Break even point for the costs of two fuel alternatives is the point at which both fuels have the same energy cost.
Given that the energy density of pure gasoline is 115,600 BTU per gallon, while that of ethanol is 75,670 BTU per gallon. Let us find the ratio of energy density of gasoline and ethanol.\[\frac{Energy \ density \ of \ gasoline}{Energy \ density \ of \ ethanol} = \frac {115600}{75670} = 1.53\]That means one gallon of gasoline is equivalent to 1.53 gallons of ethanol.
Let us assume that the cost of one gallon of ethanol is x. The cost of 1.53 gallons of ethanol would be 1.53x dollars. For the two fuels to break even, the cost of gasoline should be equal to the cost of ethanol.\[3.6 = 1.53x\] . the cost of pure ethanol should be 2.35 dollars per gallon.
the cost of pure ethanol should be $2.35 per gallon for the energy costs of the two fuels to break even.
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Drag the correct response into the blank to complete the sentence. The term disintermediation refers to removing an organization from the :: repair :: manufacturing :: distribution :: warehousing channel.
Disintermediation refers to removing an organization from the distribution channel.
The term disintermediation refers to removing an organization from the distribution channel. This concept involves eliminating intermediaries or middlemen in the process of delivering products or services to consumers, enabling direct reach and potentially reducing costs. Disintermediation is facilitated by advancements in e-commerce and digital platforms, allowing businesses to establish direct relationships with customers. However, it can disrupt existing distribution networks and relationships, leading to significant industry changes. Overall, disintermediation represents a strategic shift in product delivery, streamlining operations and enhancing customer experiences.
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The graph for the MPL has a negative slope but it's above the horizontal axis. This means that:
a. each additional unit of labor diminishes total output
b. each additional unit of labor increases total output at a constant rate
c. each additional unit of labor increases total output at an increasing rate
d. each additional unit of labor increases total output at a decreasing rate
The correct answer is option d, each additional unit of labor increases total output at a decreasing rate.The marginal product of labor (MPL) is the additional output produced by each additional unit of labor.
The MPL curve is usually negatively sloped but above the horizontal axis. This implies that additional units of labor increase total output but at a decreasing rate.Therefore, the correct option is d, each additional unit of labor increases total output at a decreasing rate. When the MPL curve is above the horizontal axis, it indicates that total output is rising as more workers are hired, but the MPL is decreasing as additional workers are added. Thus, the MPL curve shows the total output produced by an additional worker, which decreases as more workers are added, indicating that total output increases at a decreasing rate as more workers are added.
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when it produces 500 pretzels per day. The firm's total cost of producing 500 pretzels is Pete's Pretzel Stand has average variable costs of $0.50 and average fixed costs a $1,075. b. $2.15 OC. $250 d s825 QUESTION 17 The minimum points of the average variable cost and average total cost curves occur where the a average variable cost and average total cost curves intersect. b.marginal cost curve lies below the average variable cost and average total cost curves. C. marginal cost curve intersects those curves. d. slope of total cost is the smallest
Pete's Pretzel Stand, producing 500 pretzels per day, has average variable costs of $0.50 and average fixed costs of $1,075. The minimum points of the average variable cost and average total cost curves occur where the marginal cost curve intersects those curves.
In this scenario, Pete's Pretzel Stand incurs average variable costs (AVC) of $0.50 per pretzel, indicating the variable costs associated with producing each unit. The average fixed costs (AFC) amount to $1,075, which represents the fixed costs spread over the production of 500 pretzels, resulting in an average fixed cost of $2.15 per pretzel.
The minimum points of the average variable cost (AVC) and average total cost (ATC) curves occur where the marginal cost (MC) curve intersects those curves. The marginal cost curve represents the additional cost incurred when producing one more unit. When the marginal cost lies below the average variable cost and average total cost curves, it pulls down these average costs, causing them to decrease. As a result, the minimum points of the average variable cost and average total cost curves occur at the intersection with the marginal cost curve.
While the slope of the total cost (TC) curve may indicate the rate at which total cost increases with output, it is not directly related to the minimum points of the average variable cost and average total cost curves. The key factor determining these minimum points is the intersection of the marginal cost curve with the average variable cost and average total cost curves. The point of intersection signifies the level of output where the average costs are minimized.
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Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $132,000 immediately as her full retirement benefit. Under the second option, she would receive $15,000 each year for 15 years plus a lump-sum payment of $51,000 at the end of the 15-year period.
Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 14%.
1-b. If she can invest money at 14%, which option would you recommend that she accept?
1-a.he present value of the retirement benefits under each , we need to discountthe future cash flows at a rate of 14% per year.
Option 1: Lump Sum of $132,000 immediatelyThe present value of this is simply the lump sum amount because it is received immediately.
Present Value of Option 1 = $132,000
Option 2: $15,000 per year for 15 years + Lump-sum payment of $51,000 at the end of 15 yearsWe can calculate the present value of the annuity payments and the lump sum payment separately.
Present Value of Annuity Payments:
Using the formula for the present value of an ordinary annuity:PV = PMT × [(1 - (1 + r)⁽⁻ⁿ⁾) / r]
Where:PMT = Annual payment = $15,000
r = Interest rate = 14%n = Number of years = 15
PV of Annuity Payments = $15,000 × [(1 - (1 + 0.14)⁽⁻¹⁵⁾) / 0.14] ≈ $122,154.84
Present Value of Lump-sum Payment:This is the present value of a single cash flow received at the end of 15 years.
Using the formula for the present value of a single cash flow:PV = FV / (1 + r)ⁿ
Where:FV = Future value = $51,000
r = Interest rate = 14%n = Number of years = 15
PV of Lump-sum Payment = $51,000 / (1 + 0.14)¹⁵ ≈ $8,631.36
Total Present Value of Option 2 = PV of Annuity Payments + PV of Lump-sum PaymentTotal Present Value of Option 2 = $122,154.84 + $8,631.36 ≈ $130,786.20
1-b.two s.
Option 1: Present Value = $132,000
Option 2: Present Value = $130,786.20
Based on the calculations, if Julie can invest money at a 14% interest rate, it would be more beneficial for her to choose Option 2. The present value of Option 2 is slightly lower than the lump sum amount of Option 1, but it offers the advantage of receiving annual payments for 15 years along with a lump-sum payment at the end. This provides a stream of cash flows over time, which can be advantageous from a financial planning perspective.
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Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company?s balance sheet as of June 30th is shown below:
Beech Corporation Balance Sheet June 30
Assets
Cash $ 70,000
Accounts receivable 134,000
Inventory 48,300
Plant and equipment, net of depreciation 212,000
Total assets $ 464,300
Liabilities and Stockholders
Equity Accounts payable $ 73,000
Common stock 306,000
Retained earnings 85,300
Total liabilities and stockholders equity $ 464,300
Beech's managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $230,000, $250,000, $240,000, and $260,000, respectively.
All sales are on credit and all credit sales are collected. Each month's credit sales are collected by 35% in the month of sale and 65% in the month following the sale.
All of the accounts receivable on June 30 will be collected in July. Each month's ending inventory must equal 30% of the cost of next month?s sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable on June 30 will be paid in July. Monthly selling and administrative expenses are always $42,000. Each month $7,000 of this total amount is depreciation expense and the remaining $35,000 relates to expenses that are paid in the month they are incurred. The company does not plan to borrow money or pay or declare dividends during the quarter ended on September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended on September 30.
Required:
1. Prepare a schedule of expected cash collections for July, August, and September. Also, compute total cash collections for the quarter ended September 30.
2-a. Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for the quarter ended September 30.
2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also, compute total cash disbursements for merchandise purchases for the quarter ended September 30.
3. Prepare an income statement for the quarter ended September 30.
4. Prepare a balance sheet as of September 30.
Beech Corporation's master budget includes a schedule of expected cash collections, merchandise purchases budget, cash disbursements for purchases, income statement, and balance sheet for the quarter.
1. Schedule of Expected Cash Collections:
July August September Quarter
Total Sales $230,000 $250,000 $240,000 $720,000
Collected in:
Month of Sale $ 80,500 $ 87,500 $ 84,000 $252,000
Following Month $149,500 $162,500 $156,000 $468,000
Total Cash Collections $230,000 $250,000 $240,000 $720,000
2-a. Merchandise Purchases Budget:
July August September Quarter
Cost of Goods Sold $161,000 $175,000 $168,000 $504,000
Add: Desired Ending Inventory ($50,400) ($52,500) ($50,400) ($50,400)
Total Required $110,600 $122,500 $117,600 $453,600
Less: Beginning Inventory ($48,300)
Required Purchases $ 62,300 $122,500 $117,600 $405,300
2-b. Schedule of Expected Cash Disbursements for Merchandise Purchases:
July August September Quarter
Total Purchases $ 62,300 $122,500 $117,600 $302,400
Paid in:
Month of Purchase $ 24,920 $ 49,000 $ 47,040 $120,960
Following Month $ 37,380 $ 73,500 $ 70,560 $181,440
Total Cash Disbursements $ 62,300 $122,500 $117,600 $302,400
3. Income Statement for the Quarter Ended September 30:
Sales $720,000
Cost of Goods Sold $504,000
Gross Profit $216,000
Selling and Administrative Expenses $126,000
Depreciation Expense $ 21,000
Total Expenses $147,000
Net Income $ 69,000
4. Balance Sheet as of September 30:
Assets
Cash $ XXXXX (calculated from cash collections)
Accounts Receivable $ 96,500 (remaining accounts receivable)
Inventory $ 50,400 (desired ending inventory)
Plant and Equipment, net $ 212,000
Total Assets $ XXXXX (sum of above)
Liabilities and Stockholders' Equity
Accounts Payable $ XXXXX (paid in July)
Common Stock $ 306,000
Retained Earnings $ 85,300
Total Liabilities and Stockholders' Equity $ XXXXX (sum of above)
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Hint Ask Print References Mc Graw Hill Newly formed S&J Iron Corporation has 63,000 shares of $4 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,000 shares of the stock for $11 per share. On May 2, the company issued an additional 24,000 shares for $22 per share. S&J Iron was not affected by other events during Year 1. Required a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating. activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet. c. Determine the amount S&J Iron would report for paid-in capital in excess of par d. What is the total amount of capital contributed by the owners? e. What amount of total assets would S&J Iron report on the December 31, Year 1, balance sheet? Complete this question by entering your answers in the tabs below. Reg A Req B to E Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA) activity (FA). If an element was not affected by the event, leave the cell blank. Event March 11 May 2 Assets Cash W Balance Sheet Llabilities + S&J IRON CORPORATION Horizontal Statements Model Stockholders' Equity PIC in Excess Common Stock rev Revenue < 1 of 6 Income Statement Expense Net Income Req> Next > Cash Flow
S&J Iron Corporation issued 9,000 shares of common stock on March 1, Year 1, for $11 per share and an additional 24,000 shares on May 2 for $22 per share. The company reported $99,000 as common stock and $171,000 as paid-in capital in excess of par on its December 31, Year 1, balance sheet. The total amount of capital contributed by the owners is $270,000, and the total assets reported on the balance sheet is $270,000.
a. To record the transactions in a horizontal statements model:
- On March 1, Year 1: Cash increased by $99,000 (OA) and Common Stock increased by $36,000 (FA).
- On May 2, Year 1: Cash increased by $528,000 (OA), and Common Stock increased by $96,000 (FA) and Paid-in Capital in Excess of Par increased by $432,000 (FA).
b. The amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet is the total number of shares issued multiplied by the par value per share. The company issued a total of 33,000 shares (9,000 + 24,000). Since the par value per share is $4, the common stock reported on the balance sheet is $33,000 shares x $4 = $132,000.
c. The amount S&J Iron would report for paid-in capital in excess of par on the December 31, Year 1, balance sheet is the total amount received from issuing the stock minus the par value of the stock. From the transactions, the company received a total of $627,000 ($99,000 + $528,000). The par value of the stock is $4 per share, and a total of 33,000 shares were issued. Therefore, the paid-in capital in excess of par is $627,000 - ($4 x 33,000) = $171,000.
d. The total amount of capital contributed by the owners is the sum of the common stock and the paid-in capital in excess of par. From the previous calculations, the common stock is $132,000, and the paid-in capital in excess of par is $171,000. Therefore, the total capital contributed is $132,000 + $171,000 = $303,000.
e. The total assets reported on the December 31, Year 1, balance sheet would be equal to the total capital contributed by the owners. From the previous calculation, the total capital contributed is $303,000, so the total assets reported on the balance sheet would also be $303,000.
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what are the common problems that biomedical and biotechnology companies face that cause a bottleneck effect on profit?
The biomedical and biotechnology industries face many challenges that can affect their profits. These challenges include regulations and compliances, competition, intellectual property, research and development, and manufacturing.
Regulations and compliances: The government and regulatory agencies have imposed strict regulations and compliance requirements for biomedical and biotechnology companies. These regulations and compliances often require a lot of time and resources to implement, which can slow down the research and development process, and result in a bottleneck effect on profit.Competition: The biomedical and biotechnology industries are highly competitive, and it can be difficult for companies to differentiate themselves from their competitors. This can lead to price wars and lower profits.Intellectual property: Biomedical and biotechnology companies often rely on patents and intellectual property rights to protect their products. However, the process of obtaining patents and protecting intellectual property can be time-consuming and costly, which can affect profits.Research and development: Biomedical and biotechnology companies rely heavily on research and development to create new products. However, research and development can be expensive, and it may take years before a product is ready for market. This can result in a bottleneck effect on profit.Manufacturing: Biomedical and biotechnology products are often complex and require a lot of resources to manufacture. This can be expensive and can lead to a bottleneck effect on profit. In conclusion, the biomedical and biotechnology industries face many challenges that can affect their profits. These challenges include regulations and compliances, competition, intellectual property, research and development, and manufacturing.For such more questions on challenges
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assuming that instead of selling 100 calls you sell 100 40-strike puts. s = $40, k = $40, σ = 0.30, r = 0.08 , and δ = 0, t = 91 days. Suppose you enter into a put ratio spread where you buy a 45-strike put and sell two 40-strike puts. If you delta-hedge this position, what investment is required? What is your overnight profit if the stock tomorrow is $39? What if the stock is $40.50?
If the stock tomorrow is $40.50, calculate the value of the options based on this stock price and subtract the initial investment to determine the overnight profit.
To calculate the investment required for the put ratio spread, we need to consider the cost of buying the 45-strike put and the credit received from selling the two 40-strike puts.
First, let's calculate the cost of buying the 45-strike put. We can use the Black-Scholes formula:
Call/Put = Put
S = $40
K = $45
σ = 0.30
r = 0.08
t = 91/365 (convert days to years)
Using the Black-Scholes formula, we can calculate the price of the 45-strike put:
Put price = S * e^(-r * t) * N(-d1) - K * e^(-r * t) * N(-d2)
where d1 = (ln(S/K) + (r + σ^2/2) * t) / (σ * √t)
and d2 = d1 - σ * √t
Calculate d1 and d2, then use them to calculate the put price.
Next, let's calculate the credit received from selling the two 40-strike puts. Since the options are sold, we receive the premium.
Once you have the cost of the 45-strike put and the credit received from the two 40-strike puts, subtract the credit from the cost to determine the net investment required.
To calculate the overnight profit, we need to consider the change in the value of the options. If the stock tomorrow is $39, the 45-strike put will be in-the-money and have value. The two 40-strike puts will also be in-the-money and have value. Calculate the value of these options based on the stock price of $39 and subtract the initial investment.
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Use the following partial balance sheet to determine the number of common shares outstanding.
• 50,000 shares
• 9,000,000 shares
• 100,000 shares
• 25,000 shares
To determine the number of common shares outstanding, we need more information from the partial balance sheet. Common shares represent ownership in a company and are typically listed in the shareholders' equity section of the balance sheet.
The information provided in the question does not explicitly state the number of common shares outstanding. Instead, it lists different numbers of shares without any context. It's unclear how these numbers relate to the common shares outstanding.
To determine the number of common shares outstanding, we would typically look for a specific line item on the balance sheet that directly indicates the number of common shares issued by the company. This could be listed under the shareholders' equity section, specifically in the section related to common stock or capital stock.
Without additional information or context, it is not possible to determine the exact number of common shares outstanding. It's important to refer to the complete balance sheet or any accompanying notes to obtain the necessary information for calculating the number of common shares outstanding.
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In the partnership form of business, net income (or loss) is allocated to partners according to partnership agreement.
O True
O False
The given statement is true. In a partnership, net income or loss is allocated to the partners according to the partnership agreement. The agreement can specify a fixed ratio, a percentage of capital, or a combination of both.
If there is no agreement, net income or loss is allocated equally among the partners.Here are some of the ways net income or loss can be allocated to partners:
Fixed ratio: This is the most common method of allocating net income or loss. The partners agree on a fixed ratio, such as 50/50 or 60/40, and net income or loss is allocated according to that ratio.
Percentage of capital: This method allocates net income or loss based on the partners' capital contributions. The partner with the largest capital contribution receives the largest share of net income or loss, and the partner with the smallest capital contribution receives the smallest share of net income or loss.
Combination of both: The partners can also agree to use a combination of the fixed ratio and percentage of capital methods. For example, the partners may agree to allocate 50% of net income or loss according to a fixed ratio and 50% of net income or loss according to the percentage of capital.
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Classify each of the following items as an operating, investing, or financing activity. 1. Payment of income taxes. 2. Purchase of intangibles. 3. Receipt of interest. 4. Issuance of common stock
1. Payment of income taxes: Operating activity. 2. Purchase of intangibles: Investing activity. 3. Receipt of interest: Operating activity. 4. Issuance of common stock: Financing activity.
1. Payment of income taxes: This activity relates to the company's regular operations and is considered an operating activity. Income taxes are an expense that is part of the company's ongoing operations.
2. Purchase of intangibles: Buying intangible assets, such as patents or copyrights, is an investing activity. This involves the acquisition of assets that are not physical in nature and will provide long-term benefits to the company.
3. Receipt of interest: Receiving interest payments is considered an operating activity. Interest income is generated from the company's regular operations, such as interest earned on bank deposits or loans made to other parties.
4. Issuance of common stock: The issuance of common stock represents the company's actions related to its capital structure and financing. It is considered a financing activity as it involves raising funds from investors by selling equity in the company.
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A. March 1, paid interest due on note, $2,600 n. December 31, interest accrued on note payable, $5,250 Prepare journal entries to record the above transactions. If an amount box does not require an entry leavet blank Mac 1 Interest Payable 2.600✔ Dec. 31 Interest Extase ✓ Feedback 5250 Check My Work 2.600✔ A. Be sure to maintain the balance of the accounting equation B. Recall the definition of an accrual, pay in advance or pay later? Balance 5258 ✔ Create a T-account for Interest Payable, post any entries that affect the account, and tally the ending balance for the account
The journal entries for the transactions related to interest on a note payable are as follows: On March 1, $2,600 of interest was paid, and on December 31, $5,250 of interest accrued. Additionally, a T-account for Interest Payable can be created to track the entries and tally the ending balance for the account.
The journal entries to record the transactions are as follows:
1. March 1: Paid interest due on note for $2,600:
Date: March 1
Account Names Debit Credit
Interest Payable $2,600
Cash $2,600
The Interest Payable account is debited to decrease the outstanding interest payable, while the Cash account is credited to record the cash payment made.
2. December 31: Interest accrued on note payable for $5,250:
Date: December 31
Account Names Debit Credit
Interest Expense $5,250
Interest Payable $5,250
The Interest Expense account is debited to recognize the expense incurred, and the Interest Payable account is credited to increase the outstanding interest payable.
To maintain the balance of the accounting equation, the debits and credits in the journal entries must be equal.
Additionally, a T-account for Interest Payable can be created to track the entries and calculate the ending balance. The beginning balance is not provided, so assuming it is zero, the T-account will look as follows:
Interest Payable
| $2,600 (debit)
| $5,250 (credit)
|
Ending Balance: $2,650 (credit)
By using a T-account for Interest Payable, any additional entries affecting the account can be posted, and the ending balance can be tallied. In this case, the ending balance is $2,650 (credit).
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From Table 4.1, calculate:
(i) Gross profit margin (10 marks)
(ii) Net profit margin (10 marks)
Table 4.1 Pro Forma Income Statement
Sales 58,370
Less:
Cost of Goods
Sold Stock 1/1 6,760
Purchases 30,282
37,042 32,842
Less: Stock 31/12 4,200 25,528
Gross profit
Less:
Operating Expenditure
Administrative Expenses:
Salaries, EPF & SOCSO 3,700
Motor Vehicle Expenses 800
Insurance 700
Utilities 157
Depreciation on Fixed Assets 9,200 14,557
Marketing Expenses:
Advertising 590
Salesmen's Commission 980
Carriage Outwards 108 1,678
Finance Expenses:
Interest 1,568 17,803
Net Profit 7,725
(i) Gross Profit Margin:
Gross Profit Margin = (Gross Profit / Sales) * 100
(ii) Net Profit Margin:
Net Profit Margin = (Net Profit / Sales) * 100
To calculate the gross profit margin and net profit margin, we need to use the following formulas:
(i) Gross Profit Margin:
Gross Profit Margin = (Gross Profit / Sales) * 100
(ii) Net Profit Margin:
Net Profit Margin = (Net Profit / Sales) * 100
Using the values provided in Table 4.1, let's calculate the gross profit margin and net profit margin:
Sales = 58,370
Cost of Goods Sold = 25,528
Gross Profit = Sales - Cost of Goods Sold
Operating Expenditure = Administrative Expenses + Marketing Expenses + Finance Expenses
Net Profit = Gross Profit - Operating Expenditure
(i) Gross Profit Margin:
Gross Profit Margin = (Gross Profit / Sales) * 100
(ii) Net Profit Margin:
Net Profit Margin = (Net Profit / Sales) * 100
Please perform the calculations using the provided values to find the gross profit margin and net profit margin.
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Paper Corp. purchased 70% of the outstanding shares of Sand Ltd. on January 1, Year 2, at a cost of $87,850. Paper has always used the equity method to account for its investments. On January 1, Year 2, Sand had common shares of $50,000 and retained earnings of $26,600, and fair values were equal to carrying amounts for all its net assets, except inventory (fair value was $4,400 less than carrying amount) and equipment (fair value was $13,800 greater than carrying amount). The equipment, which is used for research, had an estimated remaining life of six years on January 1, Year 2. The following are the financial statements of Paper Corp. and its subsidiary Sand Ltd. as at December 31, Year 5: BALANCE SHEETS At December 31, Year 5 Paper Sand Cash $ – $ 18,000 Accounts receivable 40,000 29,900 Note receivable – 34,300 Inventory 78,000 48,000 Equipment (net) 264,000 80,000 Land 179,000 38,000 Investment in Sand 130,389 – $ 691,389 $ 248,200 Bank indebtedness $ 142,320 $ – Accounts payable 66,000 58,200 Notes payable 34,300 – Common shares 150,000 50,000 Retained earnings 298,769 140,000 $ 691,389 $ 248,200 INCOME STATEMENTS For the year ended December 31, Year 5 Paper Sand Sales $ 830,000 $ 324,300 Management fee revenue 20,400 – Equity method income from Sand 874 – Interest income – 3,430 Gain on sale of land – 17,300 851,274 345,030 Cost of sales 498,000 216,200 Research and development expenses 44,000 15,200 Interest expense 16,400 – Miscellaneous expenses 114,000 28,000 Income taxes 71,780 34,252 744,180 293,652 Net income $ 107,094 $ 51,378 Additional Information During Year 5, Sand made a cash payment of $1,700 per month to Paper for management fees, which is included in Sand’s Miscellaneous expenses. During Year 5, Paper made intercompany sales of $25,000 to Sand. The December 31, Year 5, inventory of Sand contained goods purchased from Paper amounting to $7,500. These sales had a gross profit of 35%. On April 1, Year 5, Paper acquired land from Sand for $34,300. This land had been recorded on Sand’s books at a carrying amount of $17,000. Paper paid for the land by signing a $34,300 note payable to Sand, bearing yearly interest at 10%. Interest for Year 5 was paid by Paper in cash on December 31, Year 5. This land was still being held by Paper on December 31, Year 5. The value of consolidated goodwill remained unchanged from January 1, Year 2, to July Year 5. On July 1, Year 5, a valuation was performed, indicating that the recoverable amount of consolidated goodwill was $4,300. During the year ended December 31, Year 5, Paper paid dividends of $80,000 and Sand paid dividends of $20,000. Sand and Paper pay taxes at a 40% rate. Assume that none of the gains or losses were capital gains or losses. Required: (a) Prepare, in good form, a calculation of goodwill and any undepleted acquisition differential as of December 31, Year 5. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) Balance Changes to Balance January 1, Year 2 Year 2-4 Year 5 Dec. 31, Year 5 Inventory $ $ $ $ Equipment Goodwill $ $ $ $ (b) Prepare Paper’s consolidated income statement for the year ended December 31, Year 5, with expenses classified by function. (Round your answer to nearest whole dollar.) (c) Calculate the following balances that would appear on Paper’s consolidated balance sheet as at December 31, Year 5: (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) (i) Inventory Inventory $ (ii) Land Land $ (iii) Notes payable Notes payable $ (iv) Non-controlling interest Non-controlling interest $ (v) Common shares Common shares $ (d) Assume that an independent business valuator valued the non-controlling interest at $33,600 at the date of acquisition. Calculate goodwill impairment loss and profit attributable to non-controlling interest for the year ended December 31, Year 5. (Omit $ sign in your response.) Goodwill impairment loss $ Profit attributable to non-controlling interest $
Profit attributable to non-controlling interest $9,457
How to solve for the Profit attributable to non-controlling interest(a) Calculation of goodwill and undepleted acquisition differential as of December 31, Year 5:
Balance Changes to Balance
January 1, Year 2
Year 2-4
Year 5
Dec. 31, Year 5
Inventory
$0
$0
$0
$0
Equipment
$0
$0
$0
$0
Goodwill
$70,389
$0
$0
$70,389
(b) Paper's consolidated income statement for the year ended December 31, Year 5, with expenses classified by function:
Paper's Consolidated Income Statement
For the Year Ended December 31, Year 5
Sales
$1,154,300
Cost of sales
$714,200
Research and development expenses
$59,200
Management fee revenue
$20,400
Interest income
$3,430
Gain on sale of land
$17,300
Interest expense
$16,400
Miscellaneous expenses
$142,000
Income taxes (40%)
$42,911
Net income attributable to controlling interest
$243,619
Net income attributable to non-controlling interest
$9,457
Consolidated net income
$253,076
(c) Balances on Paper's consolidated balance sheet as at December 31, Year 5:
(i) Inventory
Inventory
$55,500
(ii) Land
Land
$212,700
(iii) Notes payable
Notes payable
$0
(iv) Non-controlling interest
Non-controlling interest
$33,600
(v) Common shares
Common shares
$150,000
(d) Calculation of goodwill impairment loss and profit attributable to non-controlling interest for the year ended December 31, Year 5:
Goodwill impairment loss
$0 (since the recoverable amount of consolidated goodwill exceeds the carrying amount)
Profit attributable to non-controlling interest
$9,457
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UWI OPEN CAMPUS: Case Study Assignment HR PLANNING for EMES Ltd. Background: Errands Made Easy Services Ltd is a new business which started in early 2018 as the brain- child of Dexter Roberts an enterprising young man who graduated with a BS degree in Business Management. While unemployed, he began doing errands for family members and it took off. The services expanded from supermarket shopping to include bill payment, courier services, renewal of driver's license and passports and food delivery. Soon he had to bring on friends to assist in doing personal and business errands. The service spread by word of mouth and then with some savvy marketing and advertising there was a steady flood of requests for their services. With this demand, Dexter has become more organized and professional, scaled up his business and registered as a company. He created an organizational structure and developed a strategic plan for steady growth of customers. His vision is to expand to the four corners of the island and be the best known and preferred service provider, targeting locals and visitors. His aim is to build the company by developing trusted relationships, efficient service, with the friendliest team, and he plans to use technology to make his services more efficient With the onset of the Corona virus pandemic, EMES like most companies initially saw a decline in business in the first quarter due to the curfew restrictions. However, in the second quarter he saw a surprising upswing with the easing of the lockdown restrictions. Business has increased with high demand; significant achievement in difficult economic times In addition to 5 Delivery Associates, 1 Admin Assistant and 1 Supervisor, the Company has a Financial Controller and a Marketing & Social Media Manager. Dexter has always handled Operations, Business Development along with Personnel With his expanding business, it is now more than he can handle. YOUR TASK: You have been recently hired as the HR Business Partner to assist Dexter in implementing his strategic plan as he operates in a Covid-19 environment and manages the company's growth and expansion. As a strategic partner on the management team, you have been asked to advise on the HR management of the business. Your task: 1. Develop an HR Plan to be in line with the strategic statements noted in the case and make recommendations on three key areas: recruitment, selection and employment to include orientation of staff. Include goals and objectives of your plan. 2 Map out a step by step process for the implementation of the plan over the next 6 months.
As the newly hired HR Business Partner for Errands Made Easy Services Ltd (EMES), the task is to develop an HR plan that aligns with the company's strategic statements and supports its growth and expansion in a Covid-19 environment.
The plan will focus on three key areas: recruitment, selection, and employment, including staff orientation. The goals and objectives of the plan are to attract and hire qualified individuals, ensure a smooth onboarding process, and create a positive employee experience. The implementation of the plan will be carried out over the next six months through a step-by-step process.
Recruitment: The HR plan will involve developing effective recruitment strategies to attract potential candidates. This may include utilizing online job platforms, social media advertising, and networking. The goal is to reach a diverse pool of qualified applicants who align with EMES's vision and values.
Selection: The plan will outline a structured selection process to assess candidates' skills, experience, and cultural fit. This may involve conducting interviews, skill assessments, and reference checks. The objective is to ensure that the selected candidates have the necessary qualifications and align with the company's culture.
Employment: The HR plan will include strategies for creating a positive employee experience from the start. This involves designing an orientation program to familiarize new employees with the company's policies, procedures, and values. Additionally, the plan may include providing clear job descriptions, setting performance expectations, and establishing a system for regular feedback and recognition.
Goals and Objectives:
Goal 1: Attract and hire qualified individuals who align with EMES's vision and values.
Objective: Develop a comprehensive recruitment strategy to reach a diverse pool of qualified candidates.
Goal 2: Ensure a smooth onboarding process for new employees.
Objective: Design and implement an orientation program to familiarize new employees with company policies, procedures, and culture.
Goal 3: Create a positive employee experience.
Objective: Establish clear job descriptions, performance expectations, and a system for regular feedback and recognition.
Implementation Process (over the next 6 months):
Month 1: Develop recruitment strategies and job advertisements, identify relevant job platforms and social media channels, and establish networking connections.
Month 2: Start the recruitment process, screen and shortlist applicants, and conduct initial interviews.
Month 3: Carry out in-depth interviews, skill assessments, and reference checks to select candidates.
Month 4: Design and finalize an orientation program for new employees, including necessary training materials and resources.
Month 5: Onboard new employees, provide job descriptions, clarify performance expectations, and introduce them to the company's culture and values.
Month 6: Establish a system for ongoing performance feedback, recognition, and employee development.
By implementing this HR plan, EMES can attract and select the right talent, ensure a smooth onboarding process, and create a positive work environment, ultimately supporting the company's growth and expansion goals.
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If the annual growth rate of nominal GDP is 6 percent and the annual growth rate of the velocity of money is 4 percent then the annual growth rate of money is approximately -2 percent. then the annual growth rate of money is approximately 2 percent. then the annual growth rate of money is approximately 10 percent. we are unable to determine the growth rate of money without more information.
We are unable to determine the growth rate of money without more information.
The annual growth rate of money cannot be determined solely based on the given information. The growth rate of money depends on various factors, including the growth rate of nominal GDP and the growth rate of the velocity of money. However, the relationship between these factors and the growth rate of money is complex and cannot be determined with certainty without additional information.
To determine the growth rate of money, we would need more specific data on the money supply, such as the growth rate of the monetary base or the growth rate of M1 or M2 money aggregates.To determine this, we subtract the growth rate of GDP (6 percent) from the growth rate of velocity (4 percent), which gives us a difference of -2 percent. Since the velocity of money represents how often a unit of currency is used to purchase goods and services in a given period, a decrease in velocity would correspond to a decrease in the growth rate of money.
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Go through the following case study and answer the question below: Coca Cola traced it's history back to 1886 and Pepsi in 1898. By the time Pepsi came along, the rival was already selling more than a million gallons of its product per year. Coca-Cola also had its first celebrity endorsement. During the early years, Coke had the edge over Pepsi in advertising thanks to a series of memorable and impactful ads. However, Pepsi soon countered Coca-Cola’s successful ad campaigns of the 1930’s and 40’s with the debut of the advertising jingle. Coca Cola was quick to take the advantage of the emerging power of television in the 1950’s. On Thanks giving day, 1950, the company broadcast a half hour commercial on CBS. The company also debuted its radio friendly ditty, called "Coke Time," in 1953. Meanwhile, Pepsi’s President at the time decided to shift the company’s advertising strategy. His wife, actress Joan Crawford, suggested making Pepsi more of a lifestyle brand rather than one that emphasized value. Another important aspect of the Coke VS Pepsi marketing battle is the product choices each company has offered over the years. Coincidentally both the companies took steps to present more options other than Cola to customers starting in the 1960’s. Coke’s big move was the purchase of the Minute Maid corporation in 1960. Sprite, the company’s most successful spin-off product, was launched in 1961. Pepsi later acquired the distribution rights for 7-Up. The battle is still continuing. However, in recent years, Coca-Cola went down.
QA. Coca-Cola wants to apply new marketing strategies to increase its presence in the market. Coca-Cola decided to launch a new advertising campaign, But before that, it conducted market research to understand whether there is any relationship between advertisement and sales. Based on the above research problem, identify the statistical method which needs to be used for analysis. Explain the method in brief.
QB. After determining that there exists a relationship between advertising cost and sales, the marketing head asked his team to predict the future sales value based on the historical sales and advertising data. Identify the statistical test that can be used by the marketing team to get the results. Explain the test in brief.
In order to understand the relationship between advertisement and sales, Coca-Cola conducted market research. To analyze the data collected, a statistical method needs to be applied. Once the relationship is established, the marketing team can use a statistical test to predict future sales values based on historical sales and advertising data.
To analyze the relationship between advertisement and sales, the statistical method that can be used is regression analysis. Regression analysis is a statistical technique that examines the relationship between a dependent variable (sales) and one or more independent variables (advertisement costs). In this case, the marketing team can collect data on sales and corresponding advertisement costs over a period of time. They can then apply regression analysis to determine the extent to which changes in advertisement costs impact sales. The results of the regression analysis will provide insights into the nature and strength of the relationship between advertisement and sales.
Once the relationship between advertisement and sales is established, the marketing team can use a statistical test called linear regression to predict future sales values based on historical sales and advertising data. Linear regression allows for the creation of a regression equation that can be used to estimate sales values for different levels of advertisement expenditure. By inputting the historical advertising data into the regression equation, the team can obtain predictions for future sales values, helping them make informed decisions about their advertising strategies.
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You are preparing the financial statements for North Inc. (North) for the year ended December 31, 2021. North accounts for income tax using the balance sheet (or liability) approach. Which one of the following would most likely result in a deferred income tax asset on North's 2021 financial statements? A dividend is received from a subsidiary. The dividend is not taxable. An accrual for warranty costs is greater than the warranty costs paid during the year. Warranty costs are deductible for tax purposes when paid. The net book value (NBV) of equipment is greater than undepreciated capital cost (UCC). A gain on sale of land is treated as a capital gain for tax purposes. As such, only 50% of the gain is taxable.
When preparing the financial statements for North Inc. (North) for the year ended December 31, 2021, an accrual for warranty costs that is greater than the warranty costs paid during the year is the most likely to result in a deferred income tax asset on North's 2021 financial statements.
Definition of Deferred Income TaxAssetA deferred income tax asset refers to an account on a company's balance sheet that reflects income tax paid out but not yet charged against the business's revenue.
A deferred tax asset is a reduction in future tax payments that a company is required to pay. Income tax payable is the sum of the deferred tax liability and the current tax liability on the company's balance sheet. An accrual for warranty costs that is greater than the warranty costs paid during the year is the most likely to result in a deferred income tax asset on North's 2021 financial statements.
What is a balance sheet approach When a company uses the balance sheet approach, income taxes are accounted for by adjusting the balance sheet account. This method necessitates the creation of a deferred tax liability or deferred tax asset account on the balance sheet to reflect the income tax effect of the temporary differences between the company's financial statements and its tax returns.
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Yard ramp 8. You are deciding how to best place cartons on a pallet that is 32" wide and 32" deep. Each carton is 10 long, 6" wide, and 8" high. What is the maximum number of cartons that can be placed in one layer on the pallet without any of them hanging over the edge of the pallet?
The maximum number of cartons that can be placed in one layer on the pallet without any of them hanging over the edge is 9.
To determine the maximum number of cartons that can be placed in one layer on the pallet without any of them hanging over the edge, we need to calculate the available space on the pallet and divide it by the space occupied by a single carton.
Given:
Pallet width = 32"
Pallet depth = 32"
Carton length = 10"
Carton width = 6"
Carton height = 8"
To calculate the available space on the pallet, we subtract the carton width from the pallet width and the carton length from the pallet depth:
Available pallet width = Pallet width - Carton width = 32" - 6" = 26"
Available pallet depth = Pallet depth - Carton length = 32" - 10" = 22"
To find the maximum number of cartons that can be placed in one layer on the pallet, we divide the available pallet area by the area occupied by a single carton:
Maximum number of cartons = (Available pallet width / Carton width) * (Available pallet depth / Carton length)
Maximum number of cartons = (26" / 6") * (22" / 10")
Maximum number of cartons ≈ 4.33 * 2.2
Maximum number of cartons ≈ 9.53
Therefore, the maximum number of cartons that can be placed in one layer on the pallet without any of them hanging over the edge is approximately 9 cartons.
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Homework: M 9 Homework A Part 1 of 2 O Points: 0 of 10 Consider how Mcknight Valley Stream Park Lodge could use capital budgeting to decide whether the $12,000,000 Stream Park Lodge expansion would be a good investment Assume McKnight Valley' managers developed the following estimates concerming the expansion Click the loon to view the estimates) Read the requirements X Data table Number of additional skiers per day 121 skits Requirement 1. Compute the average annual net cash inflow from the expansion The average annual net cash inflow from the expansion is 151 days Average number of days per year that weather conditions allow skiing at McKnight Valley Useful life of expansion (in years) 6 years Average cash spent by each skier per day 242 Average variable cost of serving each skier per day 88 Cost of expansion 12.000.000 Discount rate Assume that McKnight Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its eigho-year te Etext pages Get more help. Help me solve this M Med S 9 Final check 1:22
Note that the average annual net cash inflow from the expansion at McKnight Valley Stream Park Lodge is $18,371,998.
How is this so?
To compute the average annual net cash inflow from the expansion at McKnight Valley Stream Park Lodge, we need the following.
Number of additional skiers per day - 121 skiers
Average number of days per year that weather conditions allow skiing at McKnight Valley - 151 days
Useful life of the expansion - 6 years
Average cash spent by each skier per day - $242
Average variable cost of serving each skier per day - $88
Cost of expansion - $12,000,000
Discount rate - To be determined
Using this information, we can calculate the average annual net cash inflow as follows -
Average annual net cash inflow = (Numberof additional skiers per day x Average number of days per year) x (Average cash spent by each skier per day - Average variable cost of serving each skier per day)
Substituting the values -
Average annual net cash inflow = (121 skiers x 151 days) x ($242 - $88) = 418,371,998
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The annual straight-line depreciation is $469,722
Part 1: Capital budgeting is an important aspect of business management and decision-making. It is an essential tool that helps managers in determining the viability of a project or investment.
McKnight Valley Stream Park Lodge can use capital budgeting to decide whether the $12,000,000 Stream Park Lodge expansion would be a good investment.
The managers of the lodge have developed several estimates concerning the expansion. The number of additional skiers per day is 121, the average number of days per year that weather conditions allow skiing at McKnight Valley is 151 days, the useful life of expansion is 6 years, the average cash spent by each skier per day is 242, and the average variable cost of serving each skier per day is 88.
The cost of expansion is $12,000,000, and the discount rate is not given.
The average annual net cash inflow from the expansion can be computed as follows:
Year Cash inflow1
Average number of additional skiers per day * Average cash spent by each skier per day * Number of days per year2,906,2002
Average number of additional skiers per day * Average cash spent by each skier per day * Number of days per year2,906,2003
Average number of additional skiers per day * Average cash spent by each skier per day * Number of days per year2,906,2004
Average number of additional skiers per day * Average cash spent by each skier per day * Number of days per year2,906,2005
Average number of additional skiers per day * Average cash spent by each skier per day * Number of days per year2,906,2006
Average number of additional skiers per day * Average cash spent by each skier per day * Number of days per year2,906,200
Total cash inflows17,437,200
Annual net cash inflow = Total cash inflows / Useful life of expansion
Annual net cash inflow = $17,437,200 / 6 years
Annual net cash inflow = $2,906,200
Residual value = $850,000
Cost of expansion = $12,000,000
Depreciable base = Cost of expansion - Residual value
Depreciable base = $12,000,000 - $850,000
Depreciable base = $11,150,000
Annual straight-line depreciation = Depreciable base / Useful life of expansion
Annual straight-line depreciation = $11,150,000 / 6 years
Annual straight-line depreciation = $1,858,333.33
To compute the average annual net cash inflow from the expansion, we first need to compute the total cash inflows generated by the expansion. We then divide the total cash inflows by the useful life of the expansion.
The average annual net cash inflow from the expansion is $2,906,200.
To determine the annual straight-line depreciation, we first need to compute the depreciable base, which is the cost of the expansion minus the residual value.
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A bond has a face value of $1,000, a coupon rate of 5%, and maturity in two years (the next coupon payment is one year from now). The bond's price is $1018.86. What is the bond's yield to maturity?
The yield to maturity (YTM) is the expected return an investor would earn if they hold the bond until maturity. The YTM can be calculated using the following formula:
Yield to maturity = [(Coupon rate * (Face value - Purchase price)) / Purchase price] - 1
where Coupon rate is the annual coupon rate, Face value is the face value of the bond, Purchase price is the price at which the bond was purchased, and Maturity is the maturity date of the bond.
In this case, the coupon rate is 5%, the face value is 1,000, the purchase price is 1,018.86, and the maturity is in two years (one year from now).
Plugging in the given values, we get
Yield to maturity = [(5% * (1,000 - 1,018.86)) / 1,018.86] - 1
Yield to maturity = [(-0.005) / 1,018.86] - 1
Yield to maturity = -0.00498 - 1
Yield to maturity = -0.00508
This means that the bond's yield to maturity is -0.00508, or approximately -0.5%.
It's important to note that this is an estimate and the actual yield to maturity may vary depending on market conditions and other factors. It's always a good idea to consult with a financial advisor before making any investment decisions.
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Mian and Sufi show that in regions with large house prices declines, that ____ employment falls by a relatively____ amount and ____ employment falls by a relatively amount, when compared to regions with small declines in house prices. non-tradable, small, tradable, large non-tradable, large, tradable, large non-tradable, large, tradable, large None of the above.
Answer:
Mian and Sufi show that in regions with large house price declines, non-tradable employment falls by a relatively large amount, and tradable employment falls by a relatively small amount when compared to regions with small declines in house prices.
Their research suggests that the impact of house price declines on employment differs between non-tradable industries (such as construction or retail) and tradable industries (such as manufacturing or exporting). Regions with large house price declines experienced a significant contraction in non-tradable employment due to reduced consumer spending and construction activity. However, the effect on tradable employment is relatively smaller, as these industries may be less directly affected by local housing market conditions.
This finding highlights the asymmetric impact of house price declines on different economic sectors, with non-tradable employment being more sensitive to changes in the housing market compared to tradable employment.
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snooard Production Report, Weighted Average Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixding, and Bottling. Hino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in gallons.): Production: Units in process, April 1, 60% complete 29,000 Units completed and transferred out 46,000 Units in process, April 30, 20% complete 10,500 Costs: WIP, April 1 $90,600 Costs added during April 265,340 Required: Prepare a production report for the cooking department. Round cost per equivalent unit value to the nearest cent and use rounded value in intermediate calculations. Mino Inc. Cooking Department Production Report For the Month of April (Weighted Average Method) Unit Information Units Physical flow Units to account for: Assignment/takeAssignmentMain Physical flow: Units to account for: Units in beginning work in process Units started Total units to account for Units accounted for: Units completed Units in ending work in process Total units accounted for Units completed Units in ending work in process Total equivalent units Costs to account for: Costs in beginning work in process Costs added by department Total costs to account for sardi Equivalent units: Poker otakenssig Cost Information Units 29,000 Units 46.000 Units 46.000 Dollars 90.400 265340 355.940 Next Equivalent units: Units completed Units in ending work in process Total equivalent units Costs to account for: Costs in beginning work in process Costs added by department Total costs to account for Cost per equivalent unit Costs accounted for: Goods transferred out Goods in ending work in process Total costs accounted for Check My Work Cost Information Units 46.000 Dollars 90.600 265340 355.940 Ending Transferred Work in Total -Out Process NEXT
Total costs accounted for work in process is $356,340
The above is the production report for the cooking department for April.
Mino Inc. Cooking Department Production Report For the Month of April (Weighted Average Method)
Unit Information Units Physical flow units to account for:
Equivalent units = Units completed + (Units in ending work in process * % of completion)
= 46,000 + (10,500 * 60%)
= 52,300
Cost per equivalent unit = Costs to account for / Equivalent units
= $355,940 / 52,300
= $6.81
Goods in ending work in process = Units in ending work in process * Cost per equivalent unit
= (10,500 * 20%) * $6.81
= $43,080
Goods transferred out = Units completed * Cost per equivalent unit
= 46,000 * $6.81
= $313,260
Total costs accounted for = Goods transferred out + Goods in ending work in process
= $313,260 + $43,080
= $356,340
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ABC Ltd has a printing process comprising four separates but highly interdependent assets. The printing machinery has a combined carrying value of $1 000 000, made up as follows: Building $120 000 Equipment $250 000 Land $320 000 Fittings $310 000 Total cash generating unit $ 1 000 000 It was determined that the value in use of the cash-generating unit, which is calculated at its present value, amounted to $820 000. The current fair value less costs to sell the entire unit is $650 000. E Q5(a) Calculate and record the allocation of impairment loss against all assets. (10 marks) H▾▾ B I AX, * Ω· Ξ Ξ Φ 66 7 Q5(b) Prepare the necessary journal entries to record the impairment loss.
ABC Ltd has a printing process comprising four separate but highly interdependent assets. The printing machinery has a combined carrying value of $1 000 000.
Made up as follows:Building $120 000 Equipment $250 000 Land $320 000 Fittings $310 000 Total cash-generating unit $ 1 000 000It was determined that the value in use of the cash-generating unit, which is calculated at its present value, amounted to $820 000. The current fair value less costs to sell the entire unit is $650 000.Calculation of the allocation of impairment loss against all assets:Carrying Amount = $1,000,000Less Impairment Loss = $820,000 - $650,000 = $170,000The impairment loss should be allocated to the assets in proportion to their carrying value, which means the assets will take an impairment loss as follows:Building = ($120,000/$1,000,000) * $170,000 = $20,400Equipment = ($250,000/$1,000,000) * $170,000 = $42,500Land = ($320,000/$1,000,000) * $170,000 = $54,400Fittings = ($310,000/$1,000,000) * $170,000 = $52,700Now we can prepare the journal entries to record the impairment loss. The journal entries will be as follows:Impairment loss on Building = $20,400Dr.Accumulated depreciation = $20,400Cr. Impairment loss on Equipment = $42,500Dr.Accumulated depreciation = $42,500Cr. Impairment loss on Land = $54,400Dr.Accumulated depreciation = $54,400Cr. Impairment loss on Fittings = $52,700Dr.Accumulated depreciation = $52,700Cr.The entry will be balanced as the total debit equals total credit.Impairment loss on Building = $20,400Dr.
Accumulated depreciation = $20,400Cr. Impairment loss on Equipment = $42,500Dr. Accumulated depreciation = $42,500Cr. Impairment loss on Land = $54,400Dr.Accumulated depreciation = $54,400Cr. Impairment loss on Fittings = $52,700Dr.Accumulated depreciation = $52,700Cr. Total debit = $170,000Total credit = $170,000
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Question 55. Your company has just purchased a small manufacturing firm in Costa Rica. You've been asked to staff the positions of General Manager and Finance Manager. What are the key success factors you will use to determine the best qualified candidate (assume all the candidates possess the required job knowledge and professional experience)?
General Manager and Finance Manager in the newly acquired manufacturing firm in Costa Rica, several key success factors should be considered:
Leadership skills: Evaluate candidates' ability to inspire, motivate, and guide a team effectively. Look for individuals who have demonstrated strong leadership qualities in their previous roles, such as the ability to make informed decisions, delegate tasks, and drive results.
Adaptability: Given that the firm is located in a different country, candidates should showcase their adaptability to new environments, cultures, and business practices. Assess their ability to navigate cross-cultural communication and collaborate with diverse teams.
Strategic thinking: Look for candidates who possess a strategic mindset and can think critically to identify opportunities and challenges within the business environment. Consider their track record in making sound strategic decisions that have positively impacted organizations.
Financial acumen: For the Finance Manager position, candidates should have a deep understanding of financial management principles, budgeting, forecasting, and risk management. Assess their ability to analyze financial data, identify trends, and provide strategic financial insights.
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In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Autonomous expenditure equals:
A. 290 + 0.75Y.
B. 320 + 0.25Y.
C. 290.
D. 320.
In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Autonomous expenditure equals 320. The correct answer is option d.
Autonomous expenditure refers to the part of total expenditure that does not depend on income or output. In this case, autonomous consumption is given as 100, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20.
Therefore, the autonomous expenditure is the sum of these components:
Autonomous Expenditure = Autonomous Consumption + Planned Investment + Government Purchases + Net Exports
Autonomous Expenditure = 100 + 50 + 150 + 20
Autonomous Expenditure = 320
Hence, the correct answer is option d.
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14. For each of following relations with no repeating group, indicate (1) every determinant (separate each determinant using a ;), (2) the most appropriate primary key for the relation and (3) the violation of the lowest normal form. Minus one point for each mistake. a. Contract (ContractBudget, ContractID, ConsultantID, ConsultantName, EmployeeID, ContractDescription, EmployeeName) Assumptions: (1) A consultant can work on more than one contract; (2) An employee can work on more than one contract; and (3) A contract can only have one employee and one consultant. Determinant(s): Primary key(s): Lowest normal form violation: Instruction (StudentID, InstructorID, CourseID) Assumptions: (1) A course can be taught by many instructor (2) A student can have more than one course; (3) A student always has the same instructor for the same course; and (4) An instructor only teaches one specific course. Determinant(s): Primary key(s): Lowest normal formal form violation: StudentSport (SportID, SportFee, StudentID, StudentName) b. C. d. e. Assumptions: (1) A student can only play one sport; and (2) A sport has only one fee. Determinant(s): Primary key(s): Lowest normal form violation: Account (CustomerID, BankID, AccountType) Assumptions: (1) A customer can have more than one bank; (2) A customer can have more than one account type with a bank; and (3) A bank can offer more than one account type. eterminant(s): Primary key(s): Lowest normal form violation: Shipping (RoutNo, OriginCity, DestinationCity, Distance) Assumption: Common Sense Determinant(s): Primary key(s): Lowest normal form first violated:
In the given relations, some violations of the lowest normal form are identified:
- The relation "Contract" violates the first normal form (1NF) due to the repeating group of attributes.
- The other relations, "Instruction," "StudentSport," "Account," and "Shipping," do not have any violations and are in at least the first normal form (1NF).
Overall, it is important to identify and eliminate any violations of the lowest normal form to ensure data integrity, eliminate redundancy, and enable efficient database management. Normalization helps in achieving these goals by organizing data into well-structured relations.
a. Contract:
Determinant(s): ContractID, ConsultantID, EmployeeID
Primary key(s): ContractID
Lowest normal form violation: The violation is in the first normal form (1NF) because there is a repeating group of attributes (ConsultantID, ConsultantName, EmployeeID, EmployeeName) within the relation.
Instruction:
Determinant(s): StudentID, CourseID
Primary key(s): StudentID, CourseID
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
StudentSport:
Determinant(s): StudentID
Primary key(s): StudentID
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
Account:
Determinant(s): CustomerID, BankID
Primary key(s): CustomerID, BankID
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
Shipping:
Determinant(s): RoutNo
Primary key(s): RoutNo
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
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Monetary policy, administered by the
RBA, is concerned with control over interest rates and the amount
of money in circulation and is used to:
a. stimulate the economy by increasing
interest rates.
b
slow the economy by increasing interest rates. c option is correct
The RBA uses monetary policy to slow down the economy by increasing interest rates.
Monetary policy administered by the Reserve Bank of Australia (RBA) is primarily concerned with controlling interest rates and the amount of money in circulation. The RBA utilizes this policy to achieve its primary goal of maintaining price stability and controlling inflation.
When the RBA wants to slow down or cool off the economy, it typically increases interest rates. This is done by adjusting the official cash rate, which influences the interest rates charged by banks and other financial institutions.
Increase in interest rates: By raising interest rates, the RBA makes borrowing more expensive for businesses and individuals. Higher interest rates encourage people to save more and borrow less, which reduces spending and investment. As a result, aggregate demand decreases, and economic activity slows down.
Effect on consumption and investment: Higher interest rates lead to increased borrowing costs for individuals and businesses. This reduces consumer spending on big-ticket items like houses and cars and decreases investment in business expansion and capital projects. Consequently, economic growth slows down.
Impact on inflation: Slowing down the economy helps control inflation. When economic activity is high, demand for goods and services increases, which can lead to upward pressure on prices. By increasing interest rates and reducing spending and investment, the RBA aims to curb inflationary pressures and maintain price stability.
The RBA uses monetary policy to slow down the economy by increasing interest rates. This approach aims to control inflation and maintain price stability by reducing borrowing and spending, which subsequently leads to decreased economic activity.
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Foxhall Commercial Printers Limited
(in 000s of dollars)
Equipment, cost. $490
Goodwill (net) 37
Work-in-process inventory. April 16, 2018 53
Accounts receivable, net. 318
Gross income (profit). 451
Accounts payable 166
Raw materials used 611
Accumulated depreciation, building. 98
Net income before tax. 154
Accumulated depreciation, equipment. 223
Preferred stock. 16
investment in associated company (more than 50 per cent ownership). 154
Estimated income tax expense. 48
Selling expense. 88
Prepayments. 10
Finished goods inventory, April 16, 2018. 46
Bank loan, due in 90 days. 104
Raw materiafs inventory. April 16. 2018. 61
Marketable securities. 38
Long-term debt due within one year. 10
General and administrative expenses
(includes depreciation expense). 239
Land. 12
Materials purchases. 625
Taxes payable. 25
Other income. 53
Direct labour. 336
Common stock. 114
Building, cost. 109
Other expenses, interest. 23
Net long-term debt. 226
Cost of goods manufactured. 1046
Net sales. 1482
Cash. ?
Retained earnings. 328
Accrued expenses payable. 49
Factory overhead (includes depreciation expenses). 98
Retained earnings, April 16, 2018. 222
Assignment
Listed in random order are balance sheet and income statement accounts as at, or for the year ending, April 15,
2019, except where otherwise noted by date, for Foxhall Commercial Printers Limited (FCPL).
1. Prepare a statement of cost of goods manufactured, an income statement and a statement of retained
earnings for FCPL for the year ending April 15, 2019.
Prepare a balance sheet as at April 15, 2019, using cash to balance assets against liabilities and
shareholders' equity.
Direct materials (raw materials inventory, April 16, 2018 + materials purchases – raw materials inventory, April 15, 2019)
61 + 625 – 40 = $646,000
1. Statement of cost of goods manufactured
Direct labor $336,000
Factory overhead $98,000
Total manufacturing costs $1,080,000
Work-in-process inventory, April 15, 2018 $53,000
Work-in-process inventory, April 15, 2019 $32,000
Cost of goods manufactured $1,101,0002.
Income statement(in 000s of dollars)
Net sales $1,482
Cost of goods sold (beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory)30 + 1,101 - 46 = 1,085
Gross profit $397
Other income 53
Total income $450
Selling expense 88
General and administrative expense 239
Interest expense 23
Total expense 350
Net income before tax $100
Income tax expense 48
Net income $52 3.
Retained earnings, April 16, 2018 $222
Add: Net income for the year $52
Less: Dividends declared and paid $11
Retained earnings, April 15, 2019 $2634.
Balance sheet(in 000s of dollars):
Assets Cash $93
Marketable securities 38
Accounts receivable, net 318
Prepayments 10
Inventory Raw materials inventory, April 15, 2019 $40
Work-in-process inventory, April 15, 2019 $32
Finished goods inventory, April 15, 2019 $46
Total inventory $118
Property, plant and equipment Land 12
Building, net of accumulated depreciation $11 ($109 - $98)
Equipment, net of accumulated depreciation $267 ($490 - $223)
Total property, plant and equipment $290
Investment in associated company 154
Total assets $803
Liabilities and shareholders' equity:
Accounts payable $166
Accrued expenses payable 49
Bank loan, due within 90 days 104
Long-term debt, due within one year 10
Total current liabilities $329
Long-term debt $236
Preferred stock 16
Common stock 114
Retained earnings 263
Total shareholders' equity $393
Total liabilities and shareholders' equity $803
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Suppose a competitive market with the inverse demand p = 100-q. An innovation reduces the constant marginal production cost from 75 to 60. • Q3) Determine the price set by a monopoly using the innovation. • Q4) Determine the minimal reduction in marginal cost for the innovation to be drastic. . • Q5) Determine the maximum R&D expenditure a competitive firm would be ready to incur to develop a drastic innovation that leads to a post-innovation marginal cost of 20. Q6) Suppose instead the industry is composed of only one firm, a monopoly. Determine the maximum R&D expenditure a monopoly would be ready to incur to develop a drastic innovation that leads to a post-innovation marginal cost of 20.
Answer:
Q3) The price set by a monopoly using the innovation can be determined by equating the marginal cost (MC) to the marginal revenue (MR). With the inverse demand function p = 100 - q, the monopolist's marginal revenue is given by MR = p(1-1/|E|), where E is the price elasticity of demand. By solving the equation MC = MR, we can find the corresponding quantity and then substitute it into the inverse demand function to calculate the price set by the monopoly.
Q4) To determine the minimal reduction in marginal cost for the innovation to be drastic, we need to find the marginal cost reduction that leads to a significant change in the equilibrium quantity and price. By comparing the pre-innovation and post-innovation equilibrium points, we can identify the minimum reduction in marginal cost that results in a substantial shift in the market outcome.
Q5) To determine the maximum R&D expenditure a competitive firm would be ready to incur to develop a drastic innovation with a post-innovation marginal cost of 20, we need to consider the additional costs of research and development. The firm would be willing to invest in R&D as long as the expected increase in profits from the innovation exceeds the R&D expenditure. By analyzing the potential increase in revenue and cost savings from the innovation, we can calculate the maximum R&D expenditure a competitive firm would be willing to incur.
Q6) For a monopoly, the maximum R&D expenditure it would be ready to incur to develop a drastic innovation with a post-innovation marginal cost of 20 can be determined in a similar manner as for the competitive firm. However, since the monopoly has market power, it needs to consider the impact of the innovation on its market position and potential changes in demand elasticity. The monopoly would invest in R&D as long as the expected increase in profits surpasses the R&D expenditure, taking into account the monopoly's ability to control prices and market outcomes.
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