D. The quantity supplied will decrease. An increase in interest rates leads to a decrease in the quantity of loanable funds supplied, reflecting the behavior of lenders responding to changes in the cost and profitability of lending.
An increase in interest rates will generally lead to a decrease in the quantity of loanable funds supplied. This is because higher interest rates incentivize lenders to supply fewer funds in the market.
When interest rates rise, lenders can earn higher returns by lending their funds, which encourages them to supply fewer funds. Lenders may choose to invest in other financial instruments or save their money instead of supplying it as loans. This reduces the quantity of loanable funds available in the market.
The relationship between interest rates and the quantity of loanable funds supplied follows the basic principle of supply and demand. As interest rates increase, the cost of borrowing for borrowers also rises, which can further decrease the demand for loans. This, in turn, affects the quantity of loanable funds supplied.
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which of the following is included in the narrowest definition of the money supply? group of answer choices a) currency in circulation. b) transactions account balances. c) traveler's checks. d) all of the above.
The most precise meaning of the Money supply is cash that can be used. Choice A is correct.
It uses money and coins for circulation; as a result, neither the United States Depository nor the Central Bank owns them; rather, they circulate throughout the economy.
The aggregate sum of cash and other fluid resources in a country's economy on the date it is estimated is known as the cash supply. The money supply includes all cash in circulation and bank deposits that are easily convertible into cash.
The total amount of cash—money, coins, and ledger balances—that is available for use is known as the cash supply. The vast majority feel that the money supply is a gathering of safe resources that individuals and organizations can use to take care of bills or contribute for the present moment.
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shortly after year end a client's major customer declared bankruptcy. as a result, a large account receivable outstanding at year end is now uncollectible. this subsequent event should .
This subsequent event should be reflected in the financial statements of the client. The uncollectible account receivable should be recognized as a bad debt expense and deducted from the accounts receivable balance.
This adjustment ensures that the financial statements accurately reflect the financial position and results of the client at the end of the reporting period. It is important to note that the subsequent event should be evaluated based on the conditions and circumstances existing at the end of the reporting period.
If the bankruptcy of the major customer occurred shortly after the year-end, it would be considered a non-adjusting event. However, disclosure of the event in the footnotes of the financial statements is necessary to provide relevant information to the users of the financial statements. By recognizing the uncollectible account receivable and disclosing the subsequent event, the financial statements provide a more accurate and reliable representation of the client's financial position and performance.
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View Policies Current Attempt in Progress Equipment which cost $436000 and had accumulated depreciation of $245000 was sold for $218000. This transaction should be shown on the statement of cash flows (indirect method) as a(n) deduction from net income of $27000 and a $218000 cash inflow from investing activities. deduction from net income of $27000 and a $191000 cash inflow from investing activities. addition to net income of $27000 and a $191000 cash inflow from financing activities. addition to net income of $27000 and a $218000 cashioflow from financing activities.
The transaction should be shown on the statement of cash flows as a deduction from net income of $27,000 and a $191,000 cash inflow from investing activities.
1. The equipment had a cost of $436,000 and accumulated depreciation of $245,000. This means that the net book value (cost minus accumulated depreciation) of the equipment was $191,000.
2. When the equipment was sold for $218,000, there was a gain on the sale. To calculate the gain, subtract the net book value ($191,000) from the selling price ($218,000). The gain on the sale is $27,000 ($218,000 - $191,000).
3. On the statement of cash flows (indirect method), the gain on the sale of the equipment is deducted from net income. This is because the gain is a non-operating item and should not be included in the calculation of net income.
4. Additionally, the cash inflow from the sale of the equipment is classified as an investing activity. This is because the sale of equipment represents a disposal of a long-term asset, which falls under investing activities in the cash flow statement.
5. Therefore, the transaction should be shown on the statement of cash flows as a deduction from net income of $27,000 and a $191,000 cash inflow from investing activities ($218,000 - $27,000).
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In a safety stock problem where both demand and lead time are variable, demand averages 100 units per day with a daily standard deviation of 15, and lead time averages 5 days with a standard deviation of 1 day. What is the
ROP? Service level is 95%.
To calculate the Reorder Point (ROP) in a safety stock problem with variable demand and lead time, you need to consider the average demand during the lead time and the desired service level.
The ROP formula can be written as follows:
ROP = Average Demand during Lead Time + Safety Stock
Calculate the average demand during the lead time:
Average Demand during Lead Time = Average Daily Demand * Average Lead Time
In this case:
Average Daily Demand = 100 units
Average Lead Time = 5 days
Average Demand during Lead Time = 100 units/day * 5 days = 500 units
Calculate the safety stock:
Safety Stock = Z * Standard Deviation of Demand during Lead Time
To determine the appropriate Z-value for the desired service level of 95%, you can consult a standard normal distribution table. For a 95% service level, the corresponding Z-value is approximately 1.65.
Standard Deviation of Demand during Lead Time = Standard Deviation of Daily Demand * Square Root of Lead Time
In this case:
Standard Deviation of Daily Demand = 15 units/day
Square Root of Lead Time = Square Root of 5 = 2.236 (rounded to 3 decimal places)
Standard Deviation of Demand during Lead Time = 15 units/day * 2.236 ≈ 33.54 units
Safety Stock = 1.65 * 33.54 units ≈ 55.32 units
Calculate the ROP:
ROP = Average Demand during Lead Time + Safety Stock
ROP = 500 units + 55.32 units ≈ 555.32 units
Therefore, the Reorder Point (ROP) in this safety stock problem with variable demand and lead time, considering a 95% service level, is approximately 555.32 units.
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Question 19 Waikato Hardware Limited has a balance sheet date of 31 March 2017. The financial statements of the company were authorised for issue on 31 May 2017. For each of the following material events after balance sheet date, state whether they are adjusting or non-adjusting events. Explain how each of the following events should be reported: On 3 April 2017, the company received an invoice from a supplier for $100,000 for goods delivered in March 2017. The goods were included in closing inventory at 31 March 2017 at an estimated cost of $106,000. On 6 April 2017, the directors of the company proposed a final dividend of $60,000. The dividends were for the year ended 31 March 2017. On 12 May 2017, the company settled a negligence claim of $90,000 lodged by one of its customers. The claim arose on 16 February 2017 when a customer was hurt when tools in the repair workshop accidently fell on the customer. Laser Limited owed Waikato Hardware Limited $20,000 as at 31 March 2017. On 18 May 2017, Waikato Hardware Limited received notice that Laser Limited has become insolvent. On 24 May 2017, some inventory of Waikato Hardware Limited was destroyed by fire. The total value of the inventory lost, which was uninsured, was $36,000 and part of the inventory $10,000 was included in the closing stock in the balance sheet as at 31 March 2017. Solutions On 3 April 2014, the company received an invoice from a supplier for $100,000 for goods delivered in March 2014. The goods were included in closing inventory at 31 March 2014 at an estimated cost of $106,000. On 6 April 2014, the directors of the company proposed a final dividend of $60,000. The dividends were for the year ended 31 March 2014. On 12 May 2014, the company settled a negligence claim L. IN UTT. U may 2017, Waikato Hardware Limited received notice that Laser Limited has become insolvent. On 24 May 2017, some inventory of Waikato Hardware Limited was destroyed by fire. The total value of the inventory lost, which was uninsured, was $36,000 and part of the inventory $10,000 was included in the closing stock in the balance sheet as at 31 March 2017. Solutions On 3 April 2014, the company received an invoice from a supplier for $100,000 for goods delivered in March 2014. The goods were included in closing inventory at 31 March 2014 at an estimated cost of $106,000. On 6 April 2014, the directors of the company proposed a final dividend of $60,000. The dividends were for the year ended 31 March 2014. On 12 May 2014, the company settled a negligence claim of $90,000 lodged by one of its customers. The claim arose on 16 February 2014 when a customer was hurt when tools in the repair workshop accidently fell on the customer. () Laser Limited owed WaikatoLimited $20,000 as at 31 March 2017. On 18 May 2017, WaikatoLimited received notice that Laser Limited has become insolvent. On 24 May 2017, some inventory of WaikatoLimited was destroyed by fire. The total value of the inventory lost, which was uninsured, was $36,000 and part of the inventory $10,000 was included in the closing stock in the balance sheet as a 31 March 2017.
I apologise for the question's repetitive information. Let's examine each event that occurred after the balance sheet date to identify whether it is an adjusting event or not:
1. On April 3, 2017, the business received a $100,000 supplier invoice for products provided in March 2017. At the end of March 2017, the items had a final closing inventory value of $106,000.
- This is an adjusting circumstance. Additional details about the closing inventory's carrying value at the balance sheet date can be found in the invoice that was received after the balance sheet date. To reflect the true cost of the products received, the financial statements should be updated.
2. On April 6, 2017, the company's board suggested a final dividend of $60,000. The
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It has been argued that Donald Trump favors _____ views because he wants the country to export products but does not favor importing products
It has been argued that Donald Trump favors protectionist views.
Protectionism refers to the economic policy that seeks to restrict imports through various measures such as tariffs, quotas, and trade barriers, with the intention of protecting domestic industries and promoting domestic production. Based on the given statement, Donald Trump's preference for exporting products while being unfavorable towards importing products suggests a protectionist stance.
During his presidency, Donald Trump pursued protectionist policies with the aim of reducing trade deficits, protecting American industries, and promoting job creation within the United States. He implemented tariffs on various goods, particularly targeting countries like China, in an effort to address what he perceived as unfair trade practices.
The rationale behind protectionism is to create a favorable trade balance by reducing imports and promoting domestic production. By restricting imports, the hope is that domestic industries will have less competition from foreign producers, which can potentially lead to increased employment and economic growth.
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Case Study- FAIR TRADE JEWELLERY CO. : ESTABLISHING AN
ETHICAL GLOBAL VALUE CHAIN
solve these questions related to the case
study
1) Control Measure
Control measures refer to a set of actions or tools that businesses use to ensure that their operations and processes conform to ethical and legal standards.
Control measures are essential in ensuring that businesses meet their ethical and legal obligations. For Fair Trade Jewellery Co., control measures were put in place to ensure that their ethical and social commitments were met, and their operations complied with legal regulations. These control measures included the use of a third-party audit and certification scheme to ensure transparency, traceability, and accountability throughout the value chain.
Additionally, the company put in place an ethical sourcing code and implemented environmental and social initiatives to ensure sustainability throughout the production process. By implementing these control measures, Fair Trade Jewellery Co. was able to establish an ethical global value chain that ensured fair treatment of its workers, adherence to environmental regulations, and a fair price for its products.
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Bar Corporation has been looking to expand is operations and has decided to acquire the assets of Vicker Company and Kendal Company. Bar will issue 30,000 shares of its $10 par common stock to acquire the net assets of Vicker Company and will issue 15,000 shares to acquire the net assets of Kendal Company. Vicker and Kendal have the following balance sheets as of December 31, 2015: The following fair values are agreed upon by the firms: Bar's stock is currently trading at $40 per share. Bar will incur $5,000 of acquisition costs in acquiring Vicker and $4,000 of acquisition costs in acquiring Kendal. Bar will also incur $15,000 of registration and issuance costs for the shares issued in both acquisitions. Bar's stockholders' equity is as follows: Record the acquisitions on the books of Bar Corporation. Value analysis is suggested to guide Required your work.
The journal entry to record the acquisition of Kendal Company by Bar Corporation is as follows: Therefore, the value analysis guides the acquisition and the preparation of financial statements.
Given the following information,Record the acquisitions on the books of Bar Corporation.Value analysis is suggested to guide the acquisition and the preparation of financial statements. Acquisition of Vicker Company by Bar Corporation: Bar Corporation will issue 30,000 shares of its $10 par common stock, which is currently trading at $40 per share, to acquire the net assets of Vicker Company, whose balance sheet as of December 31, 2015, is shown below:Fair value analysis:As per the balance sheet, the net assets of Vicker Company are worth $1,850,000. The fair value of the net assets is $1,900,000. This is higher than the net assets by $50,000. Hence, goodwill is $50,000.Acquisition costs of $5,000 should be recorded as expenses in the income statement.Registration and issuance costs of $7,500 should be charged against additional paid-in capital account.Preparation of the journal entry:Therefore, the journal entry to record the acquisition of Vicker Company by Bar Corporation is as follows:Acquisition of Kendal Company by Bar Corporation:Bar Corporation will issue 15,000 shares of its $10 par common stock, which is currently trading at $40 per share, to acquire the net assets of Kendal Company, whose balance sheet as of December 31, 2015, is shown below:Fair value analysis:As per the balance sheet, the net assets of Kendal Company are worth $1,200,000. The fair value of the net assets is $1,150,000. This is lower than the net assets by $50,000. Hence, a gain on bargain purchase of $50,000 should be recorded in the income statement.Acquisition costs of $4,000 should be recorded as expenses in the income statement.Registration and issuance costs of $7,500 should be charged against additional paid-in capital account.Preparation of the journal entry.
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the research evidence on the effect of mbo is best reflected by which of the following statements?The effects of MBO appear to be dependent on the appropriate context.
O MBO appears to have its strongest effects when participative processes are used. O MBO is related to job satisfaction which in turn leads to higher performance.
O MBO appears be related to performance when top management stays out of the process.
The research evidence on the effect of MBO is best reflected by the statement "The effects of MBO appear to be dependent on the appropriate context.
"This statement is true and based on the research evidence. The effects of Management by Objectives (MBO) vary depending on the context in which it is implemented. The context here refers to the organizational structure, management style, culture, and other factors. If MBO is implemented in the right context, it can lead to better results.The other two statements are also true, but they do not best reflect the research evidence on the effect of MBO. They are:MBO appears to have its strongest effects when participative processes are used: This statement is true, but it does not best reflect the research evidence. Participative processes can help to increase employee buy-in and commitment, which in turn can lead to better results. However, this statement does not account for other contextual factors that may also affect the effectiveness of MBO.MBO is related to job satisfaction which, in turn, leads to higher performance: This statement is also true, but it does not best reflect the research evidence. The relationship between MBO, job satisfaction, and performance is complex and may be affected by several contextual factors, as well as individual differences among employees.
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Jack and Joan Barnes are 67 and 63 years old respectively. Joan works part-time job and earned $12,000. The couple also received $30,000 of fully taxable pension income and $40,000 of social security benefits. What is the taxable amount of the couple's social security benefits?
The taxable amount of Jack and Joan Barnes' social security benefits is $5,000.
To determine the taxable amount of Jack and Joan Barnes' social security benefits, we need to consider their combined income and compare it to the base amount set by the IRS.
To calculate the taxable amount of the couple's social security benefits:
Determine the base amount: $32,000 (for married couples filing jointly).Calculate the excess combined income: $42,000 - $32,000 = $10,000.Determine the smaller of one-half of the excess combined income or one-half of the social security benefits: *One-half of the excess combined income: $10,000 ÷ 2 = $5,000. *One-half of the social security benefits: $40,000 ÷ 2 = $20,000.Compare the values from steps 2 and 3, and the smaller amount is the taxable portion of the social security benefits. *In this case, the smaller amount is $5,000.To know more about social security benefits, visit:
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On October 1, Organic Farming purchases wind turbines for $210,000. The wind turbines are expected to last five years, have a
salvage value of $27.000, and be depreciated using the straight-line method.
1. Compute depreciation expense for the last three months of the first year.
2. Compute depreciation expense for the second year.
The depreciation expense for the last three months of the first year would be $3,000. In the second year, the depreciation expense would be $42,000.
To compute the depreciation expense for the last three months of the first year, we need to determine the annual depreciation first. The cost of the wind turbines is $210,000, and the salvage value is $27,000. The useful life of the turbines is five years. Therefore, the depreciable base is $210,000 - $27,000 = $183,000.
To calculate the annual depreciation, we divide the depreciable base by the useful life: $183,000 ÷ 5 = $36,600 per year.
Since we're only considering the last three months of the first year, we need to prorate the depreciation expense. There are 12 months in a year, so the prorated depreciation expense for three months is $36,600 ÷ 12 × 3 = $9,150. However, the problem states that the depreciation is calculated using the straight-line method, so we need to divide this amount by 12 to get the monthly depreciation: $9,150 ÷ 12 = $762.50. Therefore, the depreciation expense for the last three months of the first year is $762.50 × 3 = $2,287.50 (rounded to $2,000).
Moving on to the second year, the annual depreciation remains the same at $36,600. Therefore, the depreciation expense for the second year is $36,600.
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13. The NPV and payback period What information does the pay back period provide? Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. If the project's weighted average cost of capital (WACC) is 7%what is its NPV? , Year Cash Flow Year 1 $325,000 Year 2 $45D,DDD Year 3 $4DD,DDD Year 4 $450,0DD O $430,769 O $352,447 O $391,608 O $332,867 which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply The discounted payback period is calculated using net income instead of cash flows. The discounted payback period does nat take the project's entire life into account. The discounted payback period does not take the time value of money into account.
The net present value (NPV) and payback period are two financial metrics used in capital budgeting decisions.
The payback period provides information about the length of time it takes to recover the initial investment in a project. In this scenario, the CFO of Extensive Enterprises has a payback period of 2.5 years for a project, but she doesn't know the initial cost. The NPV is not directly provided, but it can be calculated using the cash flows and the weighted average cost of capital (WACC).
The payback period is a simple measure that indicates how long it takes to recoup the initial investment in a project based on the cash flows generated. It helps evaluate the liquidity and risk associated with an investment. In the given scenario, the CFO has information about the project's cash inflows for each year but lacks knowledge of the initial cost. Therefore, it is not possible to calculate the NPV directly.
To calculate the NPV, the CFO needs to know the initial cost of the project. The NPV takes into account the time value of money by discounting the future cash flows to their present value using the WACC. By comparing the present value of cash inflows to the initial investment, the NPV provides an estimate of the project's profitability. A positive NPV indicates that the project is expected to generate more value than the cost of capital, making it potentially attractive for investment.
Regarding the disadvantages of using the discounted payback period, the following statements are correct:
1. The discounted payback period is calculated using net income instead of cash flows.
- This statement is incorrect. The discounted payback period is calculated using discounted cash flows, not net income. It considers the time value of money by discounting the cash flows to their present value.
2. The discounted payback period does not take the project's entire life into account.
- This statement is correct. The discounted payback period focuses on the time it takes to recover the initial investment, but it does not consider the project's cash flows beyond that point. It does not provide information about the project's long-term profitability.
3. The discounted payback period does not take the time value of money into account.
- This statement is incorrect. The discounted payback period does consider the time value of money by discounting the cash flows. It provides a measure that accounts for the present value of future cash inflows.
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For any marketing research project, the location and analysis of secondary data should be a first step.
Select one:
© True
O False
The statement that the location and analysis of secondary data should be a first step in any marketing research project is false.
While secondary data can be a valuable source of information for marketing research projects, it is not always necessary or the first step. The specific steps and order of conducting a marketing research project may vary depending on the project's objectives, scope, and available resources.
In many cases, the first step in a marketing research project involves clearly defining the research objectives, formulating research questions, and designing the research methodology. This includes determining whether primary data (data collected specifically for the research project) or secondary data (existing data collected for other purposes) will be used or if a combination of both is required.
Once the research design is established, the next steps may involve collecting primary data through methods such as surveys, interviews, or observations. Only after the primary data collection is complete, or in some cases concurrently, researchers may then proceed with the collection and analysis of secondary data to complement or validate their findings.
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Which of the following is a potential cost of diversification?
Select one:
a. Shareholders find it expensive and risky to hold a diversified portfolio.
b. Firms become bureaucratic and more expensive to manage as they grow.
c. The cost of production increases, thereby reducing profits earned by a firm.
d. The supply of labor reduces, thereby reducing the level of production.
Diversification refers to a corporate strategy that involves a company expanding its operations into different industries or markets.
It is done to spread out risks, minimize the impact of any losses, and increase profitability. However, diversification also has potential costs that companies should consider when deciding to implement it. One of the potential costs of diversification is that firms can become bureaucratic and more expensive to manage as they grow.
This occurs because as firms diversify into new areas, they will need more staff to handle the new operations. This leads to more layers of management, which can make decision-making slower and more cumbersome. There may also be a need to develop new processes and procedures, leading to increased bureaucracy and red tape. This can result in a decline in the efficiency of the firm and higher costs associated with managing the increased complexity.In conclusion, while diversification can be beneficial, it is essential to consider the potential costs involved. Bureaucracy and increased management costs are one of the possible costs that may arise from diversification. Therefore, companies should weigh the potential benefits and costs before deciding to diversify.
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which of the following is an example of a presentation guidance note card reminder?
A presentation guidance note card reminder is a tool used to help speakers during their presentation by providing them with important information that they may forget.
The note card reminder may include key points, statistics, or important details that the speaker wants to ensure they cover during their presentation. The use of note card reminders is a common practice for both novice and experienced presenters as it can help them stay on track, avoid missing important details, and provide them with a sense of security during the presentation.
However, it is important to note that note cards should be used as a tool to support the presenter, not as a crutch that they rely on heavily. When using note cards, presenters should aim to maintain eye contact with the audience as much as possible and speak naturally.
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The following information applies to the questions displayed below.]Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,300, 14,000, 16,000, and 17,000 units, respectively. All sales are on credit.b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.c. The ending finished goods inventory equals 25% of the following month’s unit sales.d. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $64,000.1. What are the budgeted sales for July?Budgeted sales;2. What are the expected cash collections for July?Expected cash collections;3. What is the accounts receivable balance at the end of July?Accounts receivable;4. According to the production budget, how many units should be produced in July?Required production; units5. If 81,250 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?Raw materials to be purchased; pounds6.What is the estimated cost of raw materials purchases for July?Cost of raw materials to be purchased;7. If the cost of raw material purchases in June is $102,025, what are the estimated cash disbursements for raw materials purchases in July?Expected cash disbursement;8.What is the estimated accounts payable balance at the end of July?Accounts payable;9. What is the estimated raw materials inventory balance (in dollars) at the end of July?Raw material inventory balance;10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?Total estimated direct labor cost;11. If the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)Unit product cost;12.What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour?Ending finished goods inventory;13.What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour?Estimated cost of goods sold;Estimated gross margin;14. What is the estimated total selling and administrative expense for July?Total estimated selling and administrative expenses;15. What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour?Net operating income;
The budgeted sales for July are 14,000 units.
1.The budgeted unit sales for July is provided in the information given, which is 14,000 units.
2. The expected cash collections for July are $264,600.
To calculate the expected cash collections for July, we need to consider the credit sales and the collection pattern. From the information given, 40% of credit sales are collected in the month of the sale and 60% in the following month. The credit sales for July can be calculated by multiplying the budgeted sales for July (14,000 units) by the selling price per unit ($60). So, the credit sales for July would be $840,000. Now, we can calculate the expected cash collections for July as 40% of the credit sales for July, which is $336,000.
3. The accounts receivable balance at the end of July is $475,200.
The accounts receivable balance at the end of July can be calculated by subtracting the expected cash collections for July from the total credit sales for July. The total credit sales for July is $840,000 (calculated in question 2), and the expected cash collections for July are $264,600 (calculated in question 2). So, the accounts receivable balance at the end of July would be $840,000 - $264,600 = $475,200.
4. According to the production budget, the number of units to be produced in July is 14,500 units.
The production budget is not explicitly provided in the information, but we can calculate it based on the budgeted unit sales and the desired ending finished goods inventory. The desired ending finished goods inventory for July can be calculated as 25% of the following month's unit sales, which is 25% of 14,000 units (August sales). So, the desired ending finished goods inventory for July is 3,500 units. To calculate the required production for July, we add the budgeted sales for July (14,000 units) to the desired ending finished goods inventory for July (3,500 units), resulting in 14,000 + 3,500 = 17,500 units. However, since the desired ending finished goods inventory is given in terms of the following month's unit sales, we need to adjust it for July. Therefore, the required production for July is 14,000 + 3,500 = 17,500 units.
5. If 81,250 pounds of raw materials are needed to meet production in August, the pounds of raw materials to be purchased in July are 16,250 pounds.
Each unit of finished goods requires 5 pounds of raw materials. To calculate the pounds of raw materials needed for August production, we multiply the number of units needed (81,250 units) by the raw materials requirement per unit (5 pounds). So, 81,250 units * 5 pounds/unit = 406,250 pounds of raw materials are needed. However, the question asks for the pounds of raw materials to be purchased in July. The ending raw materials inventory equals 10% of the following month's raw materials production needs, which means the ending raw materials inventory for July should be 10% of 406,250 pounds. Therefore, the pounds of raw materials to be purchased in July would be 406,250 pounds - 10% of 406,250 pounds = 406,250 - 40,625 = 365,625 pounds.
6. The estimated cost of raw materials purchases for July is $731,250.
To calculate the estimated cost of raw materials purchases for July, we need to multiply the pounds of raw materials to be purchased in July (365,625 pounds) by the cost per pound of raw materials ($2.00). So, the estimated cost of raw materials purchases for July would be 365,625 pounds * $2.00/pound = $731,250.
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Which of the following statements are correct? An income statement is not useful for management control purposes for profit centres. From a performance management perspective, an investment centre has the highest level of responsibility. Profit centre managers are authorized to make decisions about pricing. production, operations and capital acquisitions. A cost centre has no control over sales. An investment centre has control over invested funds, but not over costs and revenues. Cost centre managers are often evaluated by comparing actual costs under their control against budgeted or standard costs using variance analysis. Decisions made by profit centre managers include pricing, production, operations and capital acquisitions. When using segmented reporting, common fixed costs should be allocated to each segment. The same cost can be traceable or common depending on how the segment is defined.
Correct statements: Profit centre managers are authorized to make decisions about pricing, production, operations, and capital acquisitions.
Cost centre managers are often evaluated by comparing actual costs under their control against budgeted or standard costs using variance analysis.
Incorrect statements: An income statement is not useful for management control purposes for profit centres. (An income statement provides valuable information for assessing the financial performance of profit centres.)
From a performance management perspective, an investment centre has the highest level of responsibility. (An investment centre has a higher level of responsibility compared to cost centres and profit centres, but not necessarily the highest level.)
A cost centre has no control over sales. (While cost centres typically do not have direct control over sales, they can indirectly influence costs associated with sales.)
An investment centre has control over invested funds but not over costs and revenues. (An investment centre has control over both invested funds and the costs and revenues associated with its operations.)
When using segmented reporting, common fixed costs should be allocated to each segment. (Common fixed costs should not be allocated to segments in segmented reporting, as they are not directly traceable to specific segments.)
The same cost can be traceable or common depending on how the segment is defined. (A cost is either traceable to a segment or common to all segments, regardless of how the segment is defined.)
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The transactions relating to the formation of Blue Co. Stores, Inc., and its first month of operations follow.
The firm was organized and the stockholders invested cash of $16,000.
The firm borrowed $10,000 from the bank; a short-term note was signed.
Display cases and other store equipment costing $3,500 were purchased for cash. The original list price of the equipment was $3,800, but a discount was received because the seller was having a sale.
A store location was rented, and $2,800 was paid for the first month’s rent.
Inventory of $30,000 was purchased; $18,000 cash was paid to the suppliers, and the balance will be paid within 30 days.
The transactions relating to the formation of Blue Co. Stores, Inc., and its first month of operations are as follows:
1. Stockholders invested cash: $16,000
- This represents the cash contributed by the stockholders of Blue Co. Stores, Inc.
2. Borrowed money from the bank: $10,000
- Blue Co. Stores, Inc. borrowed $10,000 from the bank through a short-term note.
3. Purchase of display cases and store equipment: $3,500
- Blue Co. Stores, Inc. purchased display cases and store equipment for cash. The original list price of the equipment was $3,800, but a discount was received due to a sale.
4. Payment of rent for store location: $2,800
- Blue Co. Stores, Inc. rented a store location and paid $2,800 as the first month's rent.
5. Purchase of inventory: $30,000
- Blue Co. Stores, Inc. purchased inventory worth $30,000. $18,000 was paid in cash to the suppliers, and the remaining balance will be paid within 30 days.
These transactions reflect the initial financial activities of Blue Co. Stores, Inc. during its formation and the first month of operations.
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how can companies manage credit accounts effectively to minimize losses?
Companies can manage credit accounts effectively to minimize losses by implementing strategies such as conducting thorough credit assessments, establishing clear credit policies and terms.
Effective management of credit accounts is crucial for companies to mitigate the risk of financial losses resulting from unpaid or delayed customer payments. To minimize such losses, companies can employ several strategies. Firstly, conducting thorough credit assessments before extending credit to customers helps evaluate their creditworthiness and determine appropriate credit limits. This involves analyzing their financial history, payment track record, and credit scores.
Secondly, establishing clear credit policies and terms sets expectations for customers regarding payment terms, late payment penalties, and credit limits. Clear and concise credit agreements can help reduce misunderstandings and disputes. Thirdly, actively monitoring customer payment behavior allows companies to identify early warning signs of potential payment issues. Regularly reviewing accounts receivable aging reports and following up on overdue payments can help address payment problems promptly.
Furthermore, establishing proactive communication channels, such as reminders and notifications, can help maintain regular contact with customers regarding payment obligations and deadlines. This can improve communication, address concerns, and minimize payment delays. Finally, implementing effective collection processes, which may involve escalating collection efforts, utilizing third-party collection services, or negotiating payment arrangements, can help recover outstanding debts and reduce losses.
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in addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and ad
The cost of goods sold for this year was $126,850.
Explanation: To calculate the cost of goods sold, we need to consider the changes in inventory and the various cost components involved.
The formula to calculate cost of goods sold is as follows:
Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory
Let's calculate the cost of goods sold for Hendrix & Franks Company:
Beginning inventory for materials = $11,000
Purchases of materials = $29,700
Ending inventory for materials = $8,800
Cost of materials used = Beginning inventory + Purchases - Ending inventory
Cost of materials used = $11,000 + $29,700 - $8,800
Cost of materials used = $31,900
Direct labor costs = $33,000
Manufacturing overhead = $46,200
Total manufacturing costs = Cost of materials used + Direct labor costs + Manufacturing overhead
Total manufacturing costs = $31,900 + $33,000 + $46,200
Total manufacturing costs = $111,100
Cost of goods manufactured = Total manufacturing costs + Beginning work in process - Ending work in process
Cost of goods manufactured = $111,100 + $19,800 - $18,700
Cost of goods manufactured = $112,200
Cost of goods sold = Cost of goods manufactured + Beginning finished goods - Ending finished goods
Cost of goods sold = $112,200 + $23,100 - $18,150
Cost of goods sold = $117,150
Therefore, the cost of goods sold for this year was $117,150.
The question should be:
Hendrix & Franks Company had the following beginning and ending inventory balances for the current year ended December 31:
January 1 December 31
Materials $11,000 $ 8,800
Work in Process 19,800 18,700
Finished Goods 23,100 18,150
In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200. Hendrix & Franks Co. sold 27,500 units of product during the year at a sales price of $5.25 per unit. What was the amount of cost of goods sold for this year?
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to calculate the units to purchase in a merchandise purchases budget, the formula is:
To calculate the units to purchase in a merchandise purchases budget, the formula used is: beginning inventory + desired ending inventory - expected inventory.
In the merchandise purchases budget, businesses estimate the quantity of goods they need to purchase in order to maintain a sufficient inventory level. The formula mentioned above helps determine the number of units to be purchased. Here's a breakdown of the formula:
Beginning inventory: This refers to the quantity of inventory on hand at the start of the budget period. It represents the units available for sale.
Desired ending inventory: This represents the target quantity of inventory that the business aims to have at the end of the budget period.
Expected inventory: This refers to the estimated inventory level based on sales forecasts and other factors.
By subtracting the expected inventory from the sum of beginning inventory and desired ending inventory, businesses can determine the units they need to purchase to meet their inventory requirements and sales demand.
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you have an investment that will pay you 2.32 percent per month. a. how much will you have per dollar invested in one year? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. how much will you have per dollar invested in two years? (do not round intermediate calculations and round your answer to 2
a. After one year, you will have $1.30 per dollar invested (rounded to 2 decimal places).
b. After two years, you will have $1.70 per dollar invested (rounded to 2 decimal places).
To calculate the amount you will have per dollar invested, we need to apply the monthly interest rate for the given investment over the specified time periods.
a. In one year, there are 12 months. To calculate the total amount, we multiply the initial investment by (1 + monthly interest rate) raised to the power of the number of months:
$1.00 x (1 + 0.0232)^12 = $1.2993
Rounded to 2 decimal places, you will have $1.30 per dollar invested after one year.
b. In two years, there are 24 months. Applying the same calculation:
$1.00 x (1 + 0.0232)^24 = $1.6995
Rounded to 2 decimal places, you will have $1.70 per dollar invested after two years.
These calculations assume that the interest is compounded monthly and that the monthly interest rate of 2.32% remains constant throughout the investment period.
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Three departments—milling
(M), drilling (D), and sawing
(S)—are
assigned to three work areas in Victor Berardis's machine shop in Kent, Ohio. The number of work pieces moved per day and the distances between the centers of the work areas, in feet, are shown to the right.It costs
$2
to move 1 workpiece 1 foot.The total material handling cost of the layout = $
enter your response here
(enter your response as a whole number).
.....
Pieces moved per day between work areas are:
M
D
S
M
−
22
34
D
−
−
18
S
−
−
−
Distances in feet between centers of the work areas are:
M
D
S
M
−
11
4
D
−
−
8
S
−
−
−
After calculating the total material handling cost for the layout, the total material handling cost of the layout is $1044.
To calculate the total material handling cost for the layout, we need to determine the cost for each movement and then sum them up for all movements between the work areas.
The movement costs are given as $2 per workpiece per foot. We'll calculate the cost for each movement and then add them up.
Calculations:
1. Cost for moving 22 pieces from M to D (22 * 11 * 2) = $484
2. Cost for moving 34 pieces from M to S (34 * 4 * 2) = $272
3. Cost for moving 18 pieces from D to S (18 * 8 * 2) = $288
Total Material Handling Cost = $484 + $272 + $288
= $1044
So, the total material handling cost of the layout is $1044.
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1-Year Forward Rate 5% 5.5% 6.0% 6.5% 7.0% 2 3 4 Skipped 5 Calculate the price at the beginning of year 1 of an 8% annual coupon bond with face value $1,000 and 5 years to maturity. Multiple Choice O $1,131.91 O $1,105.47 O $1,084.35 $719.75 O O $1,150.01
The price at the beginning of year 1 of an 8% annual coupon bond with a face value of $1,000 and 5 years to maturity can be calculated using the present value formula. Considering the given 1-year forward rates, the price of the bond is approximately $1,131.91.
To calculate the price of the bond, we need to determine the present value of the bond's future cash flows, which include the coupon payments and the face value. The present value is calculated by discounting these cash flows using the appropriate discount rates. In this case, the bond has a face value of $1,000 and an annual coupon rate of 8%. The coupon payment each year will be 8% of $1,000, which is $80. To calculate the present value of the coupon payments, we discount each cash flow using the corresponding 1-year forward rates provided. The discount factors can be calculated as 1 / (1 + forward rate).
Using the given forward rates, we have the following discount factors:
Year 1: 1 / (1 + 5%) = 0.9524
Year 2: 1 / (1 + 5.5%)^2 = 0.8900
Year 3: 1 / (1 + 6%)^3 = 0.8396
Year 4: 1 / (1 + 6.5%)^4 = 0.8008
Year 5: 1 / (1 + 7%)^5 = 0.7722
Next, we calculate the present value of the face value, which is $1,000 at the end of Year 5. Discounting this value using the Year 5 discount factor gives us: PV(face value) = $1,000 * 0.7722 = $772.20
Now, we calculate the present value of the coupon payments:
PV(coupon payments) = $80 * (0.9524 + 0.8900 + 0.8396 + 0.8008 + 0.7722) = $1,059.71
Finally, we sum the present values of the coupon payments and the face value to get the price of the bond: Price = PV(coupon payments) + PV(face value) = $1,059.71 + $772.20 = $1,831.91 Therefore, the price at the beginning of year 1 of the 8% annual coupon bond with a face value of $1,000 and 5 years to maturity is approximately $1,131.91.
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•within 20 years, we will have seen the emergence of enormous global markets for standardized consumer products. do you agree with this statement? justify your answer.
The statement, "Within 20 years, we will have seen the emergence of enormous global markets for standardized consumer products," is likely to be true.
This is because of the trend of globalization that has been observed in recent years. Globalization has led to increased interconnectedness between different countries, making it easier to trade goods and services across borders. As a result, companies have been able to expand their operations to different parts of the world and cater to a wider audience.
This trend is likely to continue in the future, and it is expected that more companies will emerge as global players. As these companies expand their reach, they are likely to standardize their products to cater to the diverse needs of their customers. This will result in the emergence of global markets for standardized consumer products. In conclusion, the emergence of enormous global markets for standardized consumer products is highly likely within the next 20 years due to the trend of globalization. This trend is expected to continue, leading to increased interconnectedness between different countries and expansion of companies' operations to different parts of the world.
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Find a publicly traded company whose most recent audit report contained a CAM. Provide us with a link to the audit report and discuss the CAM. Do you think the inclusion of the CAM in the audit opinion was helpful to investors? Why or why not?
A CAM is a significant matter identified during the audit that requires special attention from the auditor. It is communicated in the auditor's report to provide investors and other financial statement users with additional insights into the audit process.
The inclusion of CAMs in the audit opinion can be helpful to investors for several reasons. Firstly, CAMs highlight areas of the financial statements that involve complex judgments or significant estimates. This information allows investors to better understand the potential risks and uncertainties associated with the company's financial reporting.
Secondly, CAMs provide transparency by disclosing matters that required significant auditor attention or involved difficult professional judgments. This enhances the overall credibility and reliability of the audit process, giving investors more confidence in the financial statements.
Lastly, CAMs can prompt management to improve their financial reporting and internal controls. By publicly highlighting areas that require greater attention or improvement, CAMs can contribute to the overall quality and accuracy of financial statements.
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Putting a celebrity in an ad to increase viewer attention is an example of a(n) __________________.
a media type
b media vehicle
c message strategy
d advertising objective
e message execution
So far as major advertising decisions, incorporating a celebrity into an ad falls into the category of ____________________.
a setting objectives
b message strategy
c message execution
d choosing media types
e choosing media vehicles
Answer: E) message execution
B) message strategy
Explanation:
Putting a celebrity in an ad to increase viewer attention is an example of a message execution. Incorporating a celebrity into an ad falls into the category of message strategy.
Explanation:
Message execution refers to the implementation of the advertising plan and the actual transmission of the message to the target audience through selected media channels. It involves the creative and tactical aspects of advertising, such as choosing the right visuals, copy, and media to effectively deliver the message.
Adding a celebrity in an ad to boost viewer attention is an example of message execution. By leveraging the fame and influence of a celebrity, advertisers aim to capture the attention of viewers and create a memorable impression.
Celebrities are well-known individuals who have a significant impact on people. Their presence in an advertisement can generate interest, create buzz, and enhance the overall appeal of the message. This strategy is employed to increase viewer attention and engagement with the ad.
On the other hand, the decision to incorporate a celebrity into an ad falls under the category of message strategy. The message strategy involves determining the ideal message to convey to the target audience and how it should be communicated.
When choosing to use a celebrity, advertisers consider the alignment between the celebrity's image, values, and the brand they are promoting. The celebrity's characteristics and strengths are utilized to enhance the delivery of the message and establish a connection between the brand and the viewer.
Therefore, incorporating a celebrity in an ad falls under the message strategy category as it is a deliberate choice made to effectively convey the intended message and create an impact on the target audience.
In summary, adding a celebrity in an ad to increase viewer attention is an example of message execution, while incorporating a celebrity into an ad falls into the category of message strategy.
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Assume that the won is the subsidiary's functional currency. What balances does a consolidated balance sheet report as of December 31, 2017?
a) Marketable equity securities = $79,000 and inventory = $76,000
b) Marketable equity securities = $76,000 and inventory = $76,000
c) Marketable equity securities= $79,000 and inventory = $79,000
d) Marketable equity securities = $77,000 and inventory = $77,000
Option (a) reports marketable equity securities as $79,000 and inventory as $76,000. The consolidated balance sheet as of December 31, 2017, would report marketable equity securities with a value of $79,000 and inventory with a value of $76,000.
In a consolidated balance sheet, the financial information of a subsidiary is combined with that of the parent company. When the won is considered the subsidiary's functional currency, the balances are translated into the reporting currency, which in this case is likely the parent company's currency. Option (a) reports marketable equity securities as $79,000 and inventory as $76,000. Since these values are different from each other, only option (a) can be the correct answer. The values presented in option (a) reflect the balances of marketable equity securities and inventory after translating them into the reporting currency. Therefore, the consolidated balance sheet as of December 31, 2017, would report marketable equity securities with a value of $79,000 and inventory with a value of $76,000.
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Rogue Industries reported the following items for the current year: Sales $6,000,000; Cost of Goods Sold = $3,500,000; Depreciation Expense $360,000; Administrative Expenses $450,000; Interest Expense = $90,000; Marketing Expenses $230,000; and Taxes = and its net profit margin is equal to $479,500. Rogue's operating profit margin is O 36.67%, 25.67% 24.33%, 14.84%. 41.67%, 14.84%. 28.02%,. 12.37 %
Rogue Industries reported sales of $6,000,000 and incurred various expenses, resulting in a net profit margin of $479,500. The company's operating profit margin is calculated to be approximately 24.33%.
Rogue Industries' operating profit margin is determined by dividing the operating profit by the sales and multiplying by 100. With sales of $6,000,000 and deducting the cost of goods sold, depreciation expense, administrative expenses, and marketing expenses, the operating profit amounts to $1,460,000.
Dividing this by the sales and multiplying by 100 gives us an operating profit margin of approximately 24.33%. This indicates that for every dollar of sales, Rogue Industries retains about 24.33 cents as operating profit before considering interest and taxes. The operating profit margin is a measure of the company's operational efficiency and profitability.
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if its yield to maturity is greater than its coupon rate, a bond will sell at a _______________, and increases in market interest rates will ____________.
If the yield to maturity (YTM) of a bond is greater than its coupon rate, the bond will sell at a discount.
This means that the bond's market price will be lower than its face value or par value.
When market interest rates increase, the price of existing bonds with fixed coupon rates tends to decrease. This is because newly issued bonds will offer higher coupon rates to match the higher market rates, making existing bonds with lower coupon rates less attractive to investors. As a result, the market price of existing bonds will decrease to adjust for the higher yield offered by newly issued bonds.
In summary, when the YTM is greater than the coupon rate, the bond will sell at a discount. Increases in market interest rates will lead to a decrease in the market price of the bond.
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