1) The predetermined plantwide factory overhead rate based on direct labor hours is $10.28.
2) The predetermined plantwide factory overhead rate based on machine hours = $12.85 ($257,000/20,000)
3) The total applied factory overhead:Department A Department B Total
Requirement 1 $154,200 $102,800 $257,000
Requirement 2 64,250 192,750 257,000
4. The allocation basis for Department A should be direct labor hours. The department is more labor-intensive. The allocation basis for Department B should be machine hours as it is more machine-intensive.
5) The computation of the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base is as follows:
Department A Department B
Direct labor hours 15,000
Machine hours 15,000
Fixed factory overheads $94,000 $163,000
Departmental overhead rate $6.27 $10.87 ($163,000/15,000)
Applied Overhead $154,200 $192,750
($10.28 x 15,000) ($12.85 x 15,000)
Data and Calculations:Cost of One Unit:
Direct materials $200
Direct labor ($12/hour) $300
Direct labor hour per unit = 25 hours ($300/$12)
Total direct labor hours = 25,000 (25 x 1,000)
Total machine hours = 20,000 (20 x 1,000)
Department A Department B Total
Direct labor hours 15 10 25
Machine hours 5 15 20
Variable factory overheads $150,000 $80,000 $230,000
Fixed factory overheads 94,000 163,000 257,000
Total annual production units = 1,000 units
1) Predetermined plantwide factory overhead rate based on direct labor hours = $10.28 ($257,000/25,000)
2) Predetermined plantwide factory overhead rate based on machine hours = $12.85 ($257,000/20,000)
3) Total applied factory overhead:Department A Department B Total
Direct labor hours $154,200 $102,800 $257,000
Machine hours 64,250 192,750 257,000
5) Departmental Overhead Rate and Applied Overhead:
Department A Department B
Direct labor hours 15,000
Machine hours 15,000
Fixed factory overheads $94,000 $163,000
Departmental overhead rate $6.27 $10.87 ($163,000/15,000)
Applied Overhead $154,200 $192,750
($10.28 x 15,000) ($12.85 x 15,000)
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If the price of output increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________. Group of answer choices up; decrease down; decrease down; increase up; increase
Answer:
Increase marginal revenue
If the price of output increases, the marginal revenue product curve will shift up and the profit maximizing quantity of labor demanded will decrease. Thus, option (a) is correct.
What is product?The thing being sold is called a “product.” A product and service market foundation. Items are divided into two categories: industrial products and consumer products. The product is to fulfill the needs of the consumer. There was the based on the commonly are the rules in the government to follow the product management.
When the quantities of other variables utilized fluctuate, the marginal revenue product of labor changes. It will also fluctuate as a result of changes in technology, the price of the product being produced, or the number of enterprises hiring workers. The product curve will trend upward, while the quality will fall.
As a result, the price of output increases, the marginal revenue product curve will shift up and the profit maximizing quantity of labor demanded will decrease. Therefore, option (a) is correct.
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Scott wanted to start a lawn cutting service but needed to purchase a lawnmower. Sherif gave Scott $30 in exchange for company revenue. What does Sherif now have in Scott's company?
A.) Rebate.
B.) Investment.
C.) Stock.
D.) Bond.
Answer:
C.) Stock.
Explanation:
Since in the question it is mentioned that scott wanted to begin the lawn cutting service but required to buy the lawnmower.Here sherif given $30 in exchange for the revenue of the company.
So according to the given options, the option c should be selected as the sherif has the stock by which the revenue would be exchanged
Therefore option c is correct
Answer:
The answer is C. Stock. ❤️
On January 1, 2020, Stream Company acquired 30 percent of the outstanding voting shares of Q-Video, Inc., for $770,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values of $1.9 million and $700,000, respectively. A customer list compiled by Q-Video had an appraised value of $300,000, although it was not recorded on its books. The expected remaining life of the customer list was five years with straight-line amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill. Q-Video generated net income of $250,000 in 2020 and a net loss of $100,000 in 2021. In each of these two years, Q-Video declared and paid a cash dividend of $15,000 to its stockholders. During 2020, Q-Video sold inventory that had an original cost of $100,000 to Stream for $160,000. Of this balance, $80,000 was resold to outsiders during 2020, and the remainder was sold during 2021. In 2021, Q-Video sold inventory to Stream for $175,000. This inventory had cost only $140,000. Stream resold $100,000 of the inventory during 2021 and the rest during 2022. For 2020 and then for 2021, compute the amount that Stream should report as income from its investment in Q-Video in its external financial statements under the equity method. (Enter your answers in whole dollars and not in millions. Do not round intermediate calculations.)
Answer:
Stream Company
The amount that Stream Company should report as income from its investment in Q-Video in its external financial statements under the equity method:
2020 = $75,000
2021 = ($30,000)
Explanation:
a) Data and Calculations:
Equity share in Q-Video, Inc. = 30%
Cost of equity investment = $770,000
Q-Video Profits and dividends Stream's share
2020 net income = $250,000 $75,000 ($250,000 * 30%)
2021 net loss of $100,000 ($30,000) ($100,000 * 30%)
2020 dividends = $15,000 $4,500 ($15,000 * 30%)
2021 dividends = $15,000 $4,500 ($15,000 * 30%)
b)The equity method is used by Stream Company because its investment in Q-Video, Inc. is less than 51% and more than 20%. Under the equity method, Stream accounts for its share of net income and net loss. The investment is initially recorded at cost. Adjustments are then made to the cost balance at the end of every period by increasing it with the share of net income and decreasing it with its share of net loss and dividends received.
why is it important to have a good besiness background?
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1
Materials $78,600
Conversion costs 48,700 $127,300
Materials added 1,592,280
Labor 225,100
Overhead 339,064
Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Determine the equivalent units of production and the unit production costs for the Assembly Department. (Round unit costs to 2 decimal places, e.g. 2.25.)
Answer:
Equivalent units of Production for Materials.
= Units transferred out + Ending WIP
Units transferred out = Beginning WIP + Units started in production - Ending WIP
= 35,200 + 661,000 - 25,400
= 670,800 units
= 670,800 + 25,400
= 696,200 units
Equivalent units of Production for Conversion
= Units transferred out + Ending WIP Conversion
= 670,800 + (25,400 * 40%)
= 680,960 units
Units cost of production for Materials
= (Beginning material cost + Materials added) / Materials EUP
= (78,600 + 1,592,280) / 696,200
= $2.40
Units cost of production for Conversion
= (Beginning conversion + labor + overhead) / Conversion EUP
= (48,700 + 225,100 + 339,064) / 680,960
= $0.90
The partnership of Keenan and Kludlow paid the following wages during this year:
M. Keenan (partner) $85,000
S. Kludlow (partner) 75,000
N. Perry (supervisor) 53,000
T. Lee (factory worker) 34,600
R. Rolf (factory worker) 29,800
D. Broch (factory worker) 6,900 S.
Ruiz (bookkeeper) 25,400
C. Rudolph (maintenance) 5,100
In addition, the partnership owed $200 to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following:
a. Net FUTA tax for the partnership for this year.
b. SUTA tax for this year.
Answer:
a. The Net FUTA tax for the partnership for this year is $1,680.
b. The SUTA tax for this year is $1,062.
Explanation:
a) Data and Calculations:
M. Keenan (partner) $85,000
S. Kludlow (partner) 75,000
N. Perry (supervisor) 53,000
T. Lee (factory worker) 34,600
R. Rolf (factory worker) 29,800
D. Broch (factory worker) 6,900
Ruiz (bookkeeper) 25,400
C. Rudolph (maintenance) 5,100
Gross payroll = $314,800
FUTA rate is 6% for the first $7,000
Gross Pay FUTA SUTA
(first $7,000) (first $9,000)
N. Perry (supervisor) 53,000 $420 $265.50
T. Lee (factory worker) 34,600 420 265.50
R. Rolf (factory worker) 29,800 420 265.50
D. Broch (factory worker) 6,900 0 0
Ruiz (bookkeeper) 25,400 420 265.50
C. Rudolph (maintenance) 5,100 0 0
Payroll for employees = $154,800 $1,680 $1,062
b) The FUTA tax rate is 6.0%. The tax applies to the first $7,000 that Keenan and Kludlow paid to each employee as wages during the year. This first $7,000 is often referred to as the federal or FUTA wage base. The state's SUTA tax rate depends on each state where SUTA is collected. Note that the additional $200 owed to Rudolph does not alter his base wages which fall below $7,000.
Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2017. The following transactions occurred during the month of May. May 1 Stockholders invested $15,000 cash in the business in exchange for common stock.
2 Paid $600 for office rent for the month.
3 Purchased $500 of supplies on account.
5 Paid $150 to advertise in the County News.
9 Received $1,400 cash for services performed.
12 Paid $200 cash dividend.
15 Performed $4,200 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $1,200 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased office equipment for $2,000 paying $200 in cash and the balance on account.
30 Paid $180 for utilities.
Show the effects of the previous transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year.
Answer:
Curry Consulting Inc.
Showing the effects of transactions on the accounting equation:
Assets = Liabilities + Equity
May 1:
Assets (Cash + $15,000) = Liabilities + Equity (Common Stock + $15,000)
May 2:
Assets (Cash - $600) = Liabilities + Equity (Retained Earnings - $600)
May 3:
Assets (Supplies +$500) = Liabilities (Accounts Payable +$500) + Equity
May 5:
Assets (Cash - $150) = Liabilities + Equity (Retained Earnings - $150)
May 9:
Assets (Cash + $1,400) = Liabilities + Equity (Retained Earnings + $1,400)
May 12:
Assets (Cash - $200) = Liabilities + Equity (Retained Earnings - $200)
May 15:
Assets (Accounts Receivable +$4,200) = Liabilities + Equity (Retained Earnings +$4,200)
May 17:
Assets (Cash - $2,500) = Liabilities + Equity (Retained Earnings - $2,500)
May 20:
Assets (Cash -$500) = Liabilities (Accounts Payable -$500) + Equity
May 23:
Assets (Cash +$1,200 Accounts Receivable -$1,200) = Liabilities + Equity
May 26:
Assets (Cash +$5,000) = Liabilities (Notes Payable +$5,000) + Equity
May 29:
Assets (Cash -$200 Equipment +$2,000) = Liabilities (Accounts Payable +$1,800) + Equity
May 30:
Assets (Cash - $180) = Liabilities + Equity (Retained Earnings - $180)
Explanation:
The accounting equation shows that Assets = Liabilities + Equity. This equation is the basis of the double-system of accounting. It is always in balance when each transaction is correctly posted. The implication is that every business transaction affects, in two ways, either the assets side or the liabilities and equity side or both.
Suppose that a restaurant uses a focus group of regular customers to determine how many customers would buy a proposed new menu item at various prices. Can this information be used to estimate an inverse demand curve? A demand curve? Explain briefly. Asking how many customers would buy a proposed new menu item at various prices can be used to estimate A. the inverse demand curve, and the demand curve can be calculated from it. B. only the inverse demand curve. C. neither the demand curve nor the inverse demand curve. D. only the demand curve. E. the demand curve, and the inverse demand curve can be calculated from it.
Answer:
E. the demand curve, and the inverse demand curve can be calculated from it.
Explanation:
A demand function helps to show the relation between quantity demanded and price, the price here is the quantity is a function of price. So, writing the function in other way round, the price which is a function of quantity demanded is called as an inverse demand function.
As per the details given in the question above, it is clear that the quantity is a function of price. The prices on the menu varies and the quantity demanded is determined through various prices. Using this a demand function can easily be computed since quantity is a function of price.
What is one of the basic principles of economics?
A.) Society's resources are unlimited.
B.) People never put their own interests as their first priority.
C.) If people demand a product, then businesses are required to supply it.
D.) Society and its individuals have unlimited wants.
Which of the following financial statements are required for a Debt Service Fund? Multiple Choice Statement of revenues, expenditures, and changes in fund balances only. Balance sheet and statement of revenues, expenditures, and changes in fund balance only. Balance sheet; statement of revenues, expenditures, and changes in fund balance; and statement of cash flows. Statement of net position only.
Answer:
Balance sheet; statement of revenues, expenditures, and changes in fund balance.
Explanation:
Under the Codification of Governmental Accounting and Financial Reporting Standards by the Governmental Accounting Standards Board (GASB); Code 200 states that debt service funds are to be used to service terms and bond reserves, guaranty, warrants, note, capital leases, or sinking funds.
Debt service funds is a cash reserve which is used to report account and pay for the interest and principal payment on financial resources that are restricted, committed or assigned to expenditure except debt of proprietary and fiduciary funds who account for their own interest and principle payments.
The purpose of using a debt service fund is to reduce the risk of a debt security for investors, thereby making it more attractive and appealing to them. Also, the debt service fund helps to mitigate the effective interest rate needed by the government to sell the offering.
The following financial statements are required for a Debt Service Fund;
I. Balance sheet.
II. Statement of revenues.
III. Expenditures.
IV. Changes in fund balance.
Amazon Company uses predetermined departmental overhead rates based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rate for Department A this year was 200% of direct labor cost. The predetermined overhead rate for Department B this year was 50% of direct labor cost. Job Delta, which used labor time in both departments, was charged with the following costs.
Dept A Dept B
Direct materials $50,000 $10.000
Direct labor ? $60.000
Manufacturing overhead $80.000 ?
What was the total manufacturing cost assigned to Job Delta?
a. $270,000
b. $360,000
c. $390.000
d. $480.000
Answer:
a. $270,000
Explanation:
Department A:
Manufacturing overhead=200% of direct labor
80000 = 200% of direct labor
So, direct labor = 80000/200%=$40,000
Department B:
Manufacturing overhead=50% of direct labor
So, Manufacturing overhead = 50%*60000=$30,000
Total manufacturing cost = Material cost + Labor cost + Manufacturing overhead
- Material cost = 50000+10000=$60,000
- Direct labor cost = 40000+60000=$100,000
- Manufacturing overhead = 80000+30000=$110,000
Total manufacturing cost = $60,000 + $100,000 + $110,000
Total manufacturing cost = $270,000
Dolan Company's accounting records reflect the following inventories:
Dec. 31, 2020
Dec. 31, 2019
Raw materials inventory
$310,000
$260,000
Work in process inventory
300,000
160,000
Finished goods inventory
190,000
150,000
During 2020, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000.
Dolan Company's total manufacturing costs incurred in 2020 amounted to
2. Management by exception
A. means that only unfavorable differences will be investigated.
B. means that material differences will be investigated.
C. means that all differences will be investigated.
D. causes managers to be buried under voluminous paperwork.
Answer and Explanation:
The computation of the total manufacturing cost is shown below:
As we know that
Total manufacturing cost is
= Direct raw material used + direct labor cost + manufacturing overhead cost
= ($260,000 + $800,000 - $310,000) + $670,000 + $640,000
= $2,060,000
2. The management of exception means examining the financial and operational business results and considered the issues that faced by the company by having attention on it. ALso it considered teh differences arise from the expected amount
So here means that non-favorable difference would be investigated or material difference would be investigated
Presented below is information related to Wyrick Company:(1.) The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock.(2.) 8,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $300,000. The board establishes a stated value of $5 per share for the common stock.(3.) 5,000 shares of preferred stock are sold for cash at $120 per share.(4.) The company issues 100 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $60 per share.Instructions:Prepare the general journal entries necessary to record these transactions.
Answer and Explanation:
The journal entries are shown below:
1. No journal entry is required
2. Land 300,000
Common Stock 40,000
Paid-in Capital in Excess
of Stated Value 260,000
(Being the land is purchased by the issue of the shares)
3. Cash 600,000
Preferred Stock 500,000
Paid-in Capital in Excess
of Par—Preferred Stock 100,000
(Being the preferred stock is issued for cash)
4. Organization Expense 6,000
Common Stock 500
Paid-in Capital in Excess
of Stated Value 5,500
(Being organizaiton expense is recorded)
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.
Month Occupancy-Days Electrical Costs
January 1,736 $4,127
February 1,904 $4,207
March 2,356 $5,083
April 960 $2,857
May 360 $1,871
June 744 $2,696
July 2,108 $4,670
August 2,406 $5,148
September 840 $2,691
October 124 $1,588
November 720 $2,454
December 1,364 $3,529
Required:
a. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.
b. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month?
Answer:
Total cost= 1,395 + 1.56x
x= number of units of activity
Explanation:
To calculate the unitary and fixed costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,148 - 1,588) / (2,406 - 124)
Variable cost per unit= $1.56
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 5,148 - (1.56*2,406)
Fixed costs= $1,395
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 1,588 - (1.56*124)
Fixed costs= $1,395
The total cost is given by:
Total cost= 1,395 + 1.56x
x= number of units of activity
The electrical costs can vary with the season. In summer a higher electricity use is required to cool down the rooms and, some artifacts such as freezers and refrigerators usage increase. In winter the days are shorter, artificial lighting increases.
The original purpose of counties was to?
Answer:
The original purpose of the counties was to establish an intermediate governmental structure between that of the cities and that of the states, bringing together several cities in a single entity, the County, which would centralize basic services such as courts, hospitals, universities, etc. and it would represent these cities before the State in a more forceful way than if each city did so on its own initiative.
Mercedes-Benz runs a TV commercial advertisement that displays one of its top-of-the-line cars. As the driver pulls up to a valet, people turn their heads and stare at the car. Mercedes-Benz has effectively leveraged which need in Maslow’s hierarchy?
Answer:
esteem
Explanation:
esteem
Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the questions. Round answers to two places after the decimal where applicable. Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 4.60 . Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67 %.
Abe must have_________ prices. Therefore, Abe's total revenue ____________ Abe's prices must have changed by:________%
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 45%.
If Webs-R-Us has a price elasticity of demand at 0.70, we can expected the number of websites designed to ___________
Answer:
increased
fell
14.57%
decrease
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Honest Abe's Used Cars has an elastic demand because its coefficient of elasticity is greater than one. Because demand is elastic, a rise in price would lead to a decrease in the number of cars sold. If price is increased, demand would fall more than the change in price, so total revenue would fall.
4.6 = 0.67 / percentage change in price
Percentage change in price = 0.67 / 4.6 = 0.1457 = 14.57%
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Webs-R-Us services has an inelastic demand.
If prices are increased, demand would fall but it would fall less than the increase in price
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
Stewart owns a home with a replacement cost of $300,000. He purchased $200,000 of property insurance on the house with a $1,000 deductible for all losses. The house caught on fire and sustained $100,000 worth of damage. The actual cash value (ACV) of the damaged portion of the property was $80,000. How much will Stewart receive as reimbursement for the loss
Answer:
$82,333
Explanation:
The computation of the amount received as reimbursement for the loss is given below:
Given that
House Replacement= $300,000
80% of replacement cost = 80% of $300,000 = $240,000
Value of insurance = $200,000
Now
Amount of claim = [($200,000 ÷ $240,000) × $100,000] - $1,000 (deductible for all losses)
= $83,333 - $1,000
= $82,333
Keuka Studies does custom metal sculptures of horses and other animals. A horse sculpture is composed of numerous parts. They use a lathe to construct two types of parts. The "Body" part is used to support the torso of the horse and the "Leg" part is used to support the legs. Each horse sculpture needs 1 Body part and 4 Leg parts. Switching between either of the types of parts requires 12 minutes. Once ready to produce, the lathe produces a Body part in 3 minutes and a single Leg part in 3 minutes. The lathe only makes horse parts. For parts (a)-(d) assume Keuka operates a cyclic schedule in which they make 100 Body parts and then 400 Leg parts. Furthermore, assume the lathe is the bottleneck. Round your answer to 3 decimal places.
a. What is the maximum number of horse sculptures Keuka can make per hour? Do not round intermediate calculations. Enteryour answer as a percentage rounded to 2 decimal places.
b. What is the utilization (%) of the lathe?
Answer and Explanation:
a. The computation of the maximum number of horse sculptures can make per hour is shown below:
= (12 × 2) + (100 × 3) + (400 × 3)
= 24 + 300 + 1200
= 1524 minutes
Now cycle time in hours
= 1524 ÷ 60
= 25.40 hours
Number of horse scupltures could made is
= 400 ÷ 4
= 100
In per hour, it would be
= 100 ÷ 25.40 hours
= 3.94 hours
b. The utilization rate is
= (100 × 3) + (400 × 3) ÷ 1524 minutes
= 300 + 1200 ÷ 1524 minutes
= 1500 ÷ 1524 minutes
= 98.43%
The following information is related to Splish Company for 2020.
Retained earnings balance, January 1, 2020 $1,332,800
Sales Revenue 34,000,000
Cost of goods sold 21,760,000
Interest revenue 95,200
Selling and administrative expenses 6,392,000
Write-off of goodwill 1,115,200
Income taxes for 2020 1,691,840
Gain on the sale of investments 149,600
Loss due to flood damage 530,400
Loss on the disposition of the wholesale division (net of tax) 598,400
Loss on operations of the wholesale division (net of tax) 122,400
Dividends declared on common stock 340,000
Dividends declared on preferred stock 108,800
Splish Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Splish sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.
Required:
Prepare a multiple—step income statement.
Answer:
Net income is $2,034,560.
Explanation:
The multiple-step income statement refers to an income statement that segregates operating revenues and operating expenses of an organisation from its nonoperating revenues, nonoperating expenses, gains, and losses. In addition, gross profit which is net sales revenue minus the cost of goods sold.
The multiple-step income statement is an alternative to the single-step income statement which reports uses just one equation to calculate profits by deducting total revenue from total expenses from segregating them.
The multiple step income statement of Splish Company for 2020 will look as follows:
Splish Company
Income Statement
For the Year Ended December 31, 2020
Particulars $ $
Sales Revenue 34,000,000
Cost of goods sold (21,760,000)
Gross profit 12,240,000
Selling and administrative expenses (6,392,000)
Income from operation 5,848,000
Other revenues and gains
Interest revenue 95,200
Gain on the sale of investments 149,600
Total other revenues and gains 244,800
6,092,800
Other expenses and losses
Write-off of goodwill (1,115,200)
Loss due to flood damage (530,400)
Total other expenses and losses (1,645,600)
Income from continuing op. b4 tax 4,447,200
Income taxes (1,691,840)
Income from continuing operation 2,755,360
Discontinued operation
Loss on disposal (net of tax) (598,400)
Loss on operations (net of tax) (122,400)
(720,800)
Net income 2,034,560
You have decided to undertake a project and have defined the main research question as "what are the opinions of consumers to a 20% reduction in weight, with the price remaining the same, of a pack of lucky me pancit canton?" Write a hypothesis that you could test in your project.
what is the main difference between regular work hours and overtime
Answer:
regular work hour- employee are expected to on the basis of their employment contract.
overtime- hours worked exceed normally scheduled working hours.
Discuss some of the program’s challenges.
https://www.pbs.org/video/need-know-financial-literacy/
Answer:
okay aph development continues with an expression of the rationale or the explanation that the writer gives for how the reader should interpret the information presented in the idea statement or topic sentence of the paragraph. The writer explains his/her thinking about the main topic, idea, or focus of the paragrap
Explanation:
The general price level is 150.00 and people expect it to increase to 156.00 next year. Therefore, the expected rate of inflation equals percent. Moreover, there is a one-year bond that promises to pay $107,000.00 next year and is selling for $100,000.00 in the bond market today. So, the nominal interest rate equals percent, and the ex-ante real interest rate on this bond equals percent. Because of some news about the state of the economy, people revise their expectations of the future price level to 159.00. According to the Fisher Effect, the price of the bond today will change to_______ dollars.
Answer:
$98,165.14
Explanation:
Note: There are missing word but the full question is attached as picture below
Here, Initial Nominal Interest rate = 7%
Inflation expectation= 4%
So, real return = 3%
Now, investors would want same real return
New inflation = (159 - 150)/150 *100 = 6%
Nominal interest rate = 6 %+ 3% = 9%
Price after 1 year = $107,000
So, current price changes to = $107,000/(1+0.09) = $107,000/1.09 = $98,165.14
Last year Viera Corp had $155,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-capital ratio of 37.5%. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. Assets, total invested capital, sales, and the debt to capital ratio would not be effected. By how much would the cost reduction improve the ROE?
Answer:
13.41%
Explanation:
Calculation for By how much would the cost reduction improve the ROE
First step
Debt value = $155,000 × 37.5%
Debt value = $58,125
Second step
Equity value = $155,000 - $58,125
Equity value $96,875
Third step
= (Net income ÷ Total equity) × 100
Ratio = ($20,000 ÷ $96,875) × 100 = 20.65%
New ROE would be = ($33,000 ÷ $96,875) × 100 = 34.06%
Fourth step
Change in ROE= New ROE - Old ROE
ROE= 34.06% - 20.65%
ROE= 13.41%
Therefore By how much would the cost reduction improve the ROE is 13.41%
Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor.
Country Corn (Bushels per hour of labor) Jeans (Pairs per hour of labor)
Euphoria 4 16
Contente 6 12
Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Euphoria produces 12 million pairs of jeans and 16 million bushels of corn, and Contente produces 6 million pairs of jeans and 36 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces.
Euphoria's opportunity cost of producing 1 bushel of corn is___________ pair of jeans, and Contente's opportunity cost of producing 1 bushel of corn is__________ pair of jeans. Therefore,___________ has a comparative advantage in the production of corn, and__________ has a comparative advantage in the production of jeans.
Answer:
4
2
Contente
Euphoria
Explanation:
Euphoria's opportunity cost of producing 1 bushel of corn is [tex]\frac{16}{4}[/tex] = 4 pair of jeans, and Contente's opportunity cost of producing 1 bushel of corn is [tex]\frac{12}{6}[/tex] = 2 pair of jeans. Therefore, Contente has a comparative advantage in the production of corn, and Euphoria has a comparative advantage in the production of jeans.
How do financial institutions contribute to the development of a market economy?
A.
They collect sales tax on goods and services for local and state governments.
B.
They impose and collect tariffs on products imported from other countries.
C.
They prevent businesses and people from overspending when prices are high.
D.
They provide loans so that businesses and people can buy goods and services.
Answer:
Option D
Explanation:
I just used this on my test and got it correct
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold only two jobs during March- Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $ 14,000 $ 17,400 $ 31,400
Estimated variable manufacturing overhead per machine-hour $ 3.00 $ 3.80
Job P Job Q
Direct materials $ 29,000 $ 16,000
Direct labor cost $ 33,800 $ 13,900
Actual machine-hours used:
Molding 3,300 2,400
Fabrication 2,200 2,500
Total 5,500 4,900
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
Answer:
Predetermined manufacturing overhead rate= $11.15 per machine hour
Explanation:
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $ 14,000 $ 17,400 $ 31,400
Estimated variable manufacturing overhead per machine-hour $ 3.00 $ 3.80
To calculate a single plantwide predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total fixed overhead= $31,400
Total variable overhead= (3*2,500) + (3.8*1,500)= $13,200
Total Machine hours= 4,000
Predetermined manufacturing overhead rate= (31,400 + 13,200) / 4,000
Predetermined manufacturing overhead rate= $11.15 per machine hour
Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3]We are evaluating a project that costs $583,800, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $41, variable cost per unit is $27, and fixed costs are $695,000 per year. The tax rate is 25 percent, and we require a return of 9 percent on this project. a-1.Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2.What is the degree of operating leverage at the accounting break-even point
Answer:
It was nice... friend.
Explanation:
The 2018 balance sheet of Speith’s Golf Shop, Inc., showed long-term debt of $5 million, and the 2019 balance sheet showed long-term debt of $5.25 million. The 2019 income statement showed an interest expense of $165,000. The 2018 balance sheet showed $510,000 in the common stock account and $4.6 million in the additional paid-in surplus account. The 2019 balance sheet showed $550,000 and $4.8 million in the same two accounts, respectively. The company paid out $410,000 in cash dividends during 2019. Suppose you also know that the firm’s net capital spending for 2019 was $1,370,000, and that the firm reduced its net working capital investment by $69,000. What was the firm's 2019 operating cash flow, or OCF?
Answer:
$1,386,000
Explanation:
The computation of the operating cash flow is shown below:
But before that following calculations must be done
Cash Flow to Creditors
Cash Flow to Creditors = Interest Expenses Paid - Net Increase in Long term debt
= Interest Expenses Paid - [Ending Long term debt - BEginning Long term Debt]
= $165,000 - [$5,250,000 - $5,000,000]
= $165,000 - $250,000
= -$85,000
Cash Flow to Stockholders
Cash Flow to Stockholders = Dividend Paid - Net New Equity
= Dividend Paid - [(Ending Common stock + Ending Additional paid-in surplus account ) - (Opening Common stock + OPening Additional paid-in surplus account )
= $410,000 - [($550,000 + $4,800,000) - ($510,000 + $4,6000,000)]
= $410,000 - [$5,350,000 - $5,110,000]
= $410,000 - $240,000
= $170,000
Cash Flow from assets
Cash Flow from assets = Cash Flow to Creditors + Cash Flow to Stockholders
= -$85,000 + $170,000
= $85,000
Operating Cash Flow
= Operating Cash flows - Change in Net Working capital - Net Capital Spending
$85,000 = Operating cash flow - (-$69,000) - $1,370,000
= $85,000 - $69,000 + $13,70,000
= $1,386,000
