Answer:
The amount of the operating cash flow is $108,831
Explanation:
In this question, we are tasked with calculating the amount of the operating cash flow.
Firstly, we calculate the net income.
Mathematically, net income = Sales × % profit margin
From the question, sales = $847,000
% profit margin = 7.3% = 7.3/100 = 0.073
Net income = $847,000 × 0.073 = $61,831
Finally, Operating cash flow = Net income + Depreciation
From the question, depreciation = $47,000
Plugging this alongside the net income,
Operating cash flow = $61,831 + $47,000 = $108,831
Dell Computer buys computer chips from Intel for the purpose of making computers to be sold to consumers and other organizations. Dell is an example of which type of organizational buyer?
a. Intermediary
b. Producer
c. Wholesaler
d. Institution
Answer:
b. Producer.
Explanation:
Organizational buying deals with the process of purchasing products and services after duly identifying, evaluating and choosing which company to buy from.
Organizational buying is mainly classified into four categories, these are;
1. Producer.
2. Intermediary or Retailers.
3. Wholesaler.
4. Institution.
In this scenario, Dell Computer buys computer chips from Intel for the purpose of making computers to be sold to consumers and other organizations. Dell is an example of a producer organizational buyer because it bought computer chips, so it can be used to manufacture a computer.
Hence, the producers usually buy raw materials, components or other parts, from other manufacturers to use in producing goods for their consumers or end users.
uppose McKnight Corp.'s breakeven point is revenues of $ 1 comma 100 comma 000. Fixed costs are $ 660 comma 000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $16 per unit. 3. Suppose 65 comma 000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of McKnight making a loss? What are the most likely reasons for this risk to increase?
Answer:
1. Compute the contribution margin percentage.
40%2. Compute the selling price if variable costs are $16 per unit.
$26.673. Suppose 65 comma 000 units are sold. Compute the margin of safety in units and dollars.
margin of safety in $ = $633,550margin of safety in % = 36.55%4. What does this tell you about the risk of McKnight making a loss? What are the most likely reasons for this risk to increase?
Since the contribution margin is relatively high, this means that the production costs are relatively low (compared to selling price). The associated risks may come from high leverage, e.g. machinery purchased on credit that results in high interest expense. For the most part, having a high contribution margin is generally very good, just ask Apple.Explanation:
break even point is $ = $1,100,000 (= break even point units x selling price)
fixed costs = $660,000
contribution margin % = (total sales - total variable costs) / total sales
total variable costs = $1,100,000 - $660,000 = $440,000
contribution margin % = ($1,100,000 - $660,000) / $1,100,000 = 40%
variable costs = $16 per unit
0.4 = (x - $16) / x
0.4x = x - $16
$16 = 0.6x
x = $26.67
65,000 x $26.67 = $1,733,550
margin of safety in $ = $1,733,550 - $1,100,000 = $633,550
margin of safety in % = $633,550 / $1,733,550 = 36.55%
You own shares in Yahoo that were purchased at a price of $ 24 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $ 34 per share. What will be your return if you tender your shares to Microsoft and the deal is completed
Answer:
Return = 41.67%
Explanation
The return on a share is the sum of e capital gains and the dividend received all expressed as a percentage of the of the amount invested.
In the absence of the payment of dividend, the return
Return = capital gain/ Price of share × 100
Capital gain= Price of shares now - cost of shares
Capital gain = 34- 24 = 10
Return = 10/24 × 100 = 41.66666667
Return (%) = 41.67%
Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts. What type of decision does this represent?
Answer:
Programmed.
Explanation:
This is a form of decision that is has been made or is been made by as manager just like Jaime the account managing clerk which is repetitive or occurs steadily and over and over. The fact that it happens this steadily makes it a programmed decision.
This decision making are always taken in accordance with some establishment habit, regulations or procedures while the nature of problem that requires a non programmed decision is unstructured and something different. It needs a higher management participation.
In programmed decision making, there could likely be no error in the decisions because it is a routine and managers usually have the information they need to create rules and guidelines to be followed by others.
Suppose you have a linear integer optimization problem. You solve the problem as a linear optimization problem by ignoring the integer constraints and obtain an integer optimal solution (i.e., your model did not require the variables to be integer, but it turned out when you solved the problem Solver found an optimal answer where the variables are integer).
Which of the statements below are correct (choose only one):
A. You can categorically state that you have the optimal solution to the integer optimization problem.
B. You can categorically state that you do not have the optimal solution to the integer optimization problem.
C. None of the above.
Answer:
Option(A) is the correct answer to the given question .
Explanation:
The integer programming problem is also known as the computational optimization or the functionality method that main objective to limits the some or many of the parameters may be integer. The objective of linear optimization problem to make the objective function as well as integer constraints linear .
The integer programming problem conclusively specify of the optimised solution to the issue of the integral optimisation.All the other option are not correct for the linear integer optimization problem because they are not give objective function as well as integer constraints as linear .Financial aspects of employment
Wang Min and Roger are friends from college and both have received offers for entry level positions at a San Francisco corporation in their related fields. Wang Min and Roger would like to room together in San Francisco.
Consider Wang Min and Roger’s personal situations, assuming the city indices are:
Boston: 151
San Francisco: 135
Cleveland: 99
Consider the following scenarios:
Wang Min
Wang Min Wang Min is from Boston, where the cost of living is higher than it is in San Francisco. Wang Min’s parents are discouraging her from taking the position because they would like her to live at home for a while, find a job in the area, and save some money. Wang Min has already convinced her parents that she will live on her own even if she finds a job in Boston. Wang Min took a personal finance course and knows how to compare salaries in different cities. Wang Min has been offered $25,000 to work in San Francisco.
Roger
Roger is from Cleveland, where the cost of living is lower than it is in San Francisco. Roger’s parents are encouraging him to take the position because jobs are hard to come by in Cleveland and he will be able to get a good start to his career and save some money. Now, he wants to make sure that the offer in San Francisco is worth the move. Roger has been offered $30,000 to work in San Francisco.
Answer:
Wang Min's situation:
Boston: 151
San Francisco: 135
If Wang Min wishes to consider a similar offer in Boston, the offer should be for at least = ($25,000/135) x 151 = $27,963. Since San Francisco is "cheaper" than Boston, she should earn more money in Boston in order to consider a comparable offer.
Roger's situation:
Cleveland: 99
San Francisco: 135
If Roger wishes to consider a similar offer in Cleveland, the offer should be for at least = ($30,000/135) x 99 = $22,000. Since San Francisco is "more expensive" than Cleveland, he should earn less money in Cleveland in order to consider a comparable offer.
Peter Plaintiff’s son is killed while working overseas for a United States corporation that deals in proprietary petroleum extraction and production. Peter Plaintiff brings a wrongful death lawsuit on behalf of his son’s estate against this corporation and requests a wide scope of business documents related to the corporation and its overseas operations under the Freedom of Information Act (FOIA). What defenses, if any, does the corporation have against revealing the requested information under the FOIA?
Answer and Explanation:
The defenses or protections the business has been against releasing the relevant documents underneath the FOIA include whether Peter Plaintiff's required documentation is private and confidential as well as the business is not allowed to release this detail to anyone outside the organization.Because the statement is available nondisclosure, the company has to safeguard and defend this relevant data, and therefore not start sharing it with someone outside the establishment.Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 60,000 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 45,000 of the reacquired shares at $51 per share. The remaining 15,000 shares were sold at $40 per share on November 23.
Required:
A. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles.
B. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
C. For what reasons might Mystic Lake have purchased the treasury stock?
Answer:
A. Journalize the transactions
July 9, purchase of 60,000 treasury stocks
Dr Treasury stocks 2,520,000
Cr Cash 2,520,000
September 22, 45,000 treasury stocks sold
Dr Cash 2,295,000
Cr Treasury stocks 1,890,000
Cr Additional paid in capital 405,000
November 23
Dr Cash 600,000
Dr Additional paid in capital 30,000
Cr Treasury stocks 630,000
B. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
Additional paid in capital = $405,000 - $30,000 = $375,000
December 31 balance:
Additional paid in capital $375,000
C. For what reasons might Mystic Lake have purchased the treasury stock?
management believed that the stock was underpricedthey have excess cash and no immediate projects to invest init is a way to increase the price of stocks since lower equity with the same profits means that each remaining stock will earn more returnsOverhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold At the end of the year, Estes Company provided the following actual information: Overhead $412,600 Direct labor cost 532,000 Estes uses normal costing and applies overhead at the rate of 75% of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $1,670,000.Required:
1. Calculate the overhead variance for the year. $2. Dispose of the overhead variance by adjusting Cost of Goods Sold.
Answer:
1.
$13,600 unfavorable
2.
$1,683,600
Explanation:
Overhead variance is difference between the budgeted and actual values of the overhead incurred by a company.
Applied Overhead is the overhead value calculated by multiplying the actual activity and budgeted applied rate.
Applied Overheads = $532,000 x 75% = $399,000
Actual Overheads = $412,600
Overheads Variance = Applied Overheads - Actual Overheads
Overheads Variance = $399,000 - $412,600 = -$13,600
As actual overheads are incurred more than the applied overhead, so the variance is unfavorable.
$13,600 unfavorable
2.
As the overhead is under-applied and it need to be adjusted and added in the cost of goods sold.
Cost of Goods sold = $1,670,000
Adjusted cost of goods sold = $1,670,000 + $13,600
Adjusted cost of goods sold = $1,683,600
Alain Mire files a single tax return and has adjusted gross income of $309,000. His net investment income is $48,000. What is the additional tax that Alain will pay on his net investment income for the year
Answer: $1,824
Explanation:
According to the IRS, Net Investment Income tax is the lesser figure of either,
i. The net investment income or,
ii. Modified adjusted gross income less the threshold of $200,000 of the person.
The lesser figure is then multiplied by 3.8% to find the tax.
Alain Mire's net Investment Income is $48,000.
His Modified adjusted gross income less the threshold of $200,000 is,
= 309,000 - 200,000
= $109,000
The lesser figure is his Net Investment Income so Additional Tax is,
= 48,000 * 3.8%
= $1,824
Exercise 11-6 Net present value LO P3 A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Answer:
NPV of investment 1: $509,131
NPV of investment 2: $269,513
Explanation:
initial investment -$520,000
6 year useful life, depreciation per year = ($520,000 - $10,000) / 6 = $85,000
free cash flow per year = $150,000 + $85,000 = $235,000
free cash flow last year = $235,00 + $10,000 = $245,000
NPV = -$520,000 + $235,000/1.1 + $235,000/1.1² + $235,000/1.1³ + $235,000/1.1⁴ + $235,000/1.1⁵ + $245,000/1.1⁶ = -$520,000 + $213,636 + $194,215 + $176,559 + $160,508 + $145,917 + $138,296 = $509,131
initial investment -$380,000
8 year useful life, depreciation per year = ($380,000 - $20,000) / 6 = $60,000
free cash flow per year = $60,000 + $60,000 = $120,000
free cash flow last year = $120,00 + $20,000 = $140,000
NPV = -$380,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ + $120,000/1.1⁴ + $120,000/1.1⁵ + $120,000/1.1⁶ + $120,000/1.1⁷ + $140,000/1.1⁸= -$380,000 + $109,091 + $99,174 + $90,158 + $81,962 + $74,501 + $67,737 + $61,579 + $65,311 = $269,513
Managers can use CSR and sustainability information as important feedback to guide decision making in a variety of areas. Which of the following areas is least likely to be impacted by this feedback?
a. cost control decisions
b. FASB compliance with U.S. GAAP
c. strategic and operational areas
d. resource allocation decisions
Answer:
Option B. FASB compliance with U.S. GAAP
Explanation:
Because FASB is an independent body and publishes amendmends in Accounting standards which are internationally accepted so it has nothing to do with the US GAAP. Our decision making impact can be seen on the matters that are dependent on us not on the things we don't have control of or if they independent body. So the least impacted would be FASB compliance with US GAAP.
Whereas the rest of options are controlled by the managers so they can be easily influenced by the decision making power of the managers.
The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $360,000 for the four years is
Answer:
22.5%
Explanation:
For computation of return on investment first we need to find out the average investment and average income per year which is shown below:-
Average investment = Proposed investment ÷ Average
= $800,000 ÷ 2
= $400,000
Now, the Average income per year = Expected total net income ÷ Number of year
= $360,000 ÷ 4
= $90,000
Return on investment = Average income per year ÷ Average investment
= $90,000 ÷ $400,000
= 0.225
or
= 22.5%
Discuss silence is golden in relation to ethics at the work place
Answer:
Silence is a golden virtue and it involves more of listening than speaking .It is required under certain circumstances and environment. It is always advisable to remain quite silent and not be too quick to respond to situations or issues so as to avoid making and saying wrong words.
The ethics in a workplace involves communicating with others with less amount of talking as possible and more of body languages and signs. This is because the workplace is meant to be a serene place. Lack of serenity can cause distractions and Lower the productivity of the workers.
Suppose that M = 300, P = 100, and Y = 6. Then the velocity of circulation equals Select one: a. 2.00. b. 3.00. c. 50 d. 0.50. e. 0.02.
Answer:
a. 2.00.
Explanation:
The formula and the computation of the velocity of circulation are shown below:
According to the quantity money theory
M = Total money
V = Velocity
P = Price level
Y = Volume of goods and services
As we know that
Total amount of money in the economy × velocity = Price level × volume of goods and services
300 × velocity = 100 × 6
300 × velocity = 600
So, the velocity is
= 600 ÷ 300
= 2
Hence, the first option is correct
What are the principles of logic and critical thinking?
The Aberdeen Development Corporation (ADC) is considering an Aberdeen Resort Hotel project. It would be located on the picturesque banks of Grays Harbor and have its own championship-level golf course. The cost to purchase the land would be $1 million, payable now. Construction costs would be approximately $2 million, payable at the end of year 1. However, the construction costs are uncertain. These costs could be up to 20 percent higher or lower than the estimate of $2 million. Assume that the construction costs would follow a triangular distribution. ADC is very uncertain about the annual operating profits (or losses) that would be generated once the hotel is constructed. Its best estimate for the annual operating profit that would be generated in years 2, 3, 4, and 5 is $700,000. Due to the great uncertainty, the estimate of the standard deviation of the annual operating profit in each year also is $700,000. Assume that the yearly profits are statistically independent and follow the normal distribution. After year 5, ADC plans to sell the hotel. The selling price is likely to be somewhere between $4 and $8 million (assume a uniform distribution). ADC uses a 10 percent discount rate for calculating net present value. (For purposes of this calculation, assume that each year's profits are received at year-end.) Use Analytic Solver to perform 1,000 trials of a computer simulation of this project on a spreadsheet.
(a) What is the mean net present value (NPV) of the project?
(b) What is the estimated probability that the project will yield an NPV greater than $2 million?
(c) ADC also is concerned about cash flow in years 2, 3, 4, and 5. Generate a forecast of the distribution of the minimum annual operating profit (undiscounted) earned in any of the four years. What is the mean value of the minimum annual operating profit over the four years?
(d) What is the probability that the annual operating profit will be at least $0 in all four years of operation?
Barry, a solvent individual but a recovering alcoholic, embezzled $6,000 from his employer. In the same year that he embezzled the funds, his employer discovered the theft. His employer did not fire him and told him he did not have to repay the $6,000 if he would attend Alcoholics Anonymous. Barry met the conditions and his employer canceled the debt.
A. Barry did not realize any income because his employer made a gift to him.
B. Barry must include $6,000 in gross income from discharge of indebtedness.
C. Barry must include $6,000 in gross income under the tax benefit rule.
D. Barry may exclude the $6,000 from gross income because the debt never existed.
E. None of these.
Answer: Barry must include $6,000 in gross income from discharge of indebtedness
Explanation:
Feom the question above, we are told that Barry embezzled $6,000 from his employer and that even though his employer discovered the theft, the employ did not fire him and told him that he did not have to repay the $6,000 if he attend Alcoholics Anonymous. Barry met the conditions and the employer canceled the debt.
In this case, Barry will have to include the $6,000 he stole in gross income from discharge of indebtedness. The gross income has to do with the sum of the wages, profits, salaries, rents, interest payments, and every other earnings, before the deductions of taxes or other deductions. Since Barry stole the money and.he.has been forgiven, the $6,000 has to be included in the gross income from discharge of indebtedness.
Ma Barker Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. If Job #334 contained 200 units, the unit product cost on the completed job cost sheet would be:___________.
a) $42.00
b) $39.50
c) $41.90
d) $37.00
Answer:
The correct answer is option (A) $42.00
Explanation:
Solution
Given that:
The established rate is given as = 100,000/40,000
= $2.5 per hour
Thus
The cost of the job is shown is shown below:
The direct material = $5,000
The direct labor = $2400
Then
The manufacturing overheard is = 400 * 2.5 = $1,000
So,
The total cost is = $5,000 + $2400 + $1000 = $8,400
To get our unit cost,
Unit cost = $8400/200 = $42.00
It is important to know that, the number of labor hours used in jobs = Total labor cost/Rate per hour
=2,400/6 = 400 hours
In the airline industry, frequent flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are __________ but no longer __________. a. valuable; rare b. rare; valuable c. valuable; causally ambiguous d. socially complex; rare
Answer:
a. valuable; rare
Explanation:
There are various examples of capabilities like
1. Frequent flyer programs are nothing but while booking an online flight you just need to sign up so that the chances of earning reward points could be high
2. The ticket kiosks refer to the self service in which you can purchase the tickets related to the entertainment
3. E-ticketing is online ticketing which you can store online instead of keeping it with you in a paper form
These are valuable examples but there are no longer rare
Hence, the first option is correct
Murphy Printers (MP) manufactures printers. Assume that MP recently paid $ 500 comma 000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years.
Requirements
1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year.
2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with year 5, to amortize the remaining cost of the patent over two remaining years, giving the patent a total useful life of six years. Record amortization for year 5.
Answer: The answer is given below
Explanation:
1. The journal entries to record the purchase of the patent and the amortization for the first full year has been solved and attached.
2. The amortization expense of he 4 years will be:
= $62500 × 4
= $250,000
Therefore, the book value of the patent will be:
= Cost of the patent - amortization expense
= 500,000 - 250,000
= $250,000
Amortization for year 5 = Book value/Estimated useful life remaining
= 250,000/2
= $125,000
The journal for the amortization expense for year 5 has been attached
CalculatorPrint Item On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $15,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$225 b.$235 c.$232 d.$222
Answer:
Option A, $225 is correct
Explanation:
The interest revenue=face value of the note*interest rate*3/12
Three months of interest revenue is due from October 1st till December 31st.
The interest revenue that Black company would recognize =$15,000*6%*3/12=$225
The correct option is A,$225 amount of interest revenue would be recorded by Black Company in the year by debiting interest receivable(pending the maturity of the note) and crediting interest revenue
The following table shows a simplified consolidated balance sheet for the entire
banking system (all figures are in billions). The reserve ratio is 25 percent.
Assets Liabilities &Equity
Reserves 96 Checkable Deposits 400
Securities 104
Loans 200
a. 1. What is the amount of excess reserves in this banking system?
2. What is the maximum amount the banking system might lend?
3. Show how the balance sheet would look after this amount has been lent
(construct new balance sheet or add columns).
4. What is the size of the monetary multiplier?
b. 1. Answer the questions in part a assuming the reserve ratio is 15 percent.
2. What is the resulting difference in the amount that the banking system can
lend? How do you explain the difference?
Answer:
Kindly check explanation
Explanation:
Excess reserve = (Actual reserve - required reserve)
Required reserve = reserve ratio × Checkable deposit
Required reserve = 0.25 × $400 billion
Required reserve = $100 billion
Excess reserve = $96 - $100 = - $4billion
B) money multiplier = 1/ required reserve ratio
1/0.25 = 4
Maxumum amount that can be Lent = 4 × 4 = $16 million
If reserve ratio = 15%
Required reserve = 0.15 × $400 billion = $60 billion
Excess reserve = $96 - $60 = $36 billion
Monetary multiplier = 1/ 0.15 = 6.667
Maximum amount of loan = 6.667 × 36 = $240 billion
"Cincinnati Supply, Co. is a local supplier to the Kraft Heinz Company, which is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world. Cincinnati Supply, Co. purchased new furniture at a cost of $33,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $3,000 salvage value. The company uses the straight-line method of depreciation. What is the amount of depreciation expense reported on December 31
Answer:
Annual depreciation= $5,000
Explanation:
Giving the following information:
Purchasing price= $33,000
Salvage value= $3,000
Useful life= 6 years
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (33,000 - 3,000)/6
Annual depreciation= $5,000
Umatilla Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $275,000. Discussions with the accountant reveal the following.
1. Pohl Company sold goods costing $55,000 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl Company FOB destination on December 27 and were still in transit at year-end.
3. Pohl Company received goods costing $25,000 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
4. Pohl Company sold goods costing $51,000 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pohl Company physical inventory.
5. Pohl Company received goods costing $42,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $275,000.
Required:
Determine the correct inventory amount on December 31.
Answer: $309,000
Explanation:
First it is important to note the difference between the Shipping terms.
FOB (Free on Board) Shipping Point means that the goods being sold belong to the owner as soon as the seller leaves it at shipping point. Shipping point being as soon as the Carrier delivering it has picked it up from the seller. At this point it should no longer be included in the Seller's books but in the buyer's.
FOB Destination means that the goods only become that of the buyer when the buyer receives it. Until then, the goods are under the ownership of the Seller and need to be recorded in the books as such until the buyer receives it.
Reconciling the balance therefore,
Year end Balance is $275,000
1. Sales to Hemlock $55,000 not included in final balance is fine because it is FOB shipping point and as so it is not to be included in inventory.
2. Sales to Pohl FOB Destination of $95,000 not included in inventory count is fine because it should only be included when it is received as it was shipped FOB Destination.
3. Pohl company should have INCLUDED this $25,000 because it was shipped FOB Shipping point meaning that Pohl gets ownership as soon as Yanice Co sent it on December 26 which is within the period.
4. Pohl should INCLUDE the $51,000 because it shipped the goods FOB Destination meaning that it only relinquishes Ownership when Ehler of Canada receives it which was in the next period.
5. Pohl SHOULD NOT HAVE INCLUDED the $42,000 balance in the inventory amount because it was shipped FOB Destination which means that they only get Ownership when they receive it. They received it in the next period and as such should not include it in there period in question.
Calculating the inventory amount then gives,
= 275,000 + 25,000 + 51,000 - 42,000
= $309,000
The correct inventory amount on December 31 is $309,000
The correct inventory amount on December 31 is = $309,000
What is the Inventory amount?
Preferably, it is important to note the distinction between the Shipping terms.
FOB (Free on Board) Shipping Point suggests that the goods being sold belong to the proprietor as soon as the seller vamooses them at the shipping point. The shipping point is as soon as the Carrier delivering it has picked it up from the seller. At this moment, it should no longer be included in the Seller's books but in the buyer's.
FOB Terminus indicates that the goods only become that of the buyer when the buyer receives them. Until then, the goods are under the ownership of the Seller and also they need to be recorded in the books as such until the buyer receives them.
Negotiating the balance, therefore,
The year-end Balance is $275,000
1. Sales to Hemlock $55,000 not included in last balance is fine because it is FOB shipping point and as so it is not to be contained in inventory.
2. Sales to Pohl FOB Destination of $95,000 not retained in inventory count is fine because it should only be included when it is received as it was shipped to FOB Destination.
3. Pohl company should have INCLUDED this $25,000 because it was shipped FOB Shipping point definition that Pohl gets ownership as shortly as Janice Co sent it on December 26 which is within the time.
4. Pohl should INCLUDE the $51,000 because it shipped the goods FOB Destination suggesting that it only relinquishes Right when Ehler of Canada receives it which was in the next period.
5. Pohl SHOULD NOT HAVE INCLUDED the $42,000 reward in the stock amount because it was shipped FOB Terminus which suggests that they only get Ownership when they accept it. They received it in the next period and as such should not enclose it in their period in question.
Now the Calculating of the inventory amount then gives,
= 275,000 + 25,000 + 51,000 - 42,000
= $309,000
Therefore, The correct inventory amount on December 31 is $309,000
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Assume that the full-employment level of output is $5000 billion and the natural unemployment rate is 5%. Suppose the current unemployment rate is 8%. What would be the current level of output according to Okun's law (when the Okun's law coefficient is 2)?
Answer:
$4700 Billion
Explanation:
Solution
Given that:
Assume that full-employment level of output is =$5000 billion
Natural employment rate is =5%
Current unemployment rate = 8%
Now,
We find the current level of output according to Okun's law when the Okun's law coefficient is 2 which is given below:
2 (unemployment rate -natural unemployment) = potential GDP - actual GDP/potential GDP *100% this is known as the Okun's law
Thus
2( 8 - 5 ) = 5000 - actual GDP / 5000 * 100
or (6 * 5000 ) / 100 = 5000 - actual GDP = $4700 Billion
or
300 = 5000 - actual GDP
Hence, the actual GDP or current output = 5000 - 300 = 4700 $ billion
The Fine Point Company currently produces all of the components for its one product, an electric pencil sharpener. The unit cost of manufacturing the motor for this pencil sharpener is: Direct materials$1.75 Direct labor$1.65 Variable overhead$0.75 Fixed overhead$0.60 The company is considering the possibility of buying this motor from a subcontractor and has been quoted a price of $3.60 per unit. The relevant cost of manufacturing the motor to be considered in reaching the decision is:
Answer:
$4.15 per unit
Explanation:
The computation of the relevant cost of manufacturing the motor is shown below:
Relevant cost per unit = Direct material per unit + direct labor per unit + variable overhead per unit
= $1.75 + $1.65 + $0.75
= $4.15 per unit
For reaching the decision, we simply added the direct material per unit, direct labor per unit and variable overhead per unit so that the correct answer could arrive
Chang Industries has 1,200 defective units of product that have already cost $13.20 each to produce. A salvage company will purchase the defective units as they are for $4.20 each. Chang's production manager reports that the defects can be corrected for $6.80 per unit, enabling them to be sold at their regular market price of $19.40. The incremental income or loss on reworking the units is: Multiple Choice $18,240 income. $10,080 loss. $8,160 loss. $15,120 income. $10,080 income.
Answer:
$10,080 income
Explanation:
The computation of incremental income or loss on reworking the units is shown below:-
Incremental income on reworking unit = Sales after reworking - Sales to salvage company - Incremental cost
= (1,200 × $19.40) - (1,200 × $4.20) - (1,200 × $6.80)
= $23,280 - $5,040 - $8,160
= $10,080 income
Therefore for computing the Incremental income on reworking unit we simply applied the above formula.
Toward the end of the selection process, Eleanor is one of two final candidates. She meets with the company's executive vice-president in her third interview, and they spend most of the time discussing Eleanor's experiences working in different corporate cultures. This interview is likely a structured interview.A. TrueB. False
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, the term of "structured interview" refers to the type of interview that is previously planned in order to already had the questions by the time the person comes to the interview, and therefore that it does not implicates to be doing questions at random. Moreover, it is used in order to gain time and to obtain the major amount of information about the person that the interviewer wants. That is why, that in this case is likely an structured interview due to the fact that the employeer already knew what he wanted to know about the person and therefore he is focus on having that information, in this case, previous experience work.
you work at an electronYou work at a local electronics store, Electronics Warehouse. While you are working you spot a customer who appears to place something into their backpack (which you think is an item they haven't paid for). Before they exit the store you yell "STOP THAT THIEF" and another employee tackles the customer at the exit. When the customer is tackled he injures his knee and is spotted by his current boss. You and the employee escort the customer back to the security office and rummage through his backpack, but unfortunately you don't find any evidence that something was stolen, so you release the customer and apologize for the mix-up. The next day the customer returns to his job and is fired for being "a thief" by his boss who witnessed the events at the electronics store the day before. a. Explain in detail what tort theories the customer can sue the Electronics Warehouse. Would he be successful? b. Can you or the other employee be sued for a tort? If so, what tort(s)? c. What defenses would the Electronics Warehouse raise? Would they be successful?
Answer: The answers are provided below
Explanation:
a. Yes, the customer can sue the Electronics warehouse. The customer was wrongly accused of stealing and was called a thief in front of everyone present in the store. In this case, the customer has lost his reputation.
The customer can be successful because he was called a thief which he wasn't. He got injured due to this and also lost his job. This is a serious misconduct and offense and the customer can be successful if he sue the Electronics company.
b. Yes, the employee and I can be sued for tort as we called him a thief without investigation and injured him. This has led to a big harm for the customer who lost his job due to this issue. With the illegal approach, both the employee and the electronic store can face the legal proceedings asnthey can be sued for major loss for the customer.
c. The Electronic Warehouse can raise the defense that they have apologized to the customer and they can also say that they took the measure to protect their stores from theft.
No, they can't be successful as they easily stop the customer without tackling him and making a mockery of him by calling him a thief. He also lost his job due to this. Hence, this is a serious issue that has created emotional and financial damage for the customer.
