If Potter accepts order, there will be $68,000 decrease (option a) on the company's short-term profit.
To determine the effect of accepting the special order on Potter's short-term profit, we'll calculate the difference in revenue and variable costs between the special order and the normal sales.
Step 1: Calculate the revenue and variable costs for the special order:
Revenue: 17,000 units * $22 = $374,000
Variable costs: (Direct materials + Direct labor + Variable manufacturing overhead) * 17,000 units = ($7 + $6 + $5) * 17,000 = $306,000
Step 2: Calculate the contribution margin for the special order:
Contribution margin = Revenue - Variable costs = $374,000 - $306,000 = $68,000
Step 3: Determine the effect on short-term profit:
Since Potter is operating at full capacity, accepting the special order will replace normal production and sales, which have a higher price per unit ($31). Therefore, the special order will result in a decrease in short-term profit.
The effect of accepting the special order on the company's short-term profit is a $68,000 decrease. The correct answer is $68,000 decrease.
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preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. the following table lists various characteristics of preferred stock. determine which of these characteristics is consistent with debt and which is consistent with equity. characteristics debt equity usually has no voting rights. failure to pay a preferred dividend does not send the firm into bankruptcy.
The management of the company and are not entitled to vote on corporate matters, which is more similar to the characteristics of equity.
Why will be of these characteristics is consistent with debt?The characteristic "failure to pay a preferred dividend does not send the firm into bankruptcy" is consistent with debt, while "usually has no voting rights" is consistent with equity.
This is because the obligation to pay preferred dividends is similar to the obligation to pay interest on debt, and failure to do so can result in default. Therefore, the obligation to pay preferred dividends is more similar to the characteristics of debt.
On the other hand, the lack of voting rights is a common feature of equity, as it reflects the ownership interest of shareholders. Preferred shareholders, like common shareholders.
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please slove this question please Part A Discuss the retirement benefits offered by government for employees in detail. Explain in which category of funds are these benefits accounted for and why? Part B 1. Prepare Appropriations. Encumbrances, Expenditure and Fund Balance Ledger from the following information Jan 1 Jan 10 Feb 1 March 1 March 15 April Ministry of Finance made an appropriation of OMRIS00,000 to College of Medicine. The College issued a purchase order, for medical supplies (OMRX0,000) and two latest machineries for the Surgical department (OMR 150.000 cach) General operating expenditure incurred and paid OMR15.000 The college received 40% of the supplies along with a voucher of OMR30,000. The supplier delivery one machinery along with a voucher OMR150,000 The college entered into a contract with MHD Consulting for constructing a recreational center in the college. An amount of OMR500.000 is allocated towards the contract. The work is expected to be completed by the end of the year. Construction is certified to complete 10% and the contractor has submited a voucher for OMR50,000. Payment is made based on the voucher 50% of the supplies ordered on January 10 was received. The voucher stated the amount OMR 40.000. Payment is immediately processed The supplier of the machinery informed their inability to supply the second machinery. Hence the contract is cancelled. Operating expenditure paid OMR 80,000 May 10 June 1 July 10 August
The government provides retirement benefits for employees to ensure that they have financial security after they retire from their jobs. In Oman, the retirement benefits for government employees include a pension plan, a gratuity payment, and an end-of-service benefit.
The pension plan is a defined benefit plan that provides a fixed monthly payment to employees after they retire. The amount of the pension payment is based on the employee's salary and years of service.
The gratuity payment is a lump sum payment that is made to employees who have completed a certain number of years of service. The amount of the gratuity payment is based on the employee's salary and years of service.
The end-of-service benefit is also a lump sum payment that is made to employees who have completed a certain number of years of service. The amount of the end-of-service benefit is based on the employee's salary and years of service.
These retirement benefits are accounted for in the government's pension fund, which is a type of trust fund. The pension fund is set up to provide retirement benefits to government employees and is funded by contributions from the government and employees. The pension fund is managed by a board of trustees who are responsible for investing the fund's assets to ensure that there are sufficient funds to pay retirement benefits to employees.
Part B:
Appropriations Ledger:
Jan 1: Ministry of Finance appropriation - OMR 1,000,000
Encumbrances Ledger:
Jan 10: Medical supplies purchase order - OMR 60,000
Feb 1: Surgical department machinery purchase order - OMR 300,000
July 10: Recreational center construction contract - OMR 500,000
Expenditure Ledger:
March 1: General operating expenditure - OMR 15,000
March 15: Medical supplies received - OMR 30,000
March 15: First machinery received - OMR 150,000
June 1: Payment for 50% of supplies ordered on Jan 10 - OMR 40,000
June 1: Operating expenditure - OMR 80,000
August: Payment for construction contract completion - OMR 50,000
Fund Balance Ledger:
Jan 1: Fund balance - OMR 1,000,000
March 1: Fund balance - OMR 985,000
March 15: Fund balance - OMR 805,000
June 1: Fund balance - OMR 725,000
August: Fund balance - OMR 675,000
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Part A: Retirement benefits offered by the government for employees typically include pension plans, health insurance, life insurance, and other benefits. Pension plans are the primary retirement benefit offered by most governments, and they provide a fixed amount of income to retired employees based on their years of service and salary.
Health insurance and life insurance benefits may also be provided to retired employees, although the specifics of these benefits may vary depending on the government and the employee's position.
These retirement benefits are usually accounted for in a separate category of funds known as pension funds or retirement benefit funds. These funds are designed to hold the assets needed to pay retirement benefits to employees. The funds are typically managed by a board of trustees or other fiduciaries who are responsible for investing the assets of the fund to maximize returns while minimizing risk. The funds are required to follow specific accounting and reporting standards to ensure transparency and accountability in the management of the assets.
Part B: Jan 1: Ministry of Finance made an appropriation of OMR 1,000,000 to the College of Medicine.
Jan 10: The College issued a purchase order for medical supplies (OMR 100,000) and two latest machineries for the Surgical department (OMR 150,000 each).
Feb 1: General operating expenditure incurred and paid OMR 15,000.
March 1: The college received 40% of the supplies along with a voucher of OMR 30,000.
March 15: The supplier delivered one machinery along with a voucher OMR 150,000.
March: The college entered into a contract with MHD Consulting for constructing a recreational center in the college. An amount of OMR 500,000 is allocated towards the contract. The work is expected to be completed by the end of the year.
April: Construction is certified to complete 10% and the contractor has submitted a voucher for OMR 50,000. Payment is made based on the voucher.
April: 50% of the supplies ordered on January 10 were received. The voucher stated the amount OMR 40,000. Payment is immediately processed.
April: The supplier of the machinery informed their inability to supply the second machinery. Hence the contract is canceled.
April: Operating expenditure paid OMR 80,000.
May 10:
June 1:
July 10:
August:
Ledger Accounts:
Appropriations Ledger:
Jan 1: College of Medicine - OMR 1,000,000
Encumbrances Ledger:
Jan 10: Medical supplies - OMR 100,000
Jan 10: Surgical machinery (1) - OMR 150,000
Jan 10: Surgical machinery (2) - OMR 150,000
Expenditure Ledger:
Feb 1: General operating expenditure - OMR 15,000
March 15: Surgical machinery (1) - OMR 150,000
April: Medical supplies - OMR 40,000
April: General operating expenditure - OMR 80,000
Fund Balance Ledger:
Jan 1: College of Medicine - OMR 1,000,000
March 1: College of Medicine - OMR 930,000
April: College of Medicine - OMR 760,000
April: College of Medicine - OMR 630,000
Note: The ledger accounts for May 10 to August are not provided, so the ledger entries cannot be made for these dates.
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ow shifts in demand and supply affect equilibrium consider the market for pens. suppose that the number of students who are allergic to the rubber used in pencil erasers increases, leading more students to switch from pencils to pens in school. further, the price of ink, a major input in the pen production process, has dropped sharply.
The shifts in demand and supply will affect the equilibrium in the market for pens.
Due to the increase in the number of students who are allergic to pencil erasers, the demand for pens will increase, leading to a shift in the demand curve to the right. As a result, the equilibrium price and quantity of pens will both increase.
However, the drop in the price of ink, a major input in the pen production process, will increase the supply of pens, leading to a shift in the supply curve to the right. This will cause the equilibrium price of pens to decrease, but the equilibrium quantity will increase.
Overall, the increase in demand and the decrease in supply will result in a higher equilibrium quantity of pens, but the effect on the equilibrium price will depend on the magnitude of the shifts in demand and supply.
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production is efficient if the economy is producing at a point question 17 options: on the production possibilities frontier. outside the production possibilities frontier. on or inside the production possibilities frontier. inside the production possibilities frontier.
Production is efficient if the economy is producing at a point on or inside the production possibilities frontier.
The production possibilities frontier (PPF) represents the maximum amount of goods and services that an economy can produce with its given resources and technology.
Points on the PPF represent efficient production because all available resources are being used to produce goods and services. Points inside the PPF represent inefficient production because resources are being underutilized, and the economy could produce more goods and services without additional resources or technology.
On the other hand, points outside the PPF are unattainable with the current level of resources and technology, and represent production levels that can only be achieved by increasing resources or improving technology.
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a decrease in the money supply creates an excess question 6 options: supply of money that is eliminated by rising prices. supply of money that is eliminated by falling prices. demand for money that is eliminated by rising prices. demand for money that is eliminated by falling prices.
A decrease in the money supply creates an excess demand for money that is eliminated by rising interest rates and falling prices.
What if the money supply decrease?When there is less money in the economy, people and businesses have a higher demand for the limited money supply.
To balance this excess demand, interest rates typically rise, making borrowing money more expensive and discouraging spending.
Additionally, falling prices help to restore equilibrium in the money market, as the purchasing power of the existing money supply increases.
This combination of rising interest rates and falling prices ultimately helps to eliminate the excess demand for money, bringing the money market back to equilibrium.
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Other things the same, as the price level rises, the real value of a rupiah …A. Rises, interest rates and exchange rate risesB. Rises, interest rates fall, and exchange rate risesC. Falls, interest rates and exchange rate risesD. Falls, interest rates rise, and exchange rate fallsE. Falls, interest rates and exchange rate falls
Other things being equal, as the price level rises, the real value of a rupiah falls.
The real value of a currency refers to its purchasing power, or the amount of goods and services that can be purchased with a unit of currency. When the price level rises, it means that the general level of prices for goods and services in the economy has increased. As a result, the real value of a unit of currency decreases because it can purchase fewer goods and services than before.
Option (C) "Falls, interest rates and exchange rate rises" is a possible outcome in response to the decline in the real value of a currency, as higher interest rates and exchange rates can help attract foreign capital and support the currency's value. However, this is not always the case, and the relationship between exchange rates, interest rates, and the real value of a currency can be complex and depend on various economic and political factors
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The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
a. true
b. false
The answer is "a. true." The inventory effect refers to the fact that as inventory costs increase, the cost of lost sales decreases. This is because having excess inventory allows a company to fulfil customer demand even if unexpected events occur, such as an increase in demand or a delay in receiving new inventory.
On the other hand, carrying too little inventory can result in lost sales and dissatisfied customers. Therefore, there is an inverse relationship between the cost of lost sales and inventory costs.
The statement "The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect" is true (a).
The inventory effect refers to the inverse relationship between the cost of lost sales and inventory costs. As inventory levels increase, the cost of lost sales decreases because there is less chance of running out of stock.
Conversely, as inventory levels decrease, the cost of lost sales increases because the likelihood of running out of stock and missing out on potential sales rises. Companies must find a balance between maintaining enough inventory to meet demand while minimizing inventory costs.
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England Technologies manufactures capacitors for cellular base stations and other communications applications. The​ company's July 2018 flexible budget shows output levels of 09,000​, 10,500​, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 units during July. Its flexible budget and actual operating income were as​ follows:
England Technologies' flexible budget for July 2018 showed various output levels, and the static budget was based on expected sales of 10,500 units
The budget refers to the company's financial plan for a specific period, such as the flexible budget for July 2018, which shows output levels of 9,000, 10,500, and 12,500 units. A flexible budget is designed to change with the level of activity, allowing for adjustments in cost behavior as production levels change.
The income refers to the company's earnings during a specific period, such as the actual operating income generated from selling 12,500 units in July 2018. Operating income is the profit a company makes from its normal business operations, excluding any non-operating income like interest or investments.
However, the company sold 12,500 units during July, resulting in an actual operating income higher than what was initially projected in the static budget.
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why doesn't Common law and statutory law adequately protect
investors in public companies'.
Please break it down and fully explain!
The limitations of common law and statutory law in protecting investors in public enterprises might result from a variety of circumstances.
Here are some potential explanations:
1. Limited scope: Not all facets of investing in public corporations may be covered by common law or statute law.
2. Enforcement challenges: Even when there are regulations in place to safeguard investors, it can be challenging to enforce those laws.
3. Complexity: Investors may not always have a good knowledge of the risks and benefits connected with various investments due to the complexity of the financial industry.
4. Limited resources: Regulators and other organizations in charge of implementing rules and regulations might not have enough funding to keep track of every business and investment.
Overall, there are still certain restrictions on the protections that common law and statute law offer to stockholders in public enterprises.
Investors should be careful to educate themselves on the dangers connected to various investments and, when necessary, seek out professional guidance.
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On September 1, 2017, Hancock Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days. The relevant exchange rates are as follows: Spot rate Forward Rate For Dec. 1, 2017 1.47 1.48 September 1, 2017 1.46 September 30, 2017 (year-end) 1.50 The second forward contract was strictly for speculation. On September 30, 2017, what amount of foreign currency transaction gain should Hancock report in income?
On September 30, 2017, Hancock Company should report a foreign currency transaction gain of 5,000 USD in income.
To calculate the foreign currency transaction gain, we need to consider the spot rate and forward rate on the relevant dates. On September 1, 2017, Hancock Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days. The forward rate for December 1, 2017, is 1.48. Since the second forward contract was strictly for speculation, we will only consider this contract for calculating the foreign currency transaction gain.
Here's a step-by-step explanation of how to calculate the gain:
1. Determine the initial value of the forward contract: 250,000 euros * 1.48 (forward rate) = 370,000 USD
2. Determine the value of the contract on September 30, 2017: 250,000 euros * 1.50 (spot rate) = 375,000 USD
3. Calculate the foreign currency transaction gain: 375,000 USD (value on September 30) - 370,000 USD (initial value) = 5,000 USD
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in a pure monopoly, the firm is willing to sell to anyone willing and able to pay at least the marginal cost of production. the result is that output is produced where D+MC which is _________ efficient
In a pure monopoly, the firm has complete control over the market and there are no close substitutes available. As a result, the firm can choose to set a price that maximizes its profit without any fear of competition. However, if the firm sets the price too high, it may lose some customers who may not be able to afford the product. On the other hand, if the price is too low, the firm may not be able to cover its costs and make a profit.
To maximize its profit, the firm in a pure monopoly will produce at a level where marginal revenue (MR) equals marginal cost (MC). This means that the firm will produce until the point where the last unit produced adds as much revenue as it costs to produce it. At this level of output, the price charged will be higher than the marginal cost of production but less than the average total cost of production.
In terms of efficiency, output produced by a pure monopoly is not allocatively efficient. This is because the price charged is higher than the marginal cost of production, which means that some potential customers who are willing and able to pay the marginal cost of production are excluded. Therefore, the output produced by a pure monopoly is not socially optimal. However, it is still considered to be productively efficient because the firm is producing at the minimum point on its average total cost curve. Overall, the output produced by a pure monopoly is where D+MC, which is productively efficient but not allocatively efficient.
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Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.
Armenia's favorable balance of trade in 2018 means that it exported more goods and services than it imported, resulting in a surplus in the country's trade balance. With $800 million in goods and services exported and $1.5 billion imported, Armenia had a trade deficit of $700 million. This indicates that Armenia relies heavily on imports to meet its domestic demand, which can have both positive and negative impacts on the country's economy.
On the positive side, imports can provide access to goods and services that are not available domestically, which can stimulate economic growth and increase consumer choice. On the negative side, heavy reliance on imports can make a country vulnerable to external economic shocks and fluctuations in global commodity prices.
To maintain a favorable balance of trade, Armenia can explore ways to increase its exports and reduce its reliance on imports. This can involve diversifying its export markets, investing in industries with high export potential, and improving the competitiveness of its domestic businesses. By doing so, Armenia can enhance its economic resilience and support sustainable growth in the long term.
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How do vendors decide which should be the default settings on a system?
When a vendor creates a new system, they need to decide on the default settings that will be used when the system is first installed. There are a few factors that can influence these decisions. One factor is the preferences of the vendor themselves.
They may have a particular way they think the system should be set up and want that to be the default. Another factor is customer feedback. Vendors may conduct surveys or focus groups to determine what settings customers are most likely to use, and set those as the default. They may also look at data from previous installations to see which settings were most commonly used, and set those as the default. Security considerations are also important. Vendors may set more secure options as the default to ensure that users are protected from potential threats. Ultimately, vendors want to create a system that is easy to use and meets the needs of their customers, while also ensuring that it is secure and stable. By considering these factors, vendors can make informed decisions about default settings that will be most effective for their users.
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When a manager is evaluated on residual income, an investment is acceptable when ______.multiple choice question. O net operating income for the new investment is above the current return on average operating assets O the return on investment of the new project equals or exceeds current roi O net operating income for the investment is above the minimum required O return on average operating assets it generates any positive net operating income
When a manager is evaluated on residual income, an investment is acceptable when the net operating income for the investment is above the minimum required.
This means that the investment must generate enough income to cover its cost and contribute to the overall residual income of the company. Residual income is a financial performance measure that calculates the amount of profit earned by a company above its cost of capital. The higher the residual income, the more profitable the company is.
The other options listed in the multiple-choice question are also important considerations for evaluating investments. The first option, where the net operating income for the new investment is above the current return on average operating assets, indicates that the investment is generating a higher return than the company's current assets. This is a positive sign but does not necessarily mean that the investment is acceptable based on residual income.
The second option, where the return on investment of the new project equals or exceeds current ROI, is also a relevant consideration. However, this alone does not provide a complete picture of the investment's impact on residual income.
In summary, when evaluating investments based on residual income, the net operating income generated by the investment must be sufficient to contribute to the overall profitability of the company.
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If Georgia-Pacific seeks information about trends in housing starts around the country and uses U.S. Department of Commerce reports to get this information, it is using ___________ data.
a) causal
b) exploratory
c) primary
d) laboratory
e) secondary
If Georgia-Pacific seeks information about trends in housing starts around the country and uses U.S. Department of Commerce reports to get this information, it is using secondary data.
Secondary data refers to information that has already been collected by someone else and is readily available for use. In this case, the U.S. Department of Commerce has already collected data on housing starts and Georgia-Pacific is simply accessing this information to make informed business decisions.
Secondary data can be a valuable resource for companies as it can provide quick and cost-effective access to information that may be difficult or time-consuming to collect through primary research. However, it is important to ensure the data is reliable and relevant to the specific research question at hand. Additionally, secondary data may not always provide the level of detail or specificity needed for certain research questions, in which case primary research may be necessary.
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which of the following statements are true? multiple select question. assets like accounts receivable, inventory, equipment, buildings, land may be pledged as collateral for business loans. restrictive covenants are used to require executives to pledge personal assets as collateral for business loans. executives of major corporations are more likely to be asked to pledge personal assets as collateral than are owners of small businesses. creditors may demand executives to pledge personal assets as well as business assets as security for loans.
The correct statements are assets like accounts receivable, inventory, equipment, buildings, land may be pledged as collateral for business loans and creditors may demand executives to pledge personal assets as well as business assets as security for loans. Option A and D is correct.
A is true because assets like accounts receivable, inventory, equipment, buildings, and land are commonly used as collateral for business loans.
B is false because restrictive covenants are used to impose certain restrictions on borrowers, such as limiting the borrower's ability to incur additional debt or to sell certain assets. They do not require executives to pledge personal assets as collateral for business loans.
C is false because executives of major corporations are less likely to be asked to pledge personal assets as collateral than owners of small businesses. Lenders are more likely to rely on the creditworthiness of a large corporation rather than the personal assets of an executive.
D is true because creditors may demand both business and personal assets as security for loans, especially if the borrower's creditworthiness is in question or if the loan amount is large.
Therefore, option A and D are correct.
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assume that one year ago you bought 140 shares of a mutual fund for $20 per share, you received a capital gain distribution of $0.65 per share during the past 12 months, and the market value of the fund is now $15, calculate the percentage of total return for your $2,800 investment. (negative amount should be indicated by a minus sign. do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
Answer:
The initial investment was:
140 shares × $20/share = $2,800
The capital gain distribution received was:
140 shares × $0.65/share = $91
The current value of the investment is:
140 shares × $15/share = $2,100
The total return is the sum of the capital gain distribution and the change in value of the investment, divided by the initial investment, expressed as a percentage:
[($2,100 + $91) / $2,800 - 1] × 100% = - 5.11%
Therefore, the percentage of total return for the investment is -5.11%. Note that the negative sign indicates a loss.
Explanation:
At May 31, 2022, the accounts of Sandhill Company show the following.
1. May 1 inventories—finished goods $15,080, work in process $17,560, and raw materials $9,760.
2. May 31 inventories—finished goods $11,400, work in process $19,120, and raw materials $8,480.
3. Debit postings to work in process were direct materials $74,920, direct labor $60,000, and manufacturing overhead applied $48,000. (Assume that overhead applied was equal to overhead incurred.)
4. Sales revenue totaled $258,000.
(a)
New attempt is in progress. Some of the new entries may impact the last attempt grading.
Sandhill Company's cost of goods manufactured for May 2022 is $174,820. The income statement shows a gross profit of $79,500. The balance sheet section of manufacturing inventories shows a total of $38,000
(a) Cost of goods manufactured schedule for May 2022:
Sandhill Company
Cost of Goods Manufactured Schedule
For the Month Ended May 31, 2022
Direct materials:
Raw materials inventory, May 1 $ 9,760
Add: Purchases of raw materials 67,100
Raw materials available for use 76,860
Less: Raw materials inventory, May 31 8,480
Direct materials used in production 68,380
Direct labor 60,000
Manufacturing overhead applied 48,000
Total manufacturing costs incurred 176,380
Add: Work in process inventory, May 1 17,560
The total cost of work in process is 193,940
Less: Work in process inventory, May 31 19,120
Cost of goods manufactured $174,820
(b) Income statement for May 2022 through gross profit:
Sandhill Company
Income Statement
For the Month Ended May 31, 2022
Sales revenue $258,000
Cost of goods sold:
Finished goods inventory, May 1 $15,080
Add: Cost of goods manufactured 174,820
Goods available for sale 189,900
Less: Finished goods inventory, May 31 11,400
Cost of goods sold 178,500
Gross profit $ 79,500
(c) Balance sheet section of manufacturing inventories on May 31, 2022:
Sandhill Company
Balance Sheet (Manufacturing Inventories Section)
May 31, 2022
Raw materials inventory $ 8,480
Work in process inventory 19,120
Finished goods inventory 11,400
Total manufacturing inventories $ 38,000
Complete question:
At May 31, 2022, the accounts of Sandhill Company show the following.
1. May 1 inventory—finished goods $15,080, work in process $17,560, and raw materials $9,760.
2. May 31 inventories—finished goods $11,400, work in process $19,120, and raw materials $8,480.
3. Debit postings to work in process were direct materials $74,920, direct labor $60,000, and manufacturing overhead applied $48,000. (Assume that the overhead applied was equal to the overhead incurred.)
4. Sales revenue totaled $258,000.
(a) Prepare a condensed cost of goods manufactured schedule for May 2022
(b) Prepare an income statement for May 2022 through gross profit.
(c) Prepare the balance sheet section of manufacturing inventories at May 31, 2022.
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A donor gave the following donations during 2021: • Jan 24- land located in Quezon City valued at P2,000,000 to her uncle subject to the condition that the latter will pay the donor's tax due and unpaid mortgage amounting to P500,000 · Nov. 30 - Building in US valued at P4,500,000 to her sister. DOnor's tax paid in U.S. was P400,000 The donor's tax payable on November 30 donation shall be 11.250 345.000 248,750 BONUS
The donor gave two donations in 2021. The first donation was a land in Quezon City valued at P2,000,000 to her uncle on January 24th. However, the donation was subject to the condition that the uncle would pay the donor's tax due and unpaid mortgage amounting to P500,000. It means that the uncle will take care of the donor's tax and unpaid mortgage obligation.
On November 30th, the donor gave a building in the US valued at P4,500,000 to her sister. The donor's tax paid in the US was P400,000. As per the Philippine tax law, the donor's tax payable on November 30th donation shall be computed by applying the tax rate on the net gift. In this case, the net gift is P4,500,000 minus P400,000, which is P4,100,000. The applicable tax rate is 6%, meaning the donor's tax payable is P246,000.
To summarize, the donor gave two donations in 2021, one with the condition that the recipient would pay the tax and unpaid mortgage and the other with the donor paying the donor's tax. The donor's tax payable on the second donation is P246,000.
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Identify and explain the 3 main benefits of using celebrity endorsements
Celebrity endorsements can be a powerful tool for brands to enhance their marketing and advertising strategies. Here are the three main benefits of using celebrity endorsements:
1. Increased brand visibility: Using a celebrity to endorse a product or service can help a brand reach a wider audience. Celebrities have a massive fan following and their endorsement can give brands greater visibility and exposure to potential customers who may not have been aware of the brand before.
2. Increased credibility and trust: Celebrity endorsements can also help build credibility and trust for a brand. When a celebrity endorses a product, it can help to create a positive association in the minds of consumers. This can lead to increased trust in the brand, and ultimately, greater sales.
3. Stronger emotional connection with consumers: Celebrities have the power to evoke emotions in consumers, and using a celebrity endorsement can help brands create a stronger emotional connection with their target audience. This emotional connection can lead to greater brand loyalty, as consumers feel a deeper connection to the brand and are more likely to continue to purchase its products or services.
Overall, celebrity endorsements can be an effective marketing tool for brands looking to enhance their visibility, build credibility and trust, and create a stronger emotional connection with their target audience.
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Tippy Toe Spa Company offers various services, such as facials, laser hair removal and microdermabrasion. Currently, the company is considering purchasing the following spa equipment:Laser Hair Removal MachinesMicrodermabrasion MachinesFacial Oxygen UnitsCost per Machine$66,100$30,100$24,000Annual Cash Inflow$125,300$213,700$39,100Annual Cash Outflow$88,400$198,100$26,900Required Rate of Return12%12%4%Useful Life4 years3 years3 yearsResidual Value$850$830$0Assume that each equipment's annual cash flow will occur for the period equal to its useful life.Do not enter dollar signs or commas in the input boxes.Use the present values tables in the textbook appendix.Use the negative sign for negative values.Round your answers to the nearest whole number.a) Determine the NPV of each piece of equipment.Laser Hair Removal Machine: $AnswerMicrodermabrasion Machine: $AnswerFacial Oxygen Unit: $Answerb) For each piece of equipment, determine the maximum acceptable price using the NPV method.Laser Hair Removal Machine: $AnswerMicrodermabrasion Machine: $AnswerFacial Oxygen Unit: $Answerc) Determine the payback period for each piece of equipment.Round your answers to 1 decimal place.Laser Hair Removal Machine: Answer YearsMicrodermabrasion Machine: Answer YearsFacial Oxygen Unit: Answer Years
a) NPV of Laser Hair Removal Machine: $11,907, Microdermabrasion Machine: $34,724, Facial Oxygen Unit: $29,938.
b) Maximum acceptable price for Laser Hair Removal Machine: $71,007, Microdermabrasion Machine: $32,479, Facial Oxygen Unit: $24,079.
c) Payback period for Laser Hair Removal Machine: 2.5 years, Microdermabrasion Machine: 2.1 years, Facial Oxygen Unit: 2.0 years.
a) Determine the NPV of each piece of equipment.
To calculate NPV, we need to find the present value of all cash inflows and outflows.
Laser Hair Removal Machine:
NPV = [tex]-66100 + (125300 / (1 + 0.12)^1) + (125300 / (1 + 0.12)^2) + (125300 / (1 + 0.12)^3) + (125300 / (1 + 0.12)^4) + (850 / (1 + 0.12)^4)[/tex]
NPV = $29,570
Microdermabrasion Machine:
NPV = -[tex]30100 + (213700 / (1 + 0.12)^1) + (213700 / (1 + 0.12)^2) + (213700 / (1 + 0.12)^3) + (830 / (1 + 0.12)^3)[/tex]
NPV = $97,539
Facial Oxygen Unit:
NPV =[tex]-24000 + (39100 / (1 + 0.04)^1) + (39100 / (1 + 0.04)^2) + (39100 / (1 + 0.04)^3)[/tex]
NPV = $71,097
b) For each piece of equipment, determine the maximum acceptable price using the NPV method.
To find the maximum acceptable price, we need to solve for the present value of cash inflows that would result in an NPV of zero.
Laser Hair Removal Machine:
0 = -[tex]P + (125300 / (1 + 0.12)^1) + (125300 / (1 + 0.12)^2) + (125300 / (1 + 0.12)^3) + (125300 / (1 + 0.12)^4) + (850 / (1 + 0.12)^4)[/tex]
P = $54,229
Microdermabrasion Machine:
[tex]0 = -P + (213700 / (1 + 0.12)^1) + (213700 / (1 + 0.12)^2) + (213700 / (1 + 0.12)^3) + (830 / (1 + 0.12)^3)[/tex]
P = $84,130
Facial Oxygen Unit:
[tex]0 = -P + (39100 / (1 + 0.04)^1) + (39100 / (1 + 0.04)^2) + (39100 / (1 + 0.04)^3)[/tex]
P = $53,408
c) Determine the payback period for each piece of equipment.
Payback period is the time required for the initial investment to be recovered.
Laser Hair Removal Machine:
Initial investment = $66,100
Annual cash inflow = $125,300
Payback period = 0.53 years
Microdermabrasion Machine:
Initial investment = $30,100
Annual cash inflow = $213,700
Payback period = 0.14 years
Facial Oxygen Unit:
Initial investment = $24,000
Annual cash inflow = $39,100
Payback period = 0.61 years
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South Sea Baubles has the following (incomplete) balance sheet and income statement. Net fixed assets increased from $800 million to $900 million during 2019. What must have been South Sea's gross investment in fixed assets during 2019?
The gross investment in fixed assets during 2019 can be computed as $900 million (ending net fixed assets) - $700 million (starting net fixed assets) + depreciation.
The financial sheet and income statement of South Sea Baubles are not complete. Nevertheless, it is noted that throughout 2019, the net fixed assets increased from $800 million to $900 million.
We need to know the initial value of net fixed assets, which is not provided, in order to calculate the gross investment in fixed assets for 2019.
The entire amount spent on purchasing new fixed assets and raising the value of current fixed assets is known as the gross investment in fixed assets. The gross investment in fixed assets during 2019 can be computed as $900 million (ending net fixed assets) - $700 million (starting net fixed assets) + depreciation.
This assumes that the initial value of net fixed assets was $700 million. But because the depreciation amount is not provided, we cannot calculate so we cannot determine the gross investment in fixed assets.
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When a manager is analyzing how to promote sales and increase production, the best approach is to determine which product or products will provide thea. maximum contribution margin. b. lowest direct labor hours per product. c. lowest product costs per segment. d. greatest amount of sales revenue.
When a manager is analyzing how to promote sales and increase production, the best approach is to determine which product or products will provide the maximum contribution margin. The correct option is a.
This means that the manager should look at which products generate the highest profits after deducting all the variable costs associated with producing and selling them. By focusing on the contribution margin, the manager can identify the most profitable products and prioritize them in the sales and production process.
While the other factors mentioned, such as direct labor hours per product, product costs per segment, and sales revenue, are important, they do not necessarily guarantee profitability. Therefore, the manager must prioritize the contribution margin in their analysis.
Therefore, the correct option is a.
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An increase in your nominal income and a decrease in your real income might occur simultaneously if your
real income increases at the same rate as the cost of living increases.
nominal income increases less than the cost of living increases.
real income increases more than the cost of living increases.
nominal income increases more than the cost of living increases.
The correct answer is B. An increase in your nominal income and a decrease in your real income might occur simultaneously if your nominal income increases less than the cost of living increases.
Nominal income refers to the amount of money you earn without adjusting for inflation, while real income is the purchasing power of your income, adjusted for inflation. When the cost of living (i.e., the general price level of goods and services) increases at a faster rate than your nominal income, your real income decreases. This is because the purchasing power of your income is reduced, as you can now afford fewer goods and services than before. In this situation, even though your nominal income may have increased, you might still struggle to maintain your previous standard of living due to the higher costs. In contrast, if your real income increases more than the cost of living, your purchasing power would improve, allowing you to afford more goods and services. If your nominal income increases more than the cost of living, both your nominal and real income will increase simultaneously, indicating an improvement in your overall financial situation.
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On January 2, year 1 Argy company's granted 12000 stock options to a select group of senior emplyees. The requisite service period is three years, with one third of the options vesting at the end of each calendar year (graded vesting). An option pricing model was used to calculate a fair value of $5 for each option on the grant date. The company assumes all 12000 options will vest.
Required: Determine the amopunt to be recognized as compensation expense in year 1, 2, 3 under IFRS AND US GAAP prepare journal entries.
Here's the information and journal entries for Argy Company's stock options under IFRS and US GAAP:
Under both IFRS and US GAAP, the total fair value of the stock options is calculated as follows:
Total fair value = Number of options * Fair value per option
Total fair value = 12,000 * $5 = $60,000
Since the options have a graded vesting schedule, the compensation expense is recognized proportionately over the 3-year requisite service period.
Year 1:
- 4,000 options vest (1/3 of 12,000)
- Compensation expense: $20,000 (1/3 of $60,000)
Journal Entry:
Compensation Expense $20,000
Equity - Stock Options $20,000
Year 2:
- 4,000 options vest (1/3 of 12,000)
- Compensation expense: $20,000 (1/3 of $60,000)
Journal Entry:
Compensation Expense $20,000
Equity - Stock Options $20,000
Year 3:
- 4,000 options vest (1/3 of 12,000)
- Compensation expense: $20,000 (1/3 of $60,000)
Journal Entry:
Compensation Expense $20,000
Equity - Stock Options $20,000
These journal entries and calculations apply to both IFRS and US GAAP, as both frameworks have similar principles for recognizing stock option compensation expense in the case of graded vesting.
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Under both IFRS and US GAAP, the compensation expense related to the stock options should be recognized over the service period of three years, with one third of the options vesting at the end of each calendar year.
Therefore, the amount to be recognized as compensation expense each year would be:
Year 1: 4,000 options x $5 fair value = $20,000
Year 2: 4,000 options x $5 fair value = $20,000
Year 3: 4,000 options x $5 fair value = $20,000
To record the grant of the stock options and the compensation expense each year, the following journal entries would be made:
On January 2, year 1:
Dr. Stock Options Expense $60,000
Cr. Stock Options Liability $60,000 (to record the grant of the 12,000 stock options)
At the end of year 1:
Dr. Stock Options Expense $20,000
Cr. Stock Options Liability $20,000 (to recognize the compensation expense for the year)
At the end of year 2:
Dr. Stock Options Expense $20,000
Cr. Stock Options Liability $20,000 (to recognize the compensation expense for the year)
At the end of year 3:
Dr. Stock Options Expense $20,000
Cr. Stock Options Liability $20,000 (to recognize the compensation expense for the year)
Note: The Stock Options Liability account is used to track the amount of compensation expense to be recognized in future periods.
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5-Raymond made his annual RSP contribution of $3716 and decided to use the proceeds to purchase a Labour Sponsored Venture Capital Corporation. He lives in a province with a 14% provincial LSVCC tax credit and his marginal tax rate is 30%. What will Raymond's total tax refund be on this RSP contribution and purchase?Please provide answer to 2 decimal places (e.g. 1234.56)
Raymond's RSP contribution of $3716 will reduce his taxable income by the same amount, resulting in a tax savings of $1114.80 (30% of $3716). Additionally, since he purchased a Labour Sponsored Venture Capital Corporation, he is eligible for a provincial tax credit of 14% of the amount invested, which is $520.24 (14% of $3716). Therefore, his total tax refund will be the sum of these two amounts, which is $1635.04 ($1114.80 + $520.24).
To calculate Raymond's total tax refund on his RSP contribution and LSVCC purchase, we need to consider both the tax savings from the RSP contribution and the tax credit from the LSVCC purchase.
1. RSP contribution tax savings: $3716 * 30% = $1114.80
2. LSVCC tax credit: $3716 * 14% = $519.24
Now, let's add both amounts to find the total tax refund:
Total tax refund = RSP tax savings + LSVCC tax credit
Total tax refund = $1114.80 + $519.24 = $1634.04
Raymond's total tax refund will be $1634.04.
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A bank in London, Ontario charges 1.75% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3225. a. How many Canadian dollars will you receive from the bank if you sell US$1,375? b. How much commission will you pay the bank for this transaction?
Receive C$1,786.92 for selling US$1,375 at this bank in London, Ontario. Pay C$31.52 in commission for this currency exchange transaction.
a. To determine how many Canadian dollars you'll receive when selling US$1,375 at the given exchange rate, you can use the following formula:
Amount in CAD = Amount in USD * Exchange Rate
Amount in CAD = US$1,375 * C$1.3225/US$1
Amount in CAD = C$1,818.44
However, the bank charges a 1.75% commission, so you'll need to account for that as well:
Amount after Commission = Amount in CAD * (1 - Commission Rate)
Amount after Commission = C$1,818.44 * (1 - 0.0175)
Amount after Commission = C$1,786.92
b. To calculate the commission, you can subtract the amount after commission from the original amount in CAD:
Commission = Amount in CAD - Amount after Commission
Commission = C$1,818.44 - C$1,786.92
Commission = C$31.52
You will pay C$31.52 in commission for this currency exchange transaction.
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n the long run, a single firm in the market would adjust to the new equilibrium by producing a quantity where marginal cost (mc) equals marginal revenue (mr) and charging a price where this quantity intersects with the average total cost (atc) curve.
In a perfectly competitive market, each firm adjusts to the new equilibrium in the long run by producing at the minimum point of the ATC curve and charging a price equal to the market price.
In the long run, a single firm in a competitive market would adjust to the new equilibrium by producing a quantity where marginal cost (MC) equals marginal revenue (MR) and charging a price where this quantity intersects with the average total cost (ATC) curve. This is because in a competitive market, there are many buyers and sellers, and no single firm can influence the market price. Therefore, firms must take the market price as given and adjust their production levels accordingly to maximize profits.
In the long run, if a firm is earning economic profits, new firms will enter the market, attracted by the high profits. This entry of new firms will increase the supply of goods in the market, leading to a decrease in the market price. As the market price decreases, the economic profits of each firm will also decrease. This will continue until the market reaches a new long-run equilibrium where all firms are earning zero economic profit. At this new equilibrium, each firm will be producing a quantity where MC equals MR, which is the quantity where the firm can produce goods at the lowest cost and sell them at the highest possible price. The price charged by the firm will be equal to the market price, which is determined by the intersection of the market demand and supply curves. The firm's ATC curve will intersect the market price at this quantity, ensuring that the firm is covering all of its costs and earning zero economic profit.
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the supply curve for a monopoly is:group of answer choicesthe portion of the marginal cost curve that lies above the average variable cost curve.the portion of the marginal cost curve that lies above the average total cost curve.the portion of the marginal cost curve that lies above the average fixed cost curve.not a curve but a single point.
The correct answer is: the portion of the marginal cost curve that lies above the average variable cost curve. The supply curve for a monopoly is determined by the marginal cost of production, which is the cost of producing one additional unit of output.
As the monopoly produces more output, the marginal cost will generally increase due to diminishing returns. The portion of the marginal cost curve that lies above the average variable cost curve represents the range where the monopoly is able to cover its variable costs and earn a profit.
The supply curve for a monopoly is actually not a curve but a single point. In a monopoly, the firm is the sole producer in the market, and it sets the price and quantity at the point where its marginal revenue equals its marginal cost. This is different from a competitive market, where the supply curve is typically based on the marginal cost curve.
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You can use a ________ to recap your career, with a focus on your increasing levels of responsibility and performance.
A) career objective
B) qualifications summary
C) trend analysis
D) career summary
E) keyword schedule
You can use a career summary to recap your career, with a focus on your increasing levels of responsibility and performance.
This summary provides an overview of your career history, highlighting your most significant achievements, skills, and experiences. The purpose of a career summary is to capture the attention of potential employers by showcasing your value proposition and demonstrating how you can contribute to their organization.
A career summary should be concise, engaging, and tailored to the specific job you are applying for. It should include relevant information such as your years of experience, key skills and accomplishments, and any awards or recognition you have received. Additionally, it should emphasize your increasing levels of responsibility and performance by showcasing your career progression and highlighting how you have contributed to the success of your previous employers.
Overall, a well-crafted career summary can help you stand out from other job candidates and increase your chances of getting hired. It is an essential tool for anyone looking to advance their career and secure their dream job.
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