The automobile's original cost is, therefore, $12,872.72.The portion of Murphy's total car payments that went toward interest charges is $2,436.72 (rounded off).
The automobile's original cost can be calculated using the formula:
PV = Payment * (((1 + r)^n - 1) / (r(1 + r)^n))
Where,
PV = Present Value
Payment = The periodic payment amount
r = Rate of interest per month
n = The total number of periods
Using the above formula, the present value of the loan can be calculated as follows:$4000 = $400 * (((1 + 0.12/12)^(36) - 1) / (0.12/12(1 + 0.12/12)^36))The automobile's original cost is, therefore, $12,872.72.
The interest charged for the loan can be calculated as follows:Interest = Total payments - (Original cost + Down payment)Total payments = Payment * nInterest = ($400 * 36) - ($12,872.72 + $4000)Interest = $2,436.72A portion of Murphy's total car payments went toward interest charges, which is $2,436.72 (rounded off).Therefore, the portion of Murphy's total car payments that went toward interest charges is $2,436.72 (rounded off).
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B-C ratio method is the equivalent annual cost of the initial investment including the allowance for market value if any. True False
False.
The Benefit-Cost (B-C) ratio method compares the present value of the project's expected benefits to the present value of its expected costs. It does not involve the equivalent annual cost of the initial investment or include an allowance for market value. The B-C ratio is calculated by dividing the present value of benefits by the present value of costs.
The B-C ratio method helps evaluate the economic feasibility of a project by assessing whether the benefits outweigh the costs. If the B-C ratio is greater than 1, it indicates that the project's benefits exceed its costs and is considered economically viable.
Therefore, the statement that the B-C ratio method is the equivalent annual cost of the initial investment including the allowance for market value is false.
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ABC common stock is expected to have extraordinary growth in earnings and dividends of 20% per year for 2 years, after which the growth rate will settle into a constant 6%. If the discount rate is 15% and the most recent dividend was $2.50, what should be the approximate current share price?
$31.16
$33.23
$37.39
$47.77
The approximate current share price should be $34.08.
To approximate the current share price of ABC common stock, we need to calculate the present value of the future dividends. The stock is expected to have extraordinary growth in earnings and dividends of 20% per year for 2 years, followed by a constant growth rate of 6%. The discount rate is 15% and the most recent dividend was $2.50. By discounting the future dividends and summing them up, we can determine the approximate current share price.
First, we calculate the present value of the extraordinary growth period using the dividend growth formula:
PV = D1 / (1 + r) + D2 / (1 + r)^2
PV = $2.50 / (1 + 0.15) + $2.50 * (1 + 0.20) / (1 + 0.15)^2
PV = $2.17 + $2.24 = $4.41
Next, we calculate the present value of the constant growth period using the Gordon growth model:
PV = D3 / (r - g)
PV = $2.50 * (1 + 0.06) / (0.15 - 0.06)
PV = $2.67 / 0.09 = $29.67
Finally, we sum up the present values:
Current Share Price = PV of extraordinary growth period + PV of constant growth period
Current Share Price = $4.41 + $29.67 = $34.08
Therefore, the approximate current share price should be $34.08.
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You are given: (i) Loss sizes X follows a two-parameter Pareto distribution. (ii) Payment per payment for an insurance without a deductible is 800. (iii) Payment per payment for an insurance with a deductible of 500 is 1100. Calculate payment per loss for an insurance with a deductible of 1000.
The Pareto distribution is a probability distribution used to model extreme events, such as large losses in insurance. It is defined by two parameters: the shape parameter (alpha) and the scale parameter (x_m). In this case, the loss sizes X follow a two-parameter Pareto distribution.
From the given information, we know that the payment per loss for an insurance without a deductible is 800 and the payment per loss for an insurance with a deductible of 500 is 1100. the payment per loss for an insurance with a deductible of 1000, we need to determine the parameters of the Pareto distribution.Let's denote the shape parameter as alpha and the scale parameter as x_m. We can use the information provided to set up two equations:
After finding the values of alpha and x_m, we can use the Pareto distribution to calculate the payment per loss for an insurance with a deductible of 1000.Keep in mind that this is a general approach, and the specific values of alpha and x_m will depend on the data and assumptions of the problem. It is essential to ensure that the assumptions of the Pareto distribution are valid for the given problem and data.
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You have just invested your savings of $25,000. What range of returns on your investment would you feel most comfortable with after 1 years?
a. $24,000-$26,500
b. $23,000-$28,000
c. $21,000-$31,000
d. $19,000-$34,000
When an individual invests in a scheme, it is essential to consider the rate of return. A rate of return is the amount that an investment generates in addition to its initial expense over time. So, to know about the range of returns on investment one would feel most comfortable with after 1 year, given an investment of savings of $25,000. The best option would be option "b. $23,000-$28,000".
Explanation:- Rate of return is the profit you get from your savings over a period. Here, we have to calculate the range of returns on savings for 1 year.
Therefore, it is necessary to consider the investment and the rate of return. The different options are:$24,000 - $26,500.$23,000 - $28,000.$21,000 - $31,000.$19,000 - $34,000.
In the above options, the range of returns on the investment in option b. $23,000-$28,000 would be most comfortable. The rate of return could be calculated as follows:- Rate of return = (Final amount – Initial amount) / Initial amount. The rate of return for the investment would be($28,000 - $25,000) / $25,000= $3,000 / $25,000= 0.12 or 12%.
Therefore, the range of returns on investment of savings of $25,000 would be $23,000-$28,000 with a rate of return of 12% after 1 year.
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Suppose you made an honest mistake that could prove expensive for your employer. Would you blurt out the bad news immediately or consider strategies to soften the blow somewhat? How could you reduce the bad feelings associated with the disappointing news?
It is advisable to consider strategies to soften the blow and reduce negative feelings associated with the disappointing news of an expensive mistake.
When faced with an honest mistake that could prove costly for your employer, immediately blurting out the bad news may not be the most effective approach. Taking the time to strategize how to deliver the news and reduce its impact can help create a more constructive and solution-oriented environment. By preparing potential solutions, taking responsibility, apologizing sincerely, and demonstrating a commitment to learning from the mistake, you can mitigate the negative feelings and work towards finding a resolution.
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Corruption is a big agenda in Kenya that has led to backward development. Citing some 2 scandals that occurred in the recent past explain how it derailed development in Kenya
Corruption in Kenya has hindered development through various scandals. Two recent examples are the National Youth Service (NYS) scandal and the Kenya Power corruption scandal. These scandals involved embezzlement of public funds, leading to financial losses, misallocation of resources, and a lack of public services and infrastructure development.
The National Youth Service (NYS) scandal, which occurred in 2015 and 2018, involved the misappropriation of approximately $100 million from funds allocated for youth empowerment programs. The corruption scheme involved fraudulent payments for goods and services that were never delivered. As a result, funds intended for the development and empowerment of the youth were siphoned off, leading to a loss of opportunities for skill development, education, and employment.
The Kenya Power corruption scandal, which came to light in 2018, involved inflated contracts and irregular payments within the electricity sector. It was discovered that Kenya Power officials colluded with private companies to inflate prices for goods and services, leading to massive financial losses for the state-owned power utility. These losses limited the capacity of Kenya Power to invest in infrastructure development, expand electricity access, and improve the reliability of the power supply, thus hindering economic growth and development.
In both cases, corruption undermined the efficient allocation of resources, diverted funds away from public services, and eroded public trust. This hindered the development of critical sectors such as youth empowerment and energy infrastructure, perpetuating a cycle of backward development in Kenya.
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Sunset Ltd. purchased new machinery worth $820,000. The machine
will allow the company to increase production by 35,000 units per
year at $39 per unit. Variable costs per unit are $15 and the fixed
co
(a) The Pro-Forma Statement of Comprehensive Income calculates the revenue = $1,365,000, variable costs = $525,000, fixed costs = $200,000, depreciation expense = $152,200/year , and net income after taxes for the next year = $292,680.
(b) The Present Value of the CCA Tax Shield is equal to $83,390.
(a) The Pro-Forma Statement of Comprehensive Income is prepared by considering the revenue from the increased production, deducting the variable costs, fixed costs, and depreciation expense. The net income before taxes is then adjusted for taxes to determine the net income after taxes.
Revenue: 35,000 units/year * $39/unit = $1,365,000
Variable costs: 35,000 units/year * $15/unit = $525,000
Fixed costs: $200,000
Depreciation expense: ($820,000 - $59,000) / 5 years = $152,200/year (straight-line method)
Net income before taxes: Revenue - Variable costs - Fixed costs - Depreciation expense = $487,800
Net income after taxes: Net income before taxes * (1 - Tax rate) = $292,680 (assuming a tax rate of 40%)
(b) The CCA Tax Shield is calculated by multiplying the CCA expense, which is determined using the CCA rate, by the tax rate. The Present Value of the CCA Tax Shield is obtained by discounting the CCA Tax Shield using the required rate of return.
CCA expense: $820,000 * 30% = $246,000 (assuming a CCA rate of 30%)
Tax shield: CCA expense * Tax rate = $246,000 * 40% = $98,400
Present Value of the CCA Tax Shield: $98,400 / (1 + Required rate of return) = $98,400 / (1 + 18%) ≈ $83,390
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Sunset Ltd. purchased new machinery worth $820,000. The machine will allow the company to increase production by 35,000 units per year at $39 per unit. Variable costs per unit are $15 and the fixed costs per year are $200,000. The machinery is valued to be worth $59,000 after 5 years. Depreciation using the straight-line method. The required rate of return on the project using this machinery is 18% and a marginal tax rate of 40% is applicable to the company. (a) Develop the Pro-Forma Statement of Comprehensive Income for the next year. (8 points) (b) If the CCA rate applicable on the machinery is 30%, compute the present value of the CCA tax shield for the machinery.
Inventory levels at companies mostly when their supply chains get shorter and less complex. increase. can't be determined. stay the same. decrease. Question 12 1 pts When a blanket rate structure is used, which factor is eliminated as a locational determinant? Raw material sources Market sources Transportation rate Labor rate
A blanket rate structure is a flat rate applied uniformly to all locations, regardless of distance or other factors. Therefore, the correct answer to the first question is "decrease."
When supply chains get shorter and less complex, inventory levels at companies typically decrease. This is because shorter and less complex supply chains enable companies to receive raw materials and finished goods more quickly, reducing the need for large stockpiles of inventory.
Additionally, shorter supply chains often involve more frequent deliveries, allowing companies to maintain lower inventory levels while still meeting customer demands. Therefore, the correct answer to the first question is "decrease."
As for the second question, when a blanket rate structure is used, the transportation rate is eliminated as a locational determinant. A blanket rate structure is a flat rate applied uniformly to all locations, regardless of distance or other factors.
In this case, the transportation rate does not vary based on the location, and therefore, it is not considered a determining factor in the location decision. Instead, other factors such as raw material sources, market sources, and labor rates are still taken into account.
Therefore, the correct answer to the first question is "decrease."
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Question 6 The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $205,000 and February $110,000. Collections for sales are 60% in the month of sale and 40% the next month. Gross margin is 35% of sales. Administrative costs are $14,000 each month. . . * Beginning accounts receivable is $30,000. Beginning inventory is $14,000. Beginning accounts payable is $73,000. (All from inventory purchases) Purchases are paid in full the following month. Desired ending inventory is 30% of next month's cost of goods sold (COGS). At the end of January, budgeted accounts receivable is O $82,000 O $159,000 O $44,000 O $123,000 h Question 8 The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $207,000 and February $105,000 Collections for sales are 60% in the month of sale and 40% the next month. Gross margin is 25% of sales Administrative costs are $19,000 each month. . Beginning accounts receivable is $30,000 Beginning inventory is $16,000. Beginning accounts payable is $71,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending inventory is 30% of next month's cost of goods sold (COGS). For January, budgeted cash collections are O $154,200 O $124,200 $207,000 O $30,000 Question 9 The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $210,000 and February $105,000. Collections for sales are 60% in the month of sale and 40% the next month. Gross margin is 35% of sales. Administrative costs are $15,000 each month. Beginning accounts receivable is $29,000. Beginning inventory is $21,000. Beginning accounts payable is $75,000. (All from inventory purchases.) + + Purchases are paid in full the following month. Desired ending inventory is 25% of next month's cost of goods sold (COGS). For January, budgeted net income is O $69,000 O $111,000 $73,500 O $58,500
The budgeted accounts receivable at the end of January for Casey Corporation is $82,000. The budgeted cash collections for January are $124,200, and the budgeted net income for January is $58,500.
In Question 6, the budgeted accounts receivable at the end of January for Casey Corporation can be calculated as follows:
Budgeted sales for January: $205,000
Collections for sales in the month of sale (60%): $205,000 * 60% = $123,000
Collections for sales in the next month (40%): $110,000 * 40% = $44,000
Beginning accounts receivable: $30,000
To calculate the budgeted accounts receivable at the end of January, we add the collections for sales in the month of sale and subtract the collections for sales in the next month, taking into account the beginning accounts receivable:
Budgeted accounts receivable at the end of January = Beginning accounts receivable + Collections for sales in the month of sale - Collections for sales in the next month
= $30,000 + $123,000 - $44,000
= $82,000
Therefore, the budgeted accounts receivable at the end of January for Casey Corporation is $82,000.
In Question 8, the budgeted cash collections for January can be calculated as follows:
Budgeted sales for January: $207,000
Collections for sales in the month of sale (60%): $207,000 * 60% = $124,200
Therefore, the budgeted cash collections for January for Casey Corporation is $124,200.
In Question 9, the budgeted net income for January can be calculated as follows:
Budgeted sales for January: $210,000
Gross margin (35%): $210,000 * 35% = $73,500
Administrative costs: $15,000
To calculate the budgeted net income, we subtract the administrative costs from the gross margin:
Budgeted net income for January = Gross margin - Administrative costs
= $73,500 - $15,000
= $58,500
Therefore, the budgeted net income for January for Casey Corporation is $58,500.
Overall, based on the given information, the budgeted accounts receivable at the end of January is $82,000, the budgeted cash collections for January are $124,200, and the budgeted net income for January is $58,500 for Casey Corporation.
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On Jan. 2020, Adams Inc. leased two automobiles from Sub Autos Corp. The lease requires Adams Inc. to make 8 annual payments of $12.5 at the beginning of each year. The lease does not have any prepayments, lease incentives, or initial direct costs. The present value of the payments is $80 and the present value of the residual value is $14. Adams Inc has agreed to guarantee the residual value of the cars. Sub Autos Corp. valued these cars at $88 in its inventory. It has recently sold similar cars for $92 each.
Record the journal entry for Sub Auto's initial measurement of the lease on Jan. 1, 2020. Select all that apply.
a. Cr. Sales Revenues $80
b. Cr. Sales Revenues $100
c. Dr. Net Investment in the Lease-Sales Type $80
d. Dr. Net Investment in the Lease-Sales Type $94
e. Dr. Lease receivable $80
f. Cr. Inventory $88
g. Dr. Cost of Goods Sold $74
h. Dr. Cost of Goods Sold $88
Adams Inc. has agreed to make eight annual payments of $12.5 each at the beginning of each year. The lease requires a present value of $80 and a present value of $14 as residual value. Sub Autos Corp has guaranteed the residual value of the cars and has recently sold similar cars for $92 each.
Sub Auto's initial measurement of the lease on Jan. 1, 2020, journal entry are as follows:
Dr. Net Investment in the Lease-Sales Type $80Cr. Sales Revenues $80
Present value of lease payments = $80Present value of residual value = $14
The cost of goods sold is = $88 - $14 = $74.
Hence, option g and h are eliminated.
There are no lease incentives or initial direct costs.
Hence option a and b are eliminated.
As per the journal entry for the initial measurement of the lease, the first entry is to recognize the leased asset as well as the lease liability that is equal to the present value of the lease payments.
Subsequently, the sales revenue is recognized in the same amount as the present value of the lease payments. Therefore, the correct answer is as follows:
Dr. Net Investment in the Lease-Sales Type $80Cr. Sales Revenues $80
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What is the difference between subscription and membership in Wordpress?
In WordPress, subscription and membership are two distinct concepts. Subscription refers to the process of receiving regular updates or news from a website, usually through email.
A website might ask visitors to sign up for a subscription to receive their newsletter, for example. When visitors subscribe to a website, they usually receive emails that contain updates or new content.
Membership, on the other hand, is more extensive than subscription. When someone becomes a member of a website, they are often granted access to exclusive content, services, or products. Membership might include the ability to access premium features, participate in a forum, or download certain resources, among other benefits. Membership may be free or paid, and the membership fees may be recurring or a one-time payment. Members may be granted different levels of access depending on their membership level.
Memberships can be beneficial to both the website owner and the member. The website owner can generate revenue through membership fees or exclusive content, and members can benefit from exclusive access to content or services. It is crucial to understand the differences between the two concepts before deciding to implement either subscription or membership on your website.
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10.
Most of the goods and services in the United States are produced
by government and the rest are produced by firms and not-for-profit
organizations.
a. True
b. False
b. False. In the United States, the majority of goods and services are produced by private firms, while the government's role is primarily focused on regulation, public goods, and certain sectors such as healthcare and education.
The statement is false.
In the United States, the majority of goods and services are not produced by the government. Instead, they are primarily produced by private firms operating in various industries such as manufacturing, services, and agriculture.
These firms, driven by profit motives, play a significant role in the economy by creating and delivering goods and services to meet consumer demand.
Additionally, not-for-profit organizations also contribute to the production of certain goods and services, particularly in sectors such as healthcare, education, and social services.
However, the overall production and provision of goods and services are predominantly carried out by private firms rather than the government.
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Swanson Industries produces wooden chairs using a combination of labor and capital. The production function is given by f(K,L) = K²L where K is the amount of capital and L is the amount of labor input used. Suppose for simplicity that Swanson Industries can purchase any amount of labor at a wage of w = 5 and any amount of capital at a rate of r = 3. (a) Set up the cost minimization problem for Swanson Industries and solve for the optimal amount of capital and the optimal amount of labor, each as a function of q. (b) Using your answer to (a), solve for the (minimized) cost function C(q). (b) What kind of returns to scale does the firm exhibit?
Swanson Industries produces wooden chairs using labor and capital with the production function K²L. The cost minimization problem is solved to get the optimal capital and labor as functions of q. The cost function is found, and the production function exhibits constant returns to scale.
(a) The cost minimization problem for Swanson Industries is to minimize the cost of producing q units of output given the production function and the input prices. The cost function is:
C = wL + rK
C = 5L + 3K²L/q
∂C/∂K = 6KL/q = 0
∂C/∂L = 5 + 3K²/q = 0
6KL/q = 0 => L = 0 or K = q/6
From the second equation, we can substitute K = q/6 and solve for L:
5 + 3(q/6)²/q = 0 => q = 30L²/7
Substituting q = 30L²/7 into K = q/6, we get:
K = (5L/7)^(1/2)
Therefore, the optimal amount of capital and labor as a function of q is:
K(q) = (5q/42)^(1/2)
L(q) = (7q/30)^(1/2)
(b) Using the optimal amounts of capital and labor found in (a), we can solve for the (minimized) cost function C(q):
C(q) = 5L(q) + 3K(q)²L(q)/q = 5(7q/30)^(1/2) + 3(5q/42)^(1/2)(7q/30)^(1/2)
C(q) = 5(7q/30)^(1/2) + 5(7q/30)^(3/2)
(c) To determine the type of returns to scale, we can calculate the output elasticity of the production function. The output elasticity is defined as:
E = (∂q/∂K) * (K/q) + (∂q/∂L) * (L/q)
Substituting the production function and its partial derivatives, we get:
E = 2K/q + K²L/q
E = 2(5q/42)^(1/2)/q + (5q/42)^(2/3)(7q/30)^(1/2)/q
E = 5^(1/6) * 7^(1/3) * q^(1/6)
Since the output elasticity is a constant, independent of q, the production function exhibits constant returns to scale.
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Adam has $79,000 in taxable income this year.
Tax Bracket Bottom of Bracket Top of Bracket Tax Liability for Bracket
8% $0 $11,600 $928
12% $11,600 $46,600 $4,200
15% $46,600 $116,600 $10,500
23% $116,600 $216,600 $23,000
31% $216,600 $416,600 $62,000
37% $416,600
Calculate their total tax liability for this year.
Option D is correct.
Adam has $79,000 in taxable income this year. The tax liability for different brackets is as follows:Tax BracketBottom of BracketTop of BracketTax Liability for Bracket
8%$0$11,600$92812%$11,600$46,600$4,20015%$46,600$116,600$10,50023%$116,600$216,600$23,00031%$216,600$416,600$62,00037%$416,600Therefore, Adam's total tax liability can be calculated as follows;
Since $79,000 is in the bracket of $46,600 to $116,600, it will be taxed at 15%.His tax liability for the first bracket is $46,600 − $11,600 = $35,000His tax liability for the second bracket is $79,000 − $46,600 = $32,400.Total tax liability is therefore, $35,000(0.08) + $32,400(0.15) = $5,800 + $4,860 = $10,660Adam's total tax liability for this year is $10,660. Therefore, option D is correct.
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What financial statement shows all the benefits earned and
sacrifices incurred during the accounting Period?
The financial statement that shows all the benefits earned and sacrifices incurred during the accounting period is the Income Statement.
A financial statement is a document that summarizes an individual or business's financial position, including assets, liabilities, and net worth. It is used to assess the financial health of an individual or business.An income statement is one of the three major financial statements, along with the balance sheet and the cash flow statement, that report a company's financial performance over a specific accounting period.
The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.
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Consider the following partially completed schedules of cost of goods manufactured. Compute the missing amounts. (Click the icon to view the schedules.) Jones Inc. Beginning Work-in-Process InventoryL Direct Materials Used Direct Labor Manufacturing Overhead Total Manufacturing Costs Incurred 14,500 10,700 45,700 during the Year Total Manufacturing Costs to 55,800 Account For Ending Work-in-Process Inventory Cost of Goods Manufactured 51,300
The missing values are:
Direct Labor = $35,000 - Manufacturing Overhead
Manufacturing Overhead = $35,000 - Direct Labor
Ending Work-in-Process Inventory = $9,900
To compute the missing amounts in the schedules of cost of goods manufactured, we can use the basic formula for calculating the cost of goods manufactured:
Cost of Goods Manufactured = Beginning Work-in-Process Inventory + Total Manufacturing Costs Incurred - Ending Work-in-Process Inventory
Given the information provided, we have:
Beginning Work-in-Process Inventory = $14,500
Direct Materials Used = $10,700
Direct Labor = unknown
Manufacturing Overhead = unknown
Total Manufacturing Costs Incurred during the Year = $45,700
Ending Work-in-Process Inventory = unknown
Cost of Goods Manufactured = $51,300
Using the formula above, we can solve for the missing amounts:
Total Manufacturing Costs Incurred = Direct Materials Used + Direct Labor + Manufacturing Overhead
Therefore,
Direct Labor + Manufacturing Overhead = Total Manufacturing Costs Incurred - Direct Materials Used
Direct Labor + Manufacturing Overhead = $45,700 - $10,700
Direct Labor + Manufacturing Overhead = $35,000
Now, we can use the formula for Cost of Goods Manufactured to find the missing values:
Cost of Goods Manufactured = Beginning Work-in-Process Inventory + Total Manufacturing Costs Incurred - Ending Work-in-Process Inventory
$51,300 = $14,500 + $45,700 - Ending Work-in-Process Inventory
$51,300 - $14,500 - $45,700 = -Ending Work-in-Process Inventory
-$9,900 = -Ending Work-in-Process Inventory
Ending Work-in-Process Inventory = $9,900
Therefore, the missing values are:
Direct Labor = $35,000 - Manufacturing Overhead
Manufacturing Overhead = $35,000 - Direct Labor
Ending Work-in-Process Inventory = $9,900
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William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H 19,400 units/year $24/order $5/unit/year a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number
A) The Economic Order Quantity (EOQ) for the workbooks is 559. B) The annual holding cost for the workbooks is $1398.C) The annual ordering cost for the workbooks is $836.
a) The Economic Order Quantity (EOQ) formula is used to determine the optimal quantity of goods to order at one time to minimize the total cost of inventory management, assuming that demand, ordering costs, and holding costs are constant. EOQ = √(2DS/H).
Given: Demand (D) = 19,400 units/year, Ordering cost (S) = $24/order, Holding cost (H) = $5/unit/year
The EOQ for workbooks = √(2DS/H) = √(2*19400*24/5) = 559.16 ≈ 559 (rounded to the nearest whole number)
The Economic Order Quantity (EOQ) for the workbooks is 559 (rounded to the nearest whole number).
b) The annual holding cost is calculated by multiplying the EOQ by the holding cost per unit and then dividing by two. Annual Holding Cost = (Q/2) * H = (559/2) * $5 = $1397.50 ≈ $1398 (rounded to the nearest whole number).
The annual holding cost for the workbooks is $1398 (rounded to the nearest whole number).
c) The annual ordering cost can be calculated by multiplying the annual demand by the cost per order and dividing by the EOQ.
Annual Ordering Cost = (D*S)/Q = (19400*24)/559 = $836.13 ≈ $836 (rounded to the nearest whole number).
The annual ordering cost for the workbooks is $836 (rounded to the nearest whole number).
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how
to implement this into organization pls need to write for atleast
300 words
Q2 answers JIT ( Just In Time ) philosophy is important because : - It supports in reducing inventory holding costs. - It supports in increasing inventory turnover.
The JIT (Just-In-Time) philosophy is important in various ways. It has the potential to significantly improve the efficiency and productivity of an organization by reducing inventory holding costs and increasing inventory turnover.
JIT is a management philosophy that emphasizes reducing waste and increasing efficiency by only producing goods or providing services when they are needed. JIT is a pull-based system, which means that production or service delivery is triggered by customer demand, rather than by a forecast.
This approach helps reduce inventory holding costs, which can be a significant expense for many organizations. By keeping inventory levels low, an organization can reduce the amount of capital tied up in inventory and avoid the costs of storing and managing excess inventory. Additionally, JIT can help organizations increase inventory turnover. This means that the organization can sell its products more quickly, which can help improve cash flow and reduce the risk of having to write off unsold inventory.
Overall, implementing a JIT philosophy requires significant changes to an organization's operations and culture. Here are some key steps that an organization can take to implement JIT:
Step 1: Develop a comprehensive understanding of the organization's current operations and processes. This includes understanding the current inventory levels, production processes, and supply chain.
Step 2: Identify areas of waste and inefficiency. This may include overproduction, excess inventory, and long lead times.
Step 3: Develop a plan to eliminate waste and inefficiency. This may involve redesigning production processes, reducing inventory levels, and improving supplier relationships.
Step 4: Train employees on the new processes and procedures. It is important to ensure that everyone in the organization understands the new way of working and is committed to making it work.
Step 5: Monitor and adjust the new processes and procedures as needed. JIT is an ongoing process that requires continuous monitoring and improvement to ensure that it remains effective. In conclusion, implementing a JIT philosophy can be a significant undertaking, but it has the potential to deliver significant benefits for an organization. By reducing inventory holding costs and increasing inventory turnover, organizations can improve their efficiency, productivity, and profitability.
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Ouestion 71 (1 point) Alfred earns a $1,025.00 bi-weekly salary. This period he was awarded-a bonus of $500.00 for finishing a project. He will be paid the bonus when his salary is paid out at the end of the period. Calculate Alfred's CP contribution for this pay period.
Alfred's gross salary is less than the basic exemption amount, he does not have to make a CPP contribution for this pay period.
To calculate Alfred's CP contribution for this pay period, we need to first determine his gross salary including the bonus.
Alfred's bi-weekly salary is $1,025.00, and he received a bonus of $500.00, so his gross salary for this pay period is:
$1,025.00 + $500.00 = $1,525.00
Next, we need to calculate his CP contribution based on this gross salary amount. The Canada Pension Plan (CPP) contribution rate for employees in 2021 was 5.45% of pensionable earnings between the basic exemption of $3,500.00 and the yearly maximum pensionable earnings of $61,600.00.
For this pay period, we can assume that Alfred's pensionable earnings are equal to his gross salary of $1,525.00. So, his CPP contribution would be:
($1,525.00 - $3,500.00) x 5.45% = $0.00
Since Alfred's gross salary is less than the basic exemption amount, he does not have to make a CPP contribution for this pay period.
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If a firm wishes to decrease the length of its Operating Cycle, it may
A. Increase Average Payment Period
B. Increase Average Age of Inventory
C. Decrease Average Collection Period
D. Increase Yield to Maturity
E. Any of the above
The correct answer is: C. Decrease Average Collection Period
If a firm wants to decrease the length of its Operating Cycle, it would aim to reduce the time it takes to collect payments from customers. By decreasing the Average Collection Period, the firm can convert its accounts receivable into cash more quickly, thereby shortening the overall operating cycle.
Increasing the Average Payment Period (A) would actually lengthen the operating cycle, as it would take the firm longer to pay its suppliers and settle its liabilities.
Increasing the Average Age of Inventory (B) would also lengthen the operating cycle, as it indicates that the firm is holding inventory for a longer period before it is sold.
Increasing the Yield to Maturity (D) is unrelated to the operating cycle. The yield to maturity is a measure of the return an investor can expect to earn on a bond if it is held until maturity.
Therefore, the correct option is C. Decrease Average Collection Period.
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journalists and all media employees have a code of ethics that they must adhere to. we are the consumers of what they make available to us through the different forms of media.Do we have code of ethics that should be followed and if so what are some of those ?
Consumers of media don't have a formal code of ethics, but they can follow principles such as seeking accurate information, being critical of sources, and promoting respectful engagement.
As consumers of media, we don't have a formal code of ethics like journalists and media employees do. However, there are general principles and guidelines that individuals can follow when engaging with media content. These include seeking accurate and reliable information, being critical of sources, respecting privacy and consent, promoting diversity and inclusivity, avoiding spreading misinformation, and engaging in constructive and respectful dialogue. Personal responsibility and critical thinking are essential in evaluating and consuming media to ensure ethical behavior as recipients of information and participants in online discussions.
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a) Based on the given information, the best location for the Warriors to relocate to is Jackson, with a total weighted score of 61.00 (Enter your response rounded to two decimal places.) b) Jackson just raised its incentive package, and the new score is 85. Why doesn't this impact your decision in part (a)? A. Because Jackson is already the better site. B. Even if the score is 85, Jackson's total weighted score drops to 57, just ahead of Mobile. C. Even if the score is 85, Jackson will stay as the second choice. Ken Gilbert owns the Knoxville Warriors, a minor league baseball team in Tennessee. He wishes to move the Warriors south, to either Mobile (Alabama) or Jackson (Mississippi). The table below gives the factors that Ken thinks are important, their weights, and the scores for Mobile and Jackson. Factor Incentive Player satisfaction Sports interest Size of city Weight 0.45 0.30 0.20 0.05 Mobile 1248 75 20 45 65 Jackson 55 55 90 35
a) Based on the given information, the best location for the Warriors to relocate to is Jackson, with a total weighted score of 61.00. b) The increase in Jackson's incentive package to a score of 85 does not impact the decision in part (a) because even with the higher score, Jackson's total weighted score drops to 57, just ahead of Mobile.
The correct answer is C.
In the given scenario, Ken Gilbert, the owner of the Knoxville Warriors, is considering relocating the team to either Mobile or Jackson. Factors such as incentive package, player satisfaction, sports interest, and size of the city are taken into account to evaluate the suitability of each location.
After assigning weights to these factors, a score is calculated for both Mobile and Jackson. Based on the given scores, Jackson initially has a total weighted score of 61.00, while Mobile has a score of 57.00. This indicates that Jackson is the preferred choice for relocation according to the initial evaluation.
However, it is mentioned that Jackson raised its incentive package, resulting in a new score of 85. Despite this increase, the total weighted score for Jackson drops to 57.00, which is just ahead of Mobile's score. This means that even with the higher incentive score, Jackson remains as the second choice for relocation.
Hence , C is the correct option
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Accounting for Notes leivable On November 30, Tucker Products performed computer programming services for Thomas Inc. in endange for at $39,900, 12% not receivable. Thomas paid fickor the full amount of interest and principal on April 30 Required: hepare the necessary entries for Tucker to record the transactions described above assuming a December 31 year and. If an amount bes dies not require an entry, leave it bank Round your final answer to the nearest dollar Nov. 30 88 (Record suance of the eats) Dec. 31 Apr 30 (Recard collection of note recavable)
Tucker Products records the issuance of the note receivable on November 30, and the collection of the note receivable (principal and interest) on April 30. No entry is required on December 31.
The necessary entries for Tucker Products to record the transactions described above, assuming a December 31 year-end, are as follows:
Nov. 30:
Debit: Notes Receivable - Thomas Inc. $39,900
Credit: Service Revenue $39,900
(To record the issuance of the note receivable)
Dec. 31:
No entry required.
Apr. 30:
Debit: Cash $39,900
Debit: Notes Receivable - Thomas Inc. (Principal) $39,900
Credit: Interest Revenue $1,396
Credit: Notes Receivable - Thomas Inc. (Interest) $38,504
(To record the collection of the note receivable, including principal and interest)
On November 30, Tucker Products performed computer programming services for Thomas Inc. and received a note receivable for $39,900. This transaction represents revenue earned by Tucker for its services. The journal entry records the increase in Notes Receivable and the corresponding increase in Service Revenue.
On December 31, there is no entry required because it is the end of the accounting period and no additional transactions related to the note receivable occurred.
On April 30, Thomas Inc. paid Tucker the full amount of the note receivable, including principal and interest. The principal amount of $39,900 is debited to the Notes Receivable - Thomas Inc. account, and the corresponding credit is made to Cash, representing the collection of the principal. The interest revenue of $1,396 (12% interest on the note for 5 months) is credited to recognize the interest income earned by Tucker. The remaining balance of $38,504 (principal minus interest) is debited to Notes Receivable - Thomas Inc., reducing the outstanding balance of the note receivable.
Tucker Products records the issuance of the note receivable on November 30, and the collection of the note receivable (principal and interest) on April 30. No entry is required on December 31.
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Question 3 (15 marks) Jumba Jookiba Inc. has the following inventory purchases during the fiscal year ended December 31, 2020. • Beginning 200 units $55/unit . Feb 18 450 units $56/unit • Apr 30 200 units $57/unit . May 18 230 units $58/unit • Nov 20 345 units $59/unit Jumba Jookiba Inc. employs the perpetual inventory system and had sales during the year in December of 865 units. Required: 1. Calculate units remaining in ending inventory. 2. Calculate the dollar value of ending inventory using (a) FIFO method; (b) Weighted-Average method.
The dollar value of ending inventory using the Weighted-Average method is $20,592.
To calculate the units remaining in ending inventory, we need to add up the total units purchased throughout the year and subtract the units sold during the year. The calculation is as follows:
Beginning inventory: 200 units
Plus purchases:
Feb 18: 450 units
Apr 30: 200 units
May 18: 230 units
Nov 20: 345 units
Total units purchased: 1225 units
Minus units sold: 865 units
Units remaining in ending inventory: 360 units
Therefore, Jumba Jookiba Inc. has 360 units remaining in ending inventory.
(a) To calculate the dollar value of ending inventory using the FIFO method, we assume that the first goods purchased are the first goods sold. Therefore, the cost of goods sold will be based on the most recent purchases. The calculation is as follows:
Units sold: 865 units
Cost of goods sold:
Nov 20: 345 units x $59 = $20,355
May 18: 230 units x $58 = $13,340
Feb 18: 290 units x $56 = $16,240
Total cost of goods sold: $49,935
Ending inventory:
Apr 30: 200 units x $57 = $11,400
Beginning inventory: 160 units x $55 = $8,800
Total ending inventory: $20,200
Therefore, the dollar value of ending inventory using the FIFO method is $20,200.
(b) To calculate the dollar value of ending inventory using the Weighted-Average method, we need to calculate the weighted-average cost per unit and multiply by the units remaining in ending inventory. The calculation is as follows:
Total cost of purchases: ($55 x 200) + ($56 x 450) + ($57 x 200) + ($58 x 230) + ($59 x 345) = $70,155
Total units purchased: 1225 units
Weighted-average cost per unit: $70,155 ÷ 1225 = $57.20
Ending inventory:
Units remaining in ending inventory: 360 units
Weighted-average cost per unit: $57.20
Total ending inventory: 360 units x $57.20 = $20,592
Therefore, the dollar value of ending inventory using the Weighted-Average method is $20,592.
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When and where is an acceptance effective and accomplished? 6
marks
In the case of post-box rule:
In the case of unilateral contract:
In the case of e-mail or fax:
In general, the effectiveness and accomplishment of an acceptance depend on the specific circumstances and the method of communication used. Here are the answers to each scenario you provided:
1. In the case of the post-box rule:
According to the post-box rule, an acceptance sent by mail is effective and accomplished as soon as it is properly posted. This means that once the acceptance is placed in the mailbox and properly addressed, it is considered effective, even if it hasn't been received by the offeror yet. The acceptance takes effect at the moment of posting.
2. In the case of a unilateral contract:
A unilateral contract is a contract where acceptance is made by performance rather than by a direct communication of acceptance. In such cases, the acceptance is effective and accomplished when the offeree performs the requested act or condition specified in the offer. Once the offeree performs the required action, acceptance is considered effective and the contract is formed.
3. In the case of email or fax:
For email or fax communications, the effectiveness and accomplishment of acceptance depend on the terms of the offer and any specific agreements between the parties. In general, acceptance through email or fax is effective and accomplished when it is received by the offeror and brought to their attention. The acceptance takes effect at the moment it is received and brought to the offeror's attention, as long as the acceptance is in a form and format that the offeror has authorized or accepted.
It's important to note that contract laws and regulations may vary between jurisdictions, so it's always advisable to consult specific legal guidelines and seek professional advice when dealing with acceptance in different scenarios.
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Laila earns $100,000 working as a part time lawyer in New Orleans. The company provides a matching contribution in the 401(k) plan of 50% up to a maximum matching contribution of 4% of compensation. Her 401(k) plan account had $60,000 in it at the beginning of the year. She contributed $15,000 to the plan this year and the employer made the matching contribution before year-end. The ending balance of the account is $100,000. What is her return on investments this year? 26.6% 6.675% 35.0% 29.2%
Laila's return on investments this year is approximately 29.2%.
To calculate Laila's return on investments for the year, we need to first determine the total amount that was contributed to her 401(k) plan account.
Laila contributed $15,000 to the plan, which is equal to 15% of her annual compensation of $100,000. Her employer made a matching contribution of 50% on her contributions, up to a maximum of 4% of compensation. Since Laila's contribution of $15,000 is more than 4% of her compensation, the employer's maximum matching contribution would be 4% of $100,000, or $4,000 (which is 50% of $8,000).
Therefore, the total amount contributed to Laila's 401(k) plan account for the year would be:
$15,000 + $4,000 = $19,000
Now, we can calculate the return on investment using the beginning and ending balances of the account:
Return on Investment = (Ending Balance - Beginning Balance - Contributions) / (Beginning Balance + Contributions) * 100%
Plugging in the given values, we get:
Return on Investment = ($100,000 - $60,000 - $19,000) / ($60,000 + $19,000) * 100%
Return on Investment ≈ 29.2%
Therefore, Laila's return on investments this year is approximately 29.2%.
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__________is a measure of the difference between numbers in a data collection
a. Standard deviation
b. Variance
C. CAPM
d. Total risk
e. All of the above
f. None of the above
When a security has a higher beta than the other securities, it means............
a. The higher the unavoidable risk
b. The higher the avoidable risk
c. The less unavoidable risk
d. Reduce the needless risk.
e. All of the above
f. None of the above
The answer to the first question is e. All of the above. Standard deviation, variance, CAPM (Capital Asset Pricing Model), and total risk are all measures of the difference between numbers in a data collection.
Standard deviation measures the dispersion or variability of the data points from the mean. Variance is the average of the squared deviations from the mean. CAPM is a financial model that estimates an asset's expected return based on its beta, which measures its sensitivity to market movements. Total risk encompasses both systematic (unavoidable) and unsystematic (avoidable) risk factors.
In the second question, the correct answer is a. The higher the unavoidable risk. Beta is a measure of systematic risk or market risk. It quantifies the sensitivity of a security's returns to the overall market movements. A higher beta indicates that the security is more responsive to market fluctuations, which implies a higher level of unavoidable risk. Avoidable risk, on the other hand, refers to idiosyncratic or company-specific risk that can be diversified away by holding a well-diversified portfolio. Therefore, a higher beta implies a higher exposure to market risk and a greater level of unavoidable risk for the security in comparison to other securities.
It's important to note that the concept of beta and its implications can vary depending on the context and the specific model or theory being used. The CAPM approach provides one interpretation of beta, but there may be alternative theories or models that offer different explanations of beta's meaning and effects on risk.
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Explain the short-run and long-run effects of an exogenous decrease in investment by using graphical analysis. (7 points)
A leftward shift in the aggregate demand (AD) curve can be used to illustrate an exogenous decline in investment. Both the short-run and long-run equilibrium of the economy are impacted by this decline in investment.
Other parts of aggregate demand, such as government spending, and consumption, may be crowded out as a result of the decline in investment. When investment declines, the need for loanable money also declines, which raises interest rates. Higher interest rates make it difficult for people and businesses to borrow money and spend it, which lowers consumption and investment.
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Q1. A) With the aid of appropriate diagrams discuss the effects of changes in supply on a demand curve and explain the major factors that bring about such a change in the market. Using this diagram justify for the reason why we purchase goods at lower prices during the harvesting period of farm products. B) As the financial controller of a large manufacturing firm, briefly explain the investment decision process to your new Managing Director
A systematic investment decision process, the financial controller helps the company make informed investment choices that align with its financial goals and maximize shareholder value.
A) When there is a change in supply in a market, it can have significant effects on the demand curve. Let's consider the market for farm products as an example.
1. Effects of Changes in Supply on the Demand Curve:
- Increase in Supply: If the supply of farm products increases, represented by a rightward shift of the supply curve, it results in a new equilibrium point. As a result, the market price decreases, and the quantity demanded increases. This is illustrated by a movement along the demand curve to a higher quantity demanded at a lower price.
- Decrease in Supply: Conversely, if the supply of farm products decreases, represented by a leftward shift of the supply curve, it leads to a new equilibrium point with a higher market price and a lower quantity demanded. This is shown by a movement along the demand curve to a lower quantity demanded at a higher price.
2. Factors Affecting Supply Changes in the Market:
- Input Costs: Changes in the costs of inputs, such as labor, fertilizers, or machinery, can impact the supply of farm products. For example, if input costs increase, it may reduce the profitability of farming, leading to a decrease in supply.
- Technological Advancements: Improvements in agricultural technology, such as new farming techniques or genetically modified crops, can increase productivity and thus impact the supply of farm products.
- Weather Conditions: Weather plays a crucial role in agricultural production. Natural disasters, droughts, or other adverse weather events can negatively affect crop yields, leading to a decrease in supply.
During the harvesting period of farm products, we often observe lower prices for goods due to an increase in supply. This can be explained by the temporary surge in production during this period. Farmers typically harvest and bring their products to the market simultaneously, resulting in a higher quantity supplied. As a result, the market supply curve shifts to the right, leading to lower prices. Consumers can take advantage of this situation by purchasing goods at lower prices during the harvesting period.
B) As the financial controller of a large manufacturing firm, the investment decision process involves several key steps:
1. Identify Investment Opportunities: The first step is to identify potential investment opportunities that align with the company's strategic objectives. This could involve expanding existing operations, acquiring new assets, or investing in research and development.
2. Evaluate Investment Proposals: Once investment opportunities are identified, the financial controller, along with the management team, evaluates the investment proposals. This involves analyzing the expected cash flows, assessing the risks involved, and considering the potential returns on investment.
3. Capital Budgeting: The financial controller helps in the capital budgeting process, which involves estimating the initial investment required, considering the expected cash inflows and outflows over the project's life, and calculating the net present value (NPV), internal rate of return (IRR), and other financial metrics to assess the project's viability.
4. Risk Assessment: Evaluating the risks associated with the investment is crucial. The financial controller assesses factors such as market conditions, competition, regulatory changes, and financial risks to ensure the investment aligns with the company's risk tolerance and overall financial stability.
5. Financing Decisions: Once an investment proposal is deemed viable, the financial controller determines the optimal financing mix. This may involve considering internal funds, external debt, equity financing, or a combination thereof.
6. Monitoring and Performance Evaluation: After the investment is made, the financial controller monitors the performance of the investment, compares actual results against projected figures, and conducts regular financial analysis to ensure the investment is generating the expected returns.
By following a systematic investment decision process, the financial controller helps the company make informed investment choices that align with its financial goals and maximize shareholder value.
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Boler Company has sales revenue of $585,600. Cost of goods sold before adjustment is $336,000. The company's actual manufacturing overhead is $81,000, while alcated manufacturing overheed is $105,200 What is the actual gross profit? A $249.500 B $235,400 C. . $263.800 D $158,000
The actual gross profit can be calculated by the following formula: Actual gross profit = Sales - Cost of goods sold - Actual manufacturing overhead. So, we can calculate the actual gross profit of the Boler Company as follows: Actual gross profit = $585,600 - $336,000 - $81,000 Actual gross profit = $168,600
Cost of goods sold before adjustment is $336,000. The company's actual manufacturing overhead is $81,000, while allocated manufacturing overhead is $105,200. To calculate the actual gross profit, we need to know the value of the adjustment that needs to be made to the cost of goods sold. The adjustment value is equal to the difference between the actual manufacturing overhead and the allocated manufacturing overhead.
Adjustment value = Actual manufacturing overhead - Allocated manufacturing overhead
Adjustment value = $81,000 - $105,200
Adjustment value = -$24,200
This means that the company overallocated its manufacturing overhead by $24,200.The adjusted cost of goods sold can be calculated as follows:
Adjusted cost of goods sold = Cost of goods sold before adjustment - Adjustment value
Adjusted cost of goods sold = $336,000 - (-$24,200)
Adjusted cost of goods sold = $360,200
Now we can calculate the actual gross profit as follows:
Actual gross profit = Sales - Cost of goods sold - Actual manufacturing overhead
Actual gross profit = $585,600 - $360,200 - $81,000
Actual gross profit = $144,400
Therefore, the actual gross profit of the Boler Company is $144,400. Option A: $249,500 is incorrect. Option B: $235,400 is incorrect. Option C: $263,800 is incorrect. Option D: $158,000 is incorrect.
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