Without any information about the pre-tax financial income for 2015 and 2016, it is not possible to determine whether or not Jenny Spangler Company has a net operating loss (NOL) for those years.
However, assuming that the company had positive pre-tax income in both years, it is possible that the company has a net operating loss carryforward (NOLCF) to offset taxable income in the current and future years. If the company does have an NOLCF, it can use it to offset taxable income in the current and future years, subject to certain limitations. The NOLCF can be carried forward for up to 20 years from the year it was generated. However, it cannot be carried back to prior years. If the company has no valuation account or temporary differences, it means that all of its assets and liabilities are carried at their historical cost, and there are no tax consequences associated with them. In this case, the company's taxable income would be the same as its pre-tax financial income.
Therefore, assuming the company has no valuation account or temporary differences and has an NOLCF from prior years, it can use the NOLCF to offset taxable income in 2018, 2019, and 2021, resulting in lower or no tax liability for those years. However, it will need to pay tax on its 2017 and 2020 taxable income, as it does not have any NOLCF to offset those years' taxable income.
Learn more about financial income here:
https://brainly.com/question/16103215
#SPJ11
Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content. (Not less than 200 word)
Financial account statements are essential financial documents that provide an overview of a company's financial performance and position over a specific period.
There are three primary types of financial account statements, including the income statement, balance sheet, and cash flow statement. While each of these statements serves a distinct purpose, they share similarities in structure and content.
The income statement is a financial statement that summarizes a company's revenue and expenses over a specific period, such as a quarter or fiscal year. The primary purpose of the income statement is to provide information on a company's profitability. It typically includes revenue, cost of goods sold, gross profit, operating expenses, net income, and earnings per share. The income statement structure is straightforward, beginning with revenue and then deducting the cost of goods sold and operating expenses to arrive at net income.
Learn more about Financial account statements
https://brainly.com/question/17482963
#SPJ4
woods co. has a note payable due in monthly installments over the next five years. this note will be reported under which of the following categories of the balance sheet? (check all that apply.) multiple select question. long-term assets current liabilities long-term liabilities current assets
Woods Co.'s note payable due in monthly installments over the next five years will be reported under the long-term liabilities category of the balance sheet.
This is because the payments are due over a period of more than one year and will not be fully paid off within the current operating cycle. Long-term liabilities are obligations that are not due for payment within a year or the normal operating cycle of the company, whichever is longer.
They include loans, bonds, and other financial obligations that are not expected to be paid off in the short term. Current liabilities, on the other hand, are obligations that are due within a year or the normal operating cycle of the company, whichever is longer.
Current assets are assets that are expected to be converted into cash within a year or the normal operating cycle of the company. Long-term assets are assets that are expected to provide benefits beyond one year, such as property, plant, and equipment.
Therefore, the note payable will not be reported under current liabilities, long-term assets, or current assets, but only under long-term liabilities.
To know more about long-term liabilities refer here:
https://brainly.com/question/26527025#
#SPJ11
The Bureau of Labor Statistics (BLS) would calculate the rate of inflation in year 5 by
a.adding the CPI of year 4 to the CPI of year 5, and then dividing by 2.
b.subtracting the CPI of year 4 from the CPI of year 5, and then dividing by the CPI of year 4.
c.adding the CPI of year 4 to the CPI of year 5, and then dividing by the average of year 4 and year 5.
d. subtracting the CPI of year 4 from the CPI of year 5, and then dividing by the CPI of year 5.
The correct answer is b. Subtracting the CPI of year 4 from the CPI of year 5, and then dividing by the CPI of year 4.
The Bureau of Labor Statistics (BLS) calculates the rate of inflation by measuring the percentage change in the Consumer Price Index (CPI) between two consecutive years. In this case, to calculate the rate of inflation in year 5, the BLS would use the following formula:
Rate of Inflation = ((CPI of Year 5 - CPI of Year 4) / CPI of Year 4) x 100
This method allows the BLS to accurately determine the change in the average prices of goods and services consumed by households over time, which is an important indicator of the overall economic health of a country. The rate of inflation is used by policymakers, businesses, and consumers to make informed decisions about spending, saving, and investment.
Learn more about CPI here
https://brainly.com/question/8416975
#SPJ11
Subchapter S corporation will avoid double taxation only if which of the following applies?a) All the shareholders agree to be taxed as in a partnership.b) The corporation files Articles of Partnership in the state where it has its principal place of business.c) The corporation has no retained earningsd) All of the above are necessary to avoid double taxation.
The correct answer is a) All the shareholders agree to be taxed as in a partnership.
To avoid double taxation, a Subchapter S corporation must elect to be taxed as a pass-through entity, which means that the company's income is passed through to the shareholders and taxed on their individual tax returns.
This is only possible if all shareholders agree to be taxed as in a partnership, and the corporation meets other eligibility requirements.
Filing Articles of Partnership or having no retained earnings are not necessary for avoiding double taxation as a Subchapter S corporation.
To know more about Taxed as in a partnership here
https://brainly.com/question/28328655
#SPJ11
May a retired E-6 accept a salary from a company owned and controlled by the Government of France?
According to the Department of Defense's Ethics Counsel, a retired E-6 may accept a salary from a company owned and controlled by the Government of France as long as they comply with the post-government employment restrictions outlined in the Department of Defense Directive 5500.7-R.
This directive states that retired military members are prohibited from receiving compensation for representing a foreign government or political party, but may engage in other types of employment as long as it does not conflict with their former military duties and does not involve classified information. However, it is always recommended to consult with an ethics counselor for specific guidance in individual situations.
Yes, a retired E-6 may accept a salary from a company owned and controlled by the Government of France, as long as it doesn't violate any laws or regulations in their home country or create conflicts of interest. It's important for the retired E-6 to ensure compliance with any applicable rules and regulations before accepting the position.
Visit here to learn more about France brainly.com/question/7853285
#SPJ11
suppose you have just borrowed $51,391 at an annual interest of 7.1% and must repay the loan in equal installments at the end of each of the next 8 years. by how much would you reduce the amount you owe (that is, principal) at the end of the first year? (hint: compute annual loan payment first and then the loan amortization schedule for the first year.)
The amount by which the principal will be reduced at the end of the first year is $5,535.78.
To calculate the amount by which the principal will be reduced at the end of the first year, we need to compute the annual loan payment first. This can be done using the formula for the present value of an annuity:
PMT = PV * (r / (1 - (1 + r)⁽⁻ⁿ⁾)
where:
PV = present value of the loan = $51,391
r = annual interest rate = 7.1% = 0.071
n = number of payments = 8
PMT = $9,186.94 (rounded to the nearest cent)
Using the loan amortization schedule for the first year, we can calculate the amount by which the principal will be reduced at the end of the year. The loan amortization schedule shows the breakdown of each payment into principal and interest components.
For the first payment, the interest component is:
Interest = Outstanding balance * Interest rate
= $51,391 * 0.071
= $3,651.16
The principal component is:
Principal = Payment - Interest
= $9,186.94 - $3,651.16
= $5,535.78
Therefore, the amount is $5,535.78.
To know more about principal click here
brainly.com/question/4478897
#SPJ11
beto company pays $3.90 per unit to buy a part for one of the products it manufactures. with excess capacity, the company is considering making the part. making the part would cost $3.30 per unit for direct materials and $1.00 per unit for direct labor. the company normally applies overhead at the predetermined rate of 200% of direct labor cost. incremental overhead to make the part would be 80% of direct labor cost. (a) prepare a make or buy analysis of costs for this part. (enter your answers rounded to 2 decimal places.) (b) should beto make or buy the part?
Since the cost to buy the part ($3.90 per unit) is lower than the cost to make the part ($7.10 per unit), so Beto Company should continue to buy the part instead of making it in-house
Here's the analysis, including the terms you mentioned:
(a) Make or Buy Analysis:
1. Cost to Buy:
The company pays $3.90 per unit to buy the part.
2. Cost to Make:
- Direct Materials: $3.30 per unit
- Direct Labor: $1.00 per unit
- Overhead (Predetermined Rate = 200% of Direct Labor Cost): $1.00 * 200% = $2.00 per unit
- Incremental Overhead (80% of Direct Labor Cost): $1.00 * 80% = $0.80 per unit
Total Cost to Make = Direct Materials + Direct Labor + Overhead + Incremental Overhead
Total Cost to Make = $3.30 + $1.00 + $2.00 + $0.80 = $7.10 per unit
(b) Make or Buy Decision:
Since the cost to buy the part ($3.90 per unit) is lower than the cost to make the part ($7.10 per unit), Beto Company should continue to buy the part instead of making it in-house.
Learn more about Predetermined Rate : https://brainly.com/question/29829712
#SPJ11
a) Stanley, Inc. issues four-year USD1000 bonds that have a 7% coupon rate. What is the duration for this bond, if the current market yield is 6% per annum and the interest is paid semi-annually?
The duration of the bond is approximately 1.01 years.
To calculate the duration of a bond, we'll use the Macaulay duration formula. For a bond with a 7% coupon rate, USD1000 face value, a 4-year maturity, a current market yield of 6%, and semi-annual interest payments, here's the process:
1. First, find the semi-annual coupon payment: (7% * USD1000) / 2 = USD35
2. Next, calculate the semi-annual market yield: 6% / 2 = 3% or 0.03
3. Determine the total number of periods: 4 years * 2 = 8 periods
Now, we'll calculate the present value of each cash flow and multiply it by the period number (t). Then, sum these values and divide by the bond's present value.
PV(cash flow) = (Coupon payment) / (1 + market yield)^t
Duration = [∑(t * PV(cash flow))] / Bond Price
Calculating the present value of each cash flow, multiplying by the period number, and summing the values:
[tex](1 * (35 / (1.03^1))) + (2 * (35 / (1.03^2))) + ... + (8 * (1035 / (1.03^8)))[/tex] ≈ 2039.42
Calculating the bond price by summing the present values of all cash flows:
[tex](35 / (1.03^1)) + (35 / (1.03^2)) + ... + (1035 / (1.03^8))[/tex] ≈ 1009.72
Finally, divide the sum of weighted cash flows by the bond price:
Duration = 2039.42 / 1009.72 ≈ 2.02 (in semi-annual periods)
To convert to years, divide by 2:
Duration = 2.02 / 2 ≈ 1.01 years
Learn more about bond:
https://brainly.com/question/25965295
#SPJ11
46. A decreasing average collection period could be associated with:
A. increasing sales.
B. decreasing sales.
C. increasing accounts receivable.
D. increasing profits.
A decreasing average collection period refers to the amount of time it takes for a company to collect payments from its customers. The shorter the period, the more efficient the company's cash flow management is considered to be. This implies that the company is able to collect payments from its customers more quickly, and this could be associated with a number of factors.
One possible factor that could contribute to a decreasing average collection period is increasing sales. As a company generates more sales, it is likely that there will be an increase in the number of payments received from customers. This would lead to a shorter average collection period, as the company is able to collect payments more frequently.
On the other hand, a decreasing average collection period is unlikely to be associated with decreasing sales. This is because a decrease in sales would typically lead to a decrease in the number of payments received from customers, resulting in a longer average collection period.
Similarly, an increasing average collection period is typically associated with increasing accounts receivable. This means that the company is not collecting payments as quickly as it should be, leading to a buildup of outstanding payments owed by customers. Therefore, a decreasing average collection period would not be associated with an increase in accounts receivable.
Lastly, a decreasing average collection period could be associated with increasing profits. This is because a more efficient cash flow management system would lead to increased liquidity, allowing the company to invest in growth opportunities or pay off debts, resulting in higher profits.
In summary, a decreasing average collection period is most likely associated with increasing sales and increasing profits, but not with decreasing sales or increasing accounts receivable.
Know more about average collection period here:
https://brainly.com/question/30665288
#SPJ11
the arithmetic average tells you what you actually earned per year on average, whereas the geometric average tells you what you earned in a typical year. truefalse
True, the arithmetic average tells you what you actually earned per year on average, while the geometric average provides an indication of what you earned in a typical year.
The arithmetic average, also known as the mean, is calculated by adding the returns for each year and dividing the total by the number of years. This gives you the average return per year, which can be useful for comparing the performance of different investments over the same time period. However, the arithmetic average can be affected by extreme values or outliers, which can skew the results.
The geometric average, on the other hand, takes into account the compounding effect of returns over time. It is calculated by multiplying the returns for each year and taking the nth root, where n is the number of years. This gives you the average annual growth rate of the investment, which is more representative of the overall performance of the investment over the time period. The geometric average is often used to calculate long-term returns, such as those for retirement savings.
Learn more about arithmetic average here:
https://brainly.com/question/13451243
#SPJ11
Your risk assessment of Meteor Ltd’s business processes indicates that there is a risk that payments to suppliers are made prior to goods being received. As part of your examination of the information system and related control activities, you note that the following process is in place in relation to payments:
- A pre-numbered bank transfer requisition is prepared by accounting staff for all payments.
- Accounting staff then:
* match the details on the supplier’s invoice to the appropriate receiving report; and
* match the details on the supplier’s invoice and receiving report to an authorises purchase order.
- The bank transfer requisition, together with the above supporting documents, is then forwarded to the appropriate senior staff member for review and authorisation.
Required:
a. Identify the internal control activity that addresses the risk of payments being made to suppliers before the goods are delivered.
b. What assertion does this internal control address?
Risks in payment systems refer to the possibility of payments being incomplete. The impact can be measured in terms of damaging value or level of confidence in payment systems.
a. The internal control activity that addresses the risk of payments being made to suppliers before the goods are delivered is the matching process performed by the accounting staff. They are required to match the details on the supplier's invoice to the appropriate receiving report, and also match the details on the supplier's invoice and receiving report to an authorized purchase order. This control ensures that payments are only made when goods have been received and properly documented.
b. The assertion that this internal control address is the occurrence assertion. The occurrence assertion states that transactions and events recorded in the financial statements have actually occurred and pertain to the entity. By implementing this internal control, Meteor Ltd is ensuring that payments to suppliers are only made when there is proper documentation that goods have been received, thus addressing the risk of payments being made prior to goods being received.
To know more about Risk of Payments- https://brainly.com/question/1224221
#SPJ11
9. A short-term creditor would be most interested in:
A. profitability ratios.
B. asset utilization ratios.
C. liquidity ratios.
D. debt utilization ratios.
A short-term creditor would be most interested in C. liquidity ratios. Liquidity ratios are financial metrics that help assess a company's ability to meet its short-term obligations and convert its assets into cash quickly.
These ratios are essential for short-term creditors, such as suppliers or banks providing short-term loans, as they want to ensure that the company can pay back its debts in a timely manner.
Some common liquidity ratios include the current ratio, quick ratio, and cash ratio. These ratios help creditors determine if the company has sufficient liquid assets to cover its short-term liabilities. A higher liquidity ratio generally indicates a better financial position and lower risk for the creditor.
Profitability ratios (A) are more relevant for investors interested in the company's overall financial performance and its ability to generate profits. Asset utilization ratios (B) assess the efficiency of a company in using its assets to generate revenue, which is also more pertinent for investors. Debt utilization ratios (D) focus on the company's long-term debt structure and its ability to meet those obligations, which is more relevant for long-term creditors.
In conclusion, for a short-term creditor, liquidity ratios (C) provide the most relevant information to assess the company's ability to meet its short-term financial obligations.
Learn more about ratios here:
https://brainly.com/question/13419413
#SPJ11
A company is looking to purchase and replace a fixed asset for​ $220,000. It will sell the asset that will be replaced for​ $41,000 but will incur a​ $10,000 gain upon that sale. It must also commit​ $30,000 of
working−capital
to the investment. The​ firm's tax rate is​ 30%. What is the amount of the relevant initial​ investment?
Question content area bottom
Part 1
A.
​$182,000
B.
​$220,000
C.
​$212,000
D.
​$179,000
In the given situation, the company's amount of relevant initial investment is $212,000. The correct answer is option C.
The relevant initial investment is the cash outflow required to purchase and replace the fixed asset, plus any additional working capital required.
Cash outflow to purchase new asset: $220,000
Cash inflow from selling old assets: $41,000
Gain from selling old assets: $10,000
Net cash outflow to purchase and replace the fixed asset = $220,000 - $41,000 + $10,000 = $189,000
Additional working capital required: $30,000
Total relevant initial investment = Net cash outflow + Additional working capital
= $189,000 + $30,000
= $219,000
However, we need to consider the tax implications of the gain on the sale of the old asset. The gain is a taxable event and will be subject to tax at the company's tax rate of 30%.
Tax on gain from selling old asset = $10,000 x 0.3 = $3,000
The tax on the gain will reduce the cash inflow from selling the old asset.
Adjusted cash inflow from selling old asset = $41,000 - $3,000 = $38,000
Net cash outflow to purchase and replace the fixed asset, after accounting for tax on the gain from selling old asset = $220,000 - $38,000 = $182,000
Total relevant initial investment = Net cash outflow + Additional working capital
= $182,000 + $30,000
= $212,000
Therefore, the amount of the relevant initial investment is $212,000.
Option C ($212,000) is the correct answer.
Learn more about investment here:
https://brainly.com/question/29547577
#SPJ11
Gross national income (GNI), the broadest measure of economic activity for a country, is defined as the Select one: a total of all economic activity in one country less services, such as government administration, health services, and education b. Income generated by both total domestic production and the international production activities of national companies Income generated in one country, regardless of who owns the productive assets d. total of all consumption and investment that takes place in a national economy C Pakalandia, a small island nation in the Pacific Ocean has a government which does not allow criticism Critics can be jailed or worse at a moment's notice.
Gross national income (GNI) is defined as the income generated by both total domestic production and the international production activities of national companies.
This means that it includes not only the economic activity within a country's borders but also the income earned by its companies operating abroad.
However, in the case of Pakalandia, a small island nation in the Pacific Ocean, the government's policies on freedom of speech and criticism can have a negative impact on the country's economic activity and GNI.
If individuals or businesses feel that they cannot voice their opinions or ideas freely without fear of repercussions, they may be less likely to innovate and invest in the country.
This can lead to a lack of economic growth and development, and ultimately a lower GNI. It is important for governments to encourage open dialogue and diverse perspectives in order to foster a healthy and thriving economy.
To know more about Gross national income visit:
https://brainly.com/question/29646288
#SPJ11
income from services (earned income)
Earned income is an essential part of many people's financial lives, and it is important to understand how it is earned, taxed, and used to support one's financial goals.
Income from services, also known as earned income, refers to the money a person earns by providing services or performing work for someone else. This includes income from wages, salaries, tips, and self-employment. Earned income is the opposite of unearned income, which is income received from sources like investments, rental properties, or other passive income streams.
Earned income can come from a variety of sources, including full-time or part-time employment, freelance work, consulting, or running a business. The amount of earned income a person receives is typically based on their skills, experience, and the market demand for their services.
One important aspect of earned income is that it is subject to various taxes, including income tax, Social Security tax, and Medicare tax. This means that individuals who earn a higher income from services will typically pay a higher percentage of their income in taxes compared to those who earn less.
Learn More about financial goals. here :-
https://brainly.com/question/29238593
#SPJ11
abc spends $50,000 this year in research and development for a new drug to cure liver damage. by the end of the year, management feels confident that the new drug will gain fda approval and lead to higher future sales. what impact will the $50,000 spending have on this year's financial statements?
The $50,000 spending on research and development will have both short-term and long-term impacts on the company's financial statements.
What's significant effect of the spendingThe $50,000 spending on research and development for a new drug to cure liver damage will have a significant impact on this year's financial statements.
Firstly, it will be classified as an expense in the income statement, which will reduce the company's net income for the year.
However, this expense can also be capitalized if it meets certain criteria, which means it can be recorded as an asset on the balance sheet and depreciated over time.
Moreover, this investment in research and development will be reflected in the cash flow statement as an outflow under investing activities. Although it will reduce the company's cash balance for the year, it is expected to lead to higher future sales once the new drug gains FDA approval.
Learn more about financial performance at
https://brainly.com/question/28249582
#SPJ11
abc has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million. abc also has the following liabilities: accounts payable, $98 million; long-term debt, $23 million. based on these amounts, what is the acid-test ratio ?
The acid-test ratio for ABC is approximately 2.18.
To calculate the acid-test ratio, also known as the quick ratio, you need to consider the following current assets: cash, receivables, and other current assets, but exclude inventory. The formula for the acid-test ratio is:
Acid-Test Ratio = (Cash + Receivables + Other Current Assets) / Current Liabilities
Let's calculate it based on the given amounts:
Current Assets:
Cash = $102 millionReceivables = $94 millionOther Current Assets = $18 millionCurrent Liabilities:
Accounts Payable = $98 million
Now, let's calculate the acid-test ratio:
Acid-Test Ratio = ($102 million + $94 million + $18 million) / $98 millionAcid-Test Ratio = $214 million / $98 millionAcid-Test Ratio ≈ 2.18Therefore, the acid-test ratio for ABC is approximately 2.18.
Learn more about acid-test ratio: brainly.com/question/29379631
#SPJ11
camille transfers property with a tax basis of $945 and a fair market value of $1,445 to a corporation in exchange for stock with a fair market value of $1,350 and $95 in cash in a transaction that qualifies for deferral under section 351. camille also incurred selling expenses of $199. what is the amount realized by camille in the exchange?
The amount realized by Camille in the exchange is $1,246.
In order to calculate the amount realized by Camille in the exchange that qualifies for deferral under section 351, we need to consider the fair market value of the stock received, the cash received, and the selling expenses incurred.
1: Determine the fair market value of the stock received.
Camille received stock with a fair market value of $1,350.
2: Determine the cash received.
Camille received $95 in cash.
3: Consider the selling expenses incurred.
Camille incurred selling expenses of $199.
4: Calculate the amount realized.
Amount realized = (Fair market value of stock received) + (Cash received) - (Selling expenses)
Amount realized = ($1,350) + ($95) - ($199)
Amount realized = $1,246
Therefore, the amount realized by Camille is $1,246.
Learn more about Market value:
https://brainly.com/question/8084221
#SPJ11
Crede Inc. has two divisions, Division A and Division B. Division A makes and sells student desks. Division B manufactures and sells reading lamps.
Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $9.60 from an outside vendor Division A needs 11,500 lamps for the coming year.
Division B has the capacity to manufacture 50,300 lamps annually. Sales to outside customers are estimated at 38,800 lamps for the next year. Reading lamps are sold at $11.62 each. Variable costs are $6.83 per lamp and include $1.44 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $79,900
Consider the following independent situations.
(a) What should be the minimum transfer price accepted by Division B for the 11,500 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 10.50.)
(b) Suppose Division B could use the excess capacity to produce and sell externally 20,900 units of a new product at a price of 8.46 per unit. The variable cost for this new product is 6.22 per unit. What should be the minimum transfer price accepted by Division B for the 11,500 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 10.50.)
The maximum transfer price paid by Division A remains the same, which is $9.60 per lamp.
(a) The minimum transfer price accepted by Division B should be equal to its variable costs per lamp plus any opportunity cost of selling internally instead of externally. The variable costs per lamp for Division B are $6.83 and the opportunity cost of selling internally instead of externally is the variable sales cost that is not incurred, which is $1.44 per lamp. Therefore, the minimum transfer price accepted by Division B should be $6.83 + $1.44 = $8.27 per lamp.
The maximum transfer price paid by Division A should be equal to the cost of purchasing lamps from an outside vendor, which is $9.60 per lamp.
(b) If Division B could use the excess capacity to produce and sell externally 20,900 units of a new product at a price of $8.46 per unit and a variable cost of $6.22 per unit, then the opportunity cost of selling internally instead of externally would be $8.46 - $6.22 = $2.24 per lamp.
Therefore, the minimum transfer price accepted by Division B should be $6.83 + $1.44 + $2.24 = $10.51 per lamp.
The maximum transfer price paid by Division A should still be equal to the cost of purchasing lamps from an outside vendor, which is $9.60 per lamp.
Learn more about price : https://brainly.com/question/19104371
#SPJ11
Question 4 (10 points) A company must decide which type of machine to buy, and how many units of that type, given the following information: Cost Type 1 2 $10,000 14,000 Product demand and processing times for the equipment are: PROCESSING TIME PER UNIT (minutes) 1 2 Product Annual Demand 12,000 10,000 18,000 001 002 003 6 4 9 5 9 3 a) How many machines of each type would be required to handle demand if the machines will operate 8 hours a day, 250 days a year, and what annual capacity cushion in processing time would result for each? b) With high uncertainty of annual demand, which type of machine would be chosen if that was an important consideration? With low uncertainty, which type of machine would be chosen? 1 c) If purchasing and operating costs are taken into account, which type of machine would minimize total costs, given your answer for part a? Operating costs are $6/hr for type 1 and $5/hr for type 2
24000 minutes will be the capacity cushion in processing time for each machine . The first machine would reduce total costs.
Time available for each machine = 250 days × 8 hours × 60 minutes
= 120,000 minutes
Absolute handling time expected on machine 1 = Total Result of Interest and handling season of every item
= 12000 × 4+ 10000 × 9+18000 × 5
= 228,000 minutes
The sum of the demand for each product and the processing time for each product on machine 2 is the total amount of time required for processing.
= 12000 × 6+1000 × 9+ 18000× 3
= 216,000 minutes
The required number of type 1 machines = 228000 / 120000
= 2 (rounding-up)
The required number of type 2 machines = 216000 / 120000
= 2 (rounding-up)
Capacity cushion in machine 1 = 2× 120000 - 228000
= 12000 minutes
Capacity cushion in machine 2 = 2 × 120000 - 216000
= 24000 minutes
B) Cushion capacity is higher in Machine 2. Therefore, machine 2 ought to be chosen due to the high uncertainty of annual demand.
Machine 1 ought to be chosen due to the low uncertainty of demand.
C) Taking into account buying and working expenses,
Absolute expense of machine 1 = 2× 10000+6× 228000/60
= $ 42,800
Absolute expense of machine 2 = 2× 14000+5 × 216000/60
= $ 46,000
The first machine would reduce total costs.
The amount of reserve capacity that is built into your farm business to deal with sudden increases in demand or temporary losses of production capacity is known as the capacity cushion. The limit pad is the capacity that an organization has held to meet an unexpected ascent popular or even an unexpected disappointment in assembling limit. When there is a sudden increase in demand, a business needs one to meet its customers' needs.
Learn more about Capacity cushion :
brainly.com/question/30271722
#SPJ4
XYZ Company uses the periodic inventory system to account for its merchandise purchases. A physical count of inventory at year end revealed that $6,000 of inventory was on hand. Given the partial list of accounts below, show your understanding of the entry to close the temporary debit balance accounts and update the Merchandise Inventory account by selecting all of the correct answers below. (Check all that apply.) Account; Debit; Credit Sales Returns and Allowances $1,000 Sales Discounts; $500 Wages Expense; $300 Purchases; $36,000 Merchandise Inventory (Beg. Balance); $5,000
The entry to close the temporary debit balance accounts are: Debit Merchandise Inventory, Debit Purchases, Credit Merchandise Inventory and Credit Purchases.
To close the temporary debit balance accounts and update the Merchandise Inventory account for XYZ Company using the periodic inventory system, you need to select the following correct entries:
1. Debit Merchandise Inventory for the beginning balance of $5,000: This entry updates the Merchandise Inventory account with the beginning balance, recognizing the value of the inventory at the start of the period.
2. Debit Purchases $36,000: This entry records the total purchases made during the period, which will later be used to calculate the cost of goods sold (COGS) and update the Merchandise Inventory account.
3. Credit Merchandise Inventory for the beginning balance $5,000: This entry closes the Merchandise Inventory account with the beginning balance, as it will be updated with the ending inventory value after the physical count.
4. Credit Purchases $36,000: This entry closes the Purchases account, as it will be combined with the beginning inventory value and ending inventory value to calculate the cost of goods sold (COGS) and update the Merchandise Inventory account.
The other two entries mentioned (Credit Sales Discounts $500 and Debit Sales Discounts $500) are not relevant for closing the temporary debit balance accounts or updating the Merchandise Inventory account.
To know more about debit balance, refer here:
https://brainly.com/question/10811489#
#SPJ11
Complete question:
XYZ Company uses the periodic Inventory system to account for its merchandise purchases. A physical count of Inventory at year and revealed that $6,000 of Inventory was on hand. Given the partial list of accounts below, show your understanding of the entry to close the temporary debit balance accounts and update the Merchandise Inventory account by selecting all of the correct answers below. (Check all that apply.)
Account Sales Returns and Allowances Debit $1,000
Credit Sales Discounts 500
Wages Expense $ 300
Purchases $36,000
Merchandise Inventory (Beg. Balance) $5,000
Check all that apply.
Debit Merchandise Inventory for the beginning balance of $5,000
Credit Sales Discounts $500.
Debit Purchases $36,000.
Debit Sales Discounts $500.
Credit Merchandise Inventory for the beginning balance $5,000.
Credit Purchases $36,000.
The following are the data of Jusko Appliance Co., a VAT-registered taxpayer, for the last quarter of 2020: P 319,200 Sales up to December 15, total invoice price Purchases for November up to December 15, net of input tax 215,000 On December 16, 2020, the taxpayer retired from business. Inventory of P190,000 was left unsold at the time of retirement. There is a deferred input tax of P3,500 from the last quarter. How much is the VAT payable? 27,700 33,004 27,089 28.900
A correct answer is option (3)
To compute the VAT payable, we need to determine the output VAT and input VAT of the taxpayer for the last quarter of 2020.
Output VAT:
The output VAT is the VAT charged on sales or services rendered by the taxpayer.
Output VAT = 12% x Sales
Output VAT = 12% x 319,200
Output VAT = 38,304
Input VAT:
Input VAT is the VAT paid on purchases or expenses incurred by the taxpayer.
Input VAT = Total Input Tax - Deferred Input Tax
Total Input Tax = 12% x Purchases
Total Input Tax = 12% x 215,000
Total Input Tax = 25,800
Input VAT = 25,800 - 3,500
Input VAT = 22,300
VAT Payable:
VAT payable is the difference between the output VAT and input VAT of the taxpayer.
VAT payable = Output VAT - Input VAT
VAT payable = 38,304 - 22,300
VAT payable = 16,004
However, since the taxpayer retired from business and there was an unsold inventory of P190,000 at the time of retirement, the VAT payable should be adjusted based on the provisions of the Tax Code.
Adjusted VAT Payable:
Adjusted VAT payable is the difference between the output VAT and input VAT of the taxpayer, less the value of unsold inventory.
Adjusted VAT payable = Output VAT - Input VAT - (Value of Unsold Inventory x 12%)
Adjusted VAT payable = 38,304 - 22,300 - (190,000 x 12%)
Adjusted VAT payable = 16,004 - 22,680
Adjusted VAT payable = (6,676)
Since the adjusted VAT payable is negative, it means that the taxpayer is entitled to a refund of the excess input VAT paid. Therefore, the correct answer is option 3) 27,089.
for further information click: https://brainly.com/question/27033340
#SPJ11
4 ___________ are paid to domestic producers to sell their goods more cheaply.
The answer to the question is that "subsidies" are paid to domestic producers to sell their goods more cheaply.
Subsidies are financial incentives given by governments to domestic producers to help them sell their goods at lower prices than they would be able to otherwise. These subsidies can take many forms, such as direct cash payments, tax breaks, or low-interest loans. The idea behind subsidies is to help domestic producers remain competitive in the global marketplace by reducing their production costs, which in turn can help them sell their goods at lower prices. However, subsidies are often controversial because they can distort trade and lead to unfair competition.
Governments often provide financial assistance in the form of subsidies to support domestic industries, making their products more affordable and competitive in both local and international markets.
Learn more about Subsidies: https://brainly.com/question/30722203
#SPJ11
The American Institute of Certified Public Accountants has the primary authority to establish accounting standards for public companies. (True/False)
The statement "The American Institute of Certified Public Accountants (AICPA) has the primary authority to establish accounting standards for public companies" is False.
The primary authority to establish accounting standards for public companies in the United States is the Financial Accounting Standards Board (FASB). The AICPA focuses on providing resources and support for Certified Public Accountants, but it is the FASB that sets the accounting standards for public companies.
The American Institute of Certified Public Accountants (AICPA) is a professional organization of certified public accountants in the United States. It provides professional education, develops and grades the Uniform CPA Exam, and sets ethical standards for the profession.
The Financial Accounting Standards Board (FASB) is a private, non-profit organization that sets accounting and reporting standards for companies in the United States, including public and private companies and not-for-profit organizations.
To know more about AICPA refer here:
https://brainly.com/question/30409027#
#SPJ11
Given the trend toward employee empowerment in the workplace, more and more employees are finding the _____ theory useful.equitymotivator-hygieneexpectancyscientific managementgoal-setting
Hi! Given the trend toward employee empowerment in the workplace, more and more employees are finding the goal-setting theory useful.
The goal-setting theory is a motivational framework that emphasizes the importance of setting specific, challenging, and achievable goals for employees to work towards.
This theory is based on the idea that when employees have clear and measurable objectives, they are more likely to be motivated, engaged, and committed to their work.
The goal-setting theory consists of the following steps:
1. Set specific goals: Clearly define the objectives and desired outcomes that employees should aim for.
2. Set challenging goals: Goals should be difficult but attainable, pushing employees to improve their performance.
3. Provide feedback: Regularly review progress towards goals and provide constructive feedback to help employees stay on track.
4. Ensure goal commitment: Make sure employees understand and are committed to the goals, as they are more likely to work towards them when they feel personally invested.
5. Adjust goals as needed: Periodically review and adjust goals as necessary to maintain relevance and motivation.
In summary, the goal-setting theory is useful for employee empowerment in the workplace because it encourages employees to take ownership of their work and strive for continuous improvement.
By setting specific, challenging, and achievable goals, employees are more likely to feel motivated and engaged, ultimately contributing to a more empowered and productive workforce.
To know more about employee empowerment refer here
https://brainly.com/question/10699815#
#SPJ11
_____ relates to the learner's decision regarding what information to attend to, how to remember, and how to solve problems.
Cognition relates to the learner's decision regarding what information to attend to, how to remember, and how to solve problems.
Cognition refers to the mental processes and abilities involved in acquiring, processing, storing, and using information. It involves attention, perception, memory, problem-solving, and decision-making. Cognition is important for learning and development, as it allows individuals to understand, process, and apply new information and skills.Cognitive processes can be influenced by various factors, including motivation, interest, prior knowledge, learning style, and environmental factors. Effective instructional design and teaching strategies take into account the cognitive processes involved in learning and aim to support learners in acquiring and using new knowledge and skills.
Learn more about mental here:https://brainly.com/question/26522940
#SPJ11
suppose that tin the coming year, you expect exxon-mobil stock to have a volatility of 42% and a beta of 0.9, and Merck's stock to have a volatility of 24% and a beta of 1.1. The risk-free interest rate is 4% and the markets expected return is 12%. Which stock has the highest systematic risk?1) merck since it has a higher beta2) exxon-mobil since it has a lower beta3) exxon-mobil since it has a higher volatility4) merck since it has a lower volatility
The stock with the highest systematic risk would be Merck, since it has a higher beta of 1. Hence the correct option is 1.
ExxonMobil Corporation, also known as Exxon, is a global oil and gas company with headquarters in Spring, Texas, in the United States. It was created on November 30, 1999, by the merging of Exxon and Mobil, both of which are currently utilised as retail brands with Esso for petrol stations and downstream products. It is the largest direct descendent of John D. Rockefeller's Standard Oil. The business has vertical integration throughout the whole oil and gas sector, and it also has a chemicals segment that manufactures flexible, rubber that is synthetic, and other chemical goods. Incorporated in New Jersey is ExxonMobil.
1 compared to Exxon-Mobil's beta of 0.9. Beta measures a stock's sensitivity to market movements, so a higher beta indicates a higher level of systematic risk. Volatility, on the other hand, measures a stock's overall variability, but does not necessarily reflect systematic risk. Therefore, the fact that Exxon-Mobil has a higher volatility of 42% compared to Merck's 24% does not affect their levels of systematic risk.
To learn more about ExxonMobil Corporation, click here:
https://brainly.com/question/7284383
#SPJ11
A $30,000.00 invoice indicating a string discount of 30, 20, and 5 would, assuming all discounts are taken, give the producer a net selling price of Select one: a. $21,000.00 b. $16,800.00 c. $15,960.00. d. $13,500.00
The invoice indicates a string discount of 30, 20, and 5. This means that the discounts will be applied in a specific order, one after the other. To calculate the net selling price of the invoice, we need to apply the discounts in the order they are given. This is important because applying the discounts in a different order could result in a different net selling price.
The first discount is 30%, which means that the producer will pay only 70% of the original price. This is equivalent to a 30% reduction in the price. To calculate the discounted price, we multiply the original price by 70%:
Discounted price = Original price x (100% - Discount %)
Discounted price = $30,000.00 x (100% - 30%)
Discounted price = $30,000.00 x 70%
Discounted price = $21,000.00
The second discount is 20%, which means that the producer will pay only 80% of the discounted price. This is equivalent to a 20% reduction in the price. To calculate the new discounted price, we multiply the discounted price by 80%:
New discounted price = Discounted price x (100% - Discount %)
New discounted price = $21,000.00 x (100% - 20%)
New discounted price = $21,000.00 x 80%
New discounted price = $16,800.00
The third and final discount is 5%, which means that the producer will pay only 95% of the new discounted price. This is equivalent to a 5% reduction in the price. To calculate the net selling price, we multiply the new discounted price by 95%:
Net selling price = New discounted price x (100% - Discount %)
Net selling price = $16,800.00 x (100% - 5%)
Net selling price = $16,800.00 x 95%
Net selling price = $15,960.00
Therefore, the correct answer is c. $15,960.00.
To know more about Selling Price visit:
https://brainly.com/question/28017453
#SPJ11
7. A taxpayer sells property in 2019 for $9.000 that has an adjusted basis of $5,000 The purchaser assumes the existing mortgage of $6,000 and signs an installment note for the remaining $3,000, plus interest. The installment payments begin in 2020 7 What is the amount of gain includible in 2019? a. SO o b. $444 OG $1,000 d 4nnn
The amount of gain includible in 2019 is $1,000.
Let's calculate the amount of gain includible in 2019 when a taxpayer sells property for $9,000 with an adjusted basis of $5,000, and the purchaser assumes a mortgage of $6,000 and signs an installment note for the remaining $3,000 plus interest.
Step 1: Determine the total gain from the property sale.
Total gain = Selling price - Adjusted basis
Total gain = $9,000 - $5,000
Total gain = $4,000
Step 2: Calculate the proportion of the installment note to the total selling price.
Proportion = Installment note amount / Selling price
Proportion = $3,000 / $9,000
Proportion = 1/3
Step 3: Calculate the amount of gain includible in 2019.
Amount of gain includible in 2019 = Total gain × Proportion
Amount of gain includible in 2019 = $4,000 × (1/3)
Amount of gain includible in 2019 = $1,333
However, the given options are a. $0, b. $444, c. $1,000, and d. $4,000. Since $1,333 is not among the options, the closest available option is c. $1,000.
Therefore, the amount of gain includible in 2019 is approximately c. $1,000.
To know more about gain includible visit
https://brainly.com/question/29250253
#SPJ11
A credit sale of $3400 is made on April 25, terms 1/10, n/30, on which a return of $300 is granted on April 28. What amount is received as payment in full on May 4?
O $3069 O $3366 O $3100 O $3400
Amount received as payment in full is $3,069.
To calculate the amount received as payment in full for a credit sale of $3,400 made on April 25 with terms 1/10, n/30, and a return of $300 granted on April 28, follow these steps:
1. Subtract the return amount from the credit sale amount: $3,400 - $300 = $3,100
2. Since the payment is made on May 4, which is within the 1/10 discount period (10 days from April 25), apply the 1% discount: $3,100 * 0.01 = $31
3. Subtract the discount from the adjusted credit sale amount: $3,100 - $31 = $3,069
So, the amount received as payment in full on May 4 is $3,069.
Read more about "credit sale": https://brainly.com/question/15072413
#SPJ11
