Answer:
The Question statement that best describes an inference about a difference between two population means is statement 4 - Do community college students receive less in financial aid than students attending public universities?
Explanation:
The research question that involves an inference about a difference between two population means is expressed in the fourth question statement, which is - Do community college students receive less in financial aid than students attending public universities?
Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $3,000. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.)
Answer:
$360
Explanation:
The computation of the depreciation deduction during the first year is shown below:
= Basis of the camera × given percentage × weightage
= $3,000 × 60% × 20%
= $360
Since the 60% is used for business and 40% used for personal
And there is a recovery period of assets of 5 years so half year convention period applies
Cully Furniture buys two products for resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100 cubic feet of storage space, and each queen bed costs $250 and requires 80 cubic feet of storage space. The company has $80,000 to invest in shelves this week, and the warehouse has 30,000 cubic feet available for storage. Profit for each king bed is $400 and for each queen bed is $200. 1). (10’) Please set up the LP model for the above situation.2). (20’) How many king beds (K) and how many queen bed (Q) should be purchased at optimal? 3). (10’) Whether we have slack or surplus variable applicable in this question? If we do, what is the value of slack (or/and surplus) variable? What is the meaning behind it?4). (10’) If the furniture company purchases no king beds and 300 queen beds, which resources will be completely used (at capacity)?
Answer:
1) 500K + 250Q ≤ 80,000
100K+80Q≤ 30,000
K≥0
Q≥0
P= 400K + 200Q
2) zero king beds and 320 queen beds
or zero queen beds and 160 king beds
3) surplus variable
surplus variable is storage space
values of surplus variable is 14,000 cubic feet if zero queen beds and 160 king beds
value of surplus variable is 4,400 cubic feet if zero king beds and 320 queen beds.
surplus is the extra amount available after all resources have been utilized to theri maximum.
4) none of the resources will be completely used. There will be surplus of both
Explanation:
1) Implicit variables: K≥0 ; Q ≥ 0
Explicit variables:
500K + 250Q ≤ 80,000-------------------------- from investment constraint
100K+80Q≤ 30,000 ---------------------- from storage space constraint
LP: P= 400K + 200Q
2) See the attachment for profit maximization graph
3) From graph in the attachment, it can be inferred that storage space is the surplus variable since graph of that equation lies completely outside of optimal area.
Also,
if K=160 and Q=0, the inequality of investment gives
500(160) + 250(0)= 80,000
if K=0 and Q=320, the inequality of investment gives
500(0)+ 250(320) =80,000
if K=0 and Q = 320, the inequality of space gives
100(0) + 80(320)= 25,600
surplus= 30,000- 25,600= 4,400
if K=160 and Q=0, the inequality of space gives
100(160) +250(0)= 16000
surplus= 30000-16000= 14000
4) K=0 and Q=300
investment inequality gives
500(0) + 250(300) ≤ 80,000
75,000≤ 80,000
space inequality gives
100(0) + 80(300) ≤ 30,000
24,000≤ 30,000
Both space and investment are in surplus
Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017? Hot Dogs Buns Quantity Price Quantity Price Year 2016 (base year) 6 million $2 4 million $1 Year 2017 8 million $3 6 million $2 a. $22 million. b. $26 million c. $16 million. d. $36 million.
Answer:
Option (a).
Explanation:
According to the scenario, computation of the given data are as follow:-
Real GDP = Base Year Price × Current Year Quantity
Real GDP in 2016= $2 × 6 million + $1 × 4 million
= $12 million + $4 million = $16 million
Real GDP in 2017 = $2 × 8 million + $1 × 6 million
= $16 million + $6 million = $22 million
According to the analysis, the real GDP in 2017 is $22 million. So (a) option is correct.
Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. The discount is legally sufficient consideration
a. because it is a promise of something of value.
b. only if Tasty uses it.
c. only if Sports Bar adds a cash rebate.
d. under no circumstances.
Answer:
The correct answer is the option A: because it is a promise of something of value.
Explanation:
To begin with, in order to understand that the discount is legally sufficient consideration it is necessary to understand that it is due to the fact that what the company is offering is something of value for them, therefore that they decide to offer it to the other business in order to make an agreement according to the situation that they are both in. Moreover, that promise is consider to be legitim in court if it was stated in a written way in where both parties agree to the terms of use.
Mills Corporation's balance sheet included the following information: Accounts Receivable $ 580,000 Less: Allowance for Doubtful Accounts 73,000 Accounts Receivable, Net of Allowance $ 507,000 If the Allowance account had a credit balance of $31,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year, what was the amount of Bad Debt Expense recognized during the year
Answer:
The amount of Bad Debt Expense recognized during the year is $41,500.
Explanation:
Bad debt expense is an estimate of the accounts receivable that is deemed uncollectible. At times, it is determined by percentage of credit method or aging method.
If the allowance account had an opening balance of $31,500 before adjustment and there was no rite-off during the period, with a closing balance of $73,000, the bad debt expense is simply the difference between the closing balance and the opening balance, that is , $73,000 - $31,500 = $41,500.
The following units of an item were available for sale during the year: Beginning inventory 8,100 units at $180 Sale 5,300 units at $300 First purchase 15,000 units at $185 Sale 13,000 units at $300 Second purchase 16,000 units at $192 Sale 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? $ b. What is the total cost of the ending inventory according to LIFO?
Answer:
a. $1,305,600
b. $1,258,000
Explanation:
FIFO - Assumes that the first goods received by the business will be first ones to be delivered to the final customer
FIFO Inventory = 6,800 units × $ 192 = $1,305,600
LIFO - Assumes that the last goods purchased are the first ones to be issued to the final customer
LIFO Inventory = 2,800 units × $180 = $ 504,000
2,000 units × $185 = $ 370,000
2,000 units × $ 192 = $ 384,000
Total = $1,258,000
Which of the following situations leads to an unplanned increase in inventories of $2.0 trillion? A. real GDP = $5.0 trillion and aggregate planned expenditures = $7.0 trillion B. real GDP = $5.0 trillion and aggregate planned expenditures = $5.0 trillion C. real GDP = $6.0 trillion and aggregate planned expenditures = $4.0 trillion D. real GDP = $8.0 trillion and aggregate planned expenditures = $5.0 trillion E. More information is needed about planned investment and actual investment.
Answer: C. real GDP = $6.0 trillion and aggregate planned expenditures = $4.0 trillion
Explanation:
Unplanned Inventory arises when Real GDP is larger than Planned Expenditure because it must satisfy the below formula,
Real GDP = Planned + Unplanned expenditure
For Option C,
Real GDP = 6.0 trillion,
Planned expenditure = 4.0 trillion
Unplanned Expenditure = Real GDP - Planned Expenditure
= $6.0 trillion - $4.0 trillion
= $2.0 trillion
Therefore Option C is correct as it led to a $2.0 trillion increase in Expenditure which translates to inventory.
Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company's union has not been concluded. Todd decides to continue working on the resource schedule in anticipation of a satisfactory settlement. Todd's approach would be an example of which method of dealing with risk
Answer:
Accept it.(Risk).
Explanation:
This is commonly known also as risk retention which is been encountered in business or investments. Many businesses use risk management techniques to identify, assess and prioritize risks for the purpose of minimizing, monitoring, and controlling said risks.
Most businesses and risk management personnel will find that they have greater and more numerous risks than they can manage, mitigate, or avoid given the resources they are allocated. As such, businesses must find a balance between the potential costs of an issue resulting from a known risk and the expense involved in avoiding or otherwise dealing with it. Types of risks include uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters, and overly aggressive competition.
You are given the following information about 2 accounts: Account 1 Time Account Value before transactions Deposit Withdrawal 0 100 0.25 110 X 0.75 120 3X 1 82 Account 2 Time Account Value before transactions Deposit Withdrawal 0 100 0.5 120 2X 1 140 You are also told that the dollar weighted return over the year on account 1 is i. If the time weighted return over the year on account 2 is also i, what are X and i
Answer:
Check the explanation
Explanation:
For account 1:
Dollar weighted investment = 100 for entire year + X for three fourth of the year - 3X for one fourth of the year = 100 + 3X/4 - 3X/4 = 100
Dollar return = Closing balance - opening balance - (Total deposit - total withdrawal) = 82 - 100 - (X - 3X) = 2X - 18
Hence, dollar weighted return = i = Dollar return / Dollar weighted investment = (2X - 18) / 100
Or, 100i = 2X - 18 Or, 50i = X - 9
For account 2:
Time weighted return: It has two components:
100 growing to 120 in 0.5 year
Immediately after deposit of 2X, the capital becomes 120 + 2X that grows to become 140 in the next 0.5 year
Hence time weighted return = 1 + i = 120 / 100 x 140 / (120 + 2X) = 168 / (120 + 2X) = 84 / (60 + X)
From the first equation, i = (X - 9) / 50
Hence, from second equation, 1 + i = 1 + (X - 9) / 50 = (41 + X) / 50 = 84 / (60 + X)
Hence, (60 + X).(41 + X) = 50 x 84
Hence, X2 + 101X + 2,460 = 4,200
Or, X2 + 101X - 1,740 = 0
It's a quadratic equation that can be factorized as:
(X - 15).(X + 116) = 0
Hence, X = 15
Hence, i = (X - 9) / 50 = (15 - 9) / 50 = 0.12 = 12%
Assume that at the end of 2019, Clampett, Inc. (an S corporation) distributes property (fair market value of $40,000, basis of $5,000) to each of its four equal shareholders (aggregate distribution of $160,000). At the time of the distribution, Clampett, Inc., has no corporate earnings and profits and J.D. has a basis of $50,000 in his Clampett, Inc., stock. What is J.D.'s stock basis after the distribution
Answer:
J.D.'s stock basis after the distribution is $85,000
Explanation:
In order to calculate the J.D.'s stock basis after the distribution we would have to use the following formula:
J.D.'s stock basis after the distribution=original basis +increase/decrease in basis from gain from property distribution
original basis=$50,000
basis from gain from property distribution=$40,000-$5,000
basis from gain from property distribution=$35,000
Therefore, J.D.'s stock basis after the distribution=$50,000+$35,000
J.D.'s stock basis after the distribution=$85,000
The Weigelt Corporation has three branch plants with excess production capacity. Fortunately, the corporation has a new product ready to begin production, and all three plants have this capability, so some of the excess capacity can be used in this way. This product can be made in 3 sizes (large, medium, and small) that yield a net unit profit of $420, $360, and $300, respectively. Plants 1, 2, and 3 have the excess capacity to produce 750, 900, and 450 units per day of this product, regardless of the size or combination of sizes involved.
The amount of available in-process storage space also imposes a limitation on the production rates of the new product. Plants 1, 2, and 3 have 13,000, 12,000, and 5,000 square feet of inprocess storage available for a day’s production of this product. Each unit of the large, medium, and small sizes produced per day requires 20, 15, and 12 square feet, respectively.
Sales forecasts indicate that if available, 900, 1200, and 750 units of the large, medium, and small sizes would be sold per day.
At each plant, some employees will need to be laid off unless most of the plant’s excess production capacity can be used to produce the new product. To avoid layoffs if possible, management has decided that the plants should use the same percentage of their excess capacity to produce the new product.
Management wishes to know how much of each size should be produced by each plant to maximize profit.
Required:
1. Formulate and solve a linear programming model for this mixed problem on a spreadsheet.
2. Express the model in algebraic form.
Answer:
Explanation:
Let xij be the number of units of size j product (j = L, M, S) produced at plant i (i = 1,
2, 3).
The objective is to maximize
Z = 420(x1L + x2L + x3L) + 360(x1M + x2M + x3M) + 300(x1S + x2S + x3S)
subject to the following constraints.
Capacity constraints:
x1L + x1M + x1S ≤ 750
x2L + x2M + x2S ≤ 900
x3L + x3M + x3S ≤ 450
Storage space constraints:
20x1L + 15x1M + 12x1S ≤ 13000
20x2L + 15x2M + 12x2S ≤ 12000
20x3L + 15x3M + 12x3S ≤ 5000
Same capacity percentage constraints:
900(x1L + x1M + x1S) − 750(x2L + x2M + x2S) = 0
450(x2L + x2M + x2S) − 900(x3L + x3M + x3S) = 0
Nonnegativity constraints:
All xij ≥ 0
Indigo Incorporated factored $135,100 of accounts receivable with Sweet Factors Inc. on a without-recourse basis. Sweet assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments. Prepare the journal entry for Indigo Incorporated and Sweet Factors to record the factoring of the accounts receivable to Sweet.
Answer:
Indigo Incorporated Journal entrie
Dr Cash 121,590
Dr Due from Factor 9,457
Dr Loss on Sale of Receivable 4,053
Cr Accounts Receivable 135,100
Sweet Factors Inc
Dr Account Receivable 135,100
Cr Due to Customer 9,457
Cr Finance Revenue 4,053
Cr Cash 121,590
Explanation:
Indigo Incorporated Journal entries
Dr Cash 121,590
Dr Due from Factor 9,457
Dr Loss on Sale of Receivable 4,053
Cr Accounts Receivable 135,100
Sweet Factors Inc
Dr Account Receivable 135,100
Cr Due to Customer 9,457
Cr Finance Revenue 4,053
Cr Cash 121,590
Due from Factor = 7% x $135,100 = $9,457
Loss on Sale of Receivables = 3% x $135,100= $4,053
Gratuities: A customer has a large sailing yacht on a vessel that your company will be discharging. The customer is present and is watching the off-loading operation. The five stevedores you manage pull off a very tricky maneuver, safely transferring the yacht to the trailer. The customer is elated, and reaches into his pocket, pulling out a big wad of $50 bills. What do you do?
Answer:
The answer is "Shifting".
Explanation:
Some information, that is choices is missing in the question so that the correct option can be identified as follows:
We assume, that the company is doing, as per the given scenario, it set out from the Query, the Market of Packers, and adjusting operation involving shifts to one position of industrial vehicles.
Which of the following is false? Economists who advocate discretionary monetary policy argue that it is more likely to achieve the desired economic results because the monetary authority has the flexibility to shape the best monetary policy to the existing circumstances. Here is an example of zero crowding out: The government spends $100 more and the private sector doesn’t spend any less. Here is an example of complete crowding out: The government spends $100 more and the private sector spends $100 less. Not all economists believe that rule-based monetary policy is preferable to discretionary monetary policy. none of the above
Answer: None of the above
Explanation:
All of the above are correct.
For option A, Economists who advocate discretionary monetary policy do indeed believe that the monetary authority using this policy is more flexible to shape the best monetary policy to the existing circumstances.
Option B is also correct because Crowding out occurs when the government increases investment by borrowing which leaves less money for the private sector to borrow so they spend less. The government spent money here yet the private sector did not spend less so it is Zero Crowing out.
Option C by option B's explanation holds true because the entire amount the Government increased by was denied the private sector.
Option D is also true as not all Economists prefer rule-based monetary policy to discretionary monetary policy.
They are all true.
A television manufacturer would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement: Raw materials $1,500,000 Work-in-process $1,200,000 Finished goods $800,000 In addition, the cost of goods sold last year (50 weeks) was $20 million. What is its total inventory (measured as weeks of supply) Answer
Answer:
A.8.75 weeks
B.5.71
Explanation:
a.
Weeks of supply = average aggregate inventory value/weekly sales at cost
=(1,500,000 + 1,200,000 + 800,000)/(20,000,000/50)
=3,500,000/400,000
= 8.75 weeks
b.Inventory turnover = annual sales (at cost)/average aggregate inventory value
=20 million/3.5 million
= 5.71
Answer:
Weeks Of Supply = 27.82 weeks
Explanation:
Weeks of Supply tells us that on average how long an inventory will last based on current demand.
The formula to calculate it is given below
Weeks Of Supply = Average Aggregate Inventory Value/ Weekly Cost of Sales
Weeks Of Supply = Raw Materials + Work In Process + Finished Goods/ Weekly Cost of Sales
Weeks Of Supply =$1,500,000+ $1,200,000+ $800,000/$ 20,000,000/52
Weeks Of Supply = 10,700,000/384615.385= 27.82 weeks
If the weeks of supply is lower it is better.
Inventory Turnover= $ 20,000,000/10,700,000=1.87 turns
Goshford Company produces a single product and has capacity to produce 105,000 units per month. Costs to produce its current sales of 84,000 units follow. The regular selling price of the product is $126 per unit. Management is approached by a new customer who wants to purchase 21,000 units of the product for $77.40 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company’s regular selling territory, so there will be a $7.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Per Unit Costs at 84,000 Units Direct materials $ 12.50 $ 1,050,000 Direct labor 15.00 1,260,000 Variable manufacturing overhead 14.00 1,176,000 Fixed manufacturing overhead 17.50 1,470,000 Variable selling and administrative expenses 14.00 1,176,000 Fixed selling and administrative expenses 13.00 1,092,000 Totals $ 86.00 $ 7,224,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $77.40 per unit.
Answer:
Net income= $4,836,200
Explanation:
Giving the following information:
Offer:
21,000 units for $77.4
An increase in variable cost= $7.6 per unit
Direct materials $ 12.50 $ 1,050,000
Direct labor 15.00 1,260,000
Variable manufacturing overhead 14.00 1,176,000
Fixed manufacturing overhead 17.50 1,470,000
Variable selling and administrative expenses 14.00 1,176,000
Fixed selling and administrative expenses 13.00 1,092,000
Totals $ 86.00 $ 7,224,000
First, we need to calculate the effect on the income of accepting the offer:
Effect on income= 21,000*77.4 - 21,000*(12.5 + 15 + 14 + 14 + 7.6)
Effect on income= 1,625,400 - 1,325,100
Effect on income= 300,300
Net income= 84,000*140 + 300,300 - 7,224,000
Net income= $4,836,200
Bonka Toys is planning to buy a robot costing $75,000. After 5 years its salvage value will be $18,000. An overhaul costing $10,000 will be needed in Year 3. Operations and Maintenance costs will be $2000 per year. What is the cash flow stream for using this robot? (Hint: cash flow stream is a set of yearly cash flows for purchasing, using, and selling this robot).
Question:
Bonka Toys is planning to buy a robot costing $75,000. After 5 years its salvage value will be $18,000. An overhaul costing $10,000 will be needed in Year 3. Operations and Maintenance costs will be $2000 per year. What is the cash flow stream for using this robot? (Hint: cash flow stream is a set of yearly cash flows for purchasing, using, and selling this robot).
Assuming an interest rate of 10%
Note this was added by the tutor
Equivalent annual cost = $2646.41
Explanation:
The cash flow stream = Present value of cost / Annuity factor
PV of cost
PV of salvage value = 8,000× 1.1^(-4) =5464.107
PV of operating cost = 2000 × (1- 1.1^-4)/0.1 )= 6339.730
PV of overhaul costing = 10,000 × 1.1^(-3) = 7513.148
Present value (PV) of total cost:
= 6339.73 + 7513.148- 5464.10=8388.77
Annuity factor for 4 years at 10% = 3.1698
Cash flow stream = 8388.771 /3.1698
=$ 2,646.41
Equivalent annual cost = $2646.41
Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of four-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Note: Round final answer to the nearest dollar. $ Feedback Remember, the selling price of a bond is the sum of the present values of: the face amount of the bonds due at the maturity date and the periodic interest to be paid on the bonds. The market rate of interest is used to compute the present value of both the face amount and the periodic interest.
Answer:
The present of value of the bonds payable is $ 109,893.83
Explanation:
The present value of the bonds payable is the present of semiannual coupon payments as well as the repayment of face value in year 4.
coupon payments =$100,000*12%*6/12=$6,000
Face value receivable in year 4 is $100,000
Find attached spreadsheet detailing the computation of present value
What is 30% of 3/5
Answer: Solution for What is 30 percent of 3/5
30 percent *3.50 =
(30:100)*3.50 =
(30*3.50):100 =
105:100 = 1.05
Now we have: 30 percent of 3.50 = 1.05
Question: What is 30 percent of 3.50?
Percentage solution with steps:
Step 1: Our output value is 3.50.
Step 2: We represent the unknown value with $x$x.
Step 3: From step 1 above,$3.50=100\%$3.50=100%.
Step 4: Similarly, $x=30\%$x=30%.
Step 5: This results in a pair of simple equations:
$3.50=100\%(1)$3.50=100%(1).
$x=30\%(2)$x=30%(2).
Step 6: By dividing equation 1 by equation 2 and noting that both the RHS (right hand side) of both
equations have the same unit (%); we have
$\frac{3.50}{x}=\frac{100\%}{30\%}$
3.50
x=
100%
30%
Step 7: Again, the reciprocal of both sides gives
$\frac{x}{3.50}=\frac{30}{100}$
x
3.50=
30
100
$\Rightarrow x=1.05$⇒x=1.05
Therefore, $30\%$30% of $3.50$3.50 is $1.05$
Explanation:
Answer: 2
Explanation:
30% 0f that number works out to be 3/5
30/100 * x = 3/5
isolate x by multiplying on both sides by 100/30
100/30 * 30/100 *x = 100/30 * 3/5
x = 20/10 = 2
Treat it as direct proportion
3/5 = 0.6
so,
x/100 = 0.6/30
x = 100*0.6/30
x = 2
Assume Digby expands operations in Asia Pacific in the coming year. In doing so, they have added capacity to fill all demand in-house and have increased automation to reduce labor cost by 10%. For clarity, assume the following are true: Daze material cost is still $12.75. Daze labor cost last year was $9.00. Daze will be priced at $32.50 per unit, in American dollars. Shipping costs from the Americas to Asia Pacific are $2.50 per unit. What will Daze's contribution margin be in Asia Pacific for the coming year
Answer:
$9.15
Explanation:
Contribution margin is the net value of sales and variable cost of a product. We need to deduct variable cost from selling price of a product to calculate the contribution margin .
First we need to determine the total variable cost.
Labor Cost ( $9 x ( 1 - 0.1 ) ) $8.1
Material cost $12.75
Shipping cost $2.50
Total Variable cost $23.35
Price = $32.50
Contribution Margin = Selling price - Variable cost
Contribution Margin = $32.50 - $23.35 = $9.15
January 1, 2016, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2017. Expenditures on the project were as follows: January 1, 2016 September 1, 2016 December 31, 2016 March 31, 2017 September 30, 2017 $200,000 $300,000 $300,000 $300,000 $200,000 Kendall borrowed $750,000 on a construction loan at 12% interest on January 1, 2016. This loan was outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2016 and 2017.
Interest capitalized for 2017 was ___.
Answer:
Interest capitalized for 2017 = $86,805
Explanation:
As per the data given in the question,
Average expenditure for 2016 = ($200,000×12÷12) +($300,000×4÷12)+($300,000×0÷12)
=$300,000
Interest capitalized for 2016 =($200,000×12÷12)+($300,000×4÷12)+($300,000×0÷12)×12%
= $36,000
Average expenditure for 2017 :
Accumulated expenditure in 2016 = ($200,000+$300,000+$300,000 +$36,000)×9÷9
= $836,000
For March-31,2017 = $300,000×6÷9
= $200,000
For Sept-30,2017 = $200,000×0÷9 = $0
Average expenditure for 2017 = $836,000 + $200,000 + $0
= $1,036,000
Interest capitalized for 2017 :
Specific borrowing = $750,000×9÷12×12%
= $67,500
Excessive amount = ($1,036,000 - $750,000)×9÷12×9%
= $19,305
Interest capitalized for 2017 = $67,500 + $19,305
= $86,805
Swan Company produces its product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit. The markup percentage on product cost is a.47% b.70% c.110% d.80%
Answer:
46.50%.
Explanation:
Percentage Markup = ( Desired profit x 100 ) / Total cost.
($20 × 100 ) / $43 = 46.50%.
I hope my answer helps you
The Edwards Construction Supply Company is adopting a just-in-time inventory system. Jim Edwards, the president, has decided that restocking only when the inventory falls below a specific level will save the company thousands of dollars. Many of Edwards’ employees have been with the company for 30 years or more, and change like this might be unsettling for them. Edwards knows that his employees will be more comfortable with the system if their supervisors understand it fully. What purpose will this meeting serve?
Answer: To Provide a Smooth Transition
Explanation:
As the text mentions, many of Edwards’ employees who have been with the company for 30 years or more, might find change unsettling. However, they trust their supervisors enough to be comfortable if the Supervisors understand the new system.
For this reason, this meeting is very important as it is a chance to get the supervisors on board. Here the Edwards Company can explain in detail the new system so that the Supervisors can understand it thoroughly so that the employees might be able to follow them. Any questions or concerns can be dealt with which would make the transition smoother for the company and it's employees.
I WILL MARK BRAINLIEST! 30 POINTS!
Ideas on products or services that are NOT yet in the market.
Please put more than one!
Shapewear.
Travel accessories.
Healthy and beauty products.
Smart watches.
Health Care.
Skin Care.
Hobbies and Craft.
Lamps and Shades.
Planners.
Facial products.
Smartphone accessories.
Subscription boxes.
Handcrafted wood products.
Eco-friendly feminine products.
Speciality hair products.
International tea and coffee products.
these are things that might go out this year but there not in stores yet
g The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credits Cash 41,500 Accounts receivable 305,000 Prepaid rent 10,500 Inventory 45,000 Office equipment 550,000 Accumulated depreciation 230,000 Accounts payable 62,000 Notes payable (due in six months) 45,000 Salaries payable 7,000 Interest payable 1,500 Common stock 400,000 Retained earnings 125,000 Sales revenue 700,000 Cost of goods sold 420,000 Salaries expense 105,000 Rent expense 31,500 Depreciation expense 55,000 Interest expense 3,000 Advertising expense 4,000 Totals 1,570,500 1,570,500 Required: 1-a. Prepare an income statement for the year ended December 31, 2021. 1-b. Prepare a classified balance sheet as of December 31, 2021. 2. Prepare the necessary closing entries at December 31, 2021.
Answer:
Check the explanation
Explanation:
The right choice is Income summary account, since that is not in the account, closing entries can be in the following ways,
Alternative 1, one combined entry with balancing figure as retained earnings,
Date General Journal Debit Credit
Dec 31 Sales revenue $7,60,000
Cost of goods sold $4,56,000
Salaries expense $1,14,000
Rent expense $40,500
Depreciation expense $62,000
Interest expense $4,400
Advertising expense $5,400
Retained Earnings $77,700
Alternative 2, Transfer of Revenue and expenses separately to Retained Earnings
Date General Journal Debit Credit
Dec 31 Sales revenue $7,60,000
Retained Earnings $7,60,000
Dec 31 Retained Earnings $6,82,300
Cost of goods sold $4,56,000
Salaries expense $1,14,000
Rent expense $40,500
Depreciation expense $62,000
Interest expense $4,400
Advertising expense $5,400
Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 60,000 $ 40,000 $ 70,000 $ 125,000 $ 35,000 $ 330,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.)
Answer:
3.08 years
Explanation:
The computation of payback period is shown below:-
Payback period = Year up to which cumulative cash flow are negative + (Cumulative cash flow in period in A ÷ cash flow of immediately year succeeding the period in A )
Year Cash flow cumulative cash flow
0 ($180,000) ($180,000)
1 $60,000 ($120,000)
($180,000 - $60,000)
2 $40,000 ($80,000)
($120,000 - $40,000)
3 $70,000 ($10,000)
($80,000 - $70,000)
4 $125,000 $115,000
(it will be end here because it excess from here)
Now we will put it into formula
Pay back period = 3 + (10,000 ÷ 125,000)
= 3 + 0.08
= 3.08 years
Under its executive stock option plan, B Corporation granted options on January 1, 2021, that permit executives to purchase 24 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Ignoring taxes, what is the effect on earnings in 2022? (Round your answer to the nearest dollar amount.)
Answer:
Explanation:
Total compensation Cost = Number of shares X Fair value per share
= 24 million X $4
= $ 96 million
Year 2021:
Effect on earnings = Total compensation Cost / Termination period
= $ 96 million / 3 years
= $ 32 million
Year 2022:
Effect on earnings = [24 million X $4 X 95% X 2/3] - $32 million
= $ 29 million
What will NOT cause a shortage?
A.) war
B.) scarcity of resources
C.) extreme weather
D.) increase in prices
An increase in prices will reduce demand, and not supply. You could have an increase in prices due to a shortage, but price increases could also be from a number of other factors, one of which is demand increasing.
Meanwhile, war, scarcity and extreme weather all are possible factors of a shortage. So we can cross choices A,B,C off the list.
On September 1, Year 1, Gomez Company collected $9,000 in advance from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would the company report as net cash flows from operating activities for Year 1?
Answer:
$3,000 and $9,000
Explanation:
In the income statement only four months revenue is recorded i.e from September 1 to December 31
= $9,000 × 4 months ÷ 12 months
= $3,000
And, under the operating activities the whole amount i.e $9,000 is to be recorded and added to the net income as it is inflow of cash and the same is added using the direct method of the cash flow statements
Journalize all necessary transactions in the order they are presented in the transaction list. (Record debits first, then credits. Exclude explanations from journal entries. Round all numbers to the nearest whole dollar.)
Sep. 4 Purchased inventory of $6,600 on account from Morris Appliance Wholesale,
an appliance wholesaler. Terms were 1/15, n/30, FOB shipping point.
4 Paid freight charges, $600.
Oct. 4 Returned $500 of inventory to Morris.
14 Paid Morris Appliance, less return.
16 Purchased inventory of $3.600 on account from Suarez Diamonds, a jewelry
importer Terms were 2/10, n/EOM, FOB destination.
24 Paid Suarez Diamonds, less allowance and discount.
Answer:
Journal Entries:
Sep. 4:
Debit Inventory Account $6,600
Credit Accounts Payable (Morris Appliance Wholesale) $6,600
Sep. 4:
Debit Inventory (Freight-in) $600
Credit Cash Account $600
Oct 4:
Debit Accounts Payable (Morris Appliance Wholesale) $500
Credit Inventory Account $500
Oct 14:
Debit Accounts Payable (Morris Appliance Wholesale) $6,100
Credit Cash Discount $61
Credit Cash Account $6,039
Oct 16:
Debit Inventory Account $3,600
Credit Accounts Payable (Suarez Diamonds) $3,600
Oct 24:
Debit Accounts Payable $3,600
Credit Cash Discount $72
Credit Cash Account $3,528
Explanation:
a) The purchase of inventory of $6,600 increases the Inventory Account and Accounts Payable by the same amount. The trade terms were 1% cash discount if payment is made within 15 days, and the credit period allowed is 30 days. FOB shipping point, means Free on Board uptil the shipping point. From the shipping point, responsibility for the goods passes to the buyer.
b) The goods returned reduces the Inventory by $500 and the Accounts Payable by the same amount.
c) Morris Appliance is then owned $6,100 ($6,600 - $500). The actual amount paid is $6,039 after deducting cash discount of 1% since payment was made with 15 days as allowed by the terms.
d) Purchase of inventory from Suarez Diamonds increases Inventory and Accounts Payable by $3,600. The terms were 2% cash discount if payment is made within 10 days. Otherwise, the whole amount is payable. The credit period is End of the Month, EOM, with Free on Board destination, showing that responsibility for the goods remains with Suarez until they are delivered to the purchaser.
e) Payment was made within the 10 days discount window. Therefore, the amount due to Suarez is less 2% discount.
