Answer:
1. To equalize their relationship with their employers.
Explanation:
This took place in the 18th century, stated to have happened about the late 70's as it was known that artisans slowly started becoming the new kings.
Their trades which ranges from cabinetmaking, baking, butchering, goldsmithing, silversmithing, carpentry, tailoring and also shoemaking.
These workforce were either wage earners, they start as craftsmen and grow to become great entrepreneurs and this got eyes on them causing them to form cults for themselves only to equalize their relationship with their employers.
Wal-Mart's Electronic Data Interchange (EDI) systems automate ordering and payment processes with suppliers, thereby reducing cost and improving order accuracy. Which of the five logistics decisions does this refer to?
A) Location
B) Transportation
C) Information
D) Warehousing
Answer:
Information
Explanation:
The automation capturesthe customer's information and speeds up the ordering process.
I hope my answer helps you
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions:Date Transactions2019Sept. 1 Sold a high-definition television set on credit to Candy Cho: issued Sales Slip 101 for $2,100 plus sales tax of $147.3 Sold stereo equipment on credit to Jim Peters; issued Sales Slip 102 tor $900 plus sales tax of $63.7 Sold a microwave oven on credit to Bridgette Huffman: issued Sales Slip 103 for $300 plus sales tax or $21.12 Accepted return of defective stereo equipment from Jim Peterson: issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.15 Recorded cash sales for the period from September 1 to September 15 of $10,500 plus sales tax of $735.16 Sold a gas dryer on credit to Kathy Sundstrand: issued Sales Slip 104 tor $600 plus sales tax of $42.17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,100 plus sales tax of $147.18 Received $670 from Candy Cho on account.20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales slip 105; issued Credit Memorandum 102 for $200 plus sales tax of $14.27 Received payment in full from Bridgette Huffman tor the sale of September 7.29 Sold a dishwasher on credit to Mark Navalta: issued Sales Slip 106 tor $400 plus sales tax or $28.30 Recorded cash sales for the period From September 16 to September 30 of $10,800 plus sales tax of $756.GENERAL LEDGER ACCOUNTS101 Cash111 Accounts Receivable221 Sales Tax Payable481 Sales421 Sales Returns and AllowancesACCOUNTS RECEIVABLE LEDGER ACCOUNTSCandy Cho Jim PetersonBridgette Huffman Kathy SundstrandMark Navalta Required:2. Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger.3. Prepare a schedule of accounts receivable.
Answer:
Since there is not enough room here, I prepared the general ledger, the accounts receivable ledger and the schedule of accounts receivable in an excel spreadsheet (attached).
Explanation:
On January 1, 20X8, Potter Corporation acquired 90 percent of Shoemaker Company’s voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Shoemaker at that date. Potter uses the fully adjusted equity method in accounting for its ownership of Shoemaker. On December 31, 20X9, the trial balances of the two companies are as follows: Based on the preceding information, what amount would be reported as income to controlling interest in the consolidated financial statements for 20X9?
Answer:
$138,000
Explanation:
Subsidiary is a company which is controlled by its parent. Potter Corporation acquired 90% stock in Shoemaker Company. The non controlling interest is 10% in Shoemaker Company. The company made a profit of $1,380,000. The 90% share will be allocated to the parent company and only 10% share will be allocated to the Non Controlling Interest.
Q.No. 1 Assume yourself as a Marketing Specialist of a Company and Determine the New Product Development Process by manufacturing a New Product for your company. Max Marks 10
Max : 200words
Answer:
New products suffer through five development stages throughout the product lifecycle.
Explanation:
Manufacturing a new product isn't easy for any company. There is always uncertainty whether that product will run successfully as per customer needs.
Stage 1: Idea
Every product development starts with an idea you need to get an idea about the market and about the customer needs. you need to find out what market requires the most. As soon as you got the idea you can jump to the next step.
Stage 2: Research
In this step, the company conducts market surveys about the product idea. The company has to provide samples to market to check their product is working perfectly or whether it requires some changes and how customers are responding. The company has to collect reviews from customers.
Stage 3: Marketing
Once the company got the customer reviews and they are positive then its time to tell the world about the product but the company has to analyze the 4 Ps that are price, place, promotion, and product. The company has to consider these Ps in marketing stage.
Stage 4: Business Analysis
This is a very important step where a company finds out about the factors about the product such as the product's profitability. Whether the product is profitable enough to carry on marketing activities.
Step 5 Commercilisation
After performing every stage properly its time to launch the product. In this stage, the company produces the product in large quantity and supplies it to market to cover all the cost it took to launch and make the company more profitable
1. Of the 4 strategic approaches to international markets, which one(s) might be the best for a manufacturing company? a financial services company? or a company like Coke or Pepsi? Thoughts? 2. What strategy option for entering a foreign market might you employ if your firm is technology-centric? 3. What strategy option for entering a foreign market might you use if you were a start-up or smaller firm? 4. Why is the Think Global- Act Local strategy appear to be the best for many companies wishing to go global?
Answer:
1a. For manufacturing company– Buying a local manufacturing company
b. For a financial services company– Partnership
c. A company like Coke or Pepsi– Greenfield Investments
Explanation:
1a. Buying a local company saves valuable resources for the foreign manufacturing, and it allows for quick market knowledge since this company has already been in operations for a long time.
b. A partnership would be best for a financial services company, this would involve a smooth transition into new markets without having to spend much on physical structures as the domestic company is already having necessary infrastructures in place.
c. Coke and Pepsi would preferably choose to use the Greenfield investment strategy by building a new plant from the ground up because of its established quality standards as well as trade mark and intellectual property protection.
2. A technology-centric firm would benefit most by buying a Company because of the already available market share as well as benefiting from reduced government regulations.
3. If one is operating a start-up or smaller firm of course cost would be a major consideration, therefore selling out License to foreign companies may be effective. This would transfer the rights to use a product or service in a different market geography.
4. It provides a good foresight into the requirements needed to enter foreign markets.
Brazil is almost self-sufficient in ethanol. Brazilian ethanol is made from sugar and costs 83cents per gallon whereas U.S. ethanol, made from corn, costs $1.14 per gallon. The United States has set a zero quota on imports of ethanol, so it does not import ethanol. Source: The New York Times, April 12, 2006 Which country has a comparative advantage in producing ethanol? Explain why both the United States and Brazil can gain from specialization and trade.
Answer:
Brazil has comparative advantage in Ethanol.
Both US & Ethanol can gain from trade, if they specialise in their good of comparative advantage & import the other at lower opportunity cost.
Explanation:
Comparative advantage is when an economy can produce a good with lesser opportunity cost than other economy.
Brazil can produce ethanol at lower opportunity cost, as it uses lesser resources to produce Ethanol, compared to US.
So, Brazil has comparative advantage in producing ethanol. Both US & Brazil can gain from specialisation : As, US can get more ethanol at lesser than domestic opportunity cost. And, Brazil can also gain from trade by importing the good in which US has better opportunity cost & comparative advantage, in exchange of exported ethanol. It would imply Brazil would get more of the other good at lesser than domestic opportunity cost.
Juan acquires a new 5-year class asset on March 14, 2018, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. On July 15, 2019, Juan sells the asset.
a. Determine Juan’s cost recovery for 2017.
b. Determine Juan’s cost recovery for 2018.
Answer:
A. $40,000
B$32,000
Explanation:
Cost Recovery can be defined as the way in which a business or an organisation is said to record the revenue in which they earns from
the transaction carried out at the time that their client has paid the invoice given to him or her in the cost of the transaction.
Asset acquired =$200,000
Tax rate =20%
Hence:
$200,000×0.2
= $40,000
B.
Asset acquired = $200,000
Tax rate =32%
Hence:
$200,000×0.32
= $32,000
A firm has sales of $1,140, net income of $218, net fixed assets of $528, and current assets of $284. The firm has $93 in inventory. What is the common-size balance sheet value of inventory
Answer:
The answer is 11.45%
Explanation:
Solution
Given that:
Firm sales = $1,140
The net income = $218
Net fixed assets = $528
The firm's inventory = $93
The next step is to find the common-size balance sheet value of inventory
Now,
The common size value of inventory would be value of inventory divided by total value of assets.
So,
Total assets=current assets+net fixed assets
=$528+$284 = $812
Therefore,
The common size value of inventory = inventory/Total assets
$93/$812
=11.45%
Terrel Gifts produces logo platters and cups bearing the name of the city in which the items will be sold to tourists. Indirect logo printing costs are allocated to platters and cups based on the amount of time spent on the logo machine. The company has budgeted logo costs of $4,224 per month and expects to spend 4,800 hours on the printing logos each month. Each platter uses 24 minutes and each cup spends 6 minutes on the logo machine. How much of the logo printing costs will be allocated to each platter?
Answer:
$0.3528
Explanation:
So, we are given the following data or parameters or information in the question above as:
=> " The company has budgeted logo costs = $4,224 per month."
=> "Time that is being expected to be spent = 4,800 hours on the printing logos each month. "
=> " Each platter uses 24 minutes and each cup spends 6 minutes on the logo machine."
The amount of money the logo printing costs will be allocated to each platter;
Thus, 0.0147 × 24 = 0.3528.
Kindly note that the value; 0.0147 comes from the division of 4800 hours by 60 per each hour
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,817 $ 40,739 $ 42,420 Accounts receivable, net 100,012 69,175 53,814 Merchandise inventory 128,260 91,410 59,663 Prepaid expenses 11,001 10,482 4,576 Plant assets, net 311,773 292,386 255,527 Total assets $ 584,863 $ 504,192 $ 416,000 Liabilities and Equity Accounts payable $ 141,262 $ 85,208 $ 56,010 Long-term notes payable secured by mortgages on plant assets 108,855 118,283 91,936 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 171,246 137,201 104,554 Total liabilities and equity $ 584,863 $ 504,192 $ 416,000 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?
Answer:
Simon Company's
Balance Sheets at December 31L
Current Yr % 1 Yr Ago % 2 Yrs Ago %
Assets
Cash $ 33,817 6 $ 40,739 8 $ 42,420 10
Accounts receivable, net 100,012 17 69,175 14 53,814 13 Merchandise inventory 128,260 22 91,410 18 59,663 14
Prepaid expenses 11,001 2 10,482 2 4,576 1
Plant assets, net 311,773 53 292,386 57 255,527 61
Total assets $ 584,863 100 $ 504,192 100 $ 416,000 100
Liabilities and Equity
Accounts payable $ 141,262 24 $ 85,208 17 $ 56,010 13
Long-term notes payable 108,855 19 118,283 23 91,936 22 Common stock,
$10 par value 163,500 28 163,500 32 163,500 39 Retained earnings 171,246 29 137,201 27 104,554 25
Total liabilities & equity$ 584,863 100 $ 504,192 100 $ 416,000 100
2. Assuming annual sales have not changed in the last three years, the change in accounts receivable as a percentage of total assets is favorable. It is always better to maintain low accounts receivable, thereby reducing credit risk exposures.
3. Assuming annual sales have not changed in the last three years, the change in merchandise inventory as a percentage of total assets is favorable. Less inventory means that working capital is not being tied down to inventory.
Explanation:
Common-size percentages are used in analyzing the balance sheet. The calculations set each line item as a percent of the total assets.
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 120 units at $39 10 Sale 90 units 15 Purchase 140 units at $40 20 Sale 110 units 24 Sale 45 units 30 Purchase 160 units at $43 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Cost of Goods Sold Schedule First-in, First-out Method DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Nov. 1 Nov. 10 Nov. 15 Nov. 20 Nov. 24 Nov. 30 Nov. 30 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
Answer:
a) UNDER FIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
COGS = 90 X $39 = $3,510remaining inventory = 30 x $39 = $1,170November 15 Purchase 140 units at $40
November 20 Sale 110 units
COGS = (30 x $39) + (80 x $40) = $1,170 + $3,200 = $4,370remaining inventory = 60 x $40 = $2,400November 24 Sale 45 units
COGS = 45 x $40 = $1,800remaining inventory = 15 x $40 = $600November 30 Purchase 160 units at $43
remaining inventory = $600 + (160 x $43) = $7,480b. UNDER LIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
COGS = 90 X $39 = $3,510remaining inventory = 30 x $39 = $1,170November 15 Purchase 140 units at $40
November 20 Sale 110 units
COGS = 110 x $40 = $4,400 remaining inventory = (30 x $40) + (30 x $39) = $2,370November 24 Sale 45 units
COGS = (30 x $40) + (15 x $39) = $1,785remaining inventory = 15 x $39 = $585November 30 Purchase 160 units at $43
remaining inventory = $585 + (160 x $43) = $7,465Under LIFO, the ending inventory is lower than under FIFO.
"First in first out" or FIFO is a method of inventory evaluation by which the process of goods buying and selling are assumed as having same chronological order.
FIFOAs per the question, if units are in inventory at two different costs, than the Cost of Goods Sold (COGS), and Inventory will be different, as per the given information:
⇒November 1, Inventory 120 units at $39
November 10, Sale 90 units
Cost of Goods Sold = 90 X $39 = $3,510
Remaining inventory = (120-90) x $39 = $1,170
⇒ November 15, Purchase 140 units at $40
November 20, Sale 110 units
Cost of Goods Sold = (30 x $39) + (80 x $40) = $1,170 + $3,200 = $4,370
Remaining inventory = 60 x $40 = $2,400
⇒ November 24, Sale 45 units
COGS = 45 x $40 = $1,800
Remaining inventory = 15 x $40 = $600
⇒November 30, Purchase 160 units at $43
Remaining inventory = $600 + (160 x $43) = $7,480
B. Under Last in, First Out (LIFO)
⇒November 1, Inventory 120 units at $39
November 10, Sale 90 units
COGS = 90 × $39 = $3,510
Remaining inventory = 30 x $39 = $1,170
⇒November 15, Purchase 140 units at $40
November 20, Sale 110 units
COGS = 110 x $40 = $4,400
Remaining inventory = (30 x $40) + (30 x $39) = $2,370
⇒November 24, Sale 45 units
COGS = (30 x $40) + (15 x $39) = $1,785
Remaining inventory = 15 x $39 = $585
⇒November 30, Purchase 160 units at $43
Remaining inventory = $585 + (160 x $43) = $7,465
Hence, the results shows that the Inventory is LOWER when used Last-in, First out Method.
Learn More about LIFO here:
https://brainly.com/question/13510592
Mr. Isaac is lending Gh₵20000 to Mr. Hayford, to be repaid over five years. Mr. Isaac would like to effect a policy on Mr. Hayford’s life to cover the loan should Mr. Hayford die. Mr. Hayford would like to insure Mr. Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.
Question:
Mr. Isaac is lending Gh₵20000 to Mr Hayford, to be repaid over five years. Mr Isaac would like to effect a policy on Mr Hayford’s life to cover the loan should Mr Hayford die. Mr Hayford would like to insure Mr Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.
(a) What is the extent of insurable interest in each case?
(b) Consider any necessary action if the loan was later repaid earlier than anticipated what happens to the policy?
Answer:
To answer the question (a), one must first understand the concept of Insurable Interest.
A policyholder is said to have an insurable interest in a subject matter whenever the subject matter of a contract provides some financial gain to them and would lead to a financial loss if damaged, destroyed, stolen or lost.
For example, if I purchase a car for my use for $10,000, theft of or damage to that car will translate to financial loss to me. Therefore, I have an insurance interest in the car. This qualified me to Insure the car against loss arising from any form of insurable damage, or theft.
In question (a) there are two cases.
Case I - Mr Isaac would like to effect a policy on Mr Hayford’s life to cover the loan should Mr Hayford die.
Mr Isaac, in this case, has full insurable interest on Mr Hayfords life. If Mr Hayford dies, Mr Isaac will be put in a financial loss to the tune of Gh₵20000.
Case II - Mr Hayford would like to insure Mr Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.
Mr Hayford does an insurable interest on Mr Isaac's life. This insurable interest arises due to the possibility (as given in the question) that Isaacs family have the power to request for the loan earlier than it ought to have been paid.
The insurable interest arises because paying back the loan earlier than anticipated, may put Mr Hayford in financial distress and may lead to financial and economic loss. If the loan is meant for the running of his business, the business may fold up, and he may forfeit all the assets of the business.
In a real-life scenario, this can all be prevented by ensuring that the terms of the loan are documented in a contract which must be ratified by both parties. In this contract, clauses preventing the lender from cutting short the tenure of the loan can be inserted. This is less expensive and easier to administer.
(b) In each of the cases above, if the loan is paid back earlier than anticipated:
i. Under duress from the family: The provision of the policy protecting the interest of Mr. Hayford kicks in and makes good the loss to mitigate it and terminates afterwards.
ii. By volition by Mr Hayford: The policy terminates immediately as the insurable interest he has on Mr Isaac's life becomes extinct.
Cheers!
Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United States are as follows:Price ($ Per Barrel) U.S. Quantity Demanded) U.S. Quantity Supplied68 16 470 15 672 14 874 13 1076 12 12a) Draw the supply and demand curve for the United Statesb) With free trade in oil, what price will Americans pay for their oil? What quantity will Americans buy? How much of this will be supplied by American producers? How much will be imported?
Answer:
The supply and demand curves for the United States are shown in the graphs attached.
Explanation:
Free trade in oil implies that a country in the international oil market can import as much oil as it wants and export as much oil as it wants.
The costs of demand and the revenues obtained in each case are given below:
QD1 cost = 68 × 70 = $4,760
QS1 revenue = 16 × 70 = $1,120
QD2 cost = 470 × 70 = $32,900
QS2 revenue = 15 × 70 = $1,050
QD3 cost = 672 × 70 = $47,040
QS3 revenue = 14 × 70 = $980
QD4 cost = 874 × 70 = $61,180
QS4 revenue = 13 × 70 = $910
QD5 cost = 1076 × 70 = $75,320
QS5 revenue = 12 × 70 = $840
Find the graph attachments.
A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Determine: a. The optimal order quantity. b. The number of orders per year.
Answer:
Hie, the price schedule is missing from your question however the important principles are explained below.
a. The optimal order quantity
Optimum order quantity is the order level that results in minimum ordering costs and holding costs.
Optimum order quantity = √ (2 × Annual Demand × Cost per order) / holding cost per unit
b. The number of orders per year.
orders per year = Annual Demand / optimal order quantity
This calculates the number of orders to be placed during the year at the optimum order quantity.
Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payments that are mailed in by check to cash. It is estimated that establishing these collection centers would reduce the average collection time by 2 days.If the company currently averages $60,000 in collections per day, how many dollars will this suggested cash management system free up?If all freed up dollars would be used to pay down debt that has an interest rate of 5%, how much money could be saved each year in interest expense?Do the numbers suggest that this new system should be implemented if its total annual cost is $5200? Explain.
Answer: a. $120,000
b. $6,000
c. Yes
Explanation:
a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.
If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.
That amount would be,
= $60,000 * 2
= $120,000
b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.
The amount saved therefore is,
= 120,000 * 5%
= $6,000
By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.
c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.
As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.
The following information is available for Brendon Company before closing the accounts. What will be the amount in the Income Summary account that should be closed to Retained earnings? Retained earnings $ 112,000 Dividends 32,000 Fees earned 187,000 Depreciation Expense—Equipment 12,000 Wages expense 71,400 Interest expense 3,300 Insurance expense 11,700 Rent expense 24,200
Answer:
$64,400
Explanation:
The amount of in the income summary that would be closed to retained earnings is the fees earned of $187,000 less the depreciation expense of $12,000,wages expense of $71,400,interest expense of $3,300,insurance expense of $11,700 as well as the rent expense of $24,200 as computed thus:
net income from income summary=$187,000-$12,000-$71,400-$3,300-$11,700-$24,200=$64400
Retained earnings closing balance=$112,000-$32,000+$64400 =$ 144,400.00
Four of the ships sought a passage along a southern...……
1 coast
2 inland
3 border
4 body of land with water on three sides
5 non of the above
what is the answer
Spotter Corporation reported the following for June in its periodic inventory records. Date Description Units Unit Cost Total Cost June 1 Beginning 20 $ 10.00 $ 200.00 11 Purchase 30 11.00 330.00 24 Purchase 30 13.00 390.00 30 Ending 34 Required: Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Do not round your intermediate calculations. Round "Weighted Average Cost" to 2 decimal places.)
Answer:
(a) FIFO
cost of ending inventory = $442.00
cost of goods sold = $486.00
(b) LIFO
cost of ending inventory = $354.00
cost of goods sold = $566.00
(c) weighted average cost
cost of ending inventory = $391.00
cost of goods sold = $529.00
Explanation:
(a) FIFO
cost of ending inventory
cost of ending inventory = Number of Units left × Earliest Price
= 34 × $13.00
= $442.00
cost of goods sold (46 units sold during the year)
cost of goods sold : 20 units × $10 = $200
26 units × $11 = $286
Total = $486
(b) LIFO
cost of ending inventory
cost of ending inventory : 20 units × $10 = $200
14 units × $11 = $154
Total = $354
cost of goods sold (46 units sold during the year)
cost of goods sold : 30 units × $13 = $390
16 units × $11 = $176
Total = $566
(c) weighted average cost
cost of ending inventory
cost of ending inventory = Number of Units left × Average price
New Average Price = ((20 units × $10) + (30 units × $11)) / 50 units
= $10.60
New Average Price = ((50 units × $10.60) + (30 units × $13)) / 80 units
= $11.50
cost of ending inventory = 34 units × $11.50
= $391.00
cost of goods sold (46 units sold during the year)
cost of goods sold = Number of Units Sold × Average price
= 46 units × $11.50
= $529.00
c
One-year Treasury securities yield 4.15%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 4.4%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities
Answer:
The yield today for 2-year Treasury securities is 4.27%
Explanation:
In order to calculate the yield today for 2-year Treasury securities we would have to calculate the following formula:
2-year treasury yield = [(1 + 1-yr treasury yield) * (1 + 1-yr treasury yield, 1 year from now)]1/2 - 1
= [(1 + 0.0415) * (1 + 0.044)]∧1/2 - 1
= [1.0873]∧0.5 - 1
= 1.0427 - 1 = 0.0427, or 4.27%
The yield today for 2-year Treasury securities is 4.27%
James would like to deposit enough money in a savings account to have $8,000 at the end of year 3. Assuming the investment will earn 5% compounded annually, what amount should James deposit in the savings account today
Answer:
$6910.70
Explanation:
At the end of each year, the account balance will be 1.05 times the value at the beginning of the year. Thus, at the end of year 3, the value is 1.05^3 times the original value.
$8000 = (deposit)×1.05^3
deposit = $8000/1.05^3 ≈ $6910.70
James should deposit $6910.70 today.
What is a project, and what are its main attributes? How is a project different from what most people do in their day-to-day jobs? Discuss the importance of top management commitment and the development of standards for successful project management. Provide examples to illustrate the import
Answer:
In simple words, The project is a collective organization that is structured to accomplish a common goal. The best characteristics of the project are scale, purpose, money, staff, costs, deadlines.
Projects vary from daily operations-to-day activities in the way of ultimate goal, time frame, budget , resources, squad and concentrate. Day-to-day activities follow formed safety procedures and also have particular long-term objectives, while projects have particular short-term objectives, tight income, money and energy. Projects have been carried over by a particular team formed for a specific project.
The importance of senior managers in the project is of vital importance as they work as the guiding and monitoring authority for all the parties involved in the project. Due to this factor majority organisations gives the top mangers some monetary shares in relation to success of the project.
A manufacturing plant is planning to replace outdated equipment with more energy-efficient and environmental-friendly equipment. Two models are under consideration. Model A is sold for $159,000 and can produce at an optimum speed of 78 unit/hour. Model B is sold for the same price, but can produce at an optimum speed of 76 unit/hour. Model A requires 6 hours of maintenance for every 4300 units produced, while Model B requires 5 hours of maintenance for every 3300 units. The maintenance cost for both models is $100 per hour. The variable operating cost is $340 per hour for Model A and $290 per hour for Model B. Due to obsolete parts, there is a sunk cost of $2700 for model A and $1900 for Model B .
1. If the price of the product is $150 per unit and the company expects to sell 145,000 units each year, which model should be selected?
2. What is the estimate of the cummulative average hours per unit required to produce the 5th unit of a production run that has a(n) 78% learning curve, if the first unit takes 50 hours?
Answer:1. Model A,
2. 33 hours
Explanation:
. Suppose Stevie'sStevie's expectation to sell one standard scooter for every three chrome scooters was incorrect and for every four scooters sold two are standard scooters and two are chrome scooters. Will the breakeven point of total scooters increase or decrease? Why? (Calculation not required.)
Answer:
It depends upon the contribution per unit of each product or in other words it depends on composite contribution per unit.
Explanation:
The composition matters a lot because of the fact that every product has its own contribution per unit. So if the product chrome has $1 contribution per unit and standard scooter has $2 contribution per unit. Also suppose that $6 is the total fixed cost. Then the priority to sell must be standard scooter, because it has higher contribution. Secondly if we only sell chrome scooters then total 6 ($6 fixed cost - 6 units * $1 contribution per unit) units must be sold and if we only sell standard scooters then only 3 ($6 fixed cost - 3 units * $2 contribution per unit) units must be sold to breakeven. Suppose, if we reduce standard scooters from 3 scooters to 2 units ($6 fixed cost - 2 units * $2 contribution per unit) then their will be loss of $2 which can be reduced to zero by selling 2 chrome scooters ($2 loss - 2 units * $1 contribution per unit).
So this is how contribution per unit affects the composite breakeven units and most important thing is that if the composite contribution per unit has increased then the breakeven units will decrease and vice versa.
A stock sells for $50. The next dividend will be $5 per share. If the rate of return earned on reinvested funds is a constant 15% and the company reinvests a constant 20% of earnings in the firm, what must be the discount rate
Answer:
The answer is 13%
Explanation:
Solution
Recall that:
A stock sells for =$50
The next dividend is = $5 per share
The rate of return = 15%
Company reinvests a constant of =20%
What is the rate of discount = ?
Now
The first step is to calculate the rate of growth which is shown below:
g = equity return * retention rate
g = 15% * 0.2 = 3%
Thus,
The Gordon growth model is stated below:
Stock price = dividend in following year/ (discount - g)
So,
50 = 5/ (discount - g)
The discount - g = 5/50
Discount - g = 10%
The discount = 10 + 3 = 13%
Therefore the discount rate =13%
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $156,000 of services on account. In 2021, the company wrote off uncollectible accounts of $6,300. By the end of 2021, cash collections on accounts receivable totaled $132,300. Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Required:
1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the write-offs of allowance for uncollectible accounts during 2021.
Note: Enter debits before credits.
Event General Journal Debit Credit
1
record to recognize bad debt expense for 2021.
Note: Enter debits before credits.
Event General Journal Debit Credit
2
Answer: the answer is given below
Explanation:
It should be noted that the account receivable ending balance was calculated as:
Credit sales = 156,000
Less: collection of account= 132,300
Less: written off = 6,300
= 17,400
The bad debt expense was calculated as:
= (17,400 × 10%) + 6300
= (17400 × 0.1) + 6300
= 1740 + 6300
= 8040
Other explanation have been attached.
Which of the following is a macro factor underlying the trend toward greater globalization?A. increase in diversity in consumer tastes and preferencesB. increase in nationalization of private organizationsC. dramatic developments in information processing and other technologiesD. rise of communism across the globeE. increase in trade regulations across the globe
Answer:
The correct answer is Option C (dramatic developments in information processing and other technologies)
Explanation:
Globalization caused by several factors, example are improved markets, transportation, policies and cultures, improved technology, can be explained as the process by which different parts of the world are connected due to the spread of ideas, people, technology, goods. Types of globalization are: Economic globalization, political globalization, and cultural globalization.
Factors underlying the trend toward greater globalization are micro level (individual) and macro level (society). Macro factors include, barriers to distribution of good and services among countries, and technological change, which is very important as it greatly affects globalization.
Dramatic developments in information processing and other technologies makes it easier to communicate and share information in order to conduct business internationally, and do other greater things too.
Lindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $400,000 on credit. On August 15, Paige paid Lindley in full on its $400,000 balance. Required: Prepare the related journal entries for Lindley.
Answer:
Sales on June 30:
Dr accounts receivable $400,000
Cr sales revenue $400,000
On August 15:
Dr cash $400,000
Cr accounts receivable $400,000
Explanation:
On June 30 when Lindley Enterprises sold 500 rugs worth $400,000 to Paige Corporation ,Lindley would have to recognize sales of $400,000 since the rugs have been transferred to Paige Corporation by crediting sales revenue and debiting accounts receivable with $400,000.
On August 15,Lindley would have received cash of $400,000 in respect of their earlier sales,hence accounts receivable should be credited while cash account is debited
On January 1, Year 1, a company issues $39.1 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.
If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.
Bond Characteristics AmountFace amount Interest payment Market interest rate Periods to maturity Issue price
A. If the market rate is 9%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1).
Bond Characteristics AmountFace amount Interest payment Market interest rate Periods to maturity Issue price
If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1).
Bond Characteristics AmountFace amount Interest payment Market interest rate Periods to maturity Issue price
Answer:
$42,969,487
$ 39,100,000
$ 35,745,399
Explanation:
The price of the bond using the pv formula in excel is given thus:
=-pv(rate,nper,pmt,fv)
rate is the market rate divided by 2 since interest is payable twice a year
nper is 20year multiplied by 2 which gives 40
pmt is the semiannual coupon=$39,100,000*9%*6/12=$1,759,500.00
fv is the face value of $39,100,000
market rate of 8%
=-pv(8%/2,40,1759500,39100000)=$42,969,487
market rate of 9%
=-pv(9%/2,40,1759500,39100000)=$ 39,100,000
market rate of 10%
=-pv(10%/2,40,1759500,39100000)=$35,745,399
Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
Sep. 1 : Inventory20 units at $20
Sep. 4 : Sold10 units
Sep. 10 : Purchased30 units at $25
Sep. 17 : Sold20 units
Sep. 30 : Purchased10 units at $30
a) If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is:___________.
a.$800
b.$750
c.$650
d.$700
b) If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is:__________.
a.$800
b.$700
c.$650
d.$750
Answer:
lLIFO-option B is correct ,$750
FIFO-option A is correct,$800
Explanation:
In using LIFO, each item sold is from the last inventory received while the FIFO is of the opinion that item sold is the oldest stock of inventory.
Under LIFO, cost of ending merchandise is as follows:
10 units (20-10) at $20=$200
10 units (30-20) at $25=$250
10 units at $30 =$300
Total value of inventory =$750
The correct option is B,$750
Under FIFO, cost of ending inventory is as follows:
20 units at $25 =$500
10 units at $30 = $300
total value of inventory =$800
The correct option is A,$800
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement Sales Revenue $ 48,600 Expenses: Cost of Goods Sold 21,000 Depreciation Expense 2,000 Salaries and Wages Expense 9,000 Rent Expense 4,500 Insurance Expense 1,900 Interest Expense 1,800 Utilities Expense 1,400 Net Income $ 7,000 Selected Balance Sheet Accounts Ending Balances Beginning Balances Accounts Receivable $ 560 $ 580 Inventory 990 770 Accounts Payable 420 460 Prepaid Rent 25 20 Prepaid Insurance 25 28 Salaries and Wages Payable 100 60 Utilities Payable 20 15 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Cash flow from Operating Activities
Cash Receipts from Customers $48,620
Cash Paid to Suppliers and Employees ($17,017)
Cash Generated from Operations $31,603
Interest Paid ($1,800)
Cash flow from Operating Activities $29,803
Explanation:
Cash flow from Operating Activities relate to cash movement as a result of trading in the course of business.
Cash Receipts from Customers Calculation :
Prepare a Total Trade Receivables T - Account as follows :
Debit :
Beginning Balance $ 580
Sales Revenue $ 48,600
Totals $49,180
Credit :
Ending Balance $ 560
Cash Receipt (Balancing Figure) $48,620
Totals $49,180
Cash Paid to Suppliers and Employees Calculation :
Cost of Goods Sold 21,000
Add Other Expenses
(Excluding Depreciation and Interest Expense)
Salaries and Wages Expense 9,000
Rent Expense 4,500
Insurance Expense 1,900
Utilities Expense 1,400
Increase in Inventory 220
Decrease in Accounts Payable 40
Decrease in Prepaid Insurance (3)
Increase in Prepaid Rent 5
Increase in Wages Payable (40)
Increase in Utilities Payable (5)
Cash Paid to Suppliers and Employees 17,017
