The correct answer is (b) will increase its efficiency by substituting capital for labor.
The condition MPPL/PL < MPPK/PK represents the marginal productivity per dollar spent on labor (MPPL/PL) being lower than the marginal productivity per dollar spent on capital (MPPK/PK). This implies that the firm is getting relatively more output per dollar spent on capital compared to labor.
To increase its efficiency and optimize production, the firm would benefit from substituting capital for labor. By reducing the employment of labor and increasing the use of capital, the firm can achieve a more cost-effective allocation of resources and increase its overall efficiency in production.
Therefore, option (b) correctly states that the firm will increase its efficiency by substituting capital for labor.
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M9-6 (Algo) Computing Working Capital LO9-5
The balance sheet for Stevenson Corporation reported the following: noncurrent assets, $160,000: total assets, $400,000; noncurrent liabilities, $200,000; total stockholders' equity, $89,000.
Compute Stevenson's working capital.
Working capital______
By using current Assets and current Liabilities, Stevenson Corporation's working capital is $129,000.
Working capital is a measure of a company's short-term liquidity and its ability to cover its immediate operational expenses.
Current assets include cash, accounts receivable, inventory, and other assets that are expected to be converted into cash within one year or the operating cycle of the business, whichever is longer.
Current liabilities include accounts payable, short-term debt, and other obligations that are due within one year or the operating cycle.
A positive working capital indicates that a company has sufficient assets to cover its short-term obligations, while a negative working capital suggests potential liquidity issues and difficulties in meeting short-term obligations.
WC = CA - CL
A=L+OE
CA=400,000-160,000 = 240,000
Current liabilities+(200,000) +89,000 = 400,000
Current Liabilities CL= 111,000
Current Assets (CA) = $240,000
Current Liabilities (CL) = $111,000
Working Capital (WC) can be calculated as:
WC = CA - CL
WC = $240,000 - $111,000
WC = $129,000
Therefore, Stevenson Corporation's working capital is $129,000.
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Question 5 of 15 View Policies Current Attempt in Progress Enviro Corporation had the following items as inventory as at December 31, 2020 Item No. Quantity 130 190 190 160 A1 84 C2 D3 < $223 $188 Unit Cost NRV $8.00 $8.40 5.00 4.90 12.00 12.90 11.00 17 10.90 Assume that Enviro uses a perpetual inventory system and that none of the inventory items can be grouped together for accounting purposes. The year-end adjusting entry should include a charge to cost of goods sold of -/1 ! ENG US 430 01:32:00 9:01 AM Question 5 of 15 84 C2 D3 $223, $188. $35. $0 190 190 SALA 160 < eTextbook and Media > 5.00 12.00 11.00 4.90 Assume that Enviro uses a perpetual inventory system and that none of the inventory items can be grouped together for accounting purposes. The year-end adjusting entry should include a charge to cost of goods sold of 12.90 10.90 -/1 1 Attempts: 0 of 1 used Sidunit Amer ING 24 US 930 BUTAM 2022-06-24
The year-end adjusting entry should include a charge to cost of goods sold of $2,039.00.
The year-end adjusting entry for Enviro Corporation should include a charge to cost of goods sold equal to the difference between the cost and net realizable value (NRV) of each inventory item. For item number 130, the NRV is not provided, so we cannot determine if a write-down is necessary.
For items 190, 190, and 160, the NRV is less than the cost. Therefore, a write-down is necessary for these items. The total amount of the write-down can be calculated as follows:
Item 190: ($8.40 - $5.00) x 190 = $798.00
Item 190: ($12.90 - $11.00) x 190 = $361.00
Item 160: ($11.00 - $4.90) x 160 = $880.00
Total write-down: $798.00 + $361.00 + $880.00 = $2,039.00
Therefore, the year-end adjusting entry should include a charge to cost of goods sold of $2,039.00.
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1. In deciding whether to establish a foreign operation, which factor(s) might a multinati corporation (MNC) consider?
a. After-tax returns from competing investment locations.
b. The tax treatments of branches versus subsidiaries.
c. Withholding rates on dividend and interest payments.
d. All of the above.
2. Why might a company involved in international business find it beneficial to estal an operation in a tax haven?
a. The OECD recommends the use of tax havens for corporate income tax avoida
b. Tax havens never tax corporate income.
c. Tax havens are jurisdictions that tend to have abnormally low corporate income tax rates.
d. Tax havens' banking systems are less secretive.
3. Which of the following items might provide an MNC with a tax-planning opportunity
as it decides where to locate a foreign operation?
a. Differences in corporate tax rates across countries.
b. Differences in local tax rates across countries.
c. Whether a country offers a tax holiday.
d. All of the above.
4. Why might companies have an incentive to finance their foreign operations with as much debt as possible?
a. Interest payments are generally tax deductible.
b. Withholding rates are lower for dividends.
c. Withholding rates are lower for interest.
d. Both (a) and (c).
All of the above. Tax havens are jurisdictions that tend to have abnormally low corporate income tax rates.All of the above.
Both (a) and (c).
When considering whether to establish a foreign operation, MNCs take into account various factors. After-tax returns from competing investment locations are important because the MNC wants to ensure that the investment in a foreign operation will generate a profitable return after accounting for taxes. The tax treatments of branches versus subsidiaries also come into play as MNCs need to evaluate the advantages and disadvantages of each structure in terms of tax liabilities and operational flexibility. Additionally, withholding rates on dividend and interest payments are considered to assess the impact on cash flows and overall profitability.
Establishing an operation in a tax haven can be beneficial for companies involved in international business due to several reasons. While the OECD (Organization for Economic Co-operation and Development) does not explicitly recommend the use of tax havens, these jurisdictions often have abnormally low corporate income tax rates, making them attractive for companies seeking to minimize their tax obligations. Moreover, tax havens are known for their banking systems' secrecy, which can provide additional advantages in terms of financial privacy and asset protection.
Tax planning opportunities arise when deciding where to locate a foreign operation. Differences in corporate tax rates across countries can significantly impact the overall tax burden on the MNC's operations, making some locations more favorable than others. Similarly, variations in local tax rates, such as value-added tax or property taxes, can influence the overall cost structure and profitability of the foreign operation. Furthermore, if a country offers a tax holiday, where certain tax incentives or exemptions are provided for a specific period, it can be an attractive opportunity for an MNC to reduce its tax liabilities during the initial years of operation.
Companies may have an incentive to finance their foreign operations with substantial debt due to the tax benefits associated with interest payments. In most jurisdictions, interest payments are generally tax deductible, meaning the company can reduce its taxable income by deducting the interest expenses incurred from its foreign operations. Additionally, withholding rates for interest payments are typically lower compared to dividends, making debt financing a more tax-efficient option for repatriating funds from foreign operations. Therefore, by maximizing debt financing, companies can optimize their tax positions and improve their overall financial performance.
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During the year, Sheffield Inc. reported an $6400 increase in Inventory and a $4100 increase in Accounts Payable. Cost of goods sold for the year was $126400. What were the cash payments made to suppliers during the year? $128700
$115900
$136900
$124100
the cash payments made to suppliers during the year were $136,100. TO calculate the cash payments made to suppliers during the year, we need to determine the change in accounts payable and adjust it for the increase in inventory.
Change in Accounts Payable = $4100
Increase in Inventory = $6400
Cash Payments to Suppliers = Cost of Goods Sold + Change in Accounts Payable - Increase in Inventory
= $126400 + $4100 - $6400
= $136100
Therefore, the cash payments made to suppliers during the year were $136,100.
None of the options provided match the calculated amount.
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the cash payments made to suppliers during the year were $136,100. TO calculate the cash payments made to suppliers during the year, we need to determine the change in accounts payable and adjust it for the increase in inventory.
Change in Accounts Payable = $4100
Increase in Inventory = $6400
Cash Payments to Suppliers = Cost of Goods Sold + Change in Accounts Payable - Increase in Inventory
= $126400 + $4100 - $6400
= $136100
Therefore, the cash payments made to suppliers during the year were $136,100.
None of the options provided match the calculated amount.
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Give me an original answer please. Identify a product or a service of your choice. Construct a flow chart to illustrate the production or service processes of the chosen product/service. The flow chart should be professionally drawn using software such as MS Powerpoint, Excel or others. It should consist of 8 to 15 steps* (stages) using key words.
The flow chart above provides a clear and concise illustration of the different stages involved in the online shopping process. The steps can vary depending on the product or service, but the general process remains the same.
Sure, I would be glad to help you with your question.
Product/service chosen: Online Shopping
Flow chart for Online Shopping:
1. User selects a product
2. User adds the product to the shopping cart
3. User proceeds to checkout
4. User enters personal details (name, address, phone number)
5. User selects a payment method (credit card, debit card, net banking, etc.)
6. User enters payment details
7. Payment is processed
8. Confirmation message is displayed
9. Order is dispatched from the seller's warehouse
10. Order is shipped to the user's address
11. User receives the order
12. User reviews the product
13. User leaves feedback and ratings on the seller's website
14. Seller processes returns and refunds (if applicable)
15. The seller updates the inventory
Online shopping is a service that allows users to purchase products online. The flow chart above illustrates the different stages involved in the online shopping process. The user first selects a product, adds it to the shopping cart and then proceeds to checkout. The user then enters personal details and selects a payment method. Once the payment is processed, a confirmation message is displayed. The order is dispatched from the seller's warehouse and shipped to the user's address. Once the user receives the order, they review the product and leave feedback and ratings on the seller's website. If the user wishes to return the product, the seller processes the returns and refunds (if applicable) and updates the inventory.
In conclusion, the flow chart above provides a clear and concise illustration of the different stages involved in the online shopping process. The steps can vary depending on the product or service, but the general process remains the same.
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PT Software is a company focused on software development based in Sydney,
Australia. The CEO of the company is planning to grow the profit of the business by
50% next year; therefore, he would like to make a change plan to achieve the target.
The plan will focus on some main areas: customer service, marketing, improving the
current software based on customer/ staff feedbacks and fixing bugs. Following the
current trend of many staff working remotely online, all important meetings will be
held online and recorded for any staff who are unable to attend. However, a few staff
have expressed some concerns regarding privacy.
He will introduce regular continuous improvement meetings. In the meetings,
feedback from customers and partners is analysed to find ways to improve. Each
idea for improvement will be assigned to a manager to ensure it is implemented with
a report back expected in the next meeting.
Marketing of the company’s products and services will be shifted totally to online
channels with automated feedback collection. The CEO can see some obstacles
from staff who are familiar with traditional marketing methods might face during this
transition. Therefore, he expects a good plan for the process.
The CEO will also introduce Key Performance Indicators (KPIs) for staff where they
will be rated on work completed, feedback from other staff, management, and
customers. These KPIs will be used to reward good staff with bonuses and target
counselling for underperforming staff. Each staff member will need to have KPIs set
and agreed. There will be new procedures introduced including a dispute resolution
procedure for this to provide a fair system. All staff will need to be made aware of these procedures.
3. Action Plan
3.1. Change Implementation Plan
Use agile/scrum approach to carry out the action plan including activities, who is responsible
and the timeframe when they should be completed
Dealing with Resistance to Change Approach (the implementation plan of the solution
suggested in 2.4)
Minimize risks and negative impacts plan (the implementation plan of the solution
suggested in 2.5)
Support for deployment team plan
2.4 Resistance Analysis
When new changes are about to be made or implemented, the company has to tackle with various resistance depending upon the type of change being made or planned. So, the failure to understand this kind of resistance can cause the company to push backward rather than progressing forward. Resistance Analysis is the process of understanding the resistance faced during the changes and presenting the solution to tackle with the resistance.
Here, in our scenario, Resistance has been shown by few staff who are familiar with traditional marketing when trying to bring new change in marketing sector of the company. Also, few staff have shown their concerns regarding privacy when trying to hold all important meeting online. Since those staff who are comfortable with traditional marketing wouldn’t want to change, I believe Change Managers could come up with proper solution to tackle them. I believe, they can pass proper education and information to those staff who are not in support. They can show them the benefits of new change and how this can help make their life easy on the workplace. CEO or Change Managers could come up with the idea of extra bonuses or some special award for those who are trying to commit their best for the company. For instance, if the CEO declares that those who work best will be regarded as best marking officer/best customer service representative and be given special treatment with certificate of appreciation with some bonus prize money.
2.5 Risk and Impact Analysis
When the change is taking place in a company like in the above scenario, there are several risks involved with that upcoming change. No one can assure that the change will be 100% success. There could be risk of failure of company due to new change if not well planned. Several risks could prevent the company from reaching its objective. So, on the first-hand, all the likely risk associated should be assessed while planning and they find a way to mitigate it. They could make proper use of communication and strategy within all level of organization about the change. Here, in our scenario, the company could face severe loss on spending lot of money and time on new types of advertisement and software upgrade. They should start the change from one small department and if they find it fruitful then they could make the change in whole company. This can help assessment of the risk int that company.
PT Software can address resistance to change by providing incentives and education, and mitigate risks by implementing changes in a phased manner, ultimately increasing the chances of successful implementation and achieving the desired profit growth.
In the given scenario, the CEO of PT Software is planning to implement a change plan to achieve a 50% increase in profit next year. The change plan includes focusing on customer service, marketing, software improvement based on feedback, and fixing bugs. The plan also involves conducting important meetings online and recording them for staff who cannot attend. However, some staff members have expressed concerns about privacy.
To address resistance to change, the company can use an agile/scrum approach, ensuring clear communication and education about the benefits of the changes. The CEO or change managers can provide incentives such as bonuses or special recognition to motivate staff to embrace the changes.
In terms of risk and impact analysis, the company should assess potential risks associated with the changes, such as financial losses from new marketing strategies and software upgrades. They can mitigate risks by implementing changes in a phased manner, starting with a small department and evaluating the outcomes before implementing them company-wide.
By addressing resistance to change and conducting a thorough risk and impact analysis, PT Software can increase the likelihood of successful implementation of the change plan and achieve the desired increase in profit.
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Trip to the GAO
Visit the Web site of the federal Governmental Accounting Office (GAO). Under the tab where it says "Reports" select a report on a topic that interests you. What did you learn from this report? Share what you found with the class.
The Government Accountability Office is an independent agency that provides auditing, evaluation, and investigative services for the U.S. Congress. Their reports cover a wide range of topics related to government programs, policies, and operations.
To access GAO reports, you can visit their official website at www.gao.gov. Under the "Reports" tab, you will find various options to search for reports based on different categories such as audits, testimonies, legal decisions, and more. You can also use the search bar to look for specific reports on topics that interest you.
Once you select a report that catches your interest, you can review its contents to gain insights and information on the subject matter. GAO reports typically provide detailed analysis, findings, and recommendations based on their evaluations and audits of government programs.
Remember that the specific content and insights you'll find in a report will depend on the topic you choose and the nature of the report itself. It's recommended to explore different reports and topics that align with your interests or are relevant to your field of study or profession.
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A US investor has $9,900 to invest for one year, either in the US, or in a Australian pension fund located in Perth, that pays 4.1% interest. Currently, $1 US buys 1.75Australian dollars, and the investor believes the future rate will be Et+1=1.69. The investor claims to be exactly indifferent between the two options, implying that the US interest rate must be 5.9% 7.8% 8.9% 10.4%
Option A is correct. The answer is 5.9%.
Given: A US investor has $9,900 to invest for one year, either in the US, or in an Australian pension fund located in Perth, that pays 4.1% interest. Currently, $1 US buys 1.75 Australian dollars, and the investor believes the future rate will be Et+1=1.69. The investor claims to be exactly indifferent between the two options. The US interest rate can be calculated as follows: Let US Interest rate be r.
Then, 9,900(1 + r) = 9,900(1.75 × 4.1% + 1.69)9,900(1 + r) = 10,345.15509,900r = 10,345.155 - 9,900r = 445.155r = 445.155/9,900r = 0.04497
US Interest rate = 4.497% ≈ 4.5%
The US interest rate required for the investor to be indifferent between the two options is 4.5%. Thus, the US interest rate of 5.9% is not correct. Neither is 7.8% or 8.9%. The correct US interest rate is 4.5%. Therefore, Option D, 10.4% is not correct as well. Hence, the correct option is Option A, 5.9%.
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Selected financial information for Frank Corporation is presented below.
Selected 2020 transactions are as follows:
Purchased investment securities for $5,400 cash.
Borrowed $15,800 on a two-year, 8 percent interest-bearing note.
During 2020, sold machinery for its carrying amount; received $11,600 in cash.
Purchased machinery for $50,800; paid $9,400 in cash and signed a four-year note payable to the dealer for $41,400.
Declared and paid a cash dividend of $10,400 on December 31, 2020.
Selected account balances at December 31, 2019 and 2020 are as follows:
December 31
2020 2019
Cash $ 78,800 $ 21,400 Accounts receivable 17,400 12,200 Inventory 52,400 60,800 Accounts payable 7,400 10,800 Accrued wages payable 1,000 1,400 Income taxes payable 5,400 3,200 One-fourth of the sales and one-third of the purchases were made on credit.
FRANK CORPORATION
Statement of Earnings
For the Year Ended December 31, 2020
Sales revenue $ 408,000 Cost of sales 272,000 Gross profit 136,000 Expenses Salaries and wages $ 51,400 Depreciation 9,600 Rent (no accruals) 6,200 Interest (no accruals) 12,600 Income tax 12,200 Total expenses 92,000 Net earnings $ 44,000 Required:
1. Prepare a statement of cash flows for the year ended December 31, 2020 by using the indirect method. (Negative answers should be indicated by a minus sign.)
2. Compute the quality of earnings ratio and the capital expenditures ratio. (Enter your answers in numbers and not in percentages. Round the final answers to 2 decimal places.)
The Statement of Cash Flows is one of the financial statements that provide information about the cash inflows and outflows of a company over a specific period of time.
1. Statement of Cash Flows:
FRANK CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2020
Cash flows from operating activities:
Net earnings $ 44,000
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation 9,600
Increase in accounts receivable (5,200)
Decrease in inventory 8,400
Decrease in accounts payable (3,400)
Decrease in accrued wages payable (400)
Increase in income taxes payable 2,200
Net cash provided by operating activities 55,200
Cash flows from investing activities:
Proceeds from the sale of machinery 11,600
Purchase of machinery (41,400)
Purchase of investment securities (5,400)
Net cash used in investing activities (35,200)
Cash flows from financing activities:
Borrowing of note payable 15,800
Dividends paid (10,400)
Net cash provided by financing activities 5,400
Increase in cash 25,400
Cash, January 1, 2020, 21,400
Cash, December 31, 2020, $ 46,800
2. Quality of Earnings Ratio:
Quality of earnings ratio = Cash Flows from Operating Activities / Net Earnings
= 55,200 / 44,000
= 1.25
Capital Expenditures Ratio:
Capital expenditures ratio = Cash Flows from Investing Activities / Cash Paid for Property and Equipment
= (41,400 + 11,600) / 50,800
= 1.05
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A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 21%, while stock B has a standard deviation of return of 16%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is 0.035, the correlation coefficient between the returns on A and B is _________.
To find the correlation coefficient between the returns on stocks A and B, we need to use the information provided and apply the formula for the variance of a portfolio.
Given:Stock A standard deviation (σA) = 21%Stock B standard deviation (σB) = 16%Stock A weight (wA) = 70%Stock B weight (wB) = 30%Variance of return on the portfolio (Var) = 0.035The formula for the variance of a portfolio is:Var = wA^2 * VarA + wB^2 * VarB + 2 * wA * wB * ρAB * σA * σBWhere:VarA and VarB are the variances of stocks A and B, respectively.ρAB is the correlation coefficient between the returns on stocks A and B.σA and σB are the standard deviations of stocks A and B, respectively.Substituting the given values into the formula, we have:0.035 = (0.7)^2 * VarA + (0.3)^2 * VarB + 2 * 0.7 * 0.3 * ρAB * 21% * 16%Simplifying the equation, we can solve for ρAB:0.035 = 0.49 * VarA + 0.09 * VarB + 0.252 * ρABSince we don't have the exact values for VarA and VarB, we cannot solve for the correlation coefficient directly. However, we can rearrange the equation to isolate ρAB:ρAB = (0.035 - 0.49 * VarA - 0.09 * VarB) / (0.252)Please note that without the specific values for VarA and VarB, we cannot calculate the exact correlation coefficient.
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You are the executive director of an environmental organization known as the Southwest PA Clean Air Partnership. You learn that a new company has purchased an old steel manufacturing plant in the Mon Valley, a region that is nonattainment for several criteria pollutants. The plant is one of two remaining operational industrial plants in the area but has not altered operations in two decades
It has reduced its production and workforce significantly over this time. The new company has issued press releases announcing
their purchase of the power plant, its plans to shift production to the manufacture of piping needed in the Marcellus Shale natural gas industry and provide 1.000 new jobs for the Mon Valley. You and your organization are, however, concerned about the new company. You know from past experiences that this company has a history of Clean Air Act and Clean Water Act violations at other plants.
As you consider its plans for the old steel plant. what answer below represents your most valid concern, grounded in the Clean Air Act?
regarding air quality issues?
a. the company may try to buy its way out of it obligation under the act to regularly monitor its air emissions by participating in the air emissions trading program.
b. Because of the amount of jobs projected the company may submit a petition for a social and ecnonmic justification in order to avoid having to implement the lowest achievable emission rate.
c. The company may try to argue that its changes to the operation of the plant are not a major modification that would trigger the stringent new source reviewprovisions of the act
d. both b and c
The most valid concern, grounded in the Clean Air Act, regarding air quality issues for the Southwest PA Clean Air Partnership would be:
d. both b and c.
Option b is a valid concern because the company may submit a petition for a social and economic justification to avoid having to implement the lowest achievable emission rate. This provision of the Clean Air Act allows sources to request a relaxation of emission standards if they can demonstrate that the benefits of doing so outweigh the environmental costs.
Option c is also a valid concern because the company may try to argue that its changes to the operation of the plant are not a major modification that would trigger the stringent new source review provisions of the act. New source review is required for certain modifications to existing sources that could significantly increase emissions.
Although option a is also a valid concern, it is not directly related to air quality issues. The air emissions trading program allows companies to buy and sell pollution permits, which can help to reduce overall emissions, but may not necessarily address concerns about specific pollutants or their impacts on public health and the environment. Therefore, option d is the most appropriate answer.
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Please help urgently and show work Power up trail mix co.. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During May , the roasting department completed and transferred 22,800 units to the blending department. Of the units completed, 3,350 were from beginning inventory and the remaining 19,520 were started and completed during the month. Beginning work in process was 100% complete with respect to direct materials and 30% complete with respect to conversion. The company has 2,740 units (100% complete with respect to direct materials and 70% complete with respect to conversion) in process at month-end. Information on the roasting departments costs of beginning work in process inventory and costs added during the month follows. COST Of beginning work in process inventory Added during the month $ 7,890 239,100 $ 103,650 1,032,900 1. Prepare the roasting department process cost summary for October using the FIFO method. Prepare the journal entry dated May 31 to transfer the cost of completed units to the blending department Power Up Trail Mix Co Process Cost Summary Costs charged to production: Costs of beginning work in process: Direct materials S Conversion (Direct Labor & Overhead) Is Costs incurred this period: Direct materials Conversion Total costs to account for: S Units to account for: Beginning work in process Units started this period Total units to account for Units accounted for: Completed & Transferred out Ending work in process Total units accounted for Equivalent units of production: Beginning work in process Units started and completed Units of ending work in process Equivalent units of production Costs incurred this period Cost per equivalent unit of production Direct Materials Conversion S IS IS S Cost assignment and reconciliation: Cost of units completed and transferred out: Cost of beginning work in process Cost to complete beginning work in process Direct materials ( x Conversion Cost of units started and completed this period Direct materials ( + S Conversion + )s Total cost of goods finished this period Cost of ending work in process: Direct materials ( X )s Conversion x )s Total costs accounted for (must agree to figure above) S S S S S
Here is the process cost summary for the roasting department using the FIFO method:
The process cost summaryPower Up Trail Mix Co
Roasting Department
Process Cost Summary
For the Month Ended May 31, 2023
Costs charged to production:
* Costs of beginning work in process:
* Direct materials: $7,890
* Conversion costs: $103,650
* Costs incurred this period:
* Direct materials: $239,100
* Conversion costs: $1,032,900
Total costs to account for: $1,373,540
Units to account for:
* Beginning work in process: 3,350 units
* Units started this period: 22,800 units
Total units to account for: 26,150 units
Units accounted for:
* Completed and transferred out: 22,800 units
* Ending work in process: 2,740 units
Total units accounted for: 25,540 units
Equivalent units of production:
* Beginning work in process: 3,350 units * 100% complete = 3,350 units
* Units started and completed: 22,800 units * 100% complete = 22,800 units
* Units of ending work in process: 2,740 units * 70% complete = 1,918 units
Equivalent units of production: 33,058 units
Costs incurred this period:
* Cost per equivalent unit of production:
* Direct materials: $239,100 / 33,058 units = $7.24 per unit
* Conversion costs: $1,032,900 / 33,058 units = $31.04 per unit
Cost assignment and reconciliation:
* Cost of units completed and transferred out:
* Cost of beginning work in process: $7,890
* Cost to complete beginning work in process: $7,890 * 31.04 per unit = $244,387
* Cost of units started and completed this period: $239,100 + $1,032,900 = $1,272,000
* Total cost of goods finished this period: $1,296,387
* Cost of ending work in process: $7,24 per unit * 1,918 units = $13,897
* Total costs accounted for: $1,310,284
The journal entry to transfer the cost of completed units to the blending department is as follows:
Work in Process - Blending
Dr. $1,310,284
Work in Process - Roasting
Cr. $1,310,284
To record the transfer of completed units from the roasting department to the blending department.
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Why should you always be honest with a FSBO and "not sneak around a FSBO?"
Remember, treating FSBO sellers with respect, honesty, and professionalism is not only the right thing to do but also beneficial for your own reputation and the overall success of the transaction.
Being honest and not sneaking around a FSBO (For Sale By Owner) is important for several reasons.
1. Building trust: Honesty is the foundation of trust in any transaction. By being transparent and open with a FSBO, you can establish a trustworthy relationship, which is crucial for a successful sale.
2. Respect for their efforts: FSBO sellers have chosen to handle the sale process themselves, often to save on agent commissions. By being honest, you show respect for their decision and the effort they have put into selling their property.
3. Avoiding legal issues: Misleading or hiding information from a FSBO can lead to legal complications. It's essential to disclose all relevant details about the property honestly, such as its condition, any known issues, and accurate pricing information.
4. Building a positive reputation: Word of mouth travels fast in real estate. By being honest and professional in your dealings with FSBO sellers, you can build a positive reputation within the industry. This can lead to future referrals and collaborations.
5. Better negotiations: Honesty creates a collaborative atmosphere where both parties can openly discuss their needs and expectations. This can lead to smoother negotiations and ultimately a more satisfactory outcome for all parties involved.
Remember, treating FSBO sellers with respect, honesty, and professionalism is not only the right thing to do but also beneficial for your own reputation and the overall success of the transaction.
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Hugh, Frank, and Luis are the only three buyers of gold in a small mining town. Their inverse demand functions for gold are as follows:
Hugh: p=384.00−48.00×QH
Frank: p=192.00−24.00×QF
Luis: p=16.00−2.00×QL
QH, QF, and QL are the quantities (in ounces) demanded by Hugh, Frank, and Luis, respectively.
Suppose the price of an ounce of gold is p=p= $4.00. The total ounces of gold demanded in this market is ????
Suppose the quantity demanded of gold in this market is 14.75 ounces. Then the market price of an ounce of gold must be ????
The given information does not provide enough data to determine the specific values of QH, QF, and QL that satisfy the equation QH + QF + QL = 14.75. Therefore, we cannot determine the market price of an ounce of gold based on the given information.
To find the total ounces of gold demanded in the market, we need to sum up the quantities demanded by each buyer. Using the inverse demand functions provided, we substitute the given price of $4.00 into each function and solve for the corresponding quantities.
For Hugh, his inverse demand function is p = 384.00 - 48.00×QH. By substituting p = $4.00, we can solve for QH:
4.00 = 384.00 - 48.00×QH
48.00×QH = 380.00
QH = 7.92 ounces (rounded to two decimal places)
For Frank, his inverse demand function is p = 192.00 - 24.00×QF. Again, substituting p = $4.00 and solving for QF:
4.00 = 192.00 - 24.00×QF
24.00×QF = 188.00
QF = 7.83 ounces (rounded to two decimal places)
And finally, for Luis, his inverse demand function is p = 16.00 - 2.00×QL. By substituting p = $4.00 and solving for QL:
4.00 = 16.00 - 2.00×QL
2.00×QL = 12.00
QL = 6.00 ounces
To calculate the total ounces demanded, we sum up the quantities: QH + QF + QL = 7.92 + 7.83 + 6.00 = 21.75 ounces.
Now, let's consider the second part of the question, where the quantity demanded of gold is given as 14.75 ounces. We need to determine the market price of an ounce of gold. To do this, we can set up an equation using the inverse demand functions and solve for the price.
Using the inverse demand functions for each buyer, we can write:
p = 384.00 - 48.00×QH
p = 192.00 - 24.00×QF
p = 16.00 - 2.00×QL
Since the total quantity demanded is 14.75 ounces, we can sum up the quantities demanded: QH + QF + QL = 14.75 ounces. Now, we need to solve this system of equations simultaneously to find the market price, p.
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Project:
The purpose of this project is to provide relocation packages that can include temporary housing while our project team helps them find permanent accommodation. Our project team will have a list of available options and locations to be discussed with the students and our team will help in the showings, as well as the paperwork for renting the place. We intend to ensure that both international and domestically relocated students receive the support they need in terms of relocation and finding a permanent accommodation.
Project Monitoring:
To execute the project plan, the project manager will need to come up with a system to monitor the execution of the project. Set some expectations and discuss how your team plans to:
Manage communication with stakeholders
Track progress against milestones
Manage changes
Expectations for project monitoring include regular communication with stakeholders, tracking progress against milestones, and effectively managing changes throughout the project.
Project: The purpose of this project is to provide relocation packages, including temporary housing, while our project team assists students in finding permanent accommodation. Our team will facilitate property showings, handle paperwork for renting, and ensure comprehensive support for both international and domestically relocated students.
Relocating to a new area can be challenging, especially for students. Our project team aims to alleviate the stress associated with relocation by offering comprehensive support. We will maintain a list of available housing options in various locations, considering factors such as proximity to educational institutions, affordability, and safety. Through effective communication and collaboration with stakeholders, we will ensure that students receive personalized assistance and guidance throughout the process.
Project Monitoring: To successfully execute the project plan, our project manager will implement a robust monitoring system to track progress and manage communication with stakeholders. Here's how our team plans to handle these aspects:
1. Manage Communication with Stakeholders: Open and transparent communication is essential for project success. We will establish regular channels of communication with stakeholders, such as students, universities, and housing providers. These channels may include emails, meetings, progress reports, and feedback sessions. By actively engaging stakeholders, we can address concerns, provide updates, and maintain a collaborative environment that fosters trust and satisfaction.
2. Track Progress against Milestones: Milestones serve as crucial checkpoints to gauge the project's progress. Our project manager will define key milestones, such as securing temporary housing, completing property showings, and finalizing rental agreements. We will use project management tools or software to track these milestones, allowing us to monitor progress, identify any delays or deviations, and take appropriate corrective actions promptly. Regular progress reports will be shared with stakeholders to keep them informed and maintain transparency.
3. Manage Changes: Flexibility is vital in any project, as unexpected changes may arise. Our team will establish a change management process to handle modifications effectively. This process involves evaluating the impact of changes on the project, identifying potential risks or constraints, and seeking necessary approvals. We will maintain clear documentation of changes, ensuring that all stakeholders are aware of the modifications and their implications.
By effectively managing communication, tracking progress against milestones, and handling changes through a structured approach, our team aims to ensure the successful execution of the project, providing students with comprehensive support during the relocation process.
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Suppose that products A, B, C and D have price elasticity of demand coefficients of 0.67, 1.24, 2.01 and 0.2 respectively. A 10% rise in price would result in increased total revenue with which products?
1) A and B.
2) A and C.
3) A and D.
4) B and C.
5) B and D.
The products A and D will have increased total revenue. Therefore, option 3 (A and D) is the correct answer.
Suppose that products A, B, C and D have price elasticity of demand coefficients of 0.67, 1.24, 2.01 and 0.2 respectively. A 10% rise in price would result in increased total revenue with The products A and D would have an increased total revenue with a 10% rise in price. A product is said to have price elasticity of demand if a 1% change in price results in a greater than 1% change in quantity demanded and vice versa. It may be calculated using the formula % Change in Quantity Demanded / % Change in Price. As a result, if the elasticity is less than 1, the percentage shift in quantity is less than the percentage shift in price. Product A, Product B, Product C, and Product D all have price elasticity coefficients of demand of 0.67, 1.24, 2.01, and 0.2, respectively. We can see that all of the items are inelastic as a result of the given details. This is because the price elasticity coefficients for all products are less than one. If a company raises the price of an inelastic commodity, the total revenue would rise as well. As a result, in the given scenario, we may say that if there is a 10% rise in price.
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Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? Donna recognizes no gain or loss on the transfer of land to Development Corporation $ 150,000. All gain on the subsequent sales will be ordinary income Development's basis in the land will be to Development pre-contribution gain that accrued prior to Donna's transfer and the This alternative results in the post-contribution profit earned from subdividing the land Requirement b. In what alternative ways can the transaction be structured to achieve more favorable tax results? Assume Donna's marginal tax rate for capital gains is 23.8% (20% + 3.8% on net investment income), and Development's tax rate is 21% O A. Donna could transfer the land to Development in exchange for stock and debt instruments equal to her realized gain. In this case, Donna would recognize a long-term capital gain and Development's basis in the land would be the FMV of the land. The pre-contribution capital gain (net of any capital losses that Donna has recognized) is taxed at the applicable capital gains tax rate (in this case, 23.8%, including the 3.8% net investment tax). The step-up in basis permits Development to use the additional basis to offset income earned from subdividing the land that otherwise would be taxed at a 21% marginal tax rate. O B Donna could find another investor who is willing to contribute property valued at $150,000 in exchange for 50% of the stock of the corporation OC. There are no alternatives that will allow Donna to avoid Sec. 351 O D Donna could elect out of the Sec. 351 provisions. By including an election with her timely filed income tax return in the year of the transfer, Donna can avoid the Sec. 351 provisions.
Option A is the correct alternative to achieve more favorable tax results. MThe tax consequences of Donna transferring the land to Development Corporation in exchange for all its stock would result in Donna recognizing no gain or loss on the transfer.
When Donna transfers the land to Development Corporation in exchange for all its stock, she does not recognize any gain or loss on the transfer. This means that the appreciation in the value of the land from $150,000 to $480,000 is not subject to immediate taxation for Donna. Instead, the gain will be realized when Development Corporation sells the individual tracts of land.
The basis of the land for Development Corporation will be the pre-contribution gain that accrued prior to Donna's transfer. This means that the corporation will take over Donna's basis in the land, including any unrealized appreciation. Development Corporation will then be responsible for recognizing the gain as ordinary income when it sells the subdivided tracts of land.
By structuring the transaction in this way, Donna avoids immediate taxation on the gain and instead defers it until the land is sold by Development Corporation. The income from land sales will be treated as ordinary income for the corporation, subject to the applicable tax rate.
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Firm A had the following selected items on its balance
sheet:
Cash
$
32,000,000
Common stock ($50 par; 2,500,000 shares outstanding)
125,000,000
Additional paid-in capital
12,500,000
Retain
To calculate the retained earnings for Firm A, the amount of the beginning retained earnings, net income (or loss), and dividends paid need to be provided. If that information is not given, retained earnings cannot be calculated.
Firm A had the following selected items on its balance sheet:
Cash $ 32,000,000,
Common stock ($50 par; 2,500,000 shares outstanding) 125,000,000,
Additional paid-in capital of $12,500,000 and retained earnings are missing.
Retained earnings are the portion of a business's profits that are not distributed to shareholders in the form of dividends but are instead kept in the company for reinvestment. A business's retained earnings are calculated as follows:
Retained earnings= Beginning retained earnings+ Net income (or loss) – Dividends paid
For example, a company with beginning retained earnings of $10 million that has net income of $5 million and pays out $2 million in dividends would have ending retained earnings of $13 million.
Retained earnings = $10 million + $5 million - $2 million
= $13 million
Therefore, to calculate the retained earnings for Firm A, the amount of the beginning retained earnings, net income (or loss), and dividends paid need to be provided. If that information is not given, retained earnings cannot be calculated.
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A decrease in autonomous consumption will A) decrease the marginal propensity to consume. B) change the slope of the aggregate expenditure curve. C) shift the aggregate expenditure function downward.
A decrease in autonomous consumption will option C) shift the aggregate expenditure function downward.
Autonomous consumption is the minimum level of consumption that does not depend on income. Any change in autonomous consumption causes a change in the aggregate expenditure function. Thus, if autonomous consumption decreases, it will lead to a downward shift in the aggregate expenditure function.
The slope of the aggregate expenditure curve and marginal propensity to consume are not affected by a decrease in autonomous consumption. A change in autonomous consumption leads to a change in the intercept of the aggregate expenditure function.
This change in autonomous consumption will lead to a corresponding change in equilibrium income and expenditure level.
So, the correct answer is option C
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Revenue Drivers - This Topic will require some thinking. Show your understanding of revenue drivers by comparing two competing companies that use different competitive advantages. Let's say one sells things because of a great cost advantage while the other one focuses on unique items that permit a higher price to be charged.
We can examine the examples of Walmart and Apple Inc. Walmart's revenue driver is based on its cost advantage strategy, attracting a large customer base with its low prices and high sales volume.
Walmart is known for its cost advantage strategy, offering everyday low prices to customers. The company achieves this through economies of scale, efficient supply chain management, and negotiating favorable deals with suppliers. By minimizing costs and passing on the savings to customers, Walmart attracts price-sensitive consumers who prioritize affordability. Walmart's revenue driver is the volume of sales generated from a large customer base, which compensates for the lower profit margins associated with its cost advantage strategy.
On the other hand, Apple Inc. adopts a strategy focused on unique and innovative products, allowing them to charge premium prices. Apple invests heavily in research and development to create cutting-edge technology and distinctive designs that set its products apart from competitors. By positioning its devices as high-end, Apple appeals to a target market willing to pay a premium for superior quality, user experience, and status symbol. Apple's revenue driver stems from the ability to command higher prices, resulting in higher profit margins despite potentially lower sales volume compared to competitors.
Comparing the two revenue drivers, we can observe the following:
Customer Base: Walmart's cost advantage strategy attracts a large customer base, including budget-conscious shoppers who prioritize affordability. Apple, on the other hand, targets a more niche market of consumers willing to pay a premium for unique and technologically advanced products. While Walmart may have a larger customer base in terms of volume, Apple's customer base is characterized by brand loyalty and a willingness to spend more.
Profitability: Despite lower profit margins per unit, Walmart's cost advantage strategy allows it to generate substantial profits through high sales volume. The company leverages its economies of scale and efficient operations to offset the lower margins. In contrast, Apple's premium pricing strategy enables it to achieve higher profit margins per unit, compensating for potentially lower sales volume. Apple focuses on extracting more value from each sale by catering to a target market willing to pay a premium.
Brand Perception: Walmart's brand is associated with affordability and everyday low prices, appealing to a broad consumer base. It emphasizes value for money and convenience. On the other hand, Apple's brand image is built around innovation, sleek design, and a premium user experience. Apple products are seen as aspirational and offer a status symbol to its customers.
In conclusion, Walmart's revenue driver is based on its cost advantage strategy, attracting a large customer base with its low prices and high sales volume. Apple, on the other hand, relies on its unique and premium products, commanding higher prices and achieving higher profit margins. Both companies demonstrate successful revenue drivers by leveraging their respective competitive advantages, whether it is through cost efficiency or product differentiation.
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How does strategy formulation is relating to its
environment?
Strategy formulation is closely tied to the external environment. It involves analyzing the market, competition, and trends to create effective strategies. By understanding the environment, organizations can adapt, allocate resources, gain a competitive advantage, and manage risks.
Strategy formulation is closely related to the environment in which an organization operates. The external environment, consisting of various factors such as competitors, market conditions, technological advancements, regulatory frameworks, and socio-cultural trends, significantly influences the development of an effective strategy. Here's how strategy formulation relates to the environment:
Environmental Analysis: Strategy formulation begins with a thorough analysis of the external environment. This involves assessing market trends, customer preferences, and competitive landscape, and identifying opportunities and threats. Understanding the environment helps organizations align their strategy with external forces and anticipate changes.Competitive Advantage: Strategy formulation aims to create a sustainable competitive advantage by leveraging the organization's strengths and exploiting opportunities in the environment. By identifying unique value propositions, differentiation strategies, and market positioning, organizations can respond to competitive pressures and gain an edge in the market.Adaptation and Flexibility: The dynamic nature of the environment requires organizations to formulate strategies that are adaptable and flexible. Strategies should consider potential changes in the environment and allow for adjustments to seize emerging opportunities or mitigate threats.Resource Allocation: Strategy formulation involves allocating resources effectively based on environmental analysis. By understanding the environment, organizations can prioritize investments, allocate resources to areas with the highest growth potential, and align their capabilities with the demands of the market.Risk Assessment: Considering the environment helps organizations identify and assess potential risks and uncertainties. Strategy formulation should incorporate risk management approaches to mitigate the impact of environmental uncertainties and build resilience.Overall, strategy formulation is a continuous process that involves understanding and responding to the external environment. By considering the dynamics of the environment, organizations can develop strategies that capitalize on opportunities, address threats, and create a sustainable position in the market.
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New-Project Analysis
The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department. The equipment's basic price is $76,000, and it would cost another $15,500 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $30,100. The MACRS rates for the first three years are 0.3333, 0.4445 and 0.1481. (Ignore the half-year convention for the straight-line method.) Use of the equipment would require an increase in net working capital (spare parts inventory) of $2,840. The machine would have no effect on revenues, but it is expected to save the firm $24,880 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 25%. Cash outflows and negative NPV value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
a. What is the Year-0 net cash flow?
$
b. What are the net operating cash flows in Years 1, 2, and 3? (Note: Do not include recovery of NWC or salvage value in Year 3's calculation here.)
Year 1: $
Year 2: $
Year 3: $
c. What is the additional (nonoperating) cash flow in Year 3?
$
d. If the project's cost of capital is 10%, what is the NPV of the project?
$
Should the chromatograph be purchased?
The proposed acquisition of the chromatograph for MorChuck Enterprises has a negative net cash flow and NPV, indicating it is not advisable to purchase the equipment.
a. The Year-0 net cash flow is the initial cost of the equipment plus the cost of modification and the increase in net working capital:
Year-0 Net Cash Flow = -($76,000 + $15,500 + $2,840) = -$94,340
b. The net operating cash flows in Years 1, 2, and 3 are calculated by subtracting the before-tax operating cost savings from the depreciation expense:
Year 1 Net Operating Cash Flow = -$24,880 + ($76,000 × 0.3333) = -$2,212
Year 2 Net Operating Cash Flow = -$24,880 + ($76,000 × 0.4445) = -$13,615
Year 3 Net Operating Cash Flow = -$24,880 + ($76,000 × 0.1481) = -$14,970
c. The additional (nonoperating) cash flow in Year 3 is the sum of the salvage value and the recovery of net working capital:
Additional (Nonoperating) Cash Flow in Year 3 = $30,100 + $2,840 = $32,940
d. To calculate the NPV of the project, we discount the cash flows at the project's cost of capital (10%) and sum them up:
NPV = Year-0 Net Cash Flow + (Year 1 Net Operating Cash Flow / (1 + Cost of Capital)^1) + (Year 2 Net Operating Cash Flow / (1 + Cost of Capital)^2) + (Year 3 Net Operating Cash Flow + Additional Cash Flow in Year 3) / (1 + Cost of Capital)^3
NPV = -$94,340 + (-$2,212 / (1 + 0.10)¹) + (-$13,615 / (1 + 0.10)²) + (-$14,970 + $32,940) / (1 + 0.10)³
NPV = -$94,340 + (-$2,012) + (-$11,609) + $13,650 ≈ -$94,311
The NPV of the project is approximately -$94,311.
Since the NPV is negative, the project has a negative NPV and should not be purchased.
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As the required rate of return increases, the:
a. Average accounting return decreases
b. Discounted payback period decreases.
c. Payback period decreases.
d. Profitability index decreases.
e. Net present value increases.
As the required rate of return increases, the answer is e. Net present value increases.
The net present value (NPV) is a measure used to evaluate the profitability of an investment by comparing the present value of its cash inflows to the present value of its cash outflows. The required rate of return, also known as the discount rate, represents the minimum rate of return an investor expects to receive from an investment to compensate for the risk and opportunity cost of their capital.When the required rate of return increases, it means that investors have higher expectations for the return on their investment. This leads to a higher discount rate used in the calculation of the NPV. As a result, the present value of future cash flows decreases more significantly, which leads to an increase in the net present value.
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AJUSTED BANK BALANCE=$4,320 Question 2 (3 marks) Locker Rentals Corp. (LRC) operates locker rental services at several locations throughout the city including the airport, bus depot, shopping malls, and athletics facilities. Unlike some of the old mechanical lockers that charge a fixed amount per use, LRC's lockers operate electronically and are able to charge based on hours of use. The locker system transmits a daily message to LRC's office indicating the number of hours that lockers have been used, which the office manager uses to determine when cash should be picked up at each location. LRC's cash receipts system is described below. a. Two employees ("cash collection clerks") are responsible for collecting cash from the lockers. Based on instructions from the office manager, one clerk collects cash from specific locations on the west side of the city and the other collects from specific locations on the east side. b. When each cash collection clerk returns with the cash, a supervisor counts the cash and prepares a cash count sheet. c. The supervisor places the cash in a locked cashbox until it is taken to the bank for deposit. d. The supervisor, not the cash collection clerks, takes the cash to the bank for deposit. e. The supervisor prepares a duplicate deposit slip, which the bank stamps after the deposit is made to indicate the date and amount of the deposit. f. The supervisor sends the stamped bank deposit slip and daily cash summary to the accountant, who compares them before preparing a journal entry debiting Cash and ing Locker Rental Revenue. Required: 1. For each statement (a)-(f), identify the internal control principle being applied. Question 3 (2 marks) What are the limitations of internal control? Explain each one of them.
1. Internal control principles applied to each statement:
a. Segregation of duties: By assigning specific cash collection clerks to specific locations, the company ensures that the responsibility for collecting cash is divided between two individuals, reducing the risk of collusion or fraudulent activities.
b. Independent internal verification: The supervisor independently counts the cash and prepares a cash count sheet, providing a secondary check on the accuracy of the cash collected by the clerks.
c. Physical controls: Placing the cash in a locked cashbox helps prevent unauthorized access and protects the cash until it is taken to the bank.
d. Segregation of duties: The supervisor, separate from the cash collection clerks, takes the cash to the bank for deposit, ensuring that the custody and transportation of cash are handled by different individuals.
e. Documentation procedures: The duplicate deposit slip serves as evidence of the bank deposit and provides a record of the date and amount of the deposit.
f. Independent internal verification: The accountant compares the stamped bank deposit slip with the daily cash summary, conducting an independent verification of the accuracy of the deposit before preparing the journal entry.
2. Limitations of internal control:
a. Human error: Internal controls can be affected by human mistakes, such as data entry errors or misinterpretation of procedures.
b. Management override: In some cases, management may override or circumvent internal controls for personal gain or to manipulate financial results.
c. Collusion: If two or more employees collude, they can bypass internal controls and commit fraud without detection.
d. Cost-benefit trade-off: Implementing strong internal controls can be costly, and organizations need to weigh the costs against the potential benefits.
e. Changing environment: Internal controls may become outdated or ineffective as the business environment changes, such as advancements in technology or shifts in operational processes.
f. Limited scope: Internal controls are designed to mitigate specific risks and may not address all potential risks or provide absolute assurance against fraud or errors.
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answer image blur
Transcribed image text: Question 12 of 13 Current Attempt in Progress Sharon Lee started her own consulting firm, Lee Consulting on May 1, 2022. The trial balance at May 21s LEE CONSULTING Trial Balance May 31, 2022 Account Number Debit Credit 101 $4,000 112 5,900 126 2,000 130 149 10200 201 209 301 400 726 729 Cash Accounts Receivable Supplies Prepaid insurance Equipment Accounts Payable Uneamed Service Revenue Owner's Capital Service Revenue Salaries and Wages Expense Rent Expense 3.500 1400 $32.400 14.200 1.900 18.200 8.100 $32,400 -13 1 Question Question Ang Dipe Question Question 7 Question Question Agri Question 10 Question Viewing Question 12 Quest Stand ME San W me AN A aft ut +13 AXA 729 1,400 $32.400 $32.400 In addition to those accounts listed on the trial balance, the chart of accounts for Lee Consulting also contains the following accounts and account mambers: No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable. No 631 Supples Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expe Other data 1 $900 of supplies have been used during the month 2. Utilities expense incurred but not paid on May 31, 2022, $200 Animurance policy for 2 years was purchased on May 1 $300 of the balance in the uneared service revenue account remains unearned at the end of the month S May 31 is a Wednesday and employees are paid on Fridays. Lee Consulting has two employees, who are paid $900 each for a 5-day work week 6 The office furniture has a 5-year te with no salvage value. It is being depreciated at $170 per month for 60 months 7. twoices representing $1.700 of services performed during the month have not been recorded as May 31 MacBook Air 1 Question Question Question 7 Acc Question Questions Question 10 Question 11 Viewing Question 12 ng ng Question 13 Ne 141 wt WAN GA 441 +45 ww HE Question 12 of 13 < > /31 Prepare the adjusting entries for the month of May List all debit entries before credit entries Credit account titles are automatically indented when the amount is entered. Do not indent manually) No. Date Account Titles and Explanation Ref. Debit Credit May 1 631 31 126 Mar 31 732 201 722 130 209 400 226 212 2 3 4 3 May 31 May 31 May 31 Question 4 Question S Ating Question 6 Question 7 Question Ag Question Accounting D Question 10 Question 11 Viewing Question 12 Question 13 -11 Ma non arted -/1 tran +41 Nase -/1 /1 1 ated 13 ustat 4/1 Me CH 3 Homework Question 12 of 13 May 31 May 31 May 31 May T 4 5. 6 31 May 3. 31 eTextbook and Media List of Accounts N 722 130 209 400 726 212 717 150 112 400 -73 f Question & Questions Question Question 7 Question Question Question 10, Question 11 Viewing Question 12 Question 13 De KIC prote LA 17- #1 PAR AL +11 PARCE EPP -/1
The adjusting entries are as follows: No. Account Titles and Explanation Ref. Debit Credit1 Accumulated Depreciation-Equipment (150) Equipment (126) Depreciation Expense (717) $170 $170 $1702 Supplies Expense (631) Supplies (126) $900 $9003 Salaries and Wages Payable (212) Salaries and Wages Expense (726) $900 $9004 Prepaid Insurance (130) Insurance Expense (722) $150 $1505 Service Revenue (400) Unearned Service Revenue (149) $1,400 $1,4006 Utilities Expense (732) Utilities Payable (209) $200 $200
In accounting, the process of updating an account's balance is known as an adjusting entry. An adjusting entry is made at the end of the accounting cycle after all of the day-to-day transactions have been recorded, to ensure that the account balance reflects the company's actual financial condition. The adjusting entries for Lee Consulting for the month of May are as follows: May 31 Accumulated Depreciation-Equipment (150)Equipment (126)Depreciation Expense (717) - Depreciation expense is recorded for office furniture supplies used up during the month. Supplies Expense (631) - Supplies that were used up during the month are expensed.Salaries and Wages Payable (212)Salaries and Wages Expense (726) - Employee pay is recorded for the last three days of the month.Prepaid Insurance (130)Insurance Expense (722) - Insurance expense is recorded for May 1 to May 31, 2022.Service Revenue (400)Unearned Service Revenue (149) - A portion of unearned service revenue for the month is recorded, given that $300 is unearned as of May 31, 2022. Utilities Expense (732)Utilities Payable (209) - Utility expenses incurred but not yet paid as of May 31, 2022, are recorded.
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Indicate how the following transaction should be recorded: Paid $800 dividends to stockholders. a. Decrease Cash, $800; Decrease Common Stock, $800. b. Decrease Cash, $800; Decrease Retained Earnings with Wages Expense, $800. c. Decrease Cash, $800; Decrease Retained Earnings with Dividends, $800. Increase Cash, $800; d. Decrease Retained Earnings with Dividends, $800.
The following transaction should be recorded: Paid $800 dividends to stockholders. The option of Decrease Cash, $800; Decrease Retained Earnings with Dividends, $800 is the right choice for recording this transaction. When a corporation earns a profit, it can choose to retain the earnings for use in the company or distribute it to the shareholders as dividends.
Dividends are generally declared and paid in cash. Dividends may also be paid in the form of additional shares of stock or other assets, such as property or services. How to record Dividend payment? To record the payment of dividends, follow these steps: Decrease the balance in the dividends payable account by the amount of the dividend payments. Decrease the balance in the cash account by the amount of the dividend payments. Decrease the balance in the retained earnings account by the same amount as the dividends. Therefore, the right choice is c. Decrease Cash, $800; Decrease Retained Earnings with Dividends, $800.
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You’ve collected the following information about Odyssey, Inc.:
Sales $ 202,848
Net income $ 10,416
Dividends $ 4,145
Total debt $ 62,362
Total equity $ 64,658
If the company grows at the sustainable growth rate, how much new borrowing will take place in the coming year, assuming a constant debt–equity ratio?
The new borrowing that will take place in the coming year, assuming a constant debt-equity ratio, will be $6,156.
To calculate the new borrowing, we need to determine the growth rate of Odyssey, Inc. based on the given information. The sustainable growth rate is calculated using the formula:
Sustainable Growth Rate = (Net Income / Total Equity) * (1 - Dividend Payout Ratio)
First, we need to calculate the dividend payout ratio. The dividend payout ratio is determined by dividing dividends by net income:
Dividend Payout Ratio = Dividends / Net Income
In this case, the dividend payout ratio is 4,145 / 10,416 = 0.3975.
Next, we can calculate the sustainable growth rate using the formula:
Sustainable Growth Rate = (10,416 / 64,658) * (1 - 0.3975) = 0.1617
The sustainable growth rate is 0.1617 or 16.17%.
Finally, we can calculate the new borrowing by multiplying the growth rate by the total equity:
New Borrowing = Sustainable Growth Rate * Total Equity = 0.1617 * 64,658 = $10,484.13
However, since we assume a constant debt-equity ratio, we need to consider the existing debt. The total debt is given as $62,362. Therefore, the new borrowing would be the difference between the calculated amount and the existing debt:
New Borrowing = $10,484.13 - $62,362 = -$51,877.87
Since the result is negative, it indicates a reduction in borrowing rather than new borrowing.
Based on the given information and assuming a constant debt-equity ratio, it appears that Odyssey, Inc. will not engage in new borrowing in the coming year. In fact, there would be a reduction in borrowing by approximately $51,877.87.
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Kelli Blakely is a portfolio manager for the Miranda Fund, a core large-cap equity fund. The market proxy and benchmark for performance measurement purposes is the S&P 500. Although the Miranda portfolio generally mirrors the asset class and sector weightings of the S&P, Blakely is allowed a significant amount of leeway in managing the fund. Blakely was able to produce exceptional returns last year (as outlined in the table below) through her market timing and security selection skills. At the outset of the year, she became extremely concerned that the combination of a weak economy and geopolitical uncertainties would negatively impact the market. Taking a bold step, she changed her market allocation. For the entire year her asset class exposures averaged 50% in stocks and 50% in cash. The S&P's allocation between stocks and cash during the period was a constant 97% and 3%, respectively. The risk-free rate of return was 2%. One Year Trailing Returns Return Std Dev Beta Miranda Fund 10.2% 37% 1.10 S&P 500 5 pts -22.5% 44% 1.00 Calculate the following return measures for the two funds: Calculate the following return measures for the two funds: a. Treynor Measure Miranda Fund S&P 500 Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answers to 4 decimal places. b. Jensen Measure Miranda Fund % Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. Do not enter percent sign (no %)
a. The Treynor Measure for the Miranda Fund is 0.0709 and for the S&P 500 is 0.0300.
b. The Jensen Measure for the Miranda Fund is 6.10%.
a. The Treynor measure is calculated using the formula: (Fund Return - Risk-Free Rate) / Fund Beta.
For the Miranda Fund:
Treynor Measure = (10.2% - 2%) / 1.10 = 0.0709
For the S&P 500:
Treynor Measure = (5% - 2%) / 1.00 = 0.0300
b. The Jensen measure is calculated using the formula: Fund Return - (Risk-Free Rate + Fund Beta * (Market Return - Risk-Free Rate)).
For the Miranda Fund:
Jensen Measure = 10.2% - (2% + 1.10 * (5% - 2%)) = 6.10%
Note: The Jensen measure represents the risk-adjusted excess return of a portfolio relative to its expected return based on the Capital Asset Pricing Model (CAPM). A positive Jensen measure indicates that the portfolio has outperformed expectations, while a negative Jensen measure indicates underperformance.
Therefore, the Treynor Measure for the Miranda Fund is 0.0709 and for the S&P 500 is 0.0300. The Jensen Measure for the Miranda Fund is 6.10%.
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TRUE / FALSE. "14-Employers should send TD1 forms to the government as soon as
they are completed.
False. Employers are not required to send TD1 forms to the government as soon as they are completed. Rather, they should provide these forms to their employees so that they can specify the amount of federal and provincial tax deductions to be withheld from their paychecks.
The TD1 form is a personal tax credit return that every employee must complete and file with their employer in order to have the correct amount of income tax deducted from their pay. The form provides information about the individual's personal situation, such as their marital status, number of dependents, and other tax credits available to them.
Employers are required to keep a copy of the completed TD1 form for each employee on file for six years. This is important in case of an audit or if there are any questions about the amount of taxes withheld from an employee's paycheck.
While employers are not required to send TD1 forms to the government, they are required to remit the taxes withheld from employee paychecks to the government on a regular basis. The frequency of these remittances will depend on the size of the business and other factors, but they typically occur either monthly or quarterly.
In summary, employers should make sure that their employees complete and submit TD1 forms in a timely manner, but they are not required to send these forms to the government. Instead, they should keep copies on file in case of future audits or inquiries.
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If a company increases its selling price by $2 per unit, the break-even point in units will: Select one: O a. decrease Ob. change but direction cannot be determined Oc. increase O d. not change
If a company increases its selling price by $2 per unit, the break-even point in units will decrease. This statement is true.The break-even point is the point where the cost of producing the product is the same as the revenue from selling the product. Thus, the profit of the company is zero at this point. The correct option is (a) decrease.
If a company increases the selling price of its product, the company's revenue will increase. The revenue increases at a faster rate than the cost, leading to an increase in profits. The break-even point is the point where the profit of the company is zero. Since the company's profits increase when the selling price is increased, the break-even point must be lower than the original value as a result of the increased selling price.
Thus, the break-even point decreases.An increase in the selling price will decrease the break-even point, which is the correct option.
The formula for calculating the break-even point in units is given by: Break-even point in units = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)An increase in selling price per unit leads to a decrease in the break-even point in units. Therefore, the correct option is (a) decrease.
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