Answers
Incomplete question. Options provided in
Answer:
c.
Explanation:
Note that after performing necessary calculation we arrived at the conclusion where X = I/(PX + 0.2PY) where PX= demand and PY= expenditures.
Related Questions
Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $20,000 $26,000 $40,000
Cash payments 28,000 30,000 22,000
Required:
Prepare a cash budget for July, August, and September.
Answers
Answer:
Karim Corp
Cash Budget
July August September
Cash inflows: $20,000 $26,000 $40,000
Cash outflows: ($28,000) ($30,000) ($22,000)
Monthly cash flow: ($8,000) ($4,000) $18,000
Monthly interests: $0 ($76) ($116.76)
Initial cash balance: $8,400 $8,000 $8,000
Ending cash balance: $400 $3,924 $25,883.24
Required bank loan: $7,600 $4,076 $0
Payment of bank loan: $0 $0 ($11,676)
Total $8,000 $8,000 $14,207.24
Explanation:
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.
An increase in savings by consumers is seen as a(n):_________.
a. decrease in investment spending in the economy increase in government spending in the economy.
b. decrease in exports in the economy.
c. increase in imports in the economy.
d. leakage in spending in the economy.
Answers
Answer:
d. leakage in spending in the economy.
Explanation:
In the economy firms spend money on labour, input, and business expansion. While in the personal household there is spending on food, rent, and other expenses.
When money is taken out of this cycle and not used for a particular purpose then it is considered to be a leakage.
Leakages include taxes savings and imports.
Savings occurs when an individual has excess income and decides to reserve some for a future use. This fund does not have a particular use in the economy so it is considered to be a leakage.
Answer:
D. Leakage in spending in the economy.
Explanation:
It is observed that if consumers have a rise in their wages, they tend to benefit and this helps the economic situation of the said country or nation as seen in some economies of the world lately. Also alteration in interest rates can have different consumer effects which ranges from spending habits depending on a number of factors to other habits that may end up boosting the economy also current rate levels, expected future rate changes, confidence of the consumer, and the overall health of the economy.
An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Rajiv can either mow 2 lawns or wash 1 car; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 1 lawn or wash 2 cars. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns.
(A) All three spend all their time washing cars
(B) All three spend half their time on each activity.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
(D) Identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Yakov Charles
Answers
Answer:
(A) All three spend all their time washing cars
In 10 hours Rajiv will wash 10 cars, because he can wash 1 car per hour.
Yakov will also wash 10 cars because he can wash 1 car per hour.
And, Charles will wash 20 cars because he can wash 2 cars per hour.
(B) All three spend half their time on each activity.
In 5 hours, Rajiv will mow 10 lawns, and wash 5 cars.
Yakov will mow 5 lawns and wash 5 cars.
And Chalres will mow 5 lawns and wash 10 cars.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
Rajiv will mow 10 lawns and wash 10 cars.
Yakov will wash 10 cars.
And Charles will mow 10 lawns.
(D) Identify the opportunity cost of washing cars for each worker.
For Rajiv, the opportunity cost of washing 1 car is not mowing 2 lawns.
For Yakov, the opportunity cost is not mowing 1 lawn.
For Charles, the opportunity cost is not mowing half a lawn.
Hopewell Corporation Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 21,000 Liabilities 20,000 Other Assets 26,000 Equity 27,000 Total Assets 47,000 Total Liabilities & Equity 47,000 Hopewell Corporation Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 5,500 Expenses 2,600 Net Income 2,900 Between January 1 and March 31, 2020: 1. Cash decreases by $100,000 2. Liabilities decrease by $300,000 3. Paid-In Capital does not change 4. Dividends paid of $300,000 What is the value for Other Assets on March 31, 2020?
Answers
Answer:
The value for Other Assets on March 31, 2020 $29,000,000
Explanation:
Hopewell Corporation Balance Sheet As of December 31, 2019
Cash = $21,000,000
Other Assets = $26,000,000
Total Assets = $47,000,000
Liabilities = $20,000,000
Equity = $27,000,000
Total Liabilities & Equity = $47,000,000
Hopewell Corporation Income Statement January 1 to March 31, 2020
Revenue = $5,500,000
Expenses = $2,600,000
Net Income = $2,900,000
Between January 1 and March 31, 2020:
1. Cash decreases by $100,000
2. Liabilities decrease by $300,000
3. Paid-In Capital does not change
4. Dividends paid of $300,000
Assets
Cash = $21,000,000 - $100,000 = $20,000,000
Liabilities = $20,000,000 - $300,000 = $19,700,000
Equity = $27,000,000 + $2,600,000 - $300,000 = $29,300,000
Total Liabilities & Equity = $19,700,000 + $29,300,000 = $ 49,000,000
Other assets = $49,000,000 - $20,000,000 = $29,000,000
The Bloomington Bicycle Bearing company wishes to use a level output plan to plan for the rest of the year. Here is the forecasted demand for all bearing types: Month Demand May 800 Jun 650 July 720 August 690 Sept 530 Oct 610 Nov 630 Dec 610 If the beginning inventory is 300 units and the desired ending inventory at the end of December is 500 units, how many units will be in inventory at the end of August
Answers
Answer:
August ending Inventory 160 units
Explanation:
It wishes a level output AKAK same production over the rest of the year
total demand:
we add up the demand of the moths and our desired ending inventory
then we subtract the beginning and divide over the eight months
800 + 650 + 720 + 690 + 530 + 610 + 630 + 610 + 500 desired ending - 300 beginning = 5,440
We divide by 8 = 680 per month
Now we can do the budget up to August to solve for the ending inventory
[tex]\left[\begin{array}{ccccc}&Beg&Demand&Production&Ending\\May&300&800&680&180\\June&180&650&680&210\\July&210&720&680&170\\August&170&690&680&160\\\end{array}\right][/tex]
Ending = Beginning + Production - Demand (consumed)
A firm expects to have net income of $5,000,000 during the next year. The company’s target capital structure is 35% debt and 65% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $6,000,000. If SL Computer follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is the firm’s expected dividend payments?
Answers
Answer:
$1,100,000
Explanation:
The firm expected to have 5,000,000 as net Income
Capital Structure; Debt=35% , Equity= 65%
$6,000,000 is determined to be the Optimal capital budget for the coming year
The firm’s expected dividend payments following a residual distribution policy is = Net Income – [Total Capital Budget x Equity Ratio]
Where Net Income =5,000,000 Total capital budget =6,000,000 Equity Ratio= 65%
Hence Total Dividend Payment = $5,000,000 – [$6,000,000 x 65%]
= $5,000,000 - $3,900,000
= $1,100,000
The firm’s expected dividend payments is = $1,100,000,
Classify the following activities in providing medical services at Healthsmart Clinic.
Activity Control Level Activity Driver
A. Registering patients
B. Cleaning beds
C. Stocking examination rooms
D. Washing linens
E. Ordering medical equipment
F. Heating the clinic
G. Providing security services
H. Filling prescriptions
1. classify each activity as unit level (U), batch level (B), product level (P), or facility level (F).
2. identify an activity driver that might be used to measure these activities at the clinic.
Answers
Answer:
The following Classification of activities for medical services at health smart clinic is categorized below
Explanation:
Solution
Given that:
The following activities for providing medical services at health smart Clinic is stated below:
Activity Control level Activity Driver
A. Patient registering - Unit level - Number of patients
B. Cleaning beds - Unit level - bed, patients, labor hours
C. Stocking examination rooms - Facility Level - Number of rooms
D. Washing linens - Batch level - Loads
E. Ordering medical equipment - Facility Level - Cost of equipment, Number of suppliers
F. Heating the clinic - Facility Level - Degree days, space
G. Providing security services - Facility level - No. of days , area covered
H. Filing prescriptions - Batch level - No. of prescriptions
A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: Location (X,Y) A 7,2 B 4,7 C 5,5 D 6,2 E 8,4 If the amount of fabric shipped to each plant are equal, what is the optimal location for the fabric plant?
Answers
Answer:
(6,4)
Explanation:
The computation of optimal location for the fabric plant is shown below:-
X Y
A 7 2
B 4 7
C 5 5
D 6 2
E 8 4
Total 30 20
[tex]\bar X = \frac{Total\ of\ X}{Total\ number\ of\ locations}[/tex]
[tex]\bar X = \frac{30}{5}[/tex]
= 6
[tex]\bar Y = \frac{Total\ of\ Y}{Total\ number\ of\ locations}[/tex]
[tex]\bar Y = \frac{20}{5}[/tex]
= 4
So, the optimal location for the fabric plant is (6,4)
In a situation of neither input nor output fixed, the proper economic criterion is to _________________. A. Maximize the output B. Minimize the inputs C. Minimize (inputs - outputs) D. Maximize (outputs - inputs)
Answers
Answer:
D. Maximize (outputs - inputs)
Explanation:
The input is the raw material, labor, the efforts that is used in making the product while the output is the product or the result arising from the input
The profit arises when output and the input varies from each other
i.e
Profit = Output - input
In the case where there is neither an input nor output fixed, so we have to maximize the profit i.e (output - input) but the condition is that they are different from each other
Hence, the correct option is D.
It may seem surprising that the CEO selected to replace Steve Jobs was hired from within the firm. When considering who to appoint as CEO, the board had to consider many factors. What condition existed at Apple that would have suggested a preference to hire from outside?
Answers
Answer: Apple's need to continually innovate
Explanation:
Here is the complete question:
may seem surprising that the CEO selected to replace Steve Jobs was hired from within the firm. When considering who to appoint as CEO, the board had to consider many factors. What condition existed at Apple that would have suggested a preference to hire from outside?
a. Apple's need to reverse recent poor performance
b. Appreciation of Apple's culture and core values
c. Apple's need to continually innovate
d. The need for the CEO to know the firm's core competencies as well as be able to develop new ones
Answer:
In 2011, after the resignation of Steve Jobs resigned as the Chief Executive Officer of Apples, Tim Cook became the chairman of the board, and was named as the new chief executive officer of Apple Inc.
Steve Cook was already working with Apple and he knew the culture and core values and it'll be easier to develop be ones as he knew the firm's core competencies.
The condition that existed at Apple which would have suggested a preference for them to hire from outside will be the need to continually innovate.
The company's culture focuses on
the maintenance of a high level of innovation which involves creativity coupled with a mindset which challenges standards and conventions. In line with the innovation value, hiring from outside might have been preferable.
Consider the business Dave’s Doughnuts. Which of the following is a sunk cost of this business? Group of answer choices The monthly rent Dave must pay to use a building downtown The wages Dave pays to his workers who make the doughnuts The expenses that went into research and development of a new doughnut flavor The salary that Dave could be earning elsewhere if he didn’t own the business None of the above
Answers
Answer:
The expenses that went into research and development of a new doughnut flavor
Explanation:
A sunk cost is a cost that has already been incurred and cannot be recovered. It is money that has already been spent. Sunk costs are bygone and are not to be considered when deciding whether to continue an investment project.
The expenses that went into research and development of a new doughnut flavor is a sunk cost since the cost has been incurred already and cannot be recovered because it is not a relevant cost.
Why Do Organizations not change in response to environmental pressures?
Answers
Answer:
It often proves difficult to actually realize the change that you have come up with. Especially when it comes to cultural or behavioral change. We want to show that change is not so much something that you have to get others to join. You have to make your change part of it
The Blaine Development Corporation (BDC) is reconsidering the Lummi Resort Hotel project. It would be located on the picturesque banks of Birch Bay and have its own championship-level golf course. The cost to purchase the land would be $1 million, payable immediately. Construction costs would be approximately $2 million, due 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 with an equal chance (uniform distribution). BDC’s best estimate for the annual operating profit to 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, BDC plans to sell the hotel. The selling price is likely to be somewhere between $4 and $8 million (assume a uniform distribution), and revenue will be received in year 5. Interest has been r = 5% (and you can ignore inflation), so you can simplify your net present value (NPV) calculation to be
NPV = summation of [ (pi(t)-c(t)) / ( (1-r)^t )] where t varies from 0 to 5
where pi(t) is operating profit and ct is cost of land and construction, both in period t. Simulate the NPV 1000 times. What is the mean and standard deviation of the NPV of the project?
Answers
Answer:
I can't help you sorry
Explanation:
I don't know what any of this means
In no case can "market" in the lower-of-cost-or-market rule be more than:_______.
a. estimated selling price in the ordinary course of business.
b. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal, an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
c. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal.
d. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal and an allowance for an approximately normal profit margin.
Answers
Answer:
b. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal, an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
Explanation:
Note that the lower of cost market rule is explicitly encouraging businesses to record the lowest cost of inventory; for example using the original cost or its current market price, whichever is favourable.
Thus, the "market" must not be more than the estimated selling price in the ordinary course of business, with an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
When a project has a "hard gate," like being ready on time, how does that affect normal success criteria? Is it fair to judge a project with a critical completion date by normal project success standards? Why or why not?
Answers
Explanation:
The issue that determines the success of a project is usually attributed to managing the scope of the project. Therefore, in some projects, the deadline for completion is not necessarily the most fundamental criterion that will incur your success.
Every project has a defined deadline for the beginning and the end, so the project management must be planned so that the time is sufficient for the execution of its tasks that will lead to the achievement of the objectives and goals.
Therefore, it is not fair to judge a project with a critical completion date, due to the fact that the project was developed and controlled so that success was related to other more important variables for such a project, not only time, but also its effectiveness , cost-benefit, quality, costs, etc.
Charles is a stay-at-home parent who lives in New York City and teaches tennis lessons for extra cash. At a wage of $25 per hour, he is willing to teach 6 hours per week. At $35 per hour, he is willing to teach 16 hours per week. Using the midpoint method, the elasticity of Teresa’s labor supply between the wages of $25 and $35 per hour is approximately _________ , which means that Teresa’s supply of labor over this wage range is _________
Answers
Answer:
2.75, elastic.
Explanation:
Measure labor supply elasticity of Individual T's as follows :
[tex]\bf Elasticity=\frac{Percent \;change\;in\;labour\;hr}{\frac{Average\;labour\;hour}{\frac{Percent\;change\;in\;wage\;price}{Average\;wage\;price} } }[/tex]
[tex]\bf =\frac{16-6}{\frac{16+6}{\frac{2}{\frac{35-25}{\frac{35+25}{2} } } } }[/tex]
[tex]\bf=\frac{10}{\frac{11}{\frac{10}{30} } }[/tex]
[tex]\bf=\frac{0.91}{0.33}[/tex]
[tex]=2.75[/tex]
Therefore, the elasticity of the labour supply of Individual T's is approx. of earnings per hour. 2.75, meaning that the work supply of Person T's is elastic across this wage range
Compton Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for the firm's services is very competitive. To compete successfully, Compton must deliver quality services at a low cost. Compton presents the following data for 2016 and 2017.Compton Associates is an architectural firm that has been inArchitect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year.Required1. Is Compton Associate's strategy one of product differentiation or cost leadership? Explain briefly.2. Describe key measures you would include in Compton's balanced scorecard and your reasons for doing so.
Answers
Answer:
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Explanation:
Torino Company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $3,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Answers
Answer:
The answer is $4,300
Explanation:
Solution
We recall that:
Torino company has 1,200 shares of = $50 per value
The cumulative and nonparticipating preferred stock of = 6.0%
They also have 13,00 shares
Common stock outstanding = $10 per value
Total dividends = $3,500
Now,
The first year amount of dividend that was paid in the first year of working is stated as follows:
6% * 1300 * 50 = $3900
The paid dividend = $3,500
The amount amount payable during the second year to the common stakeholders is
=$3900 + 400 = $4,300
Note: preferred shares are cumulative, for this the amount paid to the stakeholders was $4,300
You put money into an account that earns a 5 percent nominal interest rate. The inflation rate is 2 percent, and your marginal tax rate is 40 percent. What is your after-tax real rate of interest
Answers
Answer: 1%
Explanation:
The Nominal interest rate has not been adjusted for inflationary effects yet and as such is considered overstated.
The Real Interest rate has been adjusted for inflation and is believed to show the actual return one receives.
Tax is calculated on the Nominal rate.
After tax Nominal Rate = 5% * ( 1 - 40%)
= 3%
Then adjust for inflation to find real rate,
= 3% - 2%
= 1%
The After-tax real rate is 1%.
In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them. a. True b. False
Answers
Answer:
False
Explanation:
Bleeding edge firms provide products that are untested and carry a high risk. Products are unreliable and lead adopters stand the risk of making big losses in event that the product is not well received in the market
Leading edge firms on the other hand deal in products that are well tested and accepted by the market.
So the statement that - unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them. Is not true
Products offered by bleeding edge firms are not embraced by the market as they are untested and risky
Suppose a stock had an initial price of $92 per share, paid a dividend of $2.30 per share during the year, and had an ending share price of $75.50. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield
Answers
Answer:
(a) Percentage return = -$14.20 ÷ $92 = -15.43%
(b) Dividend Yield = $2.30 ÷ $92 = 2.50%
Explanation:
Initial price per share= $92.00
Ending share price = $75.50
Capital loss = $75.50 - $92.00 = -$16.50
Dividend = $2.30
Net return = -$16.50 + $2.30 = -$14.20
(a) Percentage return = (-$14.20 ÷ $92) × 100% = -15.43%
(b) Dividend Yield = ($2.30 ÷ $92) × 100% = 2.50%
Stellar Corporation began operations on January 1, 2014. During its first 3 years of operations, Stellar reported net income and declared dividends as follows.Net incomeDividends declared2014 $49,500 $ –0– 2015 128,600 59,600 2016 161,000 58,800 The following information relates to 2017.Income before income tax $231,000 Prior period adjustment: understatement of 2015 depreciation expense (before taxes) $32,000 Cumulative decrease in income from change in inventory methods (before taxes) $44,800 Dividends declared (of this amount, $32,000 will be paid on January 15, 2018) $118,400 Effective tax rate 40 %Prepare a 2017 retained earnings statement for Stellar Corporation. (List items that increase adjusted retained earnings first.)
Answers
Answer:
$194,820
Explanation:
Retained earnings at the end of 2017 is computed thus:
2014 net income $49,500
2014 dividends ($0)
2014 retained earnings $49,500
2015 net income $128,600
2015 dividends ($59,600)
2015 retained earnings $118,500
2016 net income $161,000
2016 dividends ($58,800)
2016 retained earnings $220,700
understatement of depreciation expense
after tax impact $32,000-(40%*$32,000) ($19,200)
After tax impact of decrease in net income due
to inventory method $44,800-($44,800*40%) ($26,880)
Adjusted retained earnings for 2016 $174,620
net income for 2017 $231,000-($231,000*40%) $138,600
dividends declared for 2017 ($118,400)
Retained earnings for 2017 year end $194,820
Retained earnings in the adjustment in each is the retained earnings brought forward plus the net income for the current year minus dividends declared for the year
Tamarisk Corporation had the following 2020 income statement. Sales revenue $189,000 Cost of goods sold 129,000 Gross profit 60,000 Operating expenses (includes depreciation of $20,000) 54,000 Net income $6,000 The following accounts increased during 2020: Accounts Receivable $14,000, Inventory $10,000, Accounts Payable $12,000. Prepare the cash flows from operating activities section of Tamarisk’s 2020 statement of cash flows using the indirect method.
Answers
Answer:
Kindly check attached picture for Tamarisk Corporation Statement Of Income 2020 (indirect method)
Sandy wants to persuade her audience that the high cost of daily and seasonal ski passes led to the largest decline in revenue that Colorado's major ski resorts have seen in nearly a decade, and that ticket costs should be reduced. She should use what organizational pattern
Answers
Answer: argument from cause to effect
Explanation:
Arguments of Cause and Effect. or better still Claims of cause and effect are hypothesis which are supported the thought that one event usually controls or causes another. example from the question.
we all know that sometimes a rise in cost also can result in a decrease in sale or revenues because the case could also be. The reason for Colorado decline in revenue is as a results of visit sales thanks to high cost, and also the effect is that the decline in revenues generated.
The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2018 2019 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses $920,000 620,000 300,000 290,000 $1,840,000 1,240,000 600,000 340,000 Net income 10,000 260,000 Additional Information a. Sales and production data for these first two years follow. 2019 30,000 40,000 2018 Units produced Units sold 30,000 20,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) S 5 10 Total product cost per unit $31 . Selling and administrative expenses consist of the following 2018 2019 Variable selling and aeministrative expenses ($2.50 per unit) Fixed selling and administrative expenses 50,000 $100,000 240,000 240,000 Total selling and administrative expenses $290,000 $340,000 neck my Work Required:Prepare income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2018 2019 Sales 920,000 1,840,000 Less: Variable costs Variable overhead Variable selling and administrative expenses 50,000 100,000 Direct labor Direct materials 50,000 100,000 Total variable costs 900,000 Contribution margin 450,000 Less: Fixed expenses 300,000 240,000 300,000 Fixed overhead 240,000 Fixed selling and administrative costs 540,000 540,000 Total foxed expenses (90,000) 360,000 Net income (loss)
Answers
Answer:
DOWELL Company Variable Costing Income Statements for 2018 and 2019:
2018 2019
Sales 920,000 1,840,000
Less: Variable costs
Total variable costs 470,000 940,000
Contribution margin 450,000 900,000
Less: Fixed expenses:
Fixed selling costs 300,000 300,000
Fixed administrative costs 240,000 240,000
Total fixed expenses 540,000 540,000
Net income (loss) (90,000) 360,000
Explanation:
a) Dowell Company Income Statements under absorption costing:
2018 2019
Sales $920,000 $1,840,000
Cost of goods sold 620,000 1,240,000
Gross margin 300,000 600,000
Selling & Admin. Expenses 290,000 340,000
Net Income 10,000 260,000
b) Production & Sales Data:
Units Sold Units Produced
2018 20,000 30,000
2019 30,000 40,000
c) Variable costing and absorption costing produce different net income results. Variable costing takes into consideration the variable costs of production to produce a contribution while absorption costing considers the cost of goods sold to produce the gross profit. Variable costing is more of a management accounting technique for decision making while absorption costing follows the financial accounting procedures.
At December 31, 2010, Aaliyah Company reports the following results for its calendar year.
Cash sales........... $1905,000
Credit sales......... 5682000
In addition, its unadjusted trial balance includes the following items
Accounts receivable $1,270,100 debit
Allowance for doubtful accounts 16,580 debit
Required
1. Prepare the adjusting entry for Aaliyah Co. to recognize bad debts under each of the following independent assumptions:
a. Bad debts are estimated to be 1.5% of credit sales.
b. Bad debts are estimated to be 1% of total sales.
c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet assuming that an aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
Answers
Answer:
1.
Debit Credit
31-Dec-10
(a) Bad debt Expense A/c 85,230
To Allowance for Doubtful Accounts A/c 85,230
(b) Bad debt Expense A/c 75,870
To Allowance for Doubtful Accounts A/c 75,870
(c) Bad debt Expense A/c 80,085
To Allowance for Doubtful Accounts A/c 80,085
2.
Current Assets Amount in $ Amount in $
Account Receivables 1,270,100
Less: Allowance for doubtful accounts -85,230 1,184,870
Explanation:
1. In order to prepare the adjusting entry we would have to make the following calculations:
(a) Bad debts estimated =1.5% on Credit sales =$5682,000 *1.5% =$85,230 (b) Bad debts estimated =1% on Total sales =($5682,000 +$ 1905,000) *1% =$75,870
(c ) Bad debts estimated =5% on year end receivables + Debit Balance =5% *1270100 +16580 =$80085
Debit Credit
31-Dec-10
(a) Bad debt Expense A/c 85,230
To Allowance for Doubtful Accounts A/c 85,230
(b) Bad debt Expense A/c 75,870
To Allowance for Doubtful Accounts A/c 75,870
(c) Bad debt Expense A/c 80,085
To Allowance for Doubtful Accounts A/c 80,085
2. Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet as follows:
Current Assets Amount in $ Amount in $
Account Receivables 1,270,100
Less: Allowance for doubtful accounts -85,230 1,184,870
A limited partnership: Multiple Choice May only have two partners. Has owners called stockholders. Includes a general partner with unlimited liability. Is the same as a corporation. Is subject to double taxation.
Answers
Answer:
Is the same as a corporation.
Explanation:
The partnership is a firm in which there are two or more partners comes in a contract to share the profit and losses to their profit and losses sharing ratio
A limited partnership is a partnership firm in which the partners have limited liability to their investment but the general partner has unlimited liability
It is just like a corporation who contains limited partners with the limited liability
Corn is an input in the production of tortillas. If you don't know anything about the demand curve, which of the following can you say for certain will happen in the market for tortillas if there is an increase in the price of corn ?
a. overall supply will decrease
b. overall supply will increase
c. quantity supplied will decrease
d. quantity supplied will increase
Answers
Answer:
3.14
Explanation:
1) Do you think there is/are any action(s) by Jessops Group Limited, that can be considered as a Corporate Social Responsibility (CSR) activity? 2) If yes, can you identify and explain a benefit of the CSR activity to Jessops Group Limited?
Answers
Answer:
YesExplanation:
Yes, Jessops is fulfilling its corporate social responsibility due to its contribution to the local councils for developing the collection facilities of discarded electronic goods and also by raising awareness for WEEE regulations, setting up plants to recycle used batteries can also be counted as a corporate social responsibility as it is an initiative to reduce environmental pollution caused by batteries.
There are four types of corporate social responsibility: Environment conservation, philanthropy, volunteerism, diversity and labor practices. Many corporations give money for preservation of wildlife and land, and take up environmental clean up efforts.
CSR helps the companies in many ways. It includes brand recognition and business reputation, it gives competitive edge to a company as companies prefer suppliers with responsible policies. It enhances customer loyalty and increases sales, it saves operational cost by reducing emissions and waste.
The CSR efforts helps the companies to attract talent and retain them as employees are motivated to work with companies taking up CSR initiatives.
CSR efforts also improves relations with the authorities and makes it easy to get financial access.
So, Jessop group will also get all these benefits from its CSR initiatives that will help it to become market leader in imaging industry.
A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard deviation of 0.5. The design engineers have established an upper specification limit of 22 and a lower specification limit of 18. What is the process capability index? A) 1.20 B) 1.33 C) 1.46 D) 1.66 12. Following Q11, what is the process capability ratio? A) 1.33 B) 1.50 C) 1.66 D) 2.00
Answers
Answer:
process capability index = Cpl ( lower ) = 1.20 ( A )
The process capability ratio = 1.33
Explanation:
Target value = 20
mean = 19.8
standard deviation = 0.5
upper specification limit = 22
lower specification limit = 18
The process capability index =
Cpu = [tex]\frac{22- 18}{6(0.5)}[/tex] = 4 / 3 = 1.33
Cpk ( upper ) = (22 - mean ) / 3 * std
= ( 22 - 19.8 ) / ( 3 * 0.5 ) = 2.2 / 1.5 = 1.47
Cpl ( lower ) = ( mean - 18 ) / ( 3 * 0.5 ) = ( 19.8 - 18 ) / 1.5
= 1.8 / 1.5 = 1.2
hence the process capability index is Capability index with the minimum value which is Cpl ( lower ) = 1.20 ( A )
The process capability ratio = 1.33 refer to Cpu equation
