Answer:
Peabody, Inc.
a. Inventory Purchase Budget:
April May June
Budgeted cost of goods sold $79,000 $89,000 $99,000
Add Ending Inventory 17,800 19,800 21,000
Cost of Goods Available 4 Sale $96,800 118,800 120,000
Less Beginning Inventory 2,700 17,800 19,80
Purchases $94,100 $101,000 $100,200
b. The amount of Ending Inventory that Peabody will report on the end-of-quarter proforma balance sheet is:
$21,000
c. A Schedule of Cash Payments for Inventory:
April May June
70% in month of purchase 65,870 70,700 70,140
30% in the month following 15,000 28,230 30,300
Total payment $80,870 $98,930 $100,440
d. Balance of the Accounts Payable is:
$30,060
Explanation:
a) Data and Calculations:
1. Cost of Goods Sold Budget:
April May June July
Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000
Add Ending Inventory 17,800 19,800 21,000
Cost of Goods Available 4 Sale $96,800 118,800 120,000
Less Beginning Inventory 2,700 17,800 19,800 21,000
Purchases $94,100 $101,000 $100,200
Accounts Payable
Beginning balance $15,000 $28,230 $30,300
Purchases $94,100 $101,000 $100,200
Less payment:
70% in month of purchase 65,870 70,700 70,140
30% in the month following 15,000 28,230 30,300
Ending balance $28,230 $30,300 $30,060
4. Which of the following are NOT typical characters used in a commercial by a company marketing to teenagers?
A Popular Radio DJs
B Current Hip-Hop Artists
C Popular Classical Musicians
D Popular Professional Athletes
Answer:
C Popular Classical Musicians
Explanation:
Classical music was a trendy music genre some decades ago. Popular classical musicians had an appeal and influence over the generation of that time. Classical music is still present but does not attract the young generation in multitudes.
For marketing to be effective, the target audience should identify with characters or content in the advertisement. Commercial targeting teenagers will be more influential with popular radio DJs, current hip-hop artists, and popular professional athletes as characters. Today's teenagers will not identify themselves with popular classical musicians as this music genre is not trendy anymore.
Modern Flooring is considering a new product line. The new line would require $134,000 of fixed assets and net working capital of $24,000. The firm will apply straight-line depreciation to a zero salvage value over three years. The new line is expected to produce an operating cash flow of $35,000 the first year with that amount decreasing by 10 percent annually for two years before the new line will be discontinued. The fixed assets can be sold for $25,000 at the end of the project and all net working capital will be recovered. What is the net present value of the new line at a discount rate of 11.5 percent and a tax rate of 35 percent
Answer:
-51,784
Explanation:
Net present value can be calculated by first calculating the present values of operating cash flows each year and the sum up all the present values.
Year 0 1 2 3
Operating CF 35000 31500 28350
Fixed asset -134000
Net working capital -24000 24000
Disposal after tax 16250
(25000x0.65)
Net cashflow -158000 35000 31500 68600
PV Factor 1 0.896 0.804 0.721
PV -158000 31390 25337 49488
NPV = -158000 + 31390 + 25337 + 49488
NPV = -51,784
Workings
PV Factor
Year 0 = 1/(1.115)^0 = 1
Year 1 = 1/(1.115)^1 = 0.896
Year 2 = 1/(1.115)^2 = 0.804
Year 3 = 1/(1.115)^3 = 0.721
Suppose that the experiment to toss a balanced coin three times independently. Define the following events
• A is the event of getting at least one head
• B is the event of getting exactly two heads and one tail
• C is the event of getting all three coins with the same side
Please answer I have exam tomorrow and I don’t know how I answer
Answer:
Probability = 7/9
Probability = 3/9
Probability = 2/9
Explanation:
Total probability = 2³ = 9
Computation:
A is the event of getting at least one head
Probability = Event of getting at least one head / Total event
Probability = 7/9
B is the event of getting exactly two heads and one tail
Probability = 3/9
C is the event of getting all three coins with the same side
Probability = 2/9
Selected information from Green Co.'s accounting records and financial statements is as follows:
Gain an sale of 1 Proceeds fron sales to custoners and s 12,802 21,s0a Purchase of Black, Inc. bonds (face amount $205,) 367,a0 Amortization of bond discount Cash dividends declared Cash dividends paid 4,800 98,000 72,800 157,600 Proceeds from sales of Green Co. comon stock
What are the net cash flows from financing activities that will be reported in the statement of cash flows? (Enter net cesh outflows with a minus sign.)
Answer:
$84, 200
Explanation:
Calculation for the net cash flows from financing activities that will be reported in the statement of cash flows
Using this formula
Net cash flows =Common stock Proceeds from sales - Cash dividends paid
Let plug in the formula
Net cash flows = 157,000-72,800
Net cash flows =$84, 200
Therefore the net cash flows from financing activities that will be reported in the statement of cash flows is $84, 200
Candlewood LLC started business on August 1, and it adopted a calendar tax year. During the year, Candlewood incurred $10,950 in legal fees for drafting the LLC's operating agreement and $5,475 in accounting fees for tax advice of an organizational nature, for a total of $16,425 of organizational costs. Candlewood also incurred $22,000 of preopening advertising expenses and $31,000 of salaries and training costs for new employees before opening for business, for a total of $53,000 of startup costs. The LLC wants to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. How much can Candlewood deduct as organizational expenses
Answer:
$5,317
Explanation:
Calculation of the organizational expenses is as shown below.
Actual expense $53,000 - reduced startup $48,000 = $5,000
This means that Candlewood LLC may deduct
= ($16,425 - $5,000) × 5/180
= $11,425 × 5/180
= $317.4
Therefore, organizational expenses would be;
= $5,000 + $317.361111
= $5,317.361111
= $5,317. Approximated to the nearest dollar.
Candlewood LLC may deduct $5,317 as organizational expenses.
1. (30 points) Please elaborate what will happen to Net Earnings to Sales and Net Earnings to Total Book Assets when you observe these trends. (a) and (b) are separate unrelated circumstances. a) Sales increased by a total of 30% in the prior three years, while Days of Sales in Inventories increased also by 30% in each of these three years. Costs of Goods Sold to Sales remained constant. b) Gross property, plant, and equipment increased by a total of 30% during the prior three years. Operating and administrative expense increased relative to sales by 30% in the prior three years. Sales remained constant. Costs of goods sold to sales remained constant. ANSWER:
Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales. This result will be different with an increase by a similar margin in the Cost of Goods Sold.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales is an expression of the ratio of the net income to the sales revenue. The net earnings result after deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
Many companies have a _____ that their employees are responsible for abiding by. code of unethics code of ethics set of rules set of laws
Answer:
Code of Ethics
Explanation:
Answer: B) code of unethics
Explanation:
Who designed the Parthenon?
On December 31, 2022, Monty Company prepared an income statement and balance sheet and failed to take into account three adjusting entries. The incorrect income statement showed net income of $44,000. The balance sheet showed total assets, $166,400; total liabilities, $66,000; and stockholders’ equity, $100,400. The data for the three adjusting entries were: (1) Depreciation of $9,720 was not recorded on equipment. (2) Salaries and wages amounting to $10,720 for the last two days in December were not paid and not recorded. The next payroll will be in January. (3) Rent of $7,520 was paid for two months in advance on December 1. The entire amount was debited to Prepaid Rent when paid.
Answer:
Salaries and Wages are owed so they are now liabilities. They are also expenses and will reduce the Net Income.
Rent Revenue was in advance for 2 months meaning one of those months will be December which is in the current period so;
= 7,520/2
= $3,760 will be added to net income for the year
The same amount will be removed from Liabilities as the revenue has now been recognized.
Depreciation reduces the value of Fixed assets so will be deducted from Assets.
It is also an expense so it will reduce Net Income.
Whatever happens to Net Income will happen to Stockholders' equity as well because Net Income is an Equity account.
Last week, an investigative reporter for a major metropolitan newspaper discovered that the doctors conducting clinical trials of a new cancer treatment drug are also the principal shareholders in Cancer Solutions Inc. (CSI). CSI is the company developing and attempting to market the drug. Upon being interviewed by federal authorities, the doctors acknowledged their conflict of interest but reported that they were sold the shares at a 75% discount by CSI's chief financial officer. The CFO was concerned that CSI might not be able to meet its annual performance objectives and in turn pay his anticipated multimillion-dollar bonus.
Does an agency conflict exist between CSI's CFO and the company's shareholders?
a. Yes; CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
b. Yes; the shares should not have been sold at a 75% discount, which is price discrimination.
c. No; professionals, such as doctors and professional money managers, would not participate in unethical activities.
d. No; in general, shareholders are satisfied with company officers engaging in any type of legal or illegal activity to ensure the chances of them receiving greater dividend payments.
Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth?
a. Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
b. Pay the manager a large base salary with a huge stock option package that matures on a single date.
Amalgamated Metals Corporation's stockholders are mostly individual investors, and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Amalgamated Metals Corporation's stock, direct shareholder intervention would be___________ likely to motivate the firm's management.
Answer:
FIRST QUESTION
A)Yes; CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
SECOND QUESTION
A)Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
Explanation:
We are informed from the question about an investigative reporter for a major metropolitan newspaper discovery about the doctors conducting clinical trials of a new cancer treatment drug are also the principal shareholders in Cancer Solutions Inc. And how The CFO was concerned that CSI might not be able to meet its annual performance objectives and in turn pay his anticipated multimillion-dollar bonus.
In this case there is an agency conflict that exist between CSI's CFO and the company's shareholders, this is because the, CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
Agency conflict in finance, is also regarded as conflict of interest, usually occur between the management and the shareholders of that company, it is conflict that usually emerge when those that are required for certain responsibility like interest of principal decide to divert the the authority for their own benefits. However,agency conflict can be minimized by allowing transparency and some ways.
It should be noted here that the CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus which is the reason behind the conflict because he act on his own interest.
SECOND QUESTION,
Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth?
From the explanation of Agency conflict from First question it should be noted that there are some actions that will help to ease agency conflicts and better align managers' objectives with the firm's shareholder wealth such
Payment of the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
The payment of the stock options to the manager will allow selling of stock at agreed price as well as date.
Amalgamated Metals Corporation's stockholders are mostly individual investors, and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Amalgamated Metals Corporation's stock, direct shareholder intervention would be______more likely_____ likely to motivate the firm's management
eck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 10,300 Purchases 47,500 Avail. for use 57,800 DM used 51,000 End. Inv. 6,800 Work in Process Inventory Begin. Inv. 17,000 DM used 51,000 Direct labor 34,500 Overhead 64,000 Manuf. costs 166,500 Cost of goods manuf. 153,000 End. Inv. 13,500 Finished Goods Inventory Begin. Inv. 20,200 Cost of goods manuf. 153,000 Avail. for sale 173,200 Cost of Goods Sold 152,300 End. Inv. 20,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Answer:
A.$153,000
B.152,300
Explanation:
A. Preparation for the schedule of cost of goods manufactured for the year
Schedule cost of goods manufactured
Direct material 51,000
Direct labor 34,500
Overhead 64,000
Total manufacturing cost 149,500
Beginning work in process 17,000
Total Cost of work in process 166,500
Less: Ending work in process (13,500)
Cost of goods manufactured $153,000
(166,500-13,500)
B. Computation for cost of goods sold for the year.
Schedule of cost of goods sold
Beginning finished goods 20,200
Cost of goods manufactured 153,000
Cost of goods available for sale 173,200
(153,000+20,200)
Less; Ending finished goods (20,900)
Cost of goods sold $152,300
(173,200-20,900)
Therefore the schedule of cost of goods manufactured for the year will be $153,000 while the cost of goods sold for the year will be $152,300
You have $25.36 in your account. You make deposits of $36 and $78 and make a withdrawal of $61.24. How much is in the account?
Answer:
78.12
Explanation:
Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
Units Costs
Beginning work in process (27% complete) 36,000
Direct materials $ 48,000
Conversion cost 105,000
Total cost of beginning work in process $ 153,000
Number of units started 74,000
Number of units completed and transferred to finished goods ?
Ending work in process (52% complete) 89,000
Current period costs
Direct materials $ 91,000
Conversion cost 161,000
Total current period costs $ 252,000
Required:
1 & 2. Using the weighted-average method of process costing, complete each of the following steps:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the number of equivalent units.
c. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)
d. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)
Answer:
a. Reconciliation of the number of physical units worked on during the period.
As at Beginning 36,000
Units started in current period 74,000
Units to be accounted for 110,000
Transferred out 21,000 Balancing figure
(110,000 - 89,000)
As at end 89,000
Units accounted for 110,000
b. Calculation of equivalent units.
Direct Materials Conversion Costs
Transferred out (A) 21,000 21,000
Units as at end (B) 89,000 89,000
Percentage of completion (C) 100% 52%
Equivalent units as at 31 Dec 89,000 46,280
(D = B * C)
Total equivalent units (A+D) 110,000 67,280
c. Calculation the cost per equivalent unit.
Direct Materials Conversion Total
As at beginning 48000 105000 153000
Added during the period 91000 161000 252000
Costs to be accounted for 139000 266000 405000
Total equivalent units 110,000 67,280
Cost per equivalent unit 1.26364 3.95363 5.21726
Note: Cost per equivalent unit = Costs to be accounted for / Total equivalent units
d. Reconciliation the total cost of work in process.
Direct Materials Conversion Total
Units as at end (A) 89,000 89,000 89,000
Cost per equivalent unit (B) 1.26364 3.95363 5.21726
Percentage of completion (C) 100% 52%
Total cost (A*B*C) 112,464 182,974 295,437
Cost of closing WIP = Costs to be Accounted for - Costs Transferred Out
= 405000 - (21000 units * 5.21726)
= 405,000 - 109,562.46
= 295437.54
= $295,4378
The number of cases of merlot wine sold by the Connor Owen winery in an eight-year period is as follows:
YEAR CASES OF MERLOT WINE
2005 281
2006 367
2007 409
2008 467
2009 369
2010 511
2011 421
2012 387
Using an exponential smoothing model with an alpha value of 0.20, estimate the smoothed value calculated as of the end of 2012. Use the average demand for 2005 through 2007 as your initial forecast for 2008, and then smooth the forecast forward to 2012. (Round your intermediate calculations and final answer to the nearest whole number.)
Answer:
The forecast for the year 2012 with an alpha value of 0.20 = 366.04.
Explanation:
The first step in order to solve this question/problem is to calculate or determine the Exponentially smoothed forecast for a period of time, t using the values of average demand for 2005 through 2007, that is to say;
Exponentially smoothed forecast for a period of time, t using the values of average demand for 2005 through 2007 = [actual sales in 2005 + actual sales in 2006 + actual sales in 2007]/ 3.
Therefore, Exponentially smoothed forecast for a period of time, t using the values of average demand for 2005 through 2007 =[ 281 + 367 + 409]/3 = 1057/3 = 352.3.
Since we are asked to use the smoothed value calculated as of the end of 2012. Use the average demand for 2005 through 2007 as your initial forecast for 2008, then, we have that for 2008 the forecast = 352.3.
Therefore, the forecast from the year 2009 through to the year 2012 can be calculated as given below;
The forecast for the year 2009 with an alpha value of 0.20 = 0.2 × 467 + [1 - 0.2] × 352.3 = 375.24.
The forecast for the year 2010 with an alpha value of 0.20 = 0.2 × 369 + [1 - 0.2] × 352.3 = 355.64.
The forecast for the year 2011 with an alpha value of 0.20 = 0.2 × 511 + [1 - 0.2] × 352.3 = 384.04.
The forecast for the year 2012 with an alpha value of 0.20 = 0.2 × 421 + [1 - 0.2] × 352.3 = 366.04.
The 16 overhead doors on your loading dock must be replaced now. The deluxe model costs $2,200 each and will last for six years. The standard model costs $1,600 each and will last for four years. The deluxe model is aluminum, so it will have a scrap value of $150 at the end of its life. The standard model is plastic and has no scrap value. The use of the deluxe model on the loading dock will also save your company $1,000 per year in heating costs because of its ability to seal better. If you use an interest rate of 12% and present worth analysis, which door will you recommend
Answer:
You should purchase standard doors because the present value of that purchase is -$25,600, while the NPV of purchasing aluminum doors is -$30,195.56.
Explanation:
we have to compare the present value of both alternatives:
alternative 1: purchase aluminum deluxe doors:
cash flow year 1 = (16 x -$2,200) = -$35,200
cash flow year 1 - 5 = $1,000
cash flow year 6 = $1,000 + (16 x $150) = $3,400
NPV = -$35,200 + $1,000/1.12 + $1,000/1.12² + $1,000/1.12³ + $1,000/1.12⁴ + $1,000/1.12⁵ + $3,400/1.12⁶ = -$35,200 + $892.86 + $797.19 + $711.78 + $635.52 + $497.18 + $1,469.91 = -$30,195.56
alternative 2: purchase standard doors
NPV = 16 x -$1,600 = -$25,600
For the next fiscal year, you forecast net income of and ending assets of . Your firm's payout ratio is Your beginning stockholders' equity is and your beginning total liabilities are . Your non-debt liabilities such as accounts payable are forecasted to increase by . Assume your beginning debt is . What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The amount of equity to issue will be
Answer:
Since the numbers are missing, I looked for a similar question:
"you forecast net income of $50,000 and ending assets of $500,000. Your firm's payout ratio is 10%. Your beginning stockholders equity is $300,000 and your beginning total liabilities are $120,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. What is you net new financing needed for next year?"
we must first determine the debt to assets ratio = $120,000 / ($300,000 + $120,000) = 0.2857
since total assets are expected to be $500,000, then total liabilities + equity will also = $500,000 (basic accounting equation)
since debt to equity ratio should remain constant, then:
total liabilities = $500,000 x 0.2857 = $142,850
total equity = $500,000 - $142,850 = $357,150
we can verify our calculations:
old debt to equity ratio = $120,000 / $300,000 = 0.4
new debt to equity ratio = $142,820 / $357,150 = 0.4
since your current equity = $300,000, you will need to raise $57,150
your current liabilities + future accounts payable = $120,000 + $10,000 = $130,000, therefore, you will need to issue debt for $142,850 - $130,000 = $12,850
James did not like the fact that he had no input in his productivity goal. Because of this, his was low and he did not take it as seriously as if he had set the same goal himself. Carol always tries extremely hard to reach her performance goal. She takes it personally when she falls short, which rarely happens because she is so dedicated to reaching it. Carol's is high. After organizational and subsidiary goals are set, each manager meets with each subordinate to explain the unit goals to the subordinate. Together the two determine how the subordinate can contribute to the unit's goals most effectively. This is called
Answer:
James did not like the fact that he had no input in his productivity goal. Because of this, his Goal acceptance was low and he did not take it as seriously as if he had set the same goal himself.
Goal acceptance refers to the willingness of an individual to receive or consent internally to a certain goal. It is usually higher when the individual is contributes to the setting of the goal and it is low here as James did not have any input into it.
Carol always tries extremely hard to reach her performance goal. She takes it personally when she falls short, which rarely happens because she is so dedicated to reaching it. Carol's Goal commitment is high.
Goal commitment refers to how much dedication and effort a person puts into meeting an objective. Carol puts a lot of effort into achieving her goals so her Goal commitment is high.
After organizational and subsidiary goals are set, each manager meets with each subordinate to explain the unit goals to the subordinate. Together the two determine how the subordinate can contribute to the unit's goals most effectively. This is called Management by objectives.
Management by Objectives is a type of management that works by making sure that employees understand the goals that management set. It works by management and employees working together to find out how best employees can meet the goals set.
Kiner Co. computed an overhead rate for machining costs ($520000) of $5 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $10 per direct labor hour. The company produces two products, Cape and Chap. Cape requires 62400 machine hours and 20000 direct labor hours, while Chap requires 41600 machine hours and 30000 direct labor hours. Using activity-based costing, machining costs assigned to each product is
Answer:
Cape $312,000
Chap $208,000
Explanation:
Calculation for the machining costs assigned to each product
Using this formula
Machining costs =Machine hours×Machine amount per hour.
Let plug in the formula
Cape= 62,400x $5per machine hour.
Cape=$312,000
Chap= 41,600x $5per machine hour.
Chap=$208,000
Therefore Using activity-based costing, machining costs assigned to each product is:
Cape $312,000
Chap $208,000
During its first month of operations in March, Volz Cleaning, Inc., completed six transactions with the dollar effects indicated in the following schedule:
Dollar Effect of Each of the Six Transactions Ending Balance
Accounts 1 2 3 4 5 6
Cash $ 45,000 $ (8,000) $ (2,000) $ (7,000) $ 3,000 $ (4,000)
Investments (short-term) 7,000 (3,000)
Notes receivable (due in six months)2,000
Computer equipment 4,000
Delivery truck 35,000
Notes payable (due in 10 years) 27,000
Common stock (3,000 shares) 6,000
Additional paid-in capital 39,000
Prepare a classified balance sheet for Volz Cleaning, Inc., at the end of March.
Answer and Explanation:
The Preparation of classified balance sheet for Volz Cleaning, Inc., at the end of March is shown below:-
Assets
Current Assets:
Cash $27,000
($45,000 - $8,000 - $2,000 - $7,000 + $3,000 - $4,000)
Investment (short term) $4,000
($7,000 - $3,000)
Notes receivables $2,000
Total Current Assets $33,000
Long Term Non Current Assets:
Computer equipment $4,000
Delivery Truck $35,000
Total long term $39,000
Total assets $72,000
Liabilities
Liabilities
Notes payable $27,000
Total liabilities $27,000
Stockholder equity
Common Stock $6,000
Additional Paid in Capital $39,000
Total Stockholder's equity $45,000
Total Liabilities & Stockholder's
equity $72,000
Which of these is a risk in introducing a new product in the market?
A.
Consumers demand more of your product.
B.
Consumers do not find your product good enough to shift loyalty.
C.
Consumers expect you to come up with another product variant soon enough.
D.
Consumers value your new product more than the old variant.
Answer: B
Explanation: consumers do not find your product good enough to shift loyalty.
It’s the only logical risk, also I just took this test and it’s correct
If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is: Multiple Choice Debit Cash and credit Legal Fees Earned. Debit Cash and credit Unearned Legal Fees. Debit Unearned Legal Fees and credit Legal Fees Earned. Debit Legal Fees Earned and credit Unearned Legal Fees. Debit Unearned Legal Fees and credit Accounts Receivable.
Answer:
The correct option: Debit Unearned Legal Fees and credit Legal Fees Earned
Explanation:
An UNEARNED FEES can be defined as the amount of money a company or an organization receives from their customer in advance for the services the company or the organization has not yet rendered which is why unearned fees is often recorded as a liability in the balance sheet until when the service has been rendered by the company to the customer before it will be reported as asset in the balance sheet while LEGAL FEES EARNED on the other hand is in form of an income statement account that help to show and report the amount of money or revenue amount that was been earned for service rendered to the customer.
fees fees fees fees fees fees
Spaceley’s Sprockets has just developed a new product. George Jetson, the Head of Product Development, feels that the product is a winner, but he also feels it would be an even better product if waited six more months for further development before launching. Unfortunately, Spaceley’s closest competitor, Cogsley Cogs, has a similar product in the development pipeline. George feels that if he launches the product now to get a head start on Cogsley, he has a 50% chance of achieving a high level of sales, a 30% chance of a medium level of sales, and a 20% chance of a low level of sales. If he waits, he has a 30% chance of a high level of sales, and a 70% chance of a medium level of sales, with no chance of a low level of sales. High sales represents 100,000 units, medium sales represents 65,000 units, and low sales represents 10,000 units. If his objective is to maximize his expected number of units sold, what should George do and how many units would he be expected to sell
Answer:
George should wait for six more months for further development before launching.
Total units expected to be sold by this time is 75500 units
Explanation:
when launched early
Spaceley has : 50% of high level sale, 30% chance of medium level sale
20% chance of low level sale
When launched late
Spaceley has : 30% of high level sale, 70% of medium level sale, o% of low level sale
while
High sales = 100000
Medium sale = 65000
low level sale = 10000
A) when launched early
50% * 100000 = 50000
30% * 65000 = 19500
20% * 10000 = 2000
Total sales = 71500 units
B) when launched after 6 months
30% * 100000 = 30000
70% * 65000 = 45500
Total sales = 75500 units
George should wait for six more months for further development before launching.
Total units expected to be sold by this time is 75500 units
Item1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 Item 1Item 1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 On April 1, Garcia Publishing Company received $19,080 from Otisco, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year
Answer and Explanation:
The journal entry is shown below:
Unearned revenue $4,770
To fees earned $4,770
(Being the adjusting entry is passed)
The calculation is shown below:
= Received amount ÷ total months × calculated months
= $19,080 ÷ 36 months × 9 months
= $4,770
Hence, the above entry should be recorded and the same is to be considered
TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically. Suppose that in the United States, a TV set sells for $500 and that 80% of the TV set's value comes from the value of the imported components. The United States imposes a 30% tariff on TV sets and a 10% tariff on the TV set's components. Assume that costs of producing components are the same in the United States a Taiwan. Based on the information provided, the effective rate of protection that TeleGlobal receives from the tariff is:__________.
a. -17.5%
b. 70.0%
c. 110.0%
d. 24.4%
e. 47.5%
Answer:
c. 110.0%
Explanation:
Effective Rate of Protection (ERP) = (t1 - at2) / (1 - a)
Where t1: Nominal tariff rate on imported final product = 30% = 0.3
t2: Nominal tariff rate on imported input = 10% = 0.1
a: (Value of imported input / Value of finished good) = 80% = 0.8
ERP = (t1 - at2) / (1 - a)
ERP = 0.3 - (0.8*0.1) / (1 - 0.8)
ERP = 0.3 - 0.08 / 0.2
ERP = 0.22 / 0.2
ERP = 1.1
ERP = 110%
Today you are feeling bullish on UPP stock. You decide the best way to play that opinion is to purchase 5 call options that expire in 4 months with a strike price of 70.00. To lower your risk and your cost basis you simultaneously sell 3 call options that also expire in 4 months with a strike price of 77.50. The current stock price is 70.80. The price of the 70-strike call is 5.50 and the price of the 77.50 strike call is 2.40. The current continuously compounded risk free rate is 3% (annual). 3.
a. Calculate your profit/loss if the ending price of one share of UPP stock is 80.00.
b. Calculate your profit/loss if the ending price of one share of UPP stock is 65.00.
Answer:
a. Total profit = $22.2
b. Total profit = -$20.3 / Loss of $20.3.
Explanation:
a) If ending price is $80
Profit of long call = No. of contracts * [max(St - X,0) - premium paid]
Long call profit = 5 * [max(80 - 70,0) - 5.5]
Long call profit = 5 * [10 - 5.5]
Long call profit = $22.5
Profit of short call = No. of contracts * [-max(St - X, 0) + Premium received]
Profit of short call = 3 * [-max(80 - 77.5, 0) + 2.4]
Profit of short call = 3 * [-2.5 + 2.4]
Profit of short call = -$0.3
Total profit = Long call profit - Profit of short call
Total profit = 22.5 - 0.3
Total profit = $22.2
b) If ending price is $65
Profit of long call = No. of contracts * [max(St - X,0) - premium paid]
Profit of long call = 5 * [max(65 - 70, 0) - 5.5]
Profit of long call = 5 * [0 - 5.5]
Profit of long call = -$27.5
Profit of short call = No. of contracts * [-max(St - X, 0) + Premium received]
Profit of short call = 3 * [-max(65 - 77.5, 0) + 2.4]
Profit of short call = 3 * [0 + 2.4]
Profit of short call = $7.2
Total profit = Long call profit - Profit of short call
Total profit = -27.5 + 7.2
Total profit = -$20.3 / Loss of $20.3.
What happens when the price of a good increases
Answer:
the value of good increases (goes up)
Allocation is the distribution of a good or service.
True
False
Answer:
True
Explanation:
Allocation the action or process of allocating or distributing something.
Answer:
It's True
Explanation:
On edge 2021
Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Cutting Binding Beginning work in process Transferred in from cutting dept. $ 1,250 Direct materials $ 1,070 2,766 Conversion 3,400 3,350 Costs added during March Direct materials $ 10,140 $ 9,456 Conversion 11,100 18,725 Transferred in from cutting dept. 17,110 Transferred to finished goods 33,000 Determine the ending balances in the Work in Process Inventory accounts of each department.
Answer:
Cutting $8,600
Binding $19,657
Explanation:
Calculation to Determine the ending balances in the Work in Process Inventory accounts of each department
Ending work in process:
Cutting = $1,070 + $3,400+ $10,140 + $11,100- $17,110
Cutting = $8,600
Binding = $1,250 + $2,766 + $3,350+ $9,456+ $18,725 + $17,110 - $33,000
Binding= $19,657
Therefore the ending balances in the Work in Process Inventory accounts of each department is:
Cutting $8,600
Binding $19,657
Bruce Church, Inc. is a company engaged in extensive commercial farming in Arizona and California. A provision of the Arizona Fruit and Vegetable Standardization Act requires that all cantaloupes grown in Arizona "be packed in regular compact arrangement in closed standard containers approved by the supervisor." Arizona, through its agent Pike, issued an order prohibiting Bruce Church from transporting uncrated cantaloupes from its range in Parker, Arizona, to nearby Blythe, California, for packing and processing. It would take many months and $200,000 for Bruce Church to construct a processing plan int Parker. Further, Bruce Church had $700,000 worth of cantaloupes ready for transportation. Bruce Church filed suit in federal district court challenging the constitutionality of the Arizona statutory provision on shipping cantaloupes. The court issued an injunction (essentially saying the statute was not constitutional) against the enforcement of the act on the grounds that it was an undue hardship on interstate commerce. Answer the following questions: 1. What is the Commerce Clause? 2. Will the Arizona regulation withstand Commerce Clause scrutiny? Why or why not?
Answer:
1. What is the Commerce Clause?
The Commerce Clause refers to the power held by Congress to regulate interstate commerce. Individual states can regulate commerce that takes place within their territory, but they cannot regulate trade between entities from their state and entities from other states.
2. Will the Arizona regulation withstand Commerce Clause scrutiny? Why or why not?
This is an actual court case and the US Supreme Court ruled against Arizona's regulation because it interferes with interstate commerce. The cantaloupes that Bruce Church produced were supposed to be sold in California, that means that 2 states are involved. The Commerce Clause applies whenever trade between 2 states are involved. An individual state's regulations cannot result in a burden for businesses engaged in interstate commerce.
A company makes bicycles. It produces 850 bicycles a month. It buys the tires for bicycles from a supplier at a cost of Rs.60 per tire. The company’s inventory carrying cost is estimated to be 15% of cost and the ordering is Rs.90 per order. Compute EOQ.
A: 639 tires
B: 522 tires
C: 580 tires
D: 621 tires
From the information given in the question above , Calculate number of orders to be made per year.
A: 35 orders
B: 39 orders
C: 37 orders
D: 32 orders
Answer:
B: 522 tires
B: 39 orders
Explanation:
a. Calculation for EOQ
First step is to Calculate the Annual Demand which is D
D = Annual demand = (2 tires per bicycle) x (850 bicycles per month) x (12 months in a year)
D=20,400 tires
Second step the ordering cost is given in the question which is :
S = Ordering cost = 90 per order
Third step is to Calculate the carrying cost which is H
H = carrying cost = (15%) x ($60 per unit)
H= $ 13.50 per unit per year
Last step is to Calculate the EOQ
EOQ = √{ (2 x 20,400 x $90) / $13.50
EOQ= 522 tires
Therefore the EOQ is 522 tires which means that the company should order 522 tires each time they places an order.
b. Calculation for the number of orders per year
Using this formula
Number of orders per year = D / Q
Let plug in the formula
Number of orders per year = 20,400 / 522
Number of orders per year = 39 orders per year
Therefore the Number of orders per year will be
39 orders per year.
