Answer:
A) Periodic surveys
Explanation:
The periodic survey is the survey which takes place after delivering the product and services to the customer. It can be in the form of customer feedback with respect to the satisfaction level, repurchase intention, worth of mouth, etc
By maximizing the customer satisfaction the company can able to achieve their sales targets that results into capture a maximum share in the market
Hence, the first option is correct
Payback period was the earliest -Select- selection criterion. The -Select- is a "break-even" calculation in the sense that if a project's cash flows come in at the expected rate, the project will break even. The equation is:
Answer: 1. Capital Budgeting
2. Payback Period
3. Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)
Explanation:
Payback period was the earliest Capital Budgeting selection criterion. The Payback Period is a "break-even" calculation in the sense...
The Payback period is one of the most simple methods in Capital Budgeting and the earliest as well. It simply checked how long it would take to pay back an investment which made it very alluring to investors who wanted to know how long it would be till they started getting a profit.
It therefore essentially checked when the project would Break-Even.
The formula is,
Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)
This means that to calculate the Payback Period, for example, say the investment was $500 and the project brought in $120 for 5 years.
That would mean that in year 4 it would have brought it $480. Year 4 is the Number of Years prior to Full recovery.
The $20 left is the Unrecovered cost at the start of the year and the Cashflow for the year is $120. The Payback is therefore,
= 4 + (20/120)
= 4.17
From the choice of simple moving average, weighted moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why? (Ch. 18)
Answer:
weighted moving average
Explanation:
Of all these 4 options, the weighted moving average is the most accurate, as it is possible to place specific weights according to their significance.
The other techniques, such as an average, straight line, or exponential curve, assume things. The weighted average can change to any form.
However, the weighted average can be complicated to use if a long time frame is taken.
Additionally, the consumer will most likely want to adjust the weights as time periods pass. That will contribute to the complexity of applying the methods to a wide range of applications, such as predicting inventory item demand.
Hence, the first option is correct
Fairfield Company’s raw materials inventory transactions for the most recent month are summarized here: Beginning raw materials $ 20,000 Purchases of raw materials 90,000 Raw materials issued Materials requisition 1445 25,000 For Job 101 Materials requisition 1446 35,000 For Job 102 Materials requisition 1447 30,000 Used on multiple jobs 1. How much of the raw materials cost would be added to the Work in Process Inventory account during the period? 2. How much of the raw materials costs would be added to the Manufacturing Overhead account? 3. Compute the ending balance in the Raw Materials Inventory account.
Answer:
1. $60,000
2. $30,000
3. $20,000
Explanation:
1. How much of the raw materials cost would be added to the Work in Process Inventory account during the period?
The amount to add add to the Work in Process Inventory account during the period is the direct material used calculated as follows:
Direct raw materials used = Materials requisition 1445 For Job 101 + Materials requisition 1446 For Job 102 = $25,000 + $35,000 = $60,000
2. How much of the raw materials costs would be added to the Manufacturing Overhead account?
Manufacturing overhead refers to all indirect costs that are incurred during the production process. Therefore, the raw materials costs that would be added to the Manufacturing Overhead account is the indirect materials used on multiple jobs.
Therefore, we have:
Amount to add to the Manufacturing Overhead account = Indirect materials used = $30,000
3. Compute the ending balance in the Raw Materials Inventory account.
Ending raw materials balance = Beginning raw materials + Purchases of raw materials - Direct raw materials used - Indirect materials used = $20,000 + $90,000 - $60,00 - $30,000 = $20,000
Mills Corporation acquired as a long-term investment $240 million of 5% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $270.0 million.
Required:
a. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.
b. At what amount will Mills report its investment in the December 31, 2021, balance sheet?
c. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2022, for $290 million. Prepare the journal entry to record the sale.
Answer:
a. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.
July 1, 2021
Dr Investment in bonds 240,000,000
Dr Premium on investment in bonds 40,000,000
Cr Cash 280,000,000
December 31, 2021
Dr Cash 12,000,000
Cr Interest revenue 8,400,000
Cr Premium on investment in bonds 3,600,000
b. At what amount will Mills report its investment in the December 31, 2021, balance sheet?
Investment in bonds $240,000,000
Premium on investment in bonds $36,400,000
c. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2022, for $290 million. Prepare the journal entry to record the sale.
January 2, 2022
Dr Cash 290,000,000
Cr Investment in bonds 240,000,000
Cr Premium on investment in bonds 36,400,000
Cr Gain on sale of investments 13,600,000
Explanation:
effective interest rate on first coupon received = ($240,000,000 x 5%) - ($280,000,000 x 3%) = $12,000,000 - $8,400,000 = $3,600,000
Premium on investment in bonds = $40,000,000 - $3,600,000 = $36,400,000
Employees at Diving Swallow Custom Tattoo in Oakland, California, practice an age-old art. They may use electric equipment today, but their business still involves crafting a design and inking it into skin, as all tattoo artists have done for generations. Fortunately, there are no shortages of ink, artists, or clients for the Diving Swallow.At Diving Swallow, the environment is____________(stable or dynamic) because of the __________(number of factors that are changing or pace of change) and ___________(complex or simple) because of the____________(pace of change or number of factors that are changing). Resources are________(scarce or abundant).The managers at Diving Swallow are facing conditions of _______(low or high) uncertainty. This means that it will be__________(difficult or easy) for them to make strategic decisions about the types of products the company will offer in the future.
Answer:
1. Dynamic
2. Number of factors that are changing
3. Complex
4. Pace of change
5. Abundant
6. Low
7. Easy
You have been hired to design a relational database for a convenience store which is located within an apartment complex. The goal of the database is to keep track of the inventory sold in hopes of using the data to better meet the customer's convenience store needs. Up until your arrival, the store kept track of each customer’s purchases using a flat database log, as shown in the following table. Using the information provided, build a relational database that will allow for querying things such as products sold, customer purchases, total apartment purchases, and total spent per apartment. Include any created tables and identify the keys and key types that are used. Identify all relationships, labeling them 1:1, 1:N, or M:N.
Name Apt # Products Price Quantity
Joseph Anthony 1125 Orange Juice 4.59 1
Joseph Anthony 1125 Bread Loaf 2.29 1
Yolanda Burns 3221 Milk 3.67 1
Yolanda Burns 3221 Candy Bar 1.19 3
Francis Jordan 1138 Gum 0.99 2
Steve Miller 2221 Gum 0.99 1
Cho Lin 2239 Bread Loaf 2.29 1
Answer:
Apartment (1)=====> (N) Purchases (M) =====> Product(1).
Explanation:
So, in this question we are given the following; Name, Apt # , Products, Price and Quantity. With this data or parameters or information we will be able to know that there should be another parameters in a table which are;
=> Apartment: with this parameter and the apt # each person or Individual can be Identifed.
=> Purchases: this table will be about the details of the person or Individuals the bought the products and what quantity was bought.
=> Product: here, this parameter can be used in saving or storing the name of each products and the prices of each one of them.
Hence;
(1). APARTMENT = Apt#, Name => where Apt# will be the primary key because it is unique.
(2). PRODUCTS= Products, Price => where product is the unique key.
(3). PURCHASES = Apt #, product quantity => where Apt # is a foreign key and an attribute of product in the ''purchases" table.
Kindly check the attachment for the diagram
A company is considering two projects. Project A Project B Initial investment $300,000 $300,000 Cash inflow Year 1 $60,000 $90,000 Cash inflow Year 2 $60,000 $80,000 Cash inflow Year 3 $60,000 $80,000 Cash inflow Year 4 $60,000 $50,000 Cash inflow Year 5 $60,000 $70,000 What is the payback period for Project B
Answer:
Payback Period = 3 years
Explanation:
Years Cash flow(Out flow) Net cash flow Cumulative cash flow
0 -300,000 - -300,000
1 90,000 90,000 -210,000
2 80,000 80,000 -130,000
3 80,000 80,000 -50,000
4 50,000 50,000 0
5 70,000 70,000 70,000
Payback Period = 3 years
It means it will take 3 years of period to payback the project B Initial investment of $300,000
Baker Industries’ net income is $26,000, its interest expense is $6,000, and its tax rate is 45%. Its notes payable equals $23,000, long-term debt equals $70,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.
Answer:
ROI=10%
ROIC=0.83
Explanation:
Net Income = $26,000
Interest expense = $6,000
Tax rate = 45%
Payable = $23,000
Long-term debt = $70,000
Common equity = $260,000
1. ROE = Net Income / Common equity
= 26,000 / 260,000
=0.1
=10%
2. ROIC = EBIT * (1-Tax rate) / Invested capital
EBIT = Net Income before tax + Interest
Net Income before tax = (Net income * 100) / (100-Tax rate)
Net Income before tax = 26000 * 100 / 100-45
=2600000 / 55
Net Income before tax = 47272.72
EBIT = 47272.72 + 6,000
=53272.72
Invested Capital = Note payable + Long term debt.+ Common Equity
=23000 +70000 +260000
=$353,000
Therefore ROIC = EBIT * (1-Tax rate) / Invested capital
ROIC= 53272.72 * (1-0.45) / 353,000
=53272.72*0.55 / 353,000
=292299.996/353,000
=0.8280
=0.83
ROIC= 0.83
A man works for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashies, frizzles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, a man knows that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides man's marketing firm with the following data: When the price of splishy splashies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of kipples sold decreases by 6%. A man's job is to use the cross-price elasticity between splishy splashies and the other goods to determine which goods to a man marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between splishy splashies and frizzles, and then between splishy splashies and kipples. In the second column, determine if splishy splashies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating should be recommended marketing with splishy splashies.Relative to Splishy Splashies Recommend Marketing with Splishy Splashies
Cross-Price Elasticity of Demand Complement or Substitute
Frizzles _____ _____ _____
Kipples _____ _____ _____
Answer and Explanation:
According to the given situation, when the amount of splishy splashies decrease by 5%, quantity of frizzles increases by 4%.
So, The cross price elasticity of frizzles relative to splishy splashies = Percentage change in quantity demand for frizzles ÷ Percentage change in price for splishy splashies
= 4 ÷ -5
= -0.80
Now,
Cross-price elasticity between splishy splashies and kipples = Percentage change in quantity demand for Kipples ÷ Percentage change in price for splishy splashies
= -6% ÷ -5%
= 1.20
b. Since there is negative cross-price elasticity between splishy splashies and frizzles, these products are complementary.
The elasticity of the cross-price between splendid splashies and kipples is positive, these goods being substitutes.
c. Here, I would therefore recommend Raskels marketing, since these two are used together.
The required Table are as shown below:-
Particulars Cross-Price Elasticity Complements Recommended
of Demand or Substitute Marketing with
splishy splashies
Frizzles 0.80 Complements Yes
Kipples 1.20 Substitute No
A lot of research has demonstrated that there is a relationship between the of employees and that of the customer
Answer:
Satisfaction
Explanation:
A satisfaction is a thing. We just take an example :- When a customer purchase a product from the company he or she investing their money in order to fulfill their needs and wants. In return the customer wants the product is according to their expectations. In the case when the customer is satisfied, the chances of repurchasing of the product is high.
Therefore, as per the current situation there is always a relationship of satisfaction between the customer and the employees of the company.
Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,200 direct labor-hours will be required in October. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for October should be:
Answer:
Estimated manufacturing overhead rate= $21.5 per direct labor hour
Explanation:
Giving the following information:
The variable overhead rate is $4.60 per direct labor-hour.
Budgeted fixed manufacturing overhead is $54,080 per month
The direct labor budget indicates that 3,200 direct labor-hours will be required in October.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (54,080/3,200) + 4.6
Estimated manufacturing overhead rate= $21.5 per direct labor hour
Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.)
Description Date Purchased Basis Date Sold Amount Realized
Stock A 1/23/1995 $7,850 7/22/2019 $4,980
Stock B 4/10/2019 15,200 9/13/2019 18,970
Stock C 8/23/2017 12,250 10/12/2019 17,340
Stock D 5/19/2009 5,710 10/12/2019 13,300
Stock E 8/20/2019 7,720 11/14/2019 3,800
Required:
a. What is Graysonâs net short-term capital gain or loss from these transactions?
b. What is Graysonâs net long-term gain or loss from these transactions?
c. What is Graysonâs overall net gain or loss from these transactions?
Answer: a. -$150 b. $9810 c. $9660
Explanation:
Stock B and E were chosen as the short term for the holding period while stock A, C, D were chosen as long term for the holding period because the time duration is longer.
For question (a), Grayson's net short-term capital loss from these transactions was -150.
For question (b), Grayson's net long-term gain from these transactions was $9810.
For question (c), Grayson's overall net gain from these transactions was:
= $9810 - $150
= $9660
Kindly check the attached document for further analysis.
g The transactions of Spade Company appear below. Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock. The company purchased office supplies for $1,250 cash. The company purchased $10,050 of office equipment on credit. The company received $15,500 cash as fees for services provided to a customer. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,700 as fees for services provided. The company paid $1,225 cash for the monthly rent. The company collected $1,125 cash as partial payment for the account receivable created in transaction f. The company paid a $10,000 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.
Answer:
1)
Dr Cash 100,750
Cr Common stock 100,750
Dr Office supplies 1,250
Cr Cash 1,250
Dr Equipment 10,050
Cr Accounts payable 10,050
Dr Cash 15,500
Cr Fees earned 15,500
Dr Accounts payable 10,050
Cr Cash 10,050
Dr Accounts receivable 2,700
Cr Fees earned 2,700
Dr Rent expense 1,225
Cr Cash 1,225
Dr Cash 1,125
Cr Accounts receivable 1,125
Dr Dividends 10,000
Cr Cash 10,000
2)
Cash Accounts receivables
Debit Credit Debit Credit
100,750 1,250 2,700 1,125
15,500 10,050 1,575
1,125 1,225
10,000
94,850
Office Supplies Equipment
Debit Credit Debit Credit
1,250 10,050
1,250 10,050
Accounts payable Common Stock
Debit Credit Debit Credit
10,050 10,050 100,750
0 0 100,750
Fees earned Rent Expense
Debit Credit Debit Credit
15,500 1,225
2,700 1,225
18,200
Dividends
Debit Credit
10,000
10,000
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $12. At the start of January 2015, VGC’s income statement accounts had zero balances and its balance sheet account balances were as follows:
Cash $ 1,590,000
Accounts Receivable 245,000
Supplies 17,800
Equipment 922,000
Land 1,250,000
Building 435,000
Accounts Payable 137,000
Unearned Revenue 140,000
Notes Payable (due 2018) 81,000
Common Stock 2,800,000
Retained Earnings 1,301,800
In addition to the above accounts, VGC’s chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.
1. Analyze the effect of the January transactions (shown below) on the accounting equation, and indicate the account, amount, and direction of the effect (+ for increase and − for decrease) of each transaction.(Enter any decreases to account balances with a minus sign.)
a. Received $65,250 cash from customers for subscriptions that had already been earned in 2014.
b. Received $215,000 cash from Electronic Arts, Inc. for service revenue earned in January.
c. Purchased 10 new computer servers for $34,600; paid $14,400 cash and signed a three-year note for the remainder owed.
d. Paid $12,600 for an Internet advertisement run on Yahoo! in January.
e. Sold 19,200 monthly subscriptions at $12 each for services provided during January. Half was collected in cash and half was sold on account.
f. Received an electric and gas utility bill for $5,250 for January utility services. The bill will be paid in February.
g. Paid $420,000 in wages to employees for work done in January.
h. Purchased $3,300 of supplies on account.
Paid $3,300 cash to the supplier in (h).
Prepare journal entries for the January transactions listed in part 1, using the letter of each transaction as a reference. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Create T-accounts, enter the beginning balances shown above, post the journal entries to the T-accounts, and show the unadjusted ending balances in the T-accounts.
Prepare an unadjusted trial balance as of January 31, 2015.
Prepare an Income Statement for the month ended January 31, 2015, using unadjusted balances from part 4
Calculate net profit margin, expressed as a percent
Answer:
Explanation:
1 Journal Entries:
Date-----Accounts Title and Explanation-----Debit$--------Credit $
a Cash 65250
Service Revenue 65250
b Cash 215000
Accounts Receivable 215000
c Office Equipment (computers) 34600
Cash 14400
Note Payable 20200
d Advertisement expense 12600
Cash 12600
e Cash 115200
Accounts Receivable 115200
Service Revenue 230400
f Utility expenses 5250
Accounts Payable 5250
g Wages 420000
Cash 420000
h Supplies 3300
Accounts Payable 3300
i Accounts Payable 3300
Cash 3300
unadjusted trial balance as of January 31, 2015:
Account Title Debit $ Credit $
Cash 1535150
Accounts Receivable 145200
Supplies 21100
Equipment 956600
Land 1250000
Building 435000
Accounts Payable 142250
Unearned Revenue 140000
Notes Payable 101200
Common Stock 2800000
Retained Earnings 1301800
Service Revenue 295650
Advertisement 12600
Utilities 5250
Wages 420000
Total 4780900 4780900
Income Statement for the month ended January 31, 2015:
Service Revenues $295650
Less: Expenses:
Wages 420000
Advertisement 12600
Utility expense 5250 437850
Net Income (Loss) ($142200)
January Income Statement is showing loss of 48.1%.
Pharoah Company accounting records show the following at the year ending on December 31, 2022.
Purchase Discounts $ 11900
Freight-in 15600
Purchases 724020
Beginning Inventory 42000
Ending Inventory 50600
Purchase Returns and Allowances 10700
Using the periodic system, the cost of goods sold is:_______.
Answer:
$ 708,420.00
Explanation:
The formula for cost of goods sold is given below
Cost of goods sold=beginning inventory +purchases +freight-purchase discounts-purchases allowance and returns-ending inventory
Cost of goods sold=$42,000+$724,020+$15,600-$11,900-$10,700-$50,600=$ 708,420.00
The purchases discount and purchase returns reduce the value of purchases made hence deducted.
The ending inventory is left in stock as a result is also deducted
Allowing a tax credit for certain solar energy property can be justified: a.Based on the wherewithal to pay concept. b.As helping small businesses. c.As promoting administrative feasibility. d.As promoting a government policy to use alternative energy sources. e.None of these choices are correct.
Answer: As promoting a government policy to use alternative energy sources.
Explanation:
A tax credit is a form of tax incentive which can help in the reduction of the amount of money that a taxpayer is owing the government. Here, the taxpayer can just deduct the tax credit from the total amount of taxes that the individual owe thereby leading to him paying a lower amount as tax.
In this case, allowing tax credit for certain solar energy property may be a way the government wants to make people start using other forms of energy. Giving tax credit will lead to a cheaper price for the solar energy products.
What is new and innovating about this design/chopping board?
Entry for Factory Labor Costs A summary of the time tickets is as follows: Job No. Amount 100 $3,460 101 2,870 104 5,260 108 5,950 Indirect 18,440 111 3,630 115 2,380 117 16,120 Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Answer:
DR Work in Progress Account $39,650
DR Factory Overhead Account $18,440
CR Wages Payable $58,090
(To record factory Labor Costs)
Workings
Work in Progress
Standard policy is to send the direct cost of Labor to the Work in Progress Account.
The Total direct cost of labor are all of the above except the Indirect cost.
= 3,460 + 2,870 + 5,260 + 5,950 + 3,630 + 2,380 + 16,120
= $39,650
Section 103 of the Federal Public Works Employment Act establishes the Minority Business Enterprise program and requires that, absent a waiver by the secretary of commerce, 10 percent of all federal grants given by the Economic Development Administration be used to purchase services or supplies from businesses owned and controlled by U.S. citizens belonging to one of six minority groups: African Americans, Spanish speaking, Asian, Native American, Eskimo, and Aleut. White owners of business contend the Act constitutes illegal reverse discrimination. Discuss.
Explanation:
Looking from a fair point of view, the White owners of businesses have legitimate reasons to feel that the Act constitutes illegal reverse discrimination.
Remember, reverse discrimination implies an unfair treatment of the majority group (White owners) in an effort to please the minority group. This is evident from the fact that the 10 percent of all federal grants to be released by the Economic Development Administration was only to be used to purchase services or supplies from businesses owned and controlled by U.S. citizens belonging to one of six minority groups excluding the White business owners; making the White owners feel discriminated against.
Thus, unintentionally the Act became a reverse discrimination on White business owners.
Skip owns a business. Since demand is on the rise, he decided to purchase an upgraded machine that will produce four times as fast as his previous machine. The cost of the new machine is $400,000 and will be the only depreciable property that Skip places in service during 2019. What is the amount of his Section 179 deduction for 2019
Answer: $400,000
Explanation:
According to Section 179 on deducting Expenses issued by the IRS, a company may deduct the cost of certain assets when they are first put into service.
The Assets include tangible assets such as equipment and machinery so long as they are purchased for business use.
Skip bought the equipment for $400,000 and as such can deduct this entire amount under Section 179.
A company has a net income of $190,000, a profit margin of 9.40 percent, and an accounts receivable balance of $106,351. Assuming 72 percent of sales are on credit, what is the company's days' sales in receivables?
Answer:
The company's days' sales in receivables is 22 days
Explanation:
In order to calculate the company's days' sales in receivables we would have to calculate first the total sales with the following formula:
Total Sales = Net Income / Profit Margin
= $190,000/9.4%=$2,021,276
Hence, Credit Sales = $2,021,276*0.85= $1,718,085
Accounts receivable turnover ratio = Credit sales / Accounts Receivable
= $1,718,085 /$106,351
= 16.15485
Therefore, Days sales in receivables = 365/16.15485= 22.59 days
The company's days' sales in receivables is 22 days
Obtain the linear trend equation for the following data on new checking accounts at Fair Savings Bank and use it to predict expected new checking accounts for periods 16 through 19. (Round your intermediate calculations and final answers to 2 decimal places.)
Period New Accounts Period New Accounts Period New Accounts
1 200 6 239 11 281
2 215 7 241 12 275
3 211 8 250 13 282
4 224 9 254 14 288
5 235 10 267 15 308
Y = + t
Y16 =
Y17 =
Y18 =
Y19 =
Use trend-adjusted smoothing with %u03B1 = .2 and %u03B2 = .1 to smooth the new account data in part a. What is the forecast for period 16? (Use the "Trend" values to 3 decimal places and other values to 2 decimal places for intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
Y16 = 7(16) + 195.33 = 307.33
Y17 = 7(17) + 195.33 = 314.33
Y18 = 7(18) + 195.33 = 321.33
Y19 = 7(19) + 195.33 = 328.33
Explanation:
Period (x)
New accounts (Y)
The regression equation:
Y = mx + t
Y is the dependent variable
X is the independent variable
t point where trend line cuts through the x-axis
M is the gradient or slope
Using the regression calculator, the trend line for the data is :
Y = 7X + 195.33
Using the regression equation obtained :
Y16 = 7(16) + 195.33 = 307.33
Y17 = 7(17) + 195.33 = 314.33
Y18 = 7(18) + 195.33 = 321.33
Y19 = 7(19) + 195.33 = 328.33
Identify the statement that is incorrect. Multiple Choice Higher financial leverage involves higher risk. Risk is higher if a company has more liabilities. Risk is higher if a company has more assets. The debt ratio is one measure of financial risk. Lower financial leverage involves lower risk.
Answer:
Risk is higher if a company has more assets.
Explanation:
All of the following statements are true and correct;
1. Higher financial leverage involves higher risk.
2. Risk is higher if a company has more liabilities.
3. The debt ratio is one measure of financial risk.
4. Lower financial leverage involves lower risk.
However, it is false and an absolutely incorrect to say risk is higher if a company has more assets.
A company having more assets would have a debt ratio less than one (1) because it has many assets to fund it's business. Thus, the company would have little or no debts and as such, it's risk portfolio is very low.
Hence, risk is lower if a company has more assets.
"Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $400,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $75,000, what is the payback period
Answer:
4 years
Explanation:
Payback period calculates the amount of the time it takes for the amount invested in a project to be recovered from the cumulative cash flow.
Payback period = amount invested / annual cash flows
= $400,000 / $100,000 = 4 years
I hope my answer helps you
abares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity. (a) Issued $50,000 par value common stock for cash. Financing Activities (b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. Noncash Investing and Financing Activities (d) Declared and paid a cash dividend of $18,000. Financing Activities (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. Investing Activities (f) Collected $16,000 from sale of goods.
Answer:
(a) Issued $50,000 par value common stock for cash = Financing Activities
b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities
(d) Declared and paid a cash dividend of $18,000 = Financing Activities
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities
(f) Collected $16,000 from sale of goods = Operating Activities
Explanation:
The Cash flows related to raising of capital is known as Cash flow from Financing Activities.
The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.
The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.
The continuous falling price level is called inflation.
True or false?
Answer:
True
Explanation:
When it start failling it is still true.
A hardware store is interested in reaching people who are characterized by the VALS system as being practical,down-to-earth,and self-sufficient who like to work with their hands,the ________ category.A) believersB) striversC) survivorsD) experiencersE) makers
Answer: Makers--E
Explanation:The VALS system is a system that describes the Values, Attitude lifestyles of individuals and their responsiveness to buying products. Understanding this system, affords businesses the opportunity to tailor their products to suit their target consumers.
The Makers are characterized as being practical and expressive, having skills which enable them to carry out their task successfully. They value family life and therefore cut down on frivolities and non functional possessions. when it comes to consumption, they would rather go for the basic essential commodities that have value than luxury goods.
Therefore, A hardware store is interested in reaching people who are characterized by the VALS system as being practical,down-to-earth,and self-sufficient who like to work with their hands,the MAKERS category.
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 157,000 Fixed manufacturing overhead cost $ 650,000 Variable manufacturing overhead cost per machine-hour $ 4.40 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials $ 320 Direct labor cost $ 230 Machine-hours used 37 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated machine-hours= 157,000
Estimated fixed manufacturing overhead= $650,000
Variable manufacturing overhead cost per machine-hour $4.40
First, we need to calculate the predetermined overehad rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (650,000/157,000) + 4.4
Predetermined manufacturing overhead rate= $8.54 per machine-hour
Job 400:
Direct materials $320
Direct labor cost $230
Machine-hours used 37
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= 8.54*37= $315.98
Finally, we need to determine the unitary cost for Job 400:
Total cost= 320 + 230 + 315.98= $865.98
Unitary cost= 865.98/50= $17.32
Quisco Systems has 6.6 billion shares outstanding and a share price of $18.41. Quisco is considering developing a new networking product in house at a cost of $498 million. Alternatively, Quisco can acquire a firm that already has the technology for $913 million worth (at the current price) of Quisco stock. Suppose that absent the expense of the new technology, Quisco will have EPS of $0.74.
A. Suppose Quisco develops the product in house. What impact would the development cost have on Quisco’s EPS. Assume all costs are are incurred this year.and are treated as an R&D expense. Quisco’s tax rate is35%, and the number of shares outstanding is unchanged.
B. Suppose Quisco does not developthe product in house but instead acquire the technology. What effect would the acquisition have on Quisco’s EPS thisyear?
C. Which method of acquiring the technology has a smaller impact on earning? Is this method cheaper?Explain.
Answer:
A) EPS will decrease by $0.05 to $0.69
B) EPS will decrease by $0.01 to $0.73
C) The impact on EPS is smaller if the company is acquired. This doesn't mean that it is cheaper to do it that way, but since the EPS is very low, any significant increase in costs will result in steep reduction of EPS. The cheapest way would be to issue new stocks to cover the expenses of developing the new technology.
Explanation:
6.6 billion shares outstanding and a share price of $18.41, current EPS $0.74, total current earnings = $4,884 million
in house development = $498 million will reduce net earnings by $498 x 65% = $323.7 million or $0.05 per share
EPS = $0.74 - $0.05 = $0.69
if Quisco decides to acquire the company, then total shares will increase by $913,000,000 / $18.41 = 49,592,613 shares
total outstanding shares = 6,600,000,000 + 49,592,613 = 6,649,592,613 shares
EPS = $4,884,000,000 / 6,649,592,613 = $0.73
Wattan Company reports beginning inventory of 10 units at $60 each. Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65, and $70 per unit for weeks 1 through 4. Compute the cost of goods available for sale and the units available for sale for this four-week period. Assume that no sales occur during those four weeks.
Answer:
Activity Units Units cost Cost of Goods Available
Beginning Inventory 10 $60.00 $600
1st week purchase 10 $61.00 610
2nd week purchase 10 $62.00 620
3rd week purchase 10 $65.00 650
4th week purchase 10 $70.00 700
Units available for sale 50
Cost of goods available for sale $3,180
Explanation:
We can compute the cost of goods available for sale and the units available for sale for this four-week period by assuming that no sales occur during those four weeks
Activity Units Unit Cost Cost of Goods Available
Beginning Inventory 10 60 600
1st Week purchase 10 61 610
2nd Week purchase 10 62 620
3rd Week purchase 10 65 650
4th Week purchase 10 70 700
Units available for sale 50
Cost of goods available for sale 3180
Thus, in the above it is shown the computing of the cost of goods available for sale and the units available for sale for this four-week period by assuming that no sales occur during those four weeks.
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