D, "F-8%," aligns with this calculation.
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Bokhari Company prepares annual financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the year ended September 30, 2014.
BOKHARI COMPANY
Trial Balance (Selected Accounts)
September 30, 2014
Debit Credit
Office Supplies.. $ 2,700
Prepaid Insurance.. 5,400
Office Equipment.. 16,200
Accumulated Depreciation Office Equipment... $ 6,480
Unearned Rent Revenue............ 1,200
(Note: Debit column does not equal credit column because this is a partial listing of selected account balances.)
An analysis of the account balances by the company's accountant provided the following additional information:
1. A physical count of office supplies revealed $1,200 on hand on September 30.
2. A one-year life insurance policy was purchased on June 1 for $5,400.
3. Office equipment is expected to have a life of 5 years. Depreciation is recorded monthly.
4. The amount of rent received in advance that remains unearned at September 30 is $500.
Instructions:
Prepare the adjusting entries that should be made by Bokhari Company on September 30.
To prepare the adjusting entries for Bokhari Company on September 30, we need to consider the additional information provided. Here are the adjusting entries that should be made:
Adjusting entry for office supplies:
Debit: Office Supplies Expense - $1,500
Credit: Office Supplies - $1,500
Explanation: (2,700 - 1,200) = 1,500 reduction in office supplies.
Adjusting entry for prepaid insurance:
Debit: Insurance Expense - $450
Credit: Prepaid Insurance - $450
Explanation: (5,400 / 12 months) x 3 months = 1,350, so 5,400 - 1,350 = 4,050 remains as prepaid insurance.
Adjusting entry for depreciation of office equipment:
Debit: Depreciation Expense - Office Equipment - $270
Credit: Accumulated Depreciation - Office Equipment - $270
Explanation: (16,200 / 5 years) / 12 months = 270 monthly depreciation.
Adjusting entry for unearned rent revenue:
Debit: Unearned Rent Revenue - $500
Credit: Rent Revenue - $500
Explanation: Recognizing $500 as earned revenue.
After making these adjusting entries, the account balances will be correctly adjusted to reflect the correct amounts as of September 30.
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To prepare the adjusting entries for Bokhari Company on September 30, we need to consider the additional information provided. Here are the adjusting entries that should be made:
Adjusting entry for office supplies:
Debit: Office Supplies Expense - $1,500
Credit: Office Supplies - $1,500
Explanation: (2,700 - 1,200) = 1,500 reduction in office supplies.
Adjusting entry for prepaid insurance:
Debit: Insurance Expense - $450
Credit: Prepaid Insurance - $450
Explanation: (5,400 / 12 months) x 3 months = 1,350, so 5,400 - 1,350 = 4,050 remains as prepaid insurance.
Adjusting entry for depreciation of office equipment:
Debit: Depreciation Expense - Office Equipment - $270
Credit: Accumulated Depreciation - Office Equipment - $270
Explanation: (16,200 / 5 years) / 12 months = 270 monthly depreciation.
Adjusting entry for unearned rent revenue:
Debit: Unearned Rent Revenue - $500
Credit: Rent Revenue - $500
Explanation: Recognizing $500 as earned revenue.
After making these adjusting entries, the account balances will be correctly adjusted to reflect the correct amounts as of September 30.
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The statement of financial position as of the end of December 2020 and the statement of comprehensive income from January 1 to December 31, 2020 are as follows. Calculate the next financial ratio of the princess enterprise. (The units are already shown, so only show the numbers, but if a decimal occurs, round off from the third decimal place and mark only to the second digit.)
financial position statement as of December 31, 2020
Current Assets
20,000
Current liabilities
10,000
Cash and cashable assets
1,000
Short-term borrowings
5,000
Short-term investment assets
3,000
Purchasing obligation
3,000
accounts receivable
4,000
Other Current Liabilities
2,000
Inventory assets
12,000
Non-current liabilities
50,000
Non-current assets
80,000
a long-term loan
10,000
Mechanical equipment
50,000
a private loan
40,000
Investment assets
20,000
capital
40,000
an intangible asset
10,000
Total Assets
100,000
Total liabilities and capital
Sales
200,000
Cost of sales
120,000
sales and administrative expenses
20,000
(Depreciation expenses)
(10,000)
Operating profit
60,000
Interest expense
10,000
Net income before corporate tax reduction
50,000
Corporate tax (40%)
20,000
Current profit
30,000
Q. Unit:%
Interest compensation ratio: ?
ROE:?
Ratio of net income to net sales:?
Inventory turnover period:?
Walter-Hunt Percentage:?
100,000
Statement of Comprehensive Income (- 2020.12.31 2020.1.1.)
The given financial ratios are to be calculated given the financial position statement as of December 31, 2020, and the statement of comprehensive income from January 1 to December 31, 2020.
1. Interest coverage ratio is calculated using the formula given below: Interest Coverage Ratio = Operating Profit / Interest Expenses Interest Coverage Ratio = 60,000 / 10,000 Interest Coverage Ratio = 6. The Interest Coverage Ratio is 6.
2. The Return on Equity (ROE) ratio is calculated using the formula given below: ROE = Net Income / Equity ROE = 30,000 / 40,000 ROE = 0.75The ROE ratio is 0.75 or 75%.3. The Net Income to Net Sales ratio is calculated using the formula given below: Net Income to Net Sales Ratio = Net Income / Net SalesNet Income to Net Sales Ratio = 30,000 / 200,000Net Income to Net Sales Ratio = 0.15The Net Income to Net Sales ratio is 0.15 or 15%.
4. The Inventory Turnover Period is calculated using the formula given below: Inventory Turnover Period = 365 / Inventory Turnover Ratio = Cost of Sales / Average Inventory Inventory Turnover Ratio = 120,000 / 6,000 Inventory Turnover Ratio = 20Inventory Turnover Period = 365 / 20 Inventory Turnover Period = 18.25The inventory turnover period is 18.25 days.
5. The Walter-Hunt percentage is calculated using the formula given below: Walter-Hunt Percentage = (Retained Earnings / Total Assets) × (Net Income / Total Sales)Walter-Hunt Percentage = (10,000 / 100,000) × (30,000 / 200,000)Walter-Hunt Percentage = 0.03The Walter-Hunt percentage is 0.03 or 3%.
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Requirement 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Chris Evensen, P.C. Begin with the first transaction on March 6. (Use parentheses or a minus sign when decreasing accounts. If an input field is not used in the table leave the field empty, do not enter a zero. Enter the transactions in the same order as they appear in the original list.) Liabilities Assets - Accts Medical +Reo. + Supplies + Land = Stockholders' Equity Accts Note Common Retained Pay. + Payable + Stock + Earnings Type of Equity Transaction Cash More info Mar 6 145000 Mar 6 Evensen invested $145,000 in the business, which in turn issued its common stock to har Mar 9 The business paid cash for land costing $59,000. Evensen plans to build an office building on the land. 12 The business purchased medical supplies for $1,800 on account. Mar Mar Mar 15-31 15 Dr. Chris Evensen, P.C., officially opened for business. Requirements. During the rest of the month, Evensen treated patients and earned service revenue of $9,700, receiving cash for half the revenue eamed. Mar 15-31 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Chris Evensen, P.C. The business paid cash expenses: employee salaries, $3,500; office rent, $800; utilities, $1,200. (Record the cash amount as a total and identify and record any other amounts separately.) 2. After completing the analysis, answer these questions about the business. Mar 31 The business sold supplies to another physician for cost of $500 and received cash. The business borrowed $31,000, signing a note payable to the bank. a. How much are total assets? Mar 31 b. How much does the business expect to collect from patients? Mar 31 The business paid $1,200 on account. c. How much does the business owe in total? d. How much of the business's assets does Evensen really own? e. How much net income or net lass did the business experience during its first month of operations? Print Done Print Done
a. Total assets are $210,650.
b. The business expects to collect $4,850 from patients.
c. The business owes a total of $1,800.
d. Evensen owns $145,000 worth of the business's assets (common stock).
e. The business experienced a net loss of $1,150 during its first month of operations.
How do the listed transactions affect the accounting equation of Dr. Chris Evensen, P.C.'s medical practice?To analyze the effects of the transactions on the accounting equation, let's go through each event step by step:
March 6:
Evensen invested $145,000 in the business, and common stock was issued.
Assets: +$145,000 (Cash)
Stockholders' Equity: +$145,000 (Common Stock)
March 9:
The business paid $59,000 in cash to purchase land.
Assets: -$59,000 (Cash), +$59,000 (Land)
March 12:
The business purchased medical supplies costing $1,800 on account.
Assets: +$1,800 (Accounts Receivable), +$1,800 (Medical Supplies)
March 15-31:
Dr. Chris Evensen, P.C., officially opened for business and earned service revenue of $9,700. Half of the revenue was received in cash.
Assets: +$4,850 (Cash, half of service revenue)
Stockholders' Equity: +$4,850 (Service Revenue)
March 15-31:
The business paid cash expenses: employee salaries of $3,500, office rent of $800, and utilities of $1,200.
Assets: -$5,500 (Cash)
Stockholders' Equity: -$3,500 (Salaries Expense), -$800 (Rent Expense), -$1,200 (Utilities Expense)
March 31:
The business sold supplies to another physician for the cost of $500 and received cash.
Assets: +$500 (Cash)
Stockholders' Equity: -$500 (Supplies Expense)
March 31:
The business borrowed $31,000, signing a note payable to the bank.
Assets: +$31,000 (Cash)
Liabilities: +$31,000 (Notes Payable)
Now let's answer the questions about the business:
a. Total assets = Cash + Accounts Receivable + Medical Supplies + Land
Total assets = $145,000 + $4,850 + $1,800 + $59,000 = $210,650
b. The business expects to collect $4,850 from patients (service revenue).
c. The business owes a total of $1,800 (Accounts Payable).
d. Evensen owns the business's common stock, which is $145,000.
e. To calculate net income or net loss, we need to consider the revenues and expenses:
Net Income = Total Revenue - Total Expenses
Net Income = $4,850 (Service Revenue) - $3,500 (Salaries Expense) - $800 (Rent Expense) - $1,200 (Utilities Expense) - $500 (Supplies Expense)
Net Income = $4,850 - $6,000 = -$1,150 (Net Loss).
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When a lessee makes periodic cash payments for an operating lease, which of the following accounts is increased?
a. Rent Expense
b. Leased Equipment
c. Capital Lease Obligation
d. Interest Expense
When a lessee makes periodic cash payments for an operating lease a. Rent Expense accounts is increased
When a lessee makes periodic cash payments for an operating lease, the account that is increased is Rent Expense. Operating leases are treated as rental agreements, and the lessee records the lease payments as Rent Expense in their income statement. The payments made for operating leases are considered operating expenses and are recognized as an expense in the period in which they are incurred.
The other options listed are not affected by cash payments for operating leases:
b. Leased Equipment: Leased Equipment is not increased because operating leases do not result in the lessee recognizing the leased asset on their balance sheet.
c. Capital Lease Obligation: Capital Lease Obligation is not relevant for operating leases as it pertains to the accounting treatment of capital leases, which are considered as a financing arrangement rather than an operating expense.
d. Interest Expense: Interest Expense is also not applicable to operating leases as there is no interest component involved. Interest expense is typically associated with financing arrangements such as capital leases or loans.
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