Answer:
The answer is 7.1%
Explanation:
ROA means Return on Asset. It is one of the profitability ratios. It tells us how profitable a company is in using its assets. It is the rate of return on assets owned by the business and it is expressed as a percentage. The formula for calculating it is:
Net profit ÷ total assets.
In this the question we have the beginning and the ending total assets, what we need to do is to find the average i.e ($9,245 million + $7,698 million) / 2 =$8,472.5 million
Therefore, Nordstrom's ROA is:
$600 million / $8,472.5 million
= 7.1%
Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. (Round activity rate answers to 2 decimal places.)
Activities Costs
Design department
Client consultation 2,100 contact hours $ 315,000
Drawings 1,800 design hours 104,400
Modeling 46,000 square feet 32,200
Project
management
department
Supervision 1,200 days $ 228,000
Billings 8 jobs 8,300
Collections 8 jobs 13,140
Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 7,400-square-foot job that requires 410 contact hours, 352 design hours, and 195 days to complete. (Round activity rate answers to 2 decimal places.)
Answer:
Activity Rates
Consultation $150
Drawings $58
Modeling $0.7
supervision $190
Billings $1037.5
Collections $1642.5
Total overhead allocated: $ 126,826
Explanation:
First, we divide the cost of each activity over the base total to get the rate.
[tex]\left[\begin{array}{ccccc}$Activity&Driver&cost&Total&Rate\\$Consultation&$contact hours&315000&2100&150\\$Drawings&$desing hours&104400&1800&58\\$Modeling&$square feet&32200&46000&0.7\\$supervision&$days&228000&1200&190\\$Billings&$jobs&8300&8&1037.5\\$Collections&$jobs&13140&8&1642.5\\\end{array}\right][/tex]
Now we apply this rate against the job activity measurement:
[tex]\left[\begin{array}{ccccc}$Activity&Job&$Rate&$Allocated\\$Consultation&410&150&61500\\$Drawings&352&58&20416&\\$Modeling&7400&0.7&5180&\\$supervision&195&190&37050&\\$Billings&1&1037.5&1037.5&\\$Collections&1&1642.5&1642.5&\\$Total&&&126826&\\\end{array}\right][/tex]
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
You work for a company that ends their fiscal year on September 30th. The company billed its customers for services provided in August, but they have not yet received payment for these services. Assuming the company uses accrual accounting, how should this transaction be recorded
Answer:
Debit Accounts receivable
Credit Service Revenue
Being entries for services rendered to customers in August
Explanation:
Under accrual accounting, revenue is recognized once it is earned which is when the goods or services have been delivered to the customers such that the risk and reward or control of the goods/services now lies with the customer.
This is different from the cash basis of accounting where revenue is only recognized when cash has been received.
In accrual accounting, When revenue is earned but cash is yet to be received,
Debit Accounts receivable
Credit Revenue account
On receipt of cash,
Debit Cash account
Credit Accounts receivable.
A registered investment adviser lives in State X. The adviser does business with 1 client in State A and 1 client in State B. The adviser gives seminars about investing to groups of potential customers in State C. The adviser is required to register in:
Answer:
State X and C
Explanation:
Remember, the clients themselves stay in state A and B, not the investment advisor. According to the requirements of the law, the investment advisor is to register in the state where he gives seminars–State C, and the state in which he resides–X.
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.
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:
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.
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
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
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
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.
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.
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%
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
John, a manager with Whole Foods Grocery Company, has just participated in a meeting that looked at future trends in the grocery business, and identified new challenges and opportunities for Whole Foods. John's participation in this meeting is an example of the __________ function of management.
Answer:
Planning
Explanation:
Planning is a management function that involves creation of a detailed plan of action in order to attain a set goals.
Planning is a continous process that management performs to modify mode of operations so that goals are better achieved.
In this scenario John participated in a meeting that looked at future trends in the grocery business, and identified new challenges and opportunities for Whole Foods.
This is an action that involves planning for future growth of the company, while identifying challenges and opportunities that will be faced.
Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 20% weight in equity, 10% in preferred stock, and 70% in debt. The cost of equity capital is 14%, the cost of preferred stock is 10%, and the pretax cost of debt is 9%. What is the weighted average cost of capital for Ford if its marginal tax rate is 30%?
Answer: 8.21%
Explanation:
The Weighted Average Cost of Capital(WACC) simply put, is the rate at which a company pays those who have invested in it and financed it be it debt holders or equity holders.
The rates in question are averaged according to the proportion by which the company uses the said capital. This results in the following formula,
WACC= [(Wd*Rd) * (1-Tax) + (We * Re) +(Wp * Rp )]
Where,
Wd is the Weight of debt
We is the weight of common Equity
Wp is the weight of preferred Equity
Rd is the Pre-tax cost of debt
Re is the cost of common Equity
Rp is the cost of Preferred equity.
Note: Sometimes you will be given the After - tax cost of debt. In which case you will not need to include the tax adjustment of (1 - tax).
Calculating,
= [( 70% * 9%) * ( 1 - 30%) + (20% * 14%) + (10% * 10%) ]
= 0.0441 + 0.028 + 0.01
= 0.0821
= 8.21%
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $243,000 and 8,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $244,200 and actual direct labor-hours were 5,700.The applied manufacturing overhead for the year was closest to:________
a. 229586
b. 234600
c. 242006
d. 236854
Answer:
Allocated overhead= $173,137.5
Explanation:
Giving the following information:
Estimated overhead= $243,000
Estimated direct-labor hours= 8,000
Actual direct labor-hours were 5,700.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 243,000/8,000
Predetermined manufacturing overhead rate= $30.375 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= 30.375*5,700= $173,137.5
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
Consider the market for mobile applications, smartphones, and conventional phones. For each pair, identify whether they are complements or substitutes:
Pairs of Goods and Services Complements Substitutes
Mobile applications and smartphones
Mobile applications and conventional phones
Smartphones and conventional phones
Answer:
Mobile Applications and Smart Phones are Complements
Smart Phones and Conventional Phones are Substitutes
Mobile Applications and Conventional Phones are substitutes.
Explanation:
Complement goods are goods that can be used or consumed together. E.g. car and gas. A car would not work without gas. A rise in price of a good leads to a fall in demand of the complement good.
Subsituite goods rival one another in consumption. They can be used in place of another good.
A rise in price of a good leads to a rise in demand of the other good.
I hope my answer helps you
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
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $150,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Item Blank Corporation Faith Corporation
Assets
Cash $ 65,000 $ 18,000
Accounts Receivable 87,000 37,000
Inventory 110,000 60,000
Buildings & Equipment (net) 220,000 150,000
Investment in Faith Corporation Stock 150,000
Total Assets $ 632,000 $ 265,000
Liabilities and Stockholders’ Equity
Accounts Payable $ 92,000 $ 35,000
Notes Payable 150,000 80,000
Common Stock 100,000 60,000
Retained Earnings 290,000 90,000
Total Liabilities & Stockholders’ Equity $ 632,000 $ 265,000
At the date of the business combination, the book values of Faith’s net assets and liabilities approximated fair value. Assume that Faith Corporation’s accumulated depreciation on buildings and equipment on the acquisition date was $30,000.
Required:
a. Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. Prepare a consolidated balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)
Answer:
A1.
Dr Investment 150,000
Cr Cash 150,000
2.
Dr Accumulated Depreciation 30,000
Cr Building & Equipment 30,000
B.Total Assets $ 567,000 $ 265,000 $30,000 $180,000 $747,000
Total Liabilities & Stockholders’ Equity $ 632,000 $ 265,000 $150,000 $0 $ 747,000
Explanation:
a) Blank Corporation Journal Entries:
1.
Dr Investment 150,000
Cr Cash 150,000
2.
Dr Accumulated Depreciation 30,000
Cr Building & Equipment 30,000
b)
BLANK AND SUBSIDIARY
Consolidated Balance sheet Worksheet
December 31, 20x2
Blank Faith Debit Credit Consolidated
Cash $ 65,000 $ 18,000 $0 $0 $83,000
Accounts Receivable
87,000 37,000 $0 $0 $124,000
Inventory 110,000 60,000 $0 $0$ $170,000
Buildings & Equipment (net) 220,000 150,000 30,000 30,000 370,000
Investment in Faith Corporation Stock
150,000 $0 $0 150,000 $0
Total Assets $ 567,000 $ 265,000 $30,000 $180,000 $747,000
Blank Faith Debit Credit Consolidated
Liabilities and Stockholders’ Equity
Accounts Payable $ 92,000 $ 35,000 $0 $0 $127,000
Notes Payable 150,000 80,000 $0 $0 $230,000
Common Stock 100,000 60,000 $60,000 $0 $100,000
Retained Earnings 290,000 90,000 $90,000 $0 $290,000
Total Liabilities & Stockholders’ Equity $ 632,000 $ 265,000 $150,000 $0 $ 747,000
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.
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
Suppose that a labor economist performs a statistical analysis on economywide worker wages using standard, measurable explanatory factors, such as job characteristics, years of schooling, and so forth. How much of the variation in worker wages can be accounted for by such measurable explanatory factors
Answer: Somewhat less than 50%
Explanation:
Here is the complete question;
Suppose that a labor economist performs a statistical analysis on economywide worker wages using standard, measurable explanatory factors, such as job characteristics, years of schooling, and so forth. How much of the variation in worker wages can be accounted for by such measurable explanatory factors?
a. Somewhat less than 50%.
b. Somewhat more than 60%
c. Nearly 100%
d. About 0%?
The variables which are typically removed from the quantitative analysis of wages are those which cannot be directly measured, directly observed or normative in nature.
Chance plays a vital role in deciding ones wage, the type of job one applies for and gets, and the salary that can be gotten. Chance cannot neither be measured nor observed. Natural ability cannot also be quantified, observed or measured. These variables are also subject to normative judgement.
Based on this analysis, the measurable traits will account for less than 50% of total variation in the wages.
Privacy:_______.
a. is an absolute value.
b. must be respected if we are to function as complete, self-governing agents.
c. is something that employees today don't care about.
d. is guaranteed by Article 3, section 3, of the Constitution.
Answer: b. must be respected if we are to function as complete, self-governing agents.
Explanation:
Privacy enables humans to be able to figure out who they are and what they want in life. By giving a person the right to privacy instead of interfering in their lives you are essentially giving them the power to make their own decisions and trusting them to do well with this right.
By respecting privacy therefore, humans are better able to function as complete and independent agents who can take charge of their own lives without having to worry about interference with the intent to influence.
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.
Agency theory presents some important managerial considerations. Broadly speaking, governance mechanisms need to assure alignment of incentives between principals and agents. The text provides an example of financial institutions in the situation of profits remaining within the firm while losses are paid by the public as a description of:________.A) a board of directors' problem.B) a challenge of information symmetry.C) a moral hazard problem.D) a private information problem.E) an adverse selection problem.
Answer: a moral hazard problem
Explanation:
Agency theory is a principle used to explain and resolve the issues in the relationship that exists between business principals and their agents. The relationship is usually the one between the shareholders who act as the principals, and the company executives who act as the agents.
When banks are bailed out through public funds for the excessive risky mortgage obligations or undue risk taking, this lead to increase in moral hazard. The gains of successful risk taking will stay with the private firm and the risks would be shared with the other parties.
Match the following terms with the best definition given.
a. Currently attainable standard
b. Favorable cost variance
c. Ideal standard
d. Nonfinancial performance measure
e. Unfavorable cost variance
- An example is number of customer complaints.
- Actual cost > standard cost at actual volumes
- Actual cost < standard cost at actual volumes
- Normal standard
- Theoretical standard
Answer: Please refer to Explanation
Explanation:
a. Currently attainable standard - Normal standard.
When a company says that a certain level of production is it's Currently Attainable Standard, they mean that this is the normal standard that they are able to operate in. That it is the standard that they have the actual capacity to produce at and so is normal for them.
b. Favorable cost variance - Actual cost < standard cost at actual volumes.
Variance cost in production is a measure that compares the cost that a company budgets to be able to produce a good vs the actual amount it takes to produce the said good. When the Budget is higher than the actual cost of production, it is said to be a FAVOURABLE balance because the budget was not exceeded.
c. Ideal standard - Theoretical standard.
This is the Standard that the company would like to be producing at to make a certain level of profit. It is usually different from the Normal Standard and the goal of most of not all companies is to work towards attaining their Ideal standard. They usually make Theoretical forecasts about their Ideal Standard.
d. Nonfinancial performance measure - An example is number of customer complaints.
There are many ways to measure performance but those ways are usually group into 2 categories being Financial and Non-financial measures of performance. The number of customer complaints that a business gets is a type of Non-financial Performance. As the intended market for a product, Customers are the most important appraisers of a Company's goods and services and if there are relatively low customer complaints, this shows that the company is performing well as they are able to please their customers.
e. Unfavorable cost variance - Actual cost > standard cost at actual volumes
As mentioned before, Variance helps determine the cost of production vs the budgeted cost of production. When a cost Variance is labeled as Unfavourable, it means that the Actual Cost exceeded the Budget of the production activity. This is unfavourable because it means that the business had to spend more than it thought it would on production thereby harming it's profit margins.
On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company's records show the following items and amounts.
Cash $2,000 Cash dividends $3,360
Accounts receivable 13,000 Consulting fees earned 15,000
Office supplies 4,250 Rent expense 2,550
Land 36,000 Salaries expense 6,000
Office equipment 28,000 Telephone expense 660
Accounts payable 7,500 Miscellaneous expenses 680
Common stock 74,000
Also assume the following:
a. The owner’s initial investment consists of $37,720 cash and $45,940 in land in exchange for its common stock.
b. The company’s $17,710 equipment purchase is paid in cash.
c. The accounts payable balance of $8,230 consists of the $2,990 office supplies purchase and $5,240 in employee salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $13,800 consulting fees earned.
Required:
Using the above information to prepare an October 31 statement of cash flows for Real Solutions.
Answer:
Statement of cash flows for Real Solutions for the year ended October 31 .
Cash flow from Operating Activities
Net Profit $14,660
Adjustment for Changes in Working Capital :
Increase in Accounts receivable ($13,000)
Increase in Accounts Payable $7,500
Net Cash from Operating Activities $9,160
Cash flow from Investing Activities
Purchase of Equipment ($17,710)
Net Cash from Investing Activities ($17,710)
Cash flow from Financing Activities
Cash dividends ($3,360)
Net Cash from Financing Activities ($3,360)
Movement during the Period ($11,910)
Cash and Cash Equivalents at Beginning of the year $37,720
Cash and Cash Equivalents at End of the year $25,810
Explanation:
The Indirect Method has been used for the Preparation of Cash flow from Operating Activities. (opt for this as it is easier to deal with the information given).
Calculation of Net Income for the Year Ended October 31
Revenue :
Consulting fees earned 15,000
Consulting fees accrued 13,800
Total Revenue 28,800
Less Expenses ;
Office supplies 4,250
Rent expense 2,550
Salaries expense 6,000
Telephone expense 660
Miscellaneous expenses 680 (14,140)
Net Income 14,660
