The cash flow from operating activities for Sublime Company for the period ending 12/31/18 is $30,000. This represents the net cash generated or used by the company's core operations during the period.
To calculate the cash flow from operating activities for Sublime Company for the period ending 12/31/18, we will use the indirect method. The cash flow from operating activities is derived by adjusting net income for non-cash items and changes in working capital.
First, let's calculate the adjustments for non-cash items:
Depreciation expense: Add back the depreciation expense of $25,000.
Next, let's calculate the changes in working capital:
Accounts receivable: Calculate the change in accounts receivable by subtracting the accounts receivable balance at the end of 2017 from the accounts receivable balance at the end of 2018. The change is $95,000 - $40,000 = $55,000. Since accounts receivable increased, we subtract this amount.
Prepaid expenses: Calculate the change in prepaid expenses by subtracting the prepaid expenses balance at the end of 2017 from the prepaid expenses balance at the end of 2018. The change is $60,000 - $100,000 = -$40,000. Since prepaid expenses decreased, we add this amount.
Taxes payable: Calculate the change in taxes payable by subtracting the taxes payable balance at the end of 2017 from the taxes payable balance at the end of 2018. The change is $95,000 - $125,000 = -$30,000. Since taxes payable decreased, we add this amount.
Accounts payable: Calculate the change in accounts payable by subtracting the accounts payable balance at the end of 2017 from the accounts payable balance at the end of 2018. The change is $210,000 - $200,000 = $10,000. Since accounts payable increased, we subtract this amount.
Now, let's calculate the cash flow from operating activities:
Net income: $50,000
Add: Depreciation expense: $25,000
Adjustments for changes in working capital:
Subtract: Change in accounts receivable: -$55,000
Add: Change in prepaid expenses: $40,000
Add: Change in taxes payable: -$30,000
Subtract: Change in accounts payable: -$10,000
Cash flow from operating activities: $30,000
To know more about cash flow, visit:
https://brainly.com/question/27994727
#SPJ11
Suppose Lee is offered a investment that pays a $15,000 payment to that person each year for the next 30 years. How much should Lee pay for that investment if the financial company is offering 6.5% interest per year on invested money?
we are required to calculate the value of an investment in which a person is paid $15,000 per year for the next 30 years and the financial company is offering 6.5% interest per year on invested money.Let P be the amount that Lee should pay for that investment.
Investing the amount P at 6.5% annual interest would provide a payment of P x 6.5% = 0.065P each year for the next 30 years.The present value of the $15,000 payments over the next 30 years at 6.5% interest per year can be calculated as follows:PV = $15,000 x [1 - (1 + 6.5%)^-30] / 6.5% = $191,234.18Therefore, Lee should pay $191,234.18 for that investment if the financial company is offering 6.5% interest per year on invested money.
to know more about investment pls visit-
https://brainly.com/question/14921083
#SPJ11
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Amount
Sales $902,000
Selling price per pair of skis $410
Variable selling expense per pair of skis $49
Variable administrative expense per pair of skis $17
Total fixed selling expense $155,000
Total fixed administrative expense $115,000
Beginning merchandise inventory $80,000
Ending merchandise invent $110,000
Merchandise purchases $315,000
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
2. Prepare a contribution format income statement for the quarter ended March 31.
3. What was the contribution margin per unit?
Alpine House Inc. had sales of $902,000 and calculated a contribution margin per unit of $361 for the quarter ended March 31.
Traditional Income Statement for the Quarter Ended March 31:
Sales: $902,000
Cost of Goods Sold: $285,000
Gross Profit: $617,000
Operating Expenses: Variable Selling Expense + Variable Administrative Expense + Fixed Selling Expense + Fixed Administrative Expense
Net Income: Gross Profit - Operating Expenses
Contribution Format Income Statement for the Quarter Ended March 31:
Sales: $902,000
Variable Expenses: Variable Selling Expense + Variable Administrative Expense
Contribution Margin: Sales - Variable Expenses
Fixed Expenses: Fixed Selling Expense + Fixed Administrative Expense
Net Income: Contribution Margin - Fixed Expenses
Contribution Margin per unit is the difference between the selling price per pair of skis and the variable selling expense per pair of skis. In this case, the contribution margin per unit would be $361 ($410 - $49). This represents the amount available to cover fixed expenses and contribute to net income for each unit sold.
To learn more about sales, click here: https://brainly.com/question/29436143
#SPJ11
PLEASE I WANT THESE TO BE ANSWERED ASAP. IT IS VERY URGENT. THANK YOU 1. Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the market interest rate is 16%. How much will you pay for this bond. If the coupon was to be paid semi- annually will your answer be different. 20. A U.S. investor obtains Ghana cedis when the cedi is worth $.33 and invests in a one-year money market security that provides a yield (in cedis) of 24%. At the end of one year, the investor converts the proceeds from the investment back to dollars at the prevailing spot rate of $.26. What is the effective yield earned by this foreign investor?
Bond has a face value of 3000 and pays coupon of 12% per annum for 4 years. The price of the bond is 2,204.60. The investor converts the proceeds from the investment back to dollars at the prevailing spot rate of $.26. The effective yield earned by the foreign investor is -2.67%.
1. The price of the bond can be calculated using the present value of the bond's cash flows. The bond has a face value of 3000 and pays a coupon of 12% per annum for 4 years.
The market interest rate is 16%. By discounting the future cash flows at the market interest rate, we can find the present value of the bond.
To calculate the price of the bond, we use the formula:
Price = (Coupon Payment / (1 + Market Interest Rate)^1) + (Coupon Payment / (1 + Market Interest Rate)^2) + ... + (Coupon Payment + Face Value / (1 + Market Interest Rate)^n)
Substituting the values:
Coupon Payment = 3000 * 12% = ₡360
Market Interest Rate = 16%
Face Value = 3000
n = 4
By plugging these values into the formula and performing the calculations, the price of the bond is 2,204.60.
If the coupon was to be paid semi-annually, the answer would be different. In that case, the coupon payments would occur twice a year, and the discounting would be based on semi-annual periods instead of annual periods. This would affect the calculations and result in a different price for the bond.
2. The effective yield earned by the foreign investor can be calculated using the formula:
Effective yield = (Ending Value / Initial Value) - 1
The investor obtains Ghana cedis when the cedi is worth $0.33 and invests in a one-year money market security with a yield of 24% in cedis. At the end of one year, the investor converts the proceeds back to dollars at the spot rate of $0.26.
To calculate the effective yield, we need to convert the initial and ending values to dollars. Assuming an initial investment of 1 cedi, the initial value in dollars is $0.33.
The ending value in cedis after one year with a yield of 24% is 1 + (1 * 24%) = 1.24 cedis.
Converting this to dollars using the spot rate of $0.26 gives an ending value of $0.3224.
By plugging these values into the formula, the effective yield earned by the foreign investor is (0.3224 / 0.33) - 1 = -0.0267 or -2.67%.
Therefore, the effective yield earned by the foreign investor is -2.67%.
Learn more about cash flows here :
https://brainly.com/question/28503523
#SPJ11
How can we get the price received and the RoR using excel
Convert historical Treasury bond yields into annualized rates of return. Data source: sheet Problem2 in the HW3.xls file available on Blackboard in the "Data" folder. The file contains historical end-of-year yields on the 10-year US government bond. Assumptions: 1) coupon rate is equal to the bond yield that year (hint: this automatically implies that price paid for the bond is always its face value, $1000); 2) holding period is one year meaning that investor buys a bond with 10 year maturity and in one year he sells it when the bond has 9 years to maturity left; 3) yield on the bond the investor is selling one year after he bought it is equal to the yield of the newly issued 10-year bond that year. Fill in the table (four empty columns). Make the plots of both yields and newly computed rates or return on the same graph and see the difference. Denote axes and put on a legend on the graph to see which plot is the bond yield and which one is the rate of return. G ROR Year, end of TBond rate price paid coupon price received 1927 3.17% 1928 3.45% $31.70 1929 3.36% $34.50 1930 3.22% $33.60 1931 3.93% $32.20 1932 3.35% $39.30 1933 3.53% $33.50 1934 3.01% $35.30 1935 2.84% $30.10 1936 2.59% $28.40 1937 2.73% $25.90 1938 2.56% $27.30
The graph will visually represent the difference between the bond yields and the rates of return over the specified years. It allows you to observe the fluctuations in yields and the corresponding rates of return, providing insights into the performance of the bond investments over time.
Open the HW3.xls file and navigate to the "Problem2" sheet that contains the historical end-of-year yields on the 10-year US government bond.
In the empty columns of the table, you need to calculate the price paid, coupon, and price received.
The price paid is always the face value of the bond, which is $1000.
The coupon rate is equal to the bond yield for that year.
To calculate the price received, you need to use the yield on the bond one year after it was bought, which is equal to the yield of the newly issued 10-year bond for that year.
Use Excel formulas to perform the calculations. For example, in the "price paid" column, you can simply enter $1000 in each corresponding cell since it remains constant. In the "coupon" column, you can refer to the bond yield for that year. In the "price received" column, you can use the yield of the newly issued 10-year bond for that year.
Once you have filled in the table with the calculated values, you can create a line graph in Excel to plot both the bond yields and the computed rates of return on the same graph. Label the axes appropriately and include a legend to distinguish between the two plots.
The graph will visually represent the difference between the bond yields and the rates of return over the specified years. It allows you to observe the fluctuations in yields and the corresponding rates of return, providing insights into the performance of the bond investments over time.
Learn more about rates of return here:https://brainly.com/question/17164328
#SPJ11
FILL THE BLANK.
_______, the distribution of an entertainment product in a high-tech age, refers to two elements of the delivery process: the where and the how.
Digital distribution, in a high-tech age, encompasses both the geographical aspect ("the where") and the technological aspect ("the how") of delivering an entertainment product to consumers. It involves making the product available through various platforms and utilizing digital technologies to facilitate convenient and personalized access to the content.
Digital distribution, in the context of an entertainment product, encompasses the methods and channels through which the product is delivered to consumers in a high-tech age. It involves both the geographical aspect ("the where") and the technological aspect ("the how") of the delivery process.
"The where" refers to the geographic locations or platforms where the entertainment product is made available to consumers. In a high-tech age, digital distribution allows for widespread access to entertainment content across various platforms, such as online streaming services, digital marketplaces, social media platforms, and mobile applications. Consumers can access and enjoy the entertainment product from anywhere with an internet connection.
"The how" refers to the technological means and formats used to deliver the entertainment product to consumers. This includes digital file formats, streaming technologies, encryption methods, and digital rights management (DRM) systems employed to protect and control the distribution of the content. Digital distribution enables convenient and efficient delivery of entertainment products, allowing for instant access, on-demand viewing, and personalized experiences.
Learn more about Digital distribution at:
https://brainly.com/question/32588574
#SPJ11
The term 'Distribution' fills the blank. In relation to the entertainment industry, it refers to the processes and channels used to deliver products to the audience.
Explanation:Distribution, the delivery of an entertainment product in a high-tech age, refers to two elements of the process: the where and how. In the context of the entertainment industry, 'where' refers to the platforms or channels through which the product reaches the audience – for instance, streaming services, theatres, retail stores, and more. 'How' refers to the logistics and process involved in making the product available on these platforms – this could involve digital transfer, physical shipping and so on. These elements are critical in today's high-tech age where digital platforms have revolutionized access to entertainment content.
Distribution, in the context of the entertainment industry and high-tech age, refers to two elements: the where and the how
The where refers to the platform or medium through which the entertainment product is made available, such as streaming services, movie theaters, or video game consoles.
The how refers to the method or technology used to deliver the content, such as digital downloads, streaming, or physical copies.
Learn more about Distribution here:https://brainly.com/question/33255942
#SPJ12
Different measurement models affect the determination of income and expenses. The different measurement models include:
a. historical cost, fair value, present value.
b. historical cost, direct costs, indirect costs.
c. current cost, historical cost, overhead cost.
d. market value, opportunity cost, historical cost.
The different measurement models that affect the determination of income and expenses include historical cost, fair value, and present value. The correct option is A.
The historical cost measurement model refers to recording assets and liabilities at their original cost. This approach does not take into account changes in market value over time. Fair value measurement involves valuing assets and liabilities based on their current market prices, providing a more accurate reflection of their worth. Present value measurement considers the time value of money by discounting future cash flows to their present value.
This model is commonly used for long-term obligations, such as leases or bonds. By utilizing these different measurement models, organizations can assess income and expenses from various perspectives, each with its own advantages and limitations. A is the correct option.
To learn more about income, click here:
brainly.com/question/30157678
#SPJ11
Discuss the impact the natural environment has on companies such
as The North Face.
The natural environment has a significant impact on companies like The North Face, which operates in the outdoor apparel and equipment industry.
Here are some key aspects to consider:
Supply Chain and Raw Materials: The North Face relies on natural resources to source raw materials for its products, such as cotton, wool, down, and synthetic fibers.
Sustainability and Environmental Stewardship: The North Face, like many companies, faces growing pressure to adopt sustainable practices and reduce its environmental footprint. Customers are increasingly demanding environmentally-friendly products and expect companies to demonstrate responsible sourcing, manufacturing, and waste management.
Outdoor Recreation and Brand Image: The North Face's success is closely tied to the popularity of outdoor activities and the overall health of the natural environment. The availability and condition of natural spaces for recreational purposes can impact consumer interest and participation in outdoor activities.
Climate Change and Extreme Weather Events: Climate change poses risks and challenges for companies like The North Face.
Regulatory and Legal Compliance: Companies in the outdoor industry, including The North Face, must comply with environmental regulations and laws.
To learn more about natural environment
https://brainly.com/question/28421954
#SPJ11
Which of the following describes an activity that reduces a company's bank account balance?
a) A debit entry
b) A debit memo
c) A credit memo
d) A reconciling entry
Option a) A debit entry describes an activity that reduces a company's bank account balance.
A debit entry is an accounting transaction that represents an amount of money being removed or deducted from a bank account. When a debit entry is made, it results in a decrease in the company's bank account balance. In contrast, a credit entry (option c) represents an amount of money being added to a bank account, which would increase the balance.
Options b) and d) refer to specific types of entries but do not necessarily indicate a decrease in the bank account balance. A debit memo (option b) typically relates to a reduction in funds due to fees, penalties, or returned checks, but it may or may not directly impact the bank account balance. A reconciling entry (option d) is used to correct discrepancies between the company's records and the bank statement but does not inherently imply a decrease in the bank account balance.
To learn more about debit.
Click here:brainly.com/question/28390335
#SPJ11
Which of the following statements is IRUE when it comes to the contribution
format income statement and the breakeven equations? O
A. Total variable costs divided by the contribution margin per unit equals the breakeven point
in sales dollars.
O B. Sales revenue equals the total fixed costs at the breakeven point. •
C. Total fixed costs divided by the contribution margin per unit equals the breakeven point in
sales dollars.
The correct statement when it comes to the contribution format income statement and the breakeven equations is: C. Total fixed costs divided by the contribution margin per unit equals the breakeven point in sales dollars.
In the contribution format income statement, costs are categorized into variable costs and fixed costs. The contribution margin per unit represents the portion of sales revenue that contributes towards covering fixed costs and generating profit.
To calculate the breakeven point in sales dollars, you divide the total fixed costs by the contribution margin per unit. This calculation determines the level of sales needed to cover all fixed costs and reach the breakeven point, where there is neither profit nor loss.
Therefore, option C accurately represents the relationship between total fixed costs, contribution margin per unit, and the breakeven point in sales dollars.
To learn more about, income statement, click here, https://brainly.com/question/14890247
#SPJ11
Helen Powell and Paul Tang were discussing the format of the statement of cash flows of Baumgarten Co. At the bottom of Baumgarten’s statement of cash flows was a separate section entitled ""Noncash investing and financing activities."" Give three examples of significant noncash transactions that would be reported in this section.
Three examples of significant noncash transactions that would be reported in the statement of cash flows are the acquisition of assets through the issuance of debt, the conversion of debt into equity, and the exchange of noncash assets for other noncash assets.
1. Acquisition of assets through the issuance of debt: If Baumgarten Co. acquires new assets, such as equipment or property, by issuing debt instruments like bonds or loans, it would be considered a noncash investing activity. This transaction does not involve an actual exchange of cash but represents the acquisition of assets through borrowing.
2. Conversion of debt into equity: If Baumgarten Co. converts its debt obligations into equity, such as issuing shares of stock in exchange for the cancellation of debt, it would be considered a noncash financing activity. This transaction does not involve the inflow or outflow of cash but represents a restructuring of the company's financial obligations.
3. Exchange of noncash assets: If Baumgarten Co. exchanges noncash assets, such as trading one piece of equipment for another or swapping land for inventory, it would be considered a noncash investing or financing activity. This transaction involves the exchange of assets without the involvement of cash.
These three examples demonstrate significant noncash transactions that have an impact on the company's financial position but do not directly involve the inflow or outflow of cash. Reporting these transactions in the "Noncash investing and financing activities" section provides transparency and a complete picture of the company's financial activities in the statement of cash flows.
Learn more about assets here : https://brainly.com/question/29806447
#SPJ11
Question 34 Dxincy if 10 2pts Who controls the amount of eneny hat is ani lale to ciciutie throudout the US eccomom? The Fided reserye Ther US.Conerest The US Theideri the oubict Question 35 2pts= the erotstewe with that cash. Cash in this framede, ahowed the tintion of reoser.
The correct answer is a) The Federal Reserve.
The Federal Reserve (Fed) is the central banking system of the United States, established by the Federal Reserve Act in 1913. One of its primary responsibilities is to control the amount of money available in the US economy.
The Fed has several tools and mechanisms through which it influences the money supply. Here are a few examples:
1. Open Market Operations: The Fed buys or sells government securities, such as Treasury bonds, in the open market. By doing so, it affects the amount of money in circulation. When the Fed buys securities, it injects money into the economy, increasing the money supply. Conversely, when the Fed sells securities, it reduces the money supply.
2. Reserve Requirements: The Fed sets reserve requirements, which are the minimum amounts of funds that banks must hold as reserves against their deposits. By adjusting these requirements, the Fed can influence the amount of money that banks have available to lend or invest. Lowering reserve requirements allows banks to lend more money, increasing the money supply. Conversely, raising reserve requirements limits banks' lending capacity, reducing the money supply.
3. Interest Rates: The Federal Reserve sets the target federal funds rate, which is the interest rate at which banks lend reserves to each other overnight. By adjusting this rate, the Fed influences short-term interest rates in the economy. Changes in interest rates can affect borrowing costs for businesses and consumers, which in turn impact spending and investment decisions, thereby affecting the money supply.
While the US Congress and the President have significant influence over fiscal policy (such as taxation and government spending), they do not directly control the money supply. The Fed operates independently from the political branches of government and has the authority to make monetary policy decisions.
As for the public, although their behavior and decisions regarding spending, saving, and borrowing can affect the money supply indirectly, they do not have direct control over the amount of money available in the economy. The Fed's actions and policies primarily determine the overall money supply, which is crucial for managing economic stability and promoting the Federal Reserve's mandates of price stability and maximum employment.
To know more about fiscal policy click here: brainly.com/question/1114207
#SPJ11
Full Question:
Who controls the amount of money that is available to circulate throughout the US economy?
a)The Fideral Resewrve
b)Ther US Congress
c)The US President
d)the public
Suppose it is a well-known fact that among ten-year old Ford F-150s, two out of three trucks are good and one in three is a lemon. Suppose that it is also known to all parties that a good truck is worth $6,000 to current owners and $9,000 to potential buyers. A bad truck, on the other hand, is only worth $1,000 to current owners and $3,000 to potential buyers. Throughout, assume that buyers are risk-neutral. Now suppose that the quality is known to current owners, but cannot be ascertained by potential buyers. Assuming buyers are risk-neutral, how much is a buyer willing to pay at most for a randomly selected truck? Still assuming that the quality of a truck is known to current owners, but cannot be ascertained by potential buyers, and in light of your previous answer, will a good used truck sell and for how much? No, it will not be sold. Yes, it will sell for at least $7,000 and at most $9,000. Yes, it will sell for at least $6,000 and at most $7,000. Yes, it will sell for $3,000.
Current owners know the quality of their truck and are willing to sell it for $6,000. Since this is more than the expected value of $4,000, they will not sell it. Therefore, the correct is: No, it will not be sold.
A buyer is willing to pay $4,000 at most for a randomly selected truck, whereas a good used truck will sell for at least $6,000 and at most $9,000.Suppose it is a well-known fact that among ten-year old Ford F-150s, two out of three trucks are good and one in three is a lemon. Suppose that it is also known to all parties that a good truck is worth $6,000 to current owners and $9,000 to potential buyers. A bad truck, on the other hand, is only worth $1,000 to current owners and $3,000 to potential buyers.
Throughout, assume that buyers are risk-neutral.To begin with, we need to calculate the expected value of a good truck and a bad truck. We need to add the product of each outcome and its corresponding probability. For a good truck, the calculation would be: EV_good = (2/3) x $9,000 + (1/3) x $1,000 = $7,000For a bad truck, the calculation would be: EV_bad = (2/3) x $0 + (1/3) x $3,000 = $1,000
The buyer is risk-neutral, meaning they would pay the expected value of a randomly selected truck. Therefore, the buyer is willing to pay $4,000 at most for a randomly selected truck.Now, let's consider if a good used truck will sell and for how much. Since the quality of the truck cannot be ascertained by potential buyers, they can only offer the expected value of a randomly selected truck, which is $4,000.However, current owners know the quality of their truck and are willing to sell it for $6,000. Since this is more than the expected value of $4,000, they will not sell it. Therefore, the correct answer is: No, it will not be sold.
To know more about potential buyers :
https://brainly.com/question/28888838
#SPJ11
Imagine that you are currentiy posted in your home country and from January 1, 2029 will be postwd in a host country as an expatriate, alongmith your family. Compare your carrent compensotion and rewands mix and the cene you would bike for the exposniste position Considering yous requirements imd that of your famoy the job detanption tultural diflerencet, conditions and cost of living in the host cointry, the travel and relocation coste
I can provide you with a general comparison between current compensation and reward mix and the potential changes one might expect when taking an expatriate position in a host country, considering various factors such as job description, cultural differences, conditions, cost of living, and travel and relocation costs.
1. Compensation and Reward Mix:
- Current Compensation: This would depend on your current salary, benefits, and any additional perks or incentives provided by your employer in your home country.
- Expat Compensation: When transitioning to an expatriate position, the compensation package is likely to be adjusted to align with the standards and practices of the host country. This may include adjustments to base salary, allowances for housing, education, healthcare, cost of living differentials, tax equalization, and additional benefits or incentives specific to the expatriate assignment.
2. Job Description:
- Current Job: Your current job description and responsibilities in your home country will influence the evaluation and selection process for the expatriate position. The new role might have different requirements, expectations, or levels of responsibility.
- Expat Job: The job description in the host country could involve adapting to new cultural norms, managing cross-cultural teams, and potentially taking on additional responsibilities related to the expatriate assignment.
3. Cultural Differences:
- Current: Working in your home country, you are likely familiar with the local culture, business practices, and norms, which can affect your work experience and interactions.
- Host Country: Moving to a host country as an expatriate means navigating new cultural norms, business etiquette, and communication styles. It may require cultural adaptation, open-mindedness, and building relationships within the host country's cultural context.
4. Conditions and Cost of Living:
- Current: The conditions and cost of living in your home country determine your current lifestyle, housing expenses, education costs, healthcare, and other daily expenses.
- Host Country: Relocating to a host country may involve different living conditions, housing costs, education expenses for your family, healthcare systems, and other day-to-day expenses, which can significantly vary from your current situation.
5. Travel and Relocation Costs:
- Relocation Costs: The expenses related to relocating yourself and your family to the host country, including transportation, shipping, visa fees, housing setup, and initial settling-in costs.
- Travel Costs: Depending on the job requirements, there may be additional travel involved, either back to your home country for visits or for business-related purposes.
To know more about Compensation visit-
https://brainly.com/question/28250225
#SPJ11
when you told the broker you wanted to get those six shares of mattel ® stock, he sent a message to a person who is working on the
When the broker was informed about the intention to purchase six shares of Mattel® stock, he forwarded a message to an individual who is responsible for handling the transaction.
Once the broker received the request to acquire six shares of Mattel® stock, he proceeded to communicate this information to a designated person responsible for executing stock transactions. This individual, often referred to as a stock trader or trade execution specialist, is responsible for carrying out the necessary steps to complete the purchase of the desired shares.
The trader will interact with the relevant stock exchange or trading platform to execute the order, considering factors such as the prevailing market price, volume, and any specific instructions provided by the client.By sending a message to the person handling the transaction, the broker ensures that the request to purchase the specified shares of Mattel® stock is communicated and acted upon in a timely manner. This process enables the client's investment intentions to be executed effectively and accurately within the financial market.
Learn more about stock here:
https://brainly.com/question/31940696
#SPJ11
An economy is at equilibrium when A real GDP equals potential GDP. B the 45-degree line crosses the aggregate expenditures curve. C real GDP equals nominal GDP. D real GDP exceeds aggregate expenditures
The correct answer is A. An economy is at equilibrium when real GDP equals potential GDP.
Economic equilibrium occurs when there is a balance between aggregate demand and aggregate supply in an economy. Real GDP represents the actual output of goods and services produced in an economy, while potential GDP represents the maximum output that can be achieved with full utilization of resources.
When real GDP equals potential GDP, it signifies that the economy is operating at its full capacity. This indicates that all available resources, such as labor and capital, are being utilized efficiently to produce goods and services. At this point, there is no cyclical unemployment or resource underutilization.
Option B, stating that the 45-degree line crosses the aggregate expenditures curve, is not correct because it represents a point of equilibrium in the Keynesian cross model, which is different from the concept of overall economic equilibrium.
Option C, claiming that real GDP equals nominal GDP, is not accurate as well. Real GDP accounts for changes in price levels and represents output adjusted for inflation, while nominal GDP reflects the output at current prices.
Option D, suggesting that real GDP exceeds aggregate expenditures, is not a condition of equilibrium. In equilibrium, aggregate expenditures equal real GDP, indicating that spending by households, businesses, and the government is in line with the level of production in the economy.
Therefore, the correct statement is that an economy is at equilibrium when real GDP equals potential GDP (option A).
Learn more about Keynesian cross model here:
brainly.com/question/33321849
#SPJ11
E19.3 (LO 2), C Trak Corporation, which manufactures bicycles, incurred the following costs.
Bicycle components $100,000
Depreciation on factory 60,000
Property taxes on retail store 7.500
Labor costs of assembly-line workers 110,000
Factory supplies used 13.000
Advertising expense 45,000
Property taxes on factory 14,000
Customer delivery expense 21,000
Sales commissions 35,000
Salaries paid to sales clerks 50,000
Instructions
a. Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.
b. Explain the basic difference in accounting for product costs and period costs.
Determine the total amount of various types of costs.
C Trak Corporation's costs are classified as direct materials, direct labor, manufacturing overhead, or period costs. Product costs are related to production, while period costs are expensed in the period incurred. Total costs are calculated.
a. Identifying the costs:
Bicycle components: Direct materials
Depreciation on factory: Manufacturing overhead
Property taxes on retail store: Period costs
Labor costs of assembly-line workers: Direct labor
Factory supplies used: Manufacturing overhead
Advertising expense: Period costs
Property taxes on factory: Manufacturing overhead
Customer delivery expense: Period costs
Sales commissions: Period costs
Salaries paid to sales clerks: Period costs
b. The basic difference in accounting for product costs and period costs is as follows:
Product costs (direct materials, direct labor, and manufacturing overhead) are related to the production of goods. They are considered inventoriable costs and are initially recorded as assets (inventory) on the balance sheet. These costs are recognized as expenses (cost of goods sold) when the goods are sold.
Period costs (such as selling and administrative expenses) are not directly associated with the production process. They are expensed in the period in which they are incurred and are deducted from revenues in the same period. Period costs are not included in the inventory valuation and are reported as expenses on the income statement.
Total costs:
Direct materials: $100,000
Direct labor: $110,000
Manufacturing overhead: $87,000 (depreciation + factory supplies + property taxes on factory)
Period costs: $183,500 (property taxes on retail store + advertising expense + customer delivery expense + sales commissions + salaries paid to sales clerks)
To know more about Depreciation
https://brainly.com/question/14736663
#SPJ11
The mobile industry is becoming more and more competitive. Shareholders of both XYZ
microchips and Huawei phones feel that the only way to gain market power is to enter a merger/
acquisition with one another to be able to compete against the global giant – Apple. This is
because faster phones will allow the company to gain market share.
3. From your interpretation of the above information, critically analyze the following:
a. Which form should the company choose (merger or acquisition) and why?
(5 marks)
b. Is this a related or unrelated merger and why? (2.5 marks)
c. Is this a horizontal or vertical merger and why? (2.5 marks)
To determine whether a merger or acquisition is more suitable for the companies, XYZ microchips and Huawei phones, several factors need to be considered.
A merger is a combination of two or more companies to form a new entity, while an acquisition involves one company purchasing another. In this case, considering the goal of gaining market power and competing against Apple, an acquisition would likely be more appropriate. By acquiring Huawei phones, XYZ microchips can leverage the existing brand recognition, customer base, and technological expertise of Huawei. This allows XYZ microchips to quickly enter the mobile phone market and gain market share. Acquisition provides a more direct and immediate control over the target company's resources, technologies, and market presence. Moreover, it enables XYZ microchips to integrate Huawei's phone manufacturing capabilities with their microchips, creating a vertically integrated solution that can offer a competitive advantage in terms of performance and efficiency.
b. This merger can be considered a related merger. A related merger occurs when two companies operating in the same industry or related industries combine their operations. In this case, both XYZ microchips and Huawei phones are operating in the mobile industry, albeit in different segments. XYZ microchips specialize in microchips used in mobile devices, while Huawei phones manufacture and sell smartphones. Their combined operations would strengthen their position in the mobile industry and enable them to offer a more comprehensive product portfolio to consumers. c. This merger can be classified as a horizontal merger. A horizontal merger occurs when two companies operating in the same industry and at the same stage of the production process combine their operations. In this case, both XYZ microchips and Huawei phones are operating in the mobile industry and are involved in the production of mobile devices. Their merger would consolidate their positions in the market and allow them to compete more effectively against Apple and other competitors. By merging, they can pool their resources, expertise, and technologies to develop faster phones and gain market share in the mobile industry.
Learn more about merger here:
https://brainly.com/question/26277900
#SPJ11
A marketer uses ________ to target a brand only to specific groups of consumers who are most likely to be heavy users of the marketer's brand.
market segmentation strategies
consumer behavior
income levels
A marketer uses market segmentation strategies to target a brand only to specific groups of consumers who are most likely to be heavy users of the marketer's brand.
Market segmentation involves dividing a larger market into smaller, distinct segments based on various characteristics such as demographics, psychographics, behavior, and preferences. By understanding the different segments within the market, marketers can tailor their marketing efforts and messages to effectively reach and appeal to the specific groups of consumers who are more likely to be receptive to their brand. This approach allows marketers to allocate their resources efficiently and maximize the impact of their marketing campaigns by focusing on the most relevant and profitable consumer segments. While consumer behavior and income levels can be factors considered in market segmentation, they are just some of the many variables that marketers use to identify and target their desired consumer segments.
Learn more about Market segmentation here:
https://brainly.com/question/32521474
#SPJ11
the internet society was formed in 1992 with a mission to
The Internet Society (ISOC) was indeed formed in 1992 with a mission to promote the open development, evolution, & use of the Internet for the benefit of all people worldwide.
Its establishment came at a critical time when the Internet was rapidly expanding and transitioning from an academic & military network to a global communication medium.
The primary mission of the Internet Society is to ensure the open, transparent, and accessible nature of the Internet. It aims to foster collaboration among different stakeholders, including technologists, policymakers, businesses, civil society organizations, and individuals, to address the challenges and opportunities presented by the Internet.
ISOC works towards its mission through various initiatives. It promotes and supports the development of Internet standards and protocols through the Internet Engineering Task Force (IETF), ensuring that the Internet remains an interoperable and unified network. This allows for the seamless exchange of information across different devices and networks.
Another important aspect of ISOC's mission is advocating for Internet governance that upholds principles such as openness, inclusivity, and decentralized decision-making. ISOC actively engages in global policy discussions, advocating for policies that protect user rights, privacy, and freedom of expression.
It also works to bridge the digital divide by promoting Internet access and digital literacy in underserved communities around the world.
To know more about Internet Society
brainly.com/question/31659981
#SPJ4
How structure, systems, and resources can support organizational
change, creativity, and innovation?
The structure, systems, and resources of an organization play a crucial role in supporting organizational change, creativity, and innovation. Here's how they can contribute to these areas:
1. Structure: An adaptable and flexible organizational structure can support change by allowing for efficient communication, collaboration, and decision-making. It should promote cross-functional teams, encourage knowledge sharing, and empower employees to take ownership of their work. A flatter hierarchy can foster creativity and innovation by enabling a more open and collaborative environment where ideas can be freely shared and implemented. Furthermore, creating dedicated teams or departments focused on innovation can provide a structured framework for generating and implementing new ideas.
2. Systems: Implementing systems that facilitate knowledge sharing, idea generation, and feedback can fuel creativity and innovation. For example, establishing digital platforms or intranets for collaboration and idea exchange can connect employees across the organization, enabling them to contribute their insights and expertise. Implementing performance management systems that reward and recognize innovative behavior can also encourage employees to actively engage in creativity and innovation. Additionally, implementing feedback loops and mechanisms for continuous improvement can support ongoing learning and adaptation during times of change.
3. Resources: Allocating resources, such as time, funding, and tools, is essential for supporting organizational change, creativity, and innovation. Providing dedicated time or allowing employees to allocate a portion of their workweek to innovation projects can nurture creativity. Adequate funding for research and development initiatives, as well as for training and development programs, can drive innovation. Additionally, providing access to technological tools and resources relevant to the organization's industry can empower employees to explore new ideas and implement innovative solutions.
In summary, an organization's structure should foster collaboration and knowledge sharing, while systems should enable idea generation and feedback mechanisms. Adequate allocation of resources, including time, funding, and tools, is essential to support organizational change, creativity, and innovation. By creating an environment that values and encourages these aspects, organizations can drive positive transformation, nurture creativity, and foster a culture of innovation.
Learn more about organizational change: brainly.com/question/845364
#SPJ11
Case Study Can GameStop Survive with Its Brick-and-Mortar Stores? Please explain the answer to each question separately.
With more than 6,600 stores throughout the United States and 14 other countries, GameStop’s management team wants to be the premier destination for gamers. The Texas-based retail chain’s major source of revenue is the sale of games, consoles, and other equipment, both new and used. The used market is important because it brings customers into the store to trade in their old games and consoles for store credits. GameStop resells the used games for more than twice what it pays for them.
The business model has, so far, survived the Internet’s creative destruction that swept away other brick-and-mortar outlets selling digital products, including Egghead Software and Tower Records. But competition is intense in this industry.
One major rival is Best Buy, which offers customers a chance to trade in their old games for gift cards that can be used at any Best Buy store. Unlike GameStop’s store credit, the Best Buy cards can be used to purchase TVs, computers, music, and any other Best Buy merchandise.
Another threat comes from the game developers, who fume about used-game sales because they earn no royalties. To counter used sales, many developers include a coupon with a new game so that purchasers can download special content or a game upgrade. GameStop has to charge people who buy used games a fee to get that coupon, and the total price approaches the cost of the new game. Developers will continue to find ways to combat used-game sales.
Online retailers like Amazon pose another threat, especially combined with price comparison websites that show up-to-the-minute prices from different outlets. The free social games such as Farmville are also luring some gamers away from the costly titles featured at GameStop, such as Call of Duty and Madden.
In addition, widespread access to high-speed Internet has a downside for GameStop. Companies such as Electronic Arts and Blizzard can deliver major upgrades and sequels to their high-end games digitally instead of packaging them into boxes for GameStop to sell. Customers can buy them online, directly from the publisher, rather than making the trip to the store.
GameStop countered these threats by revamping its business strategy and aggressively promoting its online store as a complement to the physical stores. Customers can buy new and used products online and also check out special trade-in deals before they visit the store. GameStop also added pop-culture collectibles, such as Game of Thrones and Star Wars characters, to its inventory.
The company also strives to increase switching costs through a loyalty program called PowerUP Rewards. Members earn points for every dollar they spend but also for telling GameStop about the games they play and their preferences. They can exchange points for gift cards, merchandise, restaurant and movie rewards, and subscriptions to gaming networks. The information GameStop collects about PowerUP members reveals just which promotions might work best for each customer, so the company can save money on marketing. The program also leads to more valuable customers who are far more likely to trade in games, open marketing emails, and buy products. Members spend on average $400 per year at GameStop.
Clearly, the company appreciates the dangerous strategic waters of other brick-and-mortar media companies, many of which have closed their doors due to competition. Sales and net revenue were declining as of 2016, but time will tell if GameStop’s strategies will pay off.
Discussion Questions
State Vision, Mission, and Purposes/Values of the company in a new E-business setting
What role has information systems assessment played in the case you identified? Know where you start.
How has GameStop used information systems to compete more effectively? Know where you want to go.
What strategic actions (guidelines) will GameStop need to take to protect its business? Know how you are going to get there.
Perform a SWOT analysis of the company in the current setting. What are the implications of the SWOT analysis for GameStop? Know how well equipped you are to get there.
References
Vision, Mission, And Purpose: The Difference (forbes.com)
Your Company’s Purpose Is Not Its Vision, Mission, or Values (hbr.org)
Mission Statement vs. Company Values vs. Vision: Difference and Best Practices - Status Articles
Embrace digital trends: Staying up to date with emerging digital trends is crucial. GameStop should monitor advancements
To adequately address the questions related to the case study on GameStop, it's important to note that the information provided is based on the knowledge available up until my last training data in September 2021. Therefore, some of the specific details may have changed or evolved since then. However, I can still provide a general analysis and guidance based on the information provided. State Vision, Mission, and Purposes/Values of the company in a new E-business setting:
Vision: The vision of GameStop could be to establish itself as the leading destination for gamers by providing a comprehensive gaming experience that combines both physical and digital offerings. This would include offering a wide range of gaming products, services, and experiences through both brick-and-mortar stores and an e-commerce platform. Mission: GameStop's mission might be to create a unique gaming ecosystem that caters to the needs and preferences of gamers, providing them with access to the latest games, consoles, and gaming accessories while fostering a sense of community among gamers. Purposes/Values: GameStop's purposes and values could include aspects such as customer-centricity, innovation, quality, community-building, and embracing both physical and digital gaming experiences. What role has information systems assessment played in the case you identified? Know where you start.
Information systems assessment plays a crucial role in GameStop's case as it helps the company understand the evolving digital landscape and identify areas where technology can be leveraged to enhance its competitiveness. It involves evaluating the company's current information systems infrastructure, identifying strengths and weaknesses, and determining the opportunities and threats in the market. An assessment of information systems helps GameStop understand its starting point in terms of its technological capabilities, allowing it to make informed decisions on the necessary steps to improve and adapt its systems to the changing business environment. How has GameStop used information systems to compete more effectively? Know where you want to go.
GameStop has utilized information systems to improve its competitive position in several ways: a. Online store and e-commerce: GameStop has expanded its business to include an online store, allowing customers to purchase new and used products online. This strategy enables the company to tap into the growing e-commerce market and reach a wider customer base beyond its physical stores. b. Trade-in deals and loyalty program: GameStop has leveraged information systems to implement a loyalty program called PowerUP Rewards. This program collects data on customers' preferences, gaming habits, and purchasing behavior, enabling GameStop to personalize promotions and marketing efforts. By offering trade-in deals and rewards, the company aims to increase customer loyalty and encourage repeat business. c. Market intelligence and targeted marketing: GameStop collects and analyzes customer data through its information systems, gaining insights into customers' preferences and gaming trends. This information helps GameStop develop targeted marketing campaigns and tailor its product offerings to specific customer segments, improving its overall effectiveness in attracting and retaining customers.
What strategic actions (guidelines) will GameStop need to take to protect its business? Know how you are going to get there.
To protect its business, GameStop should consider the following strategic actions:
a. Enhance the online presence: GameStop should continue investing in its e-commerce platform and online store to strengthen its digital presence. This involves ensuring a user-friendly and seamless online shopping experience, expanding the digital product catalog, and optimizing the website for search engines to increase visibility.
b. Diversify revenue streams: GameStop could explore additional revenue streams beyond physical game sales, such as digital game downloads, subscriptions, streaming services, and partnerships with game developers or publishers. This diversification can help reduce reliance on the used-game market and mitigate the impact of changing industry dynamics.
Learn more about GameStop here:
https://brainly.com/question/29829342
#SPJ11
i. Justify FIVE arguments in favour of local sourcing in preference to global sourcing.
ii. Assess FIVE examples of anti-competitive agreements that could arise in commercial dealings between organisations.
iii. Review the main approaches to the regulation of anti competitive agreements.
Local sourcing offers economic benefits, reduces transportation costs, promotes environmental sustainability, provides better quality control, and enables faster response times to market demands and customer needs.
Examples of anti-competitive agreements include price-fixing, market allocation, bid-rigging, exclusive dealing, and resale price maintenance agreements.
The main approaches to regulating anti-competitive agreements include prohibition, exemption, leniency programs, competition authorities, regulatory bodies, and market-based approaches.
i. FIVE arguments in favor of local sourcing in preference to global sourcing:
1. Economic benefits: Local sourcing can stimulate the local economy by supporting local businesses, creating job opportunities, and boosting tax revenue. This helps to promote economic growth and development within the community.
2. Reduced transportation costs: Local sourcing reduces transportation costs since goods and materials do not have to be shipped over long distances. This can lead to cost savings for businesses and ultimately lower prices for consumers.
3. Environmental sustainability: Local sourcing reduces the carbon footprint associated with long-distance transportation. By choosing local suppliers, organizations can contribute to environmental sustainability by minimizing greenhouse gas emissions and promoting sustainable practices.
4. Quality control: With local sourcing, organizations have more control over the quality of goods and materials. They can directly oversee production processes and ensure adherence to quality standards, resulting in better product quality and customer satisfaction.
5. Faster response times: Local sourcing enables faster response times to changing market demands and customer needs. Organizations can quickly adapt to fluctuations in demand, reduce lead times, and improve customer service by sourcing locally.
ii. FIVE examples of anti-competitive agreements that could arise in commercial dealings between organizations:
1. Price-fixing agreements: When competitors agree to set prices at a specific level, it restricts competition and harms consumers by eliminating price competition.
2. Market allocation agreements: Competitors agree to divide markets or customers among themselves, limiting competition and reducing choices for consumers.
3. Bid-rigging agreements: Competitors collude to manipulate the bidding process for contracts, ensuring that a specific participant wins the contract at an artificially inflated price.
4. Exclusive dealing agreements: Dominant firms require customers or suppliers to exclusively deal with them, preventing competitors from entering the market and stifling competition.
5. Resale price maintenance agreements: Manufacturers or suppliers set minimum prices at which retailers must sell their products, restricting price competition and potentially leading to higher prices for consumers.
iii. Review the main approaches to the regulation of anti-competitive agreements:
1. Prohibition approach: Under this approach, anti-competitive agreements are strictly prohibited by laws and regulations. Organizations engaging in such agreements can face penalties, fines, or legal action.
2. Exemption approach: Some jurisdictions may exempt certain agreements from competition laws if they can demonstrate that the benefits of the agreement outweigh any potential negative effects on competition.
3. Leniency programs: Authorities may offer leniency programs that incentivize organizations to self-report anti-competitive behavior in exchange for reduced penalties or immunity from prosecution.
4. Competition authorities and regulatory bodies: These bodies play a crucial role in investigating and enforcing competition laws. They monitor market behavior, investigate anti-competitive practices, and take appropriate actions to protect competition and consumers.
5. Market-based approaches: Some regulatory frameworks rely on market forces and competition itself to address anti-competitive behavior. By promoting open and competitive markets, regulators aim to prevent anti-competitive agreements from arising in the first place.
Learn more about Local sourcing from the given link
https://brainly.com/question/31376387
#SPJ11
On 9/1/2020, your company bought a three-year insurance policy
for $6,000. Make the necessary journal entry on 12/31/2020.
To make the necessary journal entry on 12/31/2020 for the insurance policy purchased on 9/1/2020, we need to consider the concept of prepaid expenses.
The journal entry will involve two accounts: Prepaid Insurance and Cash. Here's how you can record it:
1. Debit the Prepaid Insurance account for the amount paid for the insurance policy. In this case, the debit will be $6,000.
2. Credit the Cash account for the same amount, $6,000, representing the cash paid for the insurance policy.
The journal entry would look like this:
```
Date: 12/31/2020
Prepaid Insurance $6,000
Cash $6,000
```
By making this journal entry, you are acknowledging that the company has prepaid for three years of insurance coverage, and as of 12/31/2020, one year has passed, leaving two years of prepaid insurance still remaining.
To know more about prepaid insurance visit:
https://brainly.com/question/30361066
#SPJ11
discuss the role of green chain or eco-design for
supply chains within the liqour industry globally
Green chain or eco-design plays a crucial role in the liquor industry by ensuring environmentally friendly production, packaging, and distribution practices are followed.
Green chain or eco-design is an approach that focuses on integrating sustainability into the entire supply chain of the liquor industry. This involves considering environmental factors and minimizing the ecological impact at every stage, from sourcing raw materials to production, packaging, and distribution.
In terms of sourcing, the industry can prioritize sustainable farming practices for ingredients like grains, fruits, or botanicals. This may involve using organic farming methods, reducing pesticide use, or supporting fair trade practices.
In production, eco-design strategies can be implemented to reduce energy consumption, water usage, and waste generation. For example, adopting energy-efficient manufacturing processes, implementing recycling programs, or using eco-friendly packaging materials.
In the distribution phase, companies can focus on optimizing transportation routes to reduce carbon emissions, exploring alternative fuel options, and implementing efficient logistics practices to minimize waste and enhance overall sustainability.
By incorporating green chain or eco-design principles, the liquor industry can contribute to a more sustainable future, minimizing its impact on the environment and promoting responsible consumption.
To know more about the Green chain visit:
https://brainly.com/question/17532391
#SPJ11
Complete question;
Discuss the role of green chain or eco-design for supply chains within the liquor industry globally. How does the concept of green chain or eco-design contribute to sustainability and environmental responsibility in the liquor industry?
(6) For the abelian sandpile model on G=(V,E), let S be the commutative monoid of stable configurations under the operation ⊕ of addition followed by stabilization. Recall that I⊆S is an i deal if I⊕S⊆I, and I is minimal if I⊆J for every ideal J of S (a) Writing η ∗ for the saturated configuration, η ∗ (v)=deg(v)−1, show that the set of recurrent states G=η ∗ ⊕S is the minimal ideal of S. (b) Prove that any finite commutative semigroup has a minimal ideal which forms an abelian group under the inherited operation.
For the abelian sandpile model The sum simplifies to:
α ⊕ β = 0 ⊕ (γ ⊕ δ) = γ ⊕ δ.
(a) to show that the set of recurrent states g = η* ⊕ s is the minimal ideal of s, we need to demonstrate two things: (1) g is an ideal of s, and (2) g is minimal among all ideals of s.
first, we show that g is an ideal of s. recall that for an ideal i, i ⊕ s ⊆ i. let's consider an arbitrary configuration α ∈ g and any configuration β ∈ s. we want to show that α ⊕ β ∈ g.
since α ∈ g, we have α = η* ⊕ γ for some γ ∈ s. similarly, since β ∈ s, there exists δ ∈ s such that β = η* ⊕ δ.
now, we compute the sum of α and β:α ⊕ β = (η* ⊕ γ) ⊕ (η* ⊕ δ).
using the associativity and commutativity properties of the sandpile model, we can rearrange the sum:
α ⊕ β = (η* ⊕ η*) ⊕ (γ ⊕ δ).
since η* is the saturated configuration, η* (v) = deg(v) - 1, and ⊕ is the addition operation followed by stabilization, we have:η* ⊕ η* = 0 (the zero configuration). since γ ⊕ δ ∈ s (as s is closed under addition followed by stabilization), we conclude that α ⊕ β ∈ g. this shows that g is an ideal of s.
second, we show that g is minimal among all ideals of s. let's assume there exists another ideal j of s such that j ⊂ g. we aim to show that j = g.
since j is an ideal of s, j ⊕ s ⊆ j. consider any configuration α ∈ g = η* ⊕ s. we can write α = η* ⊕ β for some β ∈ s. since j ⊂ g, we have α ∈ j. hence, α ⊕ s ⊆ j.
but s is the set of stable configurations, so s ⊆ s ⊕ s.
Learn more about sandpile here:
https://brainly.com/question/2456605
#SPJ11
Required information Exercise 19-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $140 per unit. Exercise 19-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Required information Exercise 19-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 40,000 units and soid 32,000 units at a price of $140 per unit. Exercise 19-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Required information Exercise 19-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $140 per unit. Exercise 19-3 (Algo) Part 2a 2a. Assume the company uses variable costing. Determine its total product cost per unit. Exercise 19-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $140 per unit. Exercise 19-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
The total product cost per unit under absorption costing is obtained by dividing the total production cost by the number of units produced (40,000).
To prepare the income statement under absorption costing, we need to consider all the costs that are included in the absorption costing method. These costs include direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. The income statement will show the total sales revenue, deduct the cost of goods sold (including the total product cost per unit calculated earlier multiplied by the number of units sold), and subtract other operating expenses to arrive at the net income. Under variable costing, the total product cost per unit is determined by summing up the variable production costs per unit. This excludes the fixed manufacturing overhead costs that are not considered as a direct cost of production. Preparing the income statement under variable costing involves deducting the variable production costs per unit (calculated earlier) multiplied by the number of units sold from the sales revenue. Other operating expenses are also deducted to determine the net income.
Learn more about income statement here:
https://brainly.com/question/33690617
#SPJ11
The company is dedicated to the wholesale of dry fruits.
The company uses a perpetual inventory system.
On 1st of January the inventory showed a balance of 1,000 Kg of
merchandises for a total value o
The cost of goods sold for the sale on January 18 is $3,675.
The inventory balance at January 31 is $7,350.
To calculate the cost of goods sold (COGS) for the sale on January 18 using the average cost method, we need to determine the average cost per kilogram of the merchandise based on the purchases made.
Inventory Balance on January 1:
Quantity: 1,000 kg
Total Value: $2,000
January 6 Purchase:
Quantity: 1,000 kg
Total Cost: $2,200
January 25 Purchase:
Quantity: 1,000 kg
Total Cost: $2,700
Total Quantity Purchased: 1,000 kg + 1,000 kg = 2,000 kg
Total Cost: $2,200 + $2,700 = $4,900
Average Cost per Kilogram:
Total Cost / Total Quantity Purchased = $4,900 / 2,000 kg = $2.45/kg
Now, let's calculate the COGS for the sale on January 18:
Quantity Sold: 1,500 kg
COGS = Quantity Sold * Average Cost per Kilogram
COGS = 1,500 kg * $2.45/kg
COGS = $3,675
Therefore, the cost of goods sold for the sale on January 18 is $3,675.
To calculate the inventory balance at January 31, we need to consider the remaining quantity of merchandise and its value based on the average cost method:
Remaining Quantity:
Starting Inventory: 1,000 kg
January 6 Purchase: 1,000 kg
January 25 Purchase: 1,000 kg
Total Quantity: 3,000 kg
Inventory Balance at January 31:
Total Quantity * Average Cost per Kilogram
3,000 kg * $2.45/kg = $7,350
Therefore, the inventory balance at January 31 is $7,350.
Learn more about inventory here:
https://brainly.com/question/31146932
#SPJ11
The company is dedicated to the wholesale of dry fruits.
The company uses a perpetual inventory system.
On 1st of January the inventory showed a balance of 1,000 Kg of merchandises for a total value of $2,000
On January 6 the company purchased 1,000 kg of merchandises at a price of $2,2 per Kg.
On January 17 the company sold 1,500 Kg of merchandises at a price of $4 per kilogram.
ON January 25 the company purchased 1,000 Kg of merchandises at $2,7 / Kg.
Calculate the cost of the goods sold for the sale of January 18 relying on the average cost method (10 points). Calculate the inventory balance at January 31.
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available: Two types of tests are performed in the lab—blood tests and smears. During the past month, 850 blood tests and 3,200 smears were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 16,000 plates at a cost of $36,480. 2,200 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. During the past month, 2,200 hours of labor time were recorded in the lab at a cost of $23,980. The lab’s variable overhead cost last month totaled $17,160. Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $2.40 each and are disposed of after the test is completed. Labor: Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $11.40 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $7.30 per hour.
The evaluation of costs in Valley View Hospital's lab shows that the actual costs for plates and labor are slightly lower than the industry averages. The total labor cost per hour is $10.90.
To evaluate the costs in Valley View Hospital's lab, we need to calculate the actual costs for plates, labor, and overhead and compare them to the industry averages.
1. Plates: In the past month, 16,000 plates were purchased for $36,480. However, 2,200 plates were unused, so the number of plates used is 16,000 - 2,200 = 13,800 plates. Since three plates are required per lab test, the number of lab tests conducted is 13,800 / 3 = 4,600 tests.
The cost per plate is $36,480 / 16,000 = $2.28.
2. Labor: 2,200 hours of labor time were recorded at a cost of $23,980. This includes both blood tests and smears. Since each blood test requires 0.8 hours and each smear requires 0.40 hours, we can calculate the number of blood tests and smears as follows:
- Blood tests: 0.8 hours x 850 tests = 680 hours
- Smears: 0.40 hours x 3,200 tests = 1,280 hours
The total labor cost per hour is $23,980 / 2,200 = $10.90.
3. Overhead: The variable overhead cost is based on direct labor-hours. The total direct labor-hours for blood tests and smears are 680 hours + 1,280 hours = 1,960 hours. The average rate for variable overhead is $7.30 per hour. Therefore, the total overhead cost is 1,960 hours x $7.30 = $14,308.
Comparing the actual costs to the industry averages:
- Plates: The industry average cost per plate is $2.40, while the actual cost per plate is $2.28.
- Labor: The industry average cost per hour is $11.40, while the actual cost per hour is $10.90.
- Overhead: The industry average overhead cost is not provided.
Based on this information, we can see that the actual costs for plates and labor are slightly lower than the industry averages. However, since the industry average overhead cost is not provided, we cannot make a direct comparison.
To know more about the industry visit:
https://brainly.com/question/30539356
#SPJ11
Complete Question:
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available: Two types of tests are performed in the lab—blood tests and smears. During the past month, 2,200 hours of labor time were recorded in the lab at a cost of $23,980. The lab’s variable overhead cost last month totaled $17,160. Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $2.40 each and are disposed of after the test is completed. Labor: Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $11.40 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $7.30 per hour. What is total labor cost?
You have been employed as the maintenance manager of a business \( A B C \), which assembles rear view mirrors for motor vehicles. They are supplied with the mirrors, mirror backings, mirror housings,
A mirror housing with a back wall, an insertion opening, and a circumferential lateral wall that defines an opening make up an outside rear view mirror assembly for a car.
The outside rear view mirror assembly also includes a mirror mounting bracket that fits through the insertion opening into the mirror housing.
A mirror housing with a back wall, an insertion opening, and a circumferential lateral wall that defines an opening make up an outside rear view mirror assembly for a car. The outside rear view mirror assembly also includes a mirror mounting bracket that fits through the insertion opening into the mirror housing.
A snap-in tongue with a free end protrudes from the back wall when the mirror mounting bracket is inserted into the mirror housing. This tongue is used to engage the mirror mounting bracket and keep it in place.
Learn more about maintenance manager :
brainly.com/question/32782773
#SPJ4
Complete question as follows :
You have been employed as the maintenance manager of a business ABC, which assembles rear view mirrors for motor vehicles. They are supplied with the mirrors, mirror backings, mirror housings, internal electrical motors and mechanical parts, but need to bond the mirrors to their backing plates in ovens. They also use mechanical jigs, hydraulic presses and pneumatic tools at the assembly stations.
You are to explain the maintenance requirements of the production equipment to the production manager. You should also recommend which maintenance should be outsourced, which could be performed by assembly operators and/or which maintenance requires somebody to be employed specifically for. If someone were to be employed specifically, what skills or qualifications should they possess.
Which of the following statements regarding book/tax differences is false? Temporary book/tax differences arising in the current tax year will reverse in one or more future tax years. A temporary book/tax difference affects two or more tax years. The tax cost or benefit of a permanent book/tax difference is recouped over time. A permanent book/tax difference affects only the year in which it occurs.
The false statement regarding book/tax differences is that a permanent book/tax difference affects only the year in which it occurs.
Book/tax differences arise when there are disparities between the financial accounting (book) and tax accounting treatment of certain items. These differences can be categorized as either temporary or permanent.
Temporary book/tax differences are expected to reverse in one or more future tax years. This means that the timing of recognizing income or expenses differs between book and tax accounting, but the total amount will eventually align. Temporary differences affect multiple tax years and can result in deferred tax assets or liabilities.
On the other hand, permanent book/tax differences do not reverse in future tax years. These differences arise due to items that are recognized differently for book and tax purposes and have a lasting impact. The tax cost or benefit of a permanent book/tax difference is not recouped over time. Examples of permanent differences include fines and penalties not deductible for tax purposes or tax-exempt income.
Therefore, the false statement is that a permanent book/tax difference affects only the year in which it occurs. Permanent differences have ongoing implications and affect the tax treatment of specific items in multiple years, as they do not reverse or align with book accounting treatment.
Learn more about statement regarding here:
https://brainly.com/question/32523749
#SPJ11
