was this ever answered?
The Converting Department of Hopkinsville Company had 1,200 units in work in process at the beginning of the period, which were 75% complete. During the period, 25,200 units were completed and transferred to the Packing Department. There were 1,360 units in process at the end of the period, which were 25% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Answer:
Equivalent Units
Material cost = 26,560
Conversion Cost= 25,540
Explanation:
We would assume the company uses weighted average method of valuation.
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Material cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 100%× 1,360 1360
Total equivalent units 26,560
Conversion Cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 25%× 1,360 340
Total equivalent units 25,540
Division A sells ground veal internally to Division B, which in turn, produces veal burgers that sell for $ 20.00 per pound. Division A incurs costs of $ 2.25 per pound while Division B incurs additional costs of $ 8.50 per pound. What is Division A's operating income per burger, assuming the transfer price of the ground veal is set at $ 4.00 per burger? A. $ 4.50 B. $ 4.25 C. $ 2.25 D. $ 1.75
Answer:
Division A
Operating Income:
Transfer Price = $4.00
Less Costs = $2,25
Operating Income = $1.75
Explanation:
The Transfer Price of $4.00 per burger to Division B is the selling price for Division A's product.
When the costs of producing Division A's product is subtracted from the selling price (transfer price), the result is the operating income.
Operating income is, therefore, the difference between selling price and costs. These costs include the cost of goods sold and other expenses, like wages and salaries, rent, etc. It is the income subject to taxes and profit distribution.
Leon Jones worked in the warehouse of a large building supply company. One day he unexpected left for Fiji, never to return. His supervisor seized the opportunity to continue submit time cards for Leon to the payroll department. Each week, as part of his normal duties, the supervisor received the employee pay cheques from payroll and distribute them to the workers on his shift. As Leon was not present to collect his pay cheque, the supervisor forged Leon’s name and cashed it.
Required: Describe two control techniques to prevent or detect this fraud scheme. (10 marks, maximum 300 words)
Answer:
Explanation:
This is an example of payroll fraud.
Pay roll fraud is a fraudulent practice where an employees take an advantage of a loophole in the internal control system to claim payment that they are not entitled to. One way of practicing it is by keeping record ghost workers
Two methods of controlling it are
A clock -in-system : This requires an employee to use a unique pass code to sign in and our of work . Some technology even finger print for this purpose which strictly restrict signing in to the assigned user . This information are used for payment process
Another method is the direct deposit of pay checks into employees bank account . This method will prevent and other person to divert pay checks for other use.
A firm has cash flow from operations of $500 million, interest expense of $40 million, net capital expenditures of $150 million, net new borrowing of $60 million, and a net increase in working capital of $20 million. The marginal tax rate is 30%. What is the free cash flow to the firm
Answer: $410 million
Explanation:
Cash flow from operation= $500
Interest expense = $40 million
Net capital expenditures = $150 million
Net new borrowing = $60 million, Net increase in working capital = $20 million.
Marginal tax rate = 30%.
The cash flow from operations includes the Net Earnings adjusted for working capital. Also, the net earnings include the impact of interest expense and the tax expense/shield.
Therefore, the cash flow to equity will be:
= Cash Flow from Operations - Capital Expenditure + Net borrowing
Cash flow to equity will now be:
= 500 - 150 + 60
= $410 million
During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $23,125 and $15,073, respectively. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year
Answer:
$38,198
Explanation:
Recognization principle state that the total amount paid in the first year will be the sum of the amounts given as a whole which will inturn be considered as paid for the employees.
Therefore for the first year, the vacation pay and the pension right will be :
$23,125 +$15,073
=$38,198
Therefore the total cost of vacation pay and pension rights to be recognized in the first year will be $38,198
Week 5 Rachel is a financial investor who actively buys and sells in the securities market. Now she has a portfolio of all blue chips, including: $13,500 of Share A, $7,600 of Share B, $14,700 of Share C, and $5,500 of Share D. Required:
a) Compute the weights of the assets in Rachel’s portfolio? (2 marks)
b) If Rachel’s portfolio has provided her with returns of 9.7%, 12.4%, -5.5% and 17.2% over the past four years, respectively, calculate the geometric average return of the portfolio for this period. (2 marks)
c) Assume that expected return of the stock A in Rachel’s portfolio is 13.6% this year. The risk premium on the stocks of the same industry are 4.8%, betas of these stocks is 1.5 and the inflation rate was 2.7%. Calculate the risk-free rate of return using Capital Market Asset Pricing Model (CAPM). (2 marks)
i need onlu part d)
d) Following is forecast for economic situation and Rachel’s portfolio returns next year, calculate the expected return, variance, and standard deviation of the portfolio. (4 marks)
Required: step by step explanation with formula please
Answer: The answer is provided below
Explanation:
The weights of assest in Rachel's portfolio: = amount in each stock ÷ sum of the amounts invested in all stocks.
Share Amount Weight
A. 13500. 0.33
B. 7600. 0.18
C. 14700. 0.36
D. 5500. 0.13
Total 41300
Note that weight = amount/total
Geometric average return of a portfolio:
((1+R1)×(1+R2)×(1+R3)....×(1+Rn))^(1/n) - 1
where,
R1= return of period 1
Rn= return in nth period
Hence, the geometric average return of Rachel's portfolio will be:
((1+9.7%)×(1+12.4%)×(1-5.5%)×(1+17.2%))^(1/4) - 1
= 8.10 % (approximately) per year.
Using the nominal rate of return which includes inflation:
CAPM: Required return will be:
= Risk free return + (Risk premium × Beta)
13.6 = Risk free return + (4.8 × 1.5)
13.6 = Risk free return + 7.2
Risk free return = 13.6 - 7.2
= 6.4% which is not inflation adjusted)
The inflation adjusted rate of return will be:
= (1+return)/(1+inflation rate))-1
= ((1+13.6%)/(1+2.7%))-1
= 10.61%
Using CAPM:
10.61= Risk free return + (4.8 × 1.5)
10.61 = Risk free return + 7.2
Risk free return = 10.61 - 7.2
Risk free return = 3.41% (at real rates)
In practice, the use of inflation adjusted return i.e the real rate of return which is 10.61% is better as it puts forth a long term perspective on how a stock is performing.
Peggy sells pistachios and almonds at the farmer’s market. She currently prices pistachios at $7 per bag and almonds at $4 per bag. She observes that every hour, 4 people each buy one bag of pistachios and 2 people each buy one bag of almonds. Having surveyed them, she learns that 2 of the pistachio buyers would be willing to pay $2 for the bag of almonds while the other two would only be willing to pay $1. Both almond buyers would be willing pay $5 for the bag of pistachios. Suppose Peggy decides to sell a bundle containing one bag of pistachios and one bag of almonds in addition to selling them separately. What price should she charge for the bundle in order to maximize revenue?
Answer:
The price she should charge for the bundle in order to maximize profit is 9
Explanation:
Solution
The total pistachios sold = 7 * 2 =14
The total almonds sold is = 4*1 = 4
So,
The total of both pistachios and almonds = 14 + 4 + 18
Thus,
we solve for getting average of the two which is:
Getting the average of the two in the bundle = 18/2
=9
Therefore p =9
According to an article in the Wall Street Journal, KB Home and other builders found demand for new houses increasing in 2017 as a result of an increase in the formation of new households. In the long run, formation of new households depends on population growth. Source: Laura Kusisto and Sarah Chaney, "U.S. Housing Starts Fell in April for Third Time in Four Months," Wall Street Journal, May 16, 2017. Are firms like homebuilders that sell products whose demand depends partly on demographic factors likely to be more or less affected by the business cycle than are other firms whose products are less dependent on these factors (holding constant other factors that affect the demand for new houses)? Briefly explain.
Answer:
Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.
This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.
Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.
S Corporation makes 35,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 9.40 Direct labor $ 8.40 Variable manufacturing overhead $ 3.40 Fixed manufacturing overhead $ 4.35 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to S Corporation for this motor is $23.65. If S Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Multiple Choice $204,750 $85,750 $152,250 ($66,500)
Answer:
Advantage $85,750
Explanation:
The calculation of Financial advantage for the company of making rather than buying is shown below:-
Financial advantage for the company of making rather than buying = Relevant cost of buying - Cost of making
Financial advantage = Price offered × Used production - (Direct material + Direct labor + Variable manufacturing overhead) × Used production
= $23.65 × 35,000 - ($9.40 + $8.40 + $3.40) × 35,000
= $827,750 - $21.20 × 35,000
= $827,750 - $742,000
Advantage = $85,750
Here, fixed costs are unavoidable, it is not a relevant cost
Monopoly power runs counter to the public interest because it leads to high prices, resource misallocation, and inefficiency. Antitrust policy is one of the government's instruments for curbing monopoly power and protecting competition.
Suppose that a major tire retailer purchases a major manufacturer's car tires at a discount on the condition that it must also purchase the manufacturer's truck tires. As a result of the agreement, several tire manufacturers lose their market shares and eventually exit the industry. This agreement would explicitly violate which of the following laws?
The Clayton Act of 1914
The Sherman Antitrust Act of 1890
The Robinson–Patman Act of 1936
The Celler–Kefauver Act of 1950
Answer:
C. The Robinson–Patman Act of 1936
Explanation:
The Robinson-Patman Act of 1936 is an amendment to The Clayton Act of 1914, which particularly prohibits price discrimination. Price Discrimination is an act in which distributors or sellers of certain goods, give discounts to people who they seem to benefit more from while smaller shops buy the goods at a costlier price.
The instance where the major tire manufacturer has an agreement to make a price discount with the manufacturer of truck tires is an example of price discrimination, and the consequence is that other markets are affected as they now exit the market. This is a clear contravention of the Robinson-Patman Act of 1936.
Danielle Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 8,200 units, but its actual level of activity was 8,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting
Fixed element per month Variable element per unit
Revenue $34.20
Direct labor $0 $6.20
Direct materials 0 13.80
Manufacturing overhead 37,000 1.70
Total expenses $62,500 $21.90
Selling and administrative expenses 25,500 0.20
Actual results for May:
Revenue $228,900
Direct labor $41,130
Direct materials $93,235
Manufacturing overhead $43,500
Selling and administrative expenses $30,470
The direct materials in the flexible budget for May would be closest to:________.
a. $89,735.
b. $92,230.
c. $90,420.
d. $91,020.
Answer:
$113,850
Explanation:
The computation of the direct material in the flexible budget is shown below:
= Actual level of activity × direct material per unit
= 8,250 units × $13.80
= $113,850
By multiplying the actual level of activity with the direct material per unit we can get the direct material in the flexible budget and the same is shown above
This is the answer but the same is not provided in the given options
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. $ b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
Answer:
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
$9,800b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
Dr FICA Social Security expense 6,600Dr FICA Medicare expense 1,650Dr Federal unemployment tax expense 200Dr State unemployment tax expense 1,350 Cr FICA Social Security payable 6,600 Cr FICA Medicare payable 1,650 Cr Federal unemployment tax payable 200 Cr State unemployment tax payable 1,350Explanation:
payroll taxes should be:
social security $110,000 x 6% = $6,600
Medicare $110,000 x 1.5% = $1,650
federal unemployment $25,000 x 0.8% = $200
state unemployment $25,000 x 5.4% = $1,350
total = $9,800
Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.
Freeman, Inc., reported net income of $40,000 for 20A. The income tax return excluded a revenue item of $3,000 (reported on the income statement) because under the tax laws the $3,000 would not be reported for tax purposes until 20B. Assuming a 30% income tax rate, this situation would cause a 20A deferred tax amount of A) $3,000 (debit). B) $3,000 (credit). C) $ 900 (debit). D) $ 900 (credit).
Answer:
The correct option is D,$900(credit)
Explanation:
The revenue omitted would be increase revenue in the year 20B ,as result net income would also be increased,hence the tax impact of it in the future that should be taken record of now is a deferred tax liability,a tax payable in the year 20B.
The amount of tax deferred is the omitted revenue multiplied by the tax rate of 30% i.e
deferred tax =$3000*30%=$900
This would be credited to deferred tax liability and debited income tax expense.
Equipment with a book value of $78,000 and an original cost of $168,000 was sold at a loss of $31,000. Paid $106,000 cash for a new truck. Sold land costing $315,000 for $420,000 cash, yielding a gain of $105,000. Long-term investments in stock were sold for $90,000 cash, yielding a gain of $15,500. Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
$451,000
Explanation:
The computation of cash flows from investing activities is shown below:-
Sale of equipment $47,000
($78,000 - $31,000)
Purchase of new truck ($106,000)
Sale of land $420,000
Sale of Long-term investments $90,000
Net cash provided by investing activities $451,000
Therefore to reach the cash flows from investing activities we simply added the sale of equipment, sale of land, sale of long term investments and deduct the purchase of new truck.
For the cost and price functions below, find
a. the number, q, of units that produces maximum profit
b. the price, p, per unit that produces maximum profit
c. the maximum profit, P.
C(q) = 70 + 17q
p = 77 - 2q
Answer:
a) The number, q, of units that produces maximum profit = 15
b) The price, p, per unit that produces maximum profit = 47 (currency not giben in the question)
c) Maximum Profit = P = 380 (currency not given in the question).
Explanation:
The cost function and price per unit function are given respectively as
C(q) = 70 + 17q
p = 77 - 2q
where q = quantity or number of units
a.) the number, q, of units that produces maximum profit
Total cost = C(q) = 70 + 17q
Revenue = (price per unit) × (Number of units) = p × q = (77 - 2q) × q = (77q - 2q²)
Profits = P(q) = (Revenue) - (Total Cost)
P(q) = (77q - 2q²) - (70 + 17q)
P(q) = -2q² + 60q - 70
To maximize the profits, we just obtain the point where the profit function reaches a Maximum.
At the maximum of a function, (dP/dq) = 0 and (d²P/dq²) < 0
Profit = P(q) = -2q² + 60q - 70
(dP/dq) = -4q + 60
At maximum point,
(dP/dq) = -4q + 60 = 0
q = (60/4) = 15
(d²P/dQ²) = -4 < 0 (hence, showing that the this point corresponds to a maximum point truly)
Hence, the number, q, of units that produces maximum profit = 15.
b.) the price, p, per unit that produces maximum profit
The price per unit is given as
p = 77 - 2q
Maximum profit occurs at q = 15
p = 77 - (2×15) = 47
Hence, the price, p, per unit that produces maximum profit = 47 (currency not given in the question)
c.) the maximum profit, P.
The Profit function is given as
Profit = P(q) = -2q² + 60q - 70
At maximum Profit, q = 15
Maximum Profit = P(15)
= -2(15²) + 60(15) - 70
= 380 (currency not given in the question).
Hope this Helps!!!
A) The number, q, of units that produce maximum profit is = 15
B) The price, p, per unit that creates maximum profit is = 47
C) Maximum Profit is = P = 380
What is the cost and price function?
When The cost procedure and price per unit procedure are presented respectively as:
C(q) is = 70 + 17q
p is = 77 - 2q
where that q is = quantity or number of units
a.) When the number, q, of units that produce maximum profit
The Total cost is = C(q) = 70 + 17q
When the Revenue is = (price per unit) × (Number of units) that is = p × q = (77 - 2q) × q is = (77q - 2q²)
After that Profits is = P(q) = (Revenue) - (Total Cost)
Then P(q) is = (77q - 2q²) - (70 + 17q)
Now, P(q) is = -2q² + 60q - 70
When To maximize the profits, Then we just obtain the point where the profit function reaches a Maximum.
When At the maximum of a function, (dP/dq) is = 0 and (d²P/dq²) < 0
Profit is = P(q) = -2q² + 60q - 70
(dP/dq) is = -4q + 60
Then At maximum point are:
(dP/dq) is = -4q + 60 = 0
After that, q = (60/4) = 15
Then (d²P/dQ²) = -4 < 0 (hence, showing that this point corresponds to a maximum point truly)
Therefore, the number, q, of units that produce maximum profit is = 15.
b.) When the price, p, per unit that produces maximum profit
The price per unit is given as
p is = 77 - 2q
Then Maximum profit occurs at q is = 15
p is = 77 - (2×15) = 47
Therefore, the price, p, per unit that produces maximum profit is = 47 (currency not provided in the question)
c.) When the maximum profit, P.
The Profit function is given as
Profit is = P(q) = -2q² + 60q - 70
Then At maximum Profit, q = 15
So, The Maximum Profit is = P(15)
Then = -2(15²) + 60(15) - 70
Therefore, = 380 (currency not given in the question).
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Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2020 net income and 2021 net income. 2020 2021 (a) Equipment (with a useful life of 5 years) was purchased and expensed in 2018. Select an option Select an option (b) Wages payable were not recorded at 12/31/20. Select an option Select an option (c) Equipment purchased in 2020 was expensed. Select an option Select an option (d) 2020 ending inventory was overstated. Select an option Select an option (e) Patent amortization was not recorded in 2021. Select an option Select an option
Answer: The answer is provided below
Explanation:
The net income is excess of revenues over expenses after the adjustment for depreciation expense and the income tax expense. Net income is also called the net profit.
(a) Equipment (with a useful life of 5 years) was purchased and expensed in 2018.
2020 : It will be overstated in the net income.
2021: It will be overstated in the net income.
b. Wages payable were not recorded at 12/31/20.
2020: It will be overstated in the net income.
2021: It will be understated in the net income.
c. Equipment purchased in 2020 was expensed.
2020: It will be understated in the net income.
2021: It will be overstated in the net income
d. 2020 ending inventory was overstated.
2020: It will be overstated in the net income.
2021: It will be understated in the net income.
e. Patent amortization was not recorded in 2021.
2020: It will be no effect in the net income.
2021: It will be overstated in the net income
Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. Refer to Scenario 28-1. What is the unemployment rate?
Answer:
10.7%
Explanation:
Solution:
Recall that:
The Reports from Bureau of labor statistics is shown as follows:
Employed people = 25 million
Unemployed people = 3 million
Discouraged workers = 1 million
Workers or Homemakers or retirees, or students = 1 million
The next step from this scenario is to find out the unemployment rate
Now,
The rate of unemployed = (unemployed x 100 ) / labor force
= 300/28
=10.7%
Last year Ann Arbor Corp had $250,000 of assets (which equals total invested capital), $305,000 of sales, $20,000 of net income, and a debt-to-total-capital ratio of 37.5%. The new CFO believes that a new computer program will enable the company to reduce costs and thus raise net income to $33,000. The firm finances using only debt and common equity. Assets, total invested capital, sales, and the debt to capital ratio would not be affected. By how much would the cost reduction improve the ROE
Answer:
8.32%
Explanation:
The computation of cost reduction improve the ROE is shown below:-
For computing the increase in ROE first we need to follow some steps which is here below:-
Debt = capital × Debt
= $250,000 × 37.5%
= $93,750
Equity = Assets - Debt
= $250,000 - $93,750
= $156,250
New ROE = New Net income ÷ Equity
= $33,000 ÷ $156,250
= 21.12%
Old ROE = Old Net income ÷ Equity
= $20,000 ÷ $156,250
= 12.8%
Increase in ROE = New ROE- Old ROE
= 21.12% - 12.8%
= 8.32%
On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $600,000. Additionally, Blackstone paid a real estate brokerâs commission of $36,000, legal fees of $6,000, and title insurance of $18,000. The closing statement indicated that the land value was $500,000 and the building value was $100,000. Shortly after acquisition, the building was razed at a cost of $75,000.
Blackstone entered into a $3,000,000 fixed-price contract with Barnett Builders, Inc., on March 1, 2021, for the construction of an office building on land site 11. The building was completed and occupied on September 30, 2022. Additional construction costs were incurred as follows:
Plans, specifications, and blueprints .....................$ 12,000
Architectsâ fees for design and supervision ............95,000
To finance the construction cost, Blackstone borrowed $3,000,000 on March 1, 2021. The loan is payable in 10 annual installments of $300,000 plus interest at the rate of 14%. Blackstoneâs average amounts of accumulated building construction expenditures were as follows:
For the period March 1 to December 31, 2021 ...........$ 900,000
For the period January 1 to September 30, 2022 .......2,300,000
Required:
1. Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2022.
2. Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2022.
Answer:
Blackstone Corporation
1. A schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2022:
Cost of Land = $600,000
Broker's Commission = $36,000
Legal Fees = $6,000
Title Insurance = $18,000
Razing of old building = $75,000
Total = $735,000
2. A schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2022:
Payment to contractor for building = $3,000,000
Plans, specifications, and blueprints = $12,000
Architect's fees (design & supervision = $95,000
Capitalized Interest ($3m x14%/10 x 2) = $84,000
Total = $3,191,000
Explanation:
a) The cost of land to recognize includes the actual cost for the parcel of land, including the building which was razed. All other expenses incurred ordinarily and necessarily in order to put the land to its intended use are also capitalized. The costs for the broker's commission, legal fees, title insurance, and razing of old building were incurred ordinarily and necessarily for the land and are therefore capitalized in determining the value of the land.
b) The capitalized interest portion for the building is the interests paid to date. The contractor's fee, payments for plans, architect's fee, and interests are included as costs of the building.
Managers must chart a company's strategic course by Multiple Choice ensuring excess production capacity and/or inventory. building a bigger dealer network. ensuring that marketing and promotion programs are state-of-the-art. developing a thorough understanding of the company's external and internal environments. competing fiercely for a share in the market.
Answer:
The correct answer is the fourth option: developing a thorough understanding of the company's external and internal environments.
Explanation:
To begin with, in order to understand that a company's strategy must be guided by thorough understanding of its external and internal environments it is necessary to understand that the system proposed is formed by several factors that influence it and therefore that a manager must study carefully those factors and that system in order to guide the company to a successful work and accomplish the goals by using a strategy that compresses all the information about those factors.
Ahmed, a lawyer, sold his car to Carlos. Has an implied warranty of merchantability been created by this transaction? No, because Ahmed is not a merchant. Yes, because if the car is defective Carlos will have a right to return in to Ahmed. No, Ahmed has not implied so either orally or in written. Yes, because a car is "goods" and the Uniform Commercial Code applies to contracts for the sale of goods.
Answer:
A. No, because Ahmed is not a merchant.
Explanation:
Implied warranty of merchantability is a law in contract which states that when there is a transaction between a seller (the merchant), and a buyer, there is an unwritten guarantee from the seller, that the product meets up to the ordinary standards of care. This means that the goods must be fit to do what the merchant says it will do. Therefore, if the seller finds it defective, he could return it to the seller. and if the seller refuses to make a change, a legal case could be established. The merchant by law is a wholesaler or retailer, who sells goods in which he has expertise or special skills.
Ahmed in the question could be argued in court to not be a merchant of cars and as such, has no expertise with which he can make a guarantee for the car being sold to Carlos.
During June, Zinc Company produced 10,000 chainsaw blades. The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $10 per pound. Zinc determined that it had a favorable materials usage variance of $1,600 for June. Calculate the actual quantity of materials used by Zinc Company in June. Group of answer choices 19,840 pounds 19,660 pounds 19,680 pounds 19,860 pounds
Answer:
19,840 pounds
Explanation:
The computation of actual quantity of materials is shown below:-
Materials usage variance = (Selling quantity - Actual quantity) × Standard Price
= (10,000 × 2 - Actual quantity) × $10 = $1,600
= (20,000 - Actual quantity) × $10 = $1,600
= 20,000 - Actual quantity = $160
Actual quantity = 20,000 - $160
= $19,840 pounds
Therefore for computing the actual quantity of materials we simply applied the above formula.
The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. SANDHILL HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,463 Supplies 2,600 Prepaid Insurance 1,800 Land 14,963 Buildings 71,200 Equipment 16,800 Accounts Payable $ 4,663 Unearned Rent Revenue 3,300 Mortgage Payable 37,200 Common Stock 59,963 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $114,126 $114,126 Other data: 1. Insurance expires at the rate of $360 per month. 2. A count of supplies shows $1,070 of unused supplies on May 31. 3. (a) Annual depreciation is $3,000 on the building. (b) Annual depreciation is $2,400 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,510 has been earned. 6. Salaries of $860 are accrued and unpaid at May 31. (a) (b) (c) (d1) (d2) (d3) (e)
Answer:
1. Journalize the adjusting entries on May 31:
Debit Credit
1. Insurance Expense $360
Insurance Prepaid $360
To record insurance expense for the month.
2. Supplies Expense $1,530
Supplies Account $1,530
To record supplies expense for the month.
3a. Depreciation Expense - Building $250
3b. Depreciation Expense - Equipment $200
Accumulated Depreciation - Building $250
Accumulated Depreciation - Equipment $200
To record depreciation charge for the month.
4. Mortgage Interest Expense $186
Mortgage Interest Payable $186
To accrue mortgage interest, 6% for 1 month.
5. Unearned Rent Revenue $2,510
Rent Revenue $2,510
To record rent earned.
6. Salaries & Wages Expense $860
Salaries & Wages Payable $860
To accrue salaries at May 31.
2. Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries:
No. Description Debit Credit Balance
1. Prepaid Insurance:
As per Trial Balance $1,800
Insurance Expense $360 $1,440
Insurance Expense:
Prepaid Insurance $360 $360
2. Supplies Account:
As per Trial Balance $2,600
Supplies Expense $1,530 $1,070
Supplies Expense:
Supplies Account $1,530 $1,530
3a. Depreciation Exp. - Building $250 $250
Accumulated Deprec-Building $250 $250
3b. Depreciation Exp.- Equipment $200 $200
Accumulated Depre- Equipment $200 $200
4. Mortgage Interest Expense $186 $186
Mortgage Interest Payable $186 $186
5. Unearned Rent:
As per Trial Balance $3,300
Rent Revenue $2,510 $790
Rent Revenue:
As per Trial Balance $9,000
Unearned Rent $2,510 $11,510
6. Salaries & Wages Expense:
As per Trial Balance $3,000
Salaries & Wages Payable $860 $860
Salaries & Wages Payable:
Salaries & Wages Expense $860 $860
3. Prepare an adjusted trial balance on May 31, 2022:
Debit Credit
Cash $2,463
Supplies 1,070
Supplies Expense 1,530
Prepaid Insurance 1,440
Insurance Expense 360
Depreciation - Building 250
Depreciation - Equipment 200
Accumulated Depr-Building 250
Accumulated Depr-Equipment 200
Mortgage Interest Expense 186
Mortgage Interest Payable 186
Land 14,963
Buildings 71,200
Equipment 16,800
Accounts Payable $ 4,663
Unearned Rent Revenue 790
Mortgage Payable 37,200
Mortgage Interest Exp 186
Mortgage Interest Payable 186
Common Stock 59,963
Rent Revenue 11,510
Salaries and Wages Expense 3,860
Salaries & Wages Payable 860
Utilities Expense 800
Advertising Expense 500
$115,808 $115,808
4. Prepare an income statement for the month of May:
Rent Revenue $11,510
Expenses:
Supplies $1,530
Insurance 360
Salaries & Wages 3,860
Utilities Expense 800
Advertising Expense 500
Depreciation:
Building 250
Equipment 200
Mortgage Interest 186 (7,686)
Net Income $3,824
5. Prepare an owner’s equity statement for the month of May:
Common Stock $59,963
Retained Earnings 3,824
Total Equity $63,787
6. Prepare a balance sheet at May 31:
Assets:
Cash $2,463
Supplies 1,070
Prepaid Insurance 1,440
Land 14,963
Buildings 71,200
Equipment 16,800
Total Assets $107,936
Liabilities + Equity:
Accounts Payable $4,663
Unearned Rent Revenue 790
Mortgage Interest Payable 186
Salaries & Wages Payable 860
Accumulated Depreciation:
Building 250
Equipment 200
Mortgage Payable 37,200
Common Stock 59,963
Retained Earnings 3,824
Total Liabilities +Equity $107,936
Explanation:
a) Adjusting entries are end-of-the-period journal entries used to recognize income or expenses that occurred but are not accurately displayed in your records. They are made to comply with the accrual concept and the matching principle, which demand that expenses and income should matched to the period they were incurred, whether paid for or not.
b) The three-sided ledger accounts show the debit, credit, and balance columns. This means that it shows the balance per transaction of any particular account.
c) Mortgage interest is calculated as (6% of $37,200)/12, so as to accrue for one month only. Other expenses are calculated for one month only.
The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 242,000 $ 130,000 Accounts receivable 98,000 102,000 Inventory 105,000 90,000 Investments 5,000 3,000 Long-term assets: Land 580,000 580,000 Equipment 890,000 770,000 Less: Accumulated depreciation (528,000 ) (368,000 ) Total assets $ 1,392,000 $ 1,307,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 109,000 $ 95,000 Interest payable 7,000 13,000 Income tax payable 9,000 6,000 Long-term liabilities: Notes payable 110,000 220,000 Stockholders' equity: Common stock 800,000 800,000 Retained earnings 357,000 173,000 Total liabilities and stockholders' equity $ 1,392,000 $ 1,307,000 Additional information for 2021: Net income is $184,000. Sales on account are $1,890,000. Cost of goods sold is $1,394,250. Required: 1. Calculate the following risk ratios for 2021:
Answer and Explanation:
The risk ratios are calculated below:
1. Account Receivable Turnover
= Net credit Sales ÷ Average Accounts Receivable
= $1,890,000 ÷ (($98,000 + $102,000) ÷ 2)
= $1,890,000 ÷ $100,000
= 18.9 times
It shows the relation between the net credit sales and the average account receivable
2. Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
= $1394250 ÷ (($105,000 + $90,000) ÷ 2)
= $1,394,250 ÷ $97,500
= 14.3 times
It shows the relation between the cost of goods sold and the average inventory
c. Current Ratio = Current assets ÷ Current Liabilities
= ($242,000 + $98,000 + $105,000 + $5,000) ÷ ($109,000 + $7,000 + $9,000)
= $450,000 ÷ $125,000
= 3.6 times
It shows the relation between the current assets and the current liabilities
d. Acid Test Ratio = Liquid assets ÷ Current Liabilities
= ($450,000 - $105,000) ÷ ($125,000 )
= $345,000 ÷ $125,000
= 2.76 times
It shows the relation between the liquid assets which do not involved prepaid assets, inventory, etc and the current liabilities
e. Debt to Equity = Debt ÷ Equity
= ($109,000 + $7,000 + $9,000 + $110,000) ÷ ($800,000 + $357,000 )
= $235,000 ÷ $1,157,000
= 0.203
It shows the relation between the debt and equity
1. Account Receivable Turnover
= Net credit Sales ÷ Average Accounts Receivable
= $1,890,000 ÷ (($98,000 + $102,000) ÷ 2)
= $1,890,000 ÷ $100,000
= 18.9 times
It represents the relationship between the net credit sales and the average account receivable.
2. Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
= $1394250 ÷ (($105,000 + $90,000) ÷ 2)
= $1,394,250 ÷ $97,500
= 14.3 times
It represents the relationship between the cost of goods sold and the average inventory.
c. Current Ratio = Current assets ÷ Current Liabilities
= ($242,000 + $98,000 + $105,000 + $5,000) ÷ ($109,000 + $7,000 + $9,000)
= $450,000 ÷ $125,000
= 3.6 times
It represents the relationship between the current assets and the current liabilities.
d. Acid Test Ratio = Liquid assets ÷ Current Liabilities
= ($450,000 - $105,000) ÷ ($125,000 )
= $345,000 ÷ $125,000
= 2.76 times
It represents the relationship between the liquid assets in which it does include prepaid assets, inventory, etc and the current liabilities.
e. Debt to Equity = Debt ÷ Equity
= ($109,000 + $7,000 + $9,000 + $110,000) ÷ ($800,000 + $357,000 )
= $235,000 ÷ $1,157,000
= 0.203
It represents the relationship between the debt and equity.
Learn more: brainly.com/question/19682087
Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Mouse Potatoes," who like the Internet for entertainment and can't wait to buy the latest in "techno-entertainment." In terms of the diffusion process, how would "Mouse Potatoes" be classified?
Answer: Innovators.
Explanation:
The Diffusion Process defines how new products are able to spread across a market.
It does this by using the Adoption Process to determine the various groups in the market and how fast the product gets to those groups. There are 5 groups in total.
- Innovators
- Early Adopters
- Early Majority
- Late Majority
- Laggards.
In the above scenario, the Mouse Potatoes would be the Innovators. These are the first buyers of a product and as such their opinions are very important as they then tell others how useful the product is. Mouse Potatoes regularly browse the net looking for the latest in "techno-entertainment", so they can buy or use it first thus making them Innovators.
On January 1, 2021, Tonge Industries had outstanding 480,000 common shares ($1 par) that originally sold for $30 per share, and 6,000 shares of 10% cumulative preferred stock ($100 par), convertible into 60,000 common shares.
On October 1, 2021, Tonge sold and issued an additional 16,000 shares of common stock at $37. At December 31, 2021, there were 22,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 22,000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44.
Net income was $940,000. The tax rate for the year was 40%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2021. (Enter your answers in thousands.)
Answer:
842,000 shares
Explanation:
Please the solution to the given problem in the file attached below
Answer:
Basic EPS = $1.82
Diluted EPS = $1.72
Explanation:
The picture attached herewith shows the calculation to the problem and it is so explanatory.
11. a. Suppose David spends his income M on goods x1 and x2, which are priced p1 and p2, respectively. David’s preference is given by the utility function
(1, 2) = √1 + √2.
(i) Derive the Marshallian (ordinary) demand functions for x1 and x2. (25 marks)
(ii) Show that the sum of all income and (own and cross) price elasticity of demand
for x1 is equal to zero. (25 marks) b. For Jimmy both current and future consumption are normal goods. He has strictly convex and strictly monotonic preferences. The initial real interest rate is positive. If the real interest rate falls, in each of the following cases, argue what will happen to his period 2 consumption level? Clearly illustrate your argument on a graph.
(i) He is initially a borrower. (25 marks)
(ii) He is initially a lender. (25 marks)
Answer:
Explanation:
D
On January 1, 2021, Swifty Corporation had 106000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 10300 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $13, the corporation declared a 15% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 15% stock dividend on the balance of the retained earnings account?
Answer:
Decrease by $186,615
Explanation:
The impact of the 15% stock dividend on the balance of the retained earnings account is shown below:-
Shares = 106000 - 10300
= 95,700
Dividend of 15% = 95,700 × 15%
= $14,355
Value of shares = Dividend × Market price of the stock
= $14,355 × $13
= $186,615
So, the retained earning will decrease by $186,615
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $138,000, which includes fixed costs of $73,000 and variable costs of $65,000. By outsourcing the part, the company can avoid 30% of the fixed costs. If Blue Ridge Bicycles buys the part, what is the most Blue Ridge Bicycles can spend per unit so that operating income equals the operating income from making the part
Answer:
$2.17
Explanation:
The computation of maximum amount per unit is shown below:-
First we need to compute the avoidable fixed coast and total cost of making to reach maximum amount per unit
Avoidable fixed cost = Fixed cost × Fixes cost percentage
= $73,000 × 30%
= $21,900
Total cost of making = Variable cost + Avoidable fixed cost
= $65,000 + $21,900
= $86,900
Maximum amount per unit = Total cost of making ÷ Producing cost
= $86,900 ÷ 40,000
= $2.17
Therefore, for computing the maximum amount per unit we simply divide the total cost of making by producing cost.
According to the Core Reading, which of the following is NOT a threat presented by rising income inequality? Select one: a. Higher than optimal tax rates on the rich b. All of these are threats presented by rising income inequality. c. Falling support for globalization d. Unintended consequences of government policies to moderate the effects of stagnant wages e. Falling support for a market-based economy
Answer:
Option B
Explanation:
In simple words, Income inequality refers to the severe imbalance in wealth levels typically in the possession of a limited minority of a community with a large accumulation of wealth.
If wealth disparity exists, there is indeed a wide difference in the resources of one group of the society and that of another. Specific forms of discrimination and study of wage differences should be used to explain economic inequality.
Thus, from the above we can conclude that the correct option is B .
