Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders. The functions of these organizations have been established in international treaties. International businesses need to be aware of the functions of these organizations as they can have a profound impact on trade and commerce.

It is critical for businesses to understand which organizations do what. It is also extremely useful to understand when these organizations were created since each emerged in response to changes, crises, or developments in the global business system. Identify the order in which these organizations were created.

a. GATT
b. Bretton Woods Institutions: IMF and the World Bank
c. WTO
d. G20
e. UN

Answers

Answer 1

Answer:

The order in which these organizations were established, from first to last are,

1. Bretton Woods Institution: IMF and the Word Bank

2.United Nations

3. GATT

4. WTO

5. G20

Explanation:

The organizations mentioned above were created on the international forum, either to foster peace or economic growth among the nations involved. In the order in which they were created from first to last, we have;

1. Bretton Woods Institution: IMF and the World Bank- These were created on July 1944, by 43 countries in Bretton Woods, New Hampshire, United States. They were established to rebuild the economy of nations after the World Wars by encouraging cooperation among the economic drivers of these nations.

2. United Nations- This organization was created on 24th October 1945. Its aim is to enhance and promote International Peace through its policies.

3. General Agreement on Tariffs and Trade- This is a legal understanding among several nations with the intention of reducing to reasonable extent, and if possible eliminating trade barriers such as tariffs. It was established on 30th October, 1947.

4. World Trade Organization- It was established with the intention of regulating trade among nations. It was established on 1st January, 1995.

5. G20- Short for Government of 20, this is a meeting meant for both the leaders as well as the Central Bank governors of about 19 countries, along with the European Union. It was established on 20th September, 1999.


Related Questions

Laser World reports net income of $620,000. Depreciation expense is $47,000, accounts receivable increases $11,000, and accounts payable decreases $27,000. Calculate net cash flows from operating activities using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

Answers

Answer:

$629,000  

Explanation:

The net cash flow from operating activities is the net income plus depreciation, minus the increase in accounts receivable as well as the decrease in accounts payable.

Net income is                               $620,000

depreciaton  expense                    $47,000

Increase in accounts receivable   ($11,000)

decrease in accounts payable     ($27,000)

Net cash flow from operations    $629,000  

The increase in accounts receivable denies the business of additional cash,hence it is deducted ,the same applies to increase in accounts payable

Suppose Binder corporatio's common stock has a return of 17.61 percent. The risk-free rate is 3.68 percent, the market return is 12.4 percent and there is no unsystematic risk affecting Binder's return. Given the one-factor arbitrage pricing model, what is the factor beta

Answers

Answer:

1.597

Explanation:

The computation of the factor beta using the one-factor arbitrage pricing model is shown below:

As we know that

= (Expected rate of return - risk-free rate of return) ÷ (market rate of return-risk-free rate of return)

= (17.61% - 3.68%) ÷ (12.4% - 3.68%)

= 1.597

We simply applied the above formula to determine the factor beta and the same is to be considered

Specialization and the gains from trade make the economy PPF outward bowed because​ _______. A. a good is initially produced by producers with higher opportunity costs and eventually produced by producers with lower opportunity costs B. all producers have​ bowed-out PPF​s, and the economy PPF is the horizontal sum of the individual PPFs C. as more of a good is​ produced, people are willing to pay less for each additional unit of the good D. a good is initially produced by producers with lower opportunity costs and eventually produced by producers with higher opportunity costs

Answers

Answer:

A. a good is initially produced by producers with higher opportunity costs and eventually produced by producers with lower opportunity costs

Explanation:

The production possibility frontier is a curve that shows the two combinations of goods and services produced in an economy.

Because of trade a country can specialise in the production of goods for which it has a lower opportunity cost in its production and import goods for which it has a higher opportunity cost.

This makes the ppf bowed out as the country produces more of the good for which it has a lower opportunity cost and less of the good for which it has a higher opportunity cost.

I hope my answer helps you

In January 2017, Crane Company, a newly formed company, issued 9500 shares of its $8 par common stock for $13 per share. On July 1, 2017, Crane Company reacquired 950 shares of its outstanding stock for $10 per share. The acquisition of these treasury sharesa. increased total stockholders' equity.b. decreased the number of issued shares.c. decreased total stockholders' equity.d. did not change total stockholders' equity.

Answers

Answer:

The correct option is C, decreased total stockholders' equity

Explanation:

By reacquiring 950 shares out of the issued shares of 9,500 shares ,the company takes possession of the 950 shares and give cash to stockholders in return for the shares repossessed.

As a result the total stockholders' equity would reduce, this is usually accounted for by deducting the cost of such repurchase from total stockholders' equity in the equity section of the balance sheet

On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of $107 million. The bonds mature on December 31, 2048. Interest is payable annually on each December 31, beginning in 2019. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 7%. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.)

Answers

Answer:

$93,725,580.00

Explanation:

The market price of the bond is the present value of annual coupon payment  plus the present value of face amount receivable at the end of the bond tenure.

Annual coupon interest=face amount*stated rate=$107,000,000*6%=$6,420,000.00  

Face amount=$107,000,000

The discount factor for annual coupon is the present of 30 years annuity(2048-2018) at 7% market rate, which is  12.4090  

The discount factor for the face value is  0.1314  

Price of the bond=($6,420,000.00*12.4090)+($107,000,000*0.1314)=$93,725,580.00  

During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 Repurchased 230 shares of the company's own common stock at $27 cash per share. b. Jul. 15 Sold 130 of the shares purchased on February 1 for $28 cash per share. c. Sept. 1 Sold 100 of the shares purchased on February 1 for $26 cash per share. Required: 1. Prepare the journal entry required for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

a. Feb. 1

Treasury Shares $6,210 (debit)

Cash $6,210 (credit)

b. Jul. 15

Cash $3,600 (debit)

Common Shares $3,600 (credit)

c. Sept. 1

Cash $2,600 (debit)

Common Shares $2,600 (credit)

Explanation:

The purchase of company own shares is known as Treasury Shares.This decreases the equity element (Treasury Shares) and decreases the Assets of Cash.

Issue of Company own shares increases the Equity element (Common Shares) and decreases the Assets of Cash.

Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $830 million on January 1, 2021. The bonds sold for $767,557,868 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $750 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31, 2022 had risen to $756 million.Required: Complete the below table to record the following journal entries. 1. & 2. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2018, balance sheet, and adjust the bonds to their fair value for presentation in the December 31, 2019, balance sheet. Federal determined that one-half of the increase in fair value was due to a decline in general interest rates.

Answers

Answer:

discount on bonds payable 18,383,020.48 debit

other comprehensive income 18,383,020.48 credit

--to adjust Bonds at 12/31/2021 market value --

other comprehensive income  4.739.000‬ debit

    discount on bonds payable   4.739.000‬ credit

--to adjust Bonds at 12/31/2022 market value --

Explanation:

We solve for the book value at year-end using effective rate

First year:

First payment

830,000,000 x 5.5% = 45,650,000

767,557,868  x 6.0% = 46,053,472.08

Amortization              403,472.08

Second Payment

830,000,000 x 5.5% =                         45,650,000

(767,557,868 + 403,472.08)  x 6.0% = 46,077,680.4

Amortization               427680.4

Carrying value at year-end

767,557,868 + 403,472.08 + 427,680.40 = 768,389,020.48

We need to recognize a deferred gain for the difference between these and the 750,000,000 market value at December 31th

which is $ 18,383,020.48 as these as not been realized it will be part of other comprehensive income

We will increase the discount to adjust the bonds payable account net balance.

Second year:

We repeat the process

First Payment:

830,000,000 x 5.5% = 45,650,000

Interest expense 750,000,000 x 6% = 45,000,000

Amortization  650000

Carrying value 750,000,000 + 650,000 = 750,650,000

Second Payment:

830,000,000 x 5.5% = 45,650,000

750,650,000 x 6% = 45,039,000

Amortization 611000

Carrying Value 750,650,000 + 611,000 = 751,261,000

Wer now compare this with the 756,000,000

as now the debt of the company has increased we are going to decrease the discounttand recognize a deferred loss through other comprehensive income as it wasn't realized

756,000,000 - 751,261,000 = 4.739.000‬

Some of the information found on a detail inventory card for Headland Inc. for the first month of operations is as follows.
Received
Date No. of Units Unit Cost Issued, No. of Units Balance, No. of Units
January 2 1,700 $3.39 1,700
7 1,200 500
10 1,100 $3.62 1,600
13 1,000 600
18 1,500 $3.73 800 1,300
20 1,100 200
23 1,800 $3.84 2,000
26 1,300 700
28 2,100 $3.96 2,800
31 1,800 1,000
Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)
Average-cost per unit $ _____
From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only.
(1) First-in, first-out (FIFO).
(2) Last-in, first-out (LIFO).
(3) Average-cost. (Round final answers to 0 decimal places, e.g. 6,548.)
(1) FIFO (2) LIFO (3) Average-cost
Ending Inventory $ $ $
If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in (1), (2), and (3) above be the same? What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)

Answers

Answer:

Average-cost per unit $ $3.73

ending inventory in units only:

FIFO = 1,000 x $3.96 = $3,960LIFO = 1,000 x $3.39 = $3,390 Average = $3,728

ending inventory including $:

FIFO = 1,000 x $3.96 = $3,960 (this will not change)LIFO = 1,000 x $3.96 = $3,960 (this will change) Average = $3,728 / (this will not change)

Explanation:

Date                   units            units       unit           total            balance

                          purchased  sold        price

January 2           1,700                         $3.39       $5763            1,700

7                                            1,200                                                500

10                        1,100                         $3.62        $3982           1,600

13                                          1,000                                                 600

18                       1,500                         $3.73        $5595            2,100

18                                           800                                                1,300

20                                         1,100                                                 200

23                      1,800                         $3.84        $6912           2,000

26                                        1,300                                                  700

28                      2,100                         $3.96        $8316           2,800

31                                         1,800                                               1,000

total                   8,200                        $3.7278   $30,568

Presented below are two independent situations: A) Sandhill Inc. acquired 10% of the 420,000 shares of common stock of Schuberger Corporation at a total cost of $15 per share on June 17, 2020. On September 3, Schuberger declared and paid a $120,000 dividend. On December 31, Schuberger reported net income of $520,000 for the year. B) Blue Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker’s 120,000 outstanding shares of common stock at a cost of $18 per share on January 1, 2020. On May 15, Hunsaker declared and paid a cash dividend of $120,000. On December 31, Hunsaker reported net income of $220,000 for the year. Prepare all necessary journal entries for 2017 for (a) Edelman and (b) Wen.

Answers

Answer:

The journal entries for both corporations is prepared below

A)

Date: June 17

Accounts title and Explanations: Stock investment, dr. (420,000*$15*10%) 630,000

Accounts title and Explanations: Cash, Cr. 630,000

____________________________

Date: Sept 3.

Accounts title and Explanations: Cash, dr. (120,000*10%) 12,000

Accounts title and Explanations: Dividend revenue, Cr. 12,000

______________________________

Date: Dec 31.

Accounts title and Explanations: Stock investments, dr. (520,000*10%) 52,000

Accounts title and Explanations: Investment revenue, Cr. 52,000

____________________________

B)

Date: Jan 1

Accounts title and Explanations: Stock investment, dr. (120,000*$18*30%) 648,000

Accounts title and Explanations: Cash, Cr. 648,000

____________________________

Date: May 15

Accounts title and Explanations: Cash, dr. (120,000*30%) 36,000

Accounts title and Explanations: Dividend revenue, Cr. 36,000

______________________________

Date: Dec 31.

Accounts title and Explanations: Stock investments, dr. (220,000*30%) 66,000

Accounts title and Explanations: Investment revenue, Cr. 66,000

____________________________

Dexter Consulting, Inc. recently reported the following information: Net income = $395,000 Sales = $700,000 Total Assets = $1.5 million Tax rate = 21% Interest expense = 13,000 Accounts Payable = 74,000 Notes Payable = 900,000 Accruals = 12,000 After-tax cost of capital = 10% What is the company’s EVA?

Answers

Answer:

$170,650

Explanation:

economic value added (EVA) = NOPAT – (WACC x capital invested)  

NOPAT = net operating profits after taxWACC = weighted average cost of capitalcapital invested = assets - current liabilities

NOPAT = net income x (1 - 21%) = $395,000 x 0.79 = $312,050

WACC = 10%

capital invested = $1,500,000 - $74,000 (accounts payable) - $12,000 (accruals) = $1,414,000

EVA = $312,050 - (10% x $1,414,000) = $312,050 - $141,400 = $170,650

The following is a description of the conversion cycle of Central Production Limited:
The conversion cycle of the company is triggered by a report from the warehouse. When the quantity of an inventory item falls below a pre-set minimum level, the warehouse manager sends an online inventory status report to production department advising them to schedule a production batch run for the item.
Upon receipt of the report, the production clerk assesses the digital bill of materials and the route sheet files for the item to be produced and adds the production details to the online production schedule.
The system automatically adds a record to the open work order file and sends an online work order to the work centre supervisor’s computer and to the accounting clerk’s computer.
The work centre supervisor receives the work order from his computer and print hard-copy move tickets and materials requisitions for each production process. Production employees take the materials requisitions to store clerk and receives the materials and subassemblies needed to perform the production tasks. If additional materials beyond the standard amount is needed, the work centre supervisor prepares additional materials requisitions.
Production employees complete job time tickets after completing a production process to record the time spent on the job. The job time tickets are then sent together with the move tickets to the accounting department.
After releasing the materials into production, the store clerk updates the material inventory records and send the materials requisitions to accounting department. The clerk prepares a journal voucher and posts to the general ledger material control account at the end of each day.
The accounting clerk assesses the work orders and set up a work-in-process account for a production batch. Throughout the production period, the clerk also receives move tickets, job tickets, and materials requisitions, which he uses to post to the work-in-process account. At the end of each day, the accounting clerk prepares a digital journal voucher and post it to the general ledger work-in- process and finished goods control accounts.
Identify the risks exist in the conversion cycle of Central Production Limited. (10 marks, maximum 300 words)

Answers

Answer: Provided in the explanation section

Explanation:

Conversion Cycle is the cycle which track records for the arrangement of crude material to completed products.  

Here on the best possible perspective all in all of the procedure:  

1. Triger by distribution center dept ( Raw material Keeper)  

2. Produnction chief updates the request to be finished and include further up and coming requests assuming any.  

3.It will produce online request slip and straightforwardly post to chiefs tab + bookkeeper tab  

4. Manager take material and issue to gathering dept ( abundance material necessity is given by his position too)  

5. Time + work both finished card sare sent to Accountanct  

6. When request finished Accountant update the WIP just as Inventory in books.  

Hazard in the Conversion Cycle:  

After receipt of material and charging it to FG as Inventory in books  

- Risk is hindering of assets in overabundance keeping of stock, As material level down after a specific level automatc trigger alternative is set up, which cautions the productin withdraw. to decide the future prerequisite according to the productin request in hands ( Good control set up)  

Second, Online workorder to Supervisior, All chief gets their no. of creation request ( to be finished on the web) - Good control set up  

Third, Supervisor on hand, place the material prerequisite ( and if any overabundance necessity - " NO FURTHER APPROVAL" is made to store representative. here hazard is medium over the demand well beyond the Order indicates by the creation dept.  

Fourthly, creation representatives itself are getting ready thier work tickets ( " NO AUTHENTICATION")- As tickets are finished by creation representatives itself control of information info or its endorsement is inadequate.  

Fifth, Accountant decides himeslef the WIP , FG of the request over the crude information got as employment card, time card, material order Risk is bookkeeper simply need to verifiy the information from the information got from the creation L2 official as opposed to himself keep up the quantities of the activity.  

From above it is anything but difficult to catch the degree of hazard at different level in the above procedure of Central creation Limited.

The Colson Company issued $407,000 of 9% bonds on January 1, 2014. The bonds are due January 1, 2020, with interest payable each July 1 and January 1. The bonds are issued at face value.
Prepare Colson’s journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.

Answers

Answer:

Dr cash    $407,000

Cr bonds payable       $407,000

July 1

Dr interest expense   $ 18,315.00  

Cr cash                                              $ 18,315.00  

December 31

Dr interest expense   $ 18,315.00  

Cr interest payable                                          $ 18,315.00  

Explanation:

The bond was issued at face value of $407,000 which means that cash of $407,000 was received which is to be debited to cash account and bonds payable account credited for the same amount.

On July1 ,interest coupon of  $ 18,315.00   ($407,000*8%*6/12) was paid which means that interest expense is debited with $ 18,315.00   while cash is credited.

On 31 December ,interest coupon of  $ 18,315.00   ($407,000*8%*6/12) was due  which means that interest expense is debited with $ 18,315.00   while interest payable is credited.

Suppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employee by $4 per hour. Assume that firms were not providing such benefits prior to the legislation. On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labor.On the previous graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor. Suppose the wage is free to balance supply and demand. Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is implemented.
True or False: Employers and employees are made worse off by this law.
True False Suppose that, before the mandate, the wage in this market was $3 above the minimum wage. In this case, the employer mandate will decrease the equilibrium wage rate from $10 per hour to $6 per hour, causing employment to increase V and unemployment to decrease 'V' . Now suppose that workers do not value the mandated benefit at all. Which of the following statements are true under this circumstance?
1. The wage rate will decline by less than $4.
2. Employers are worse off than before the mandated benefit.
3. The equilibrium quantity of labor will decline.
4. The supply curve of labor doesn't shift at all.
5. Employees are worse off than before the mandated benefit.

Answers

Answer:

a. False

b. 1. The wage rate will decline by less than $4.

2.Employers are worse off than before the mandated benefit.

3. The equilibrium quantity of labor will decline.

4. The supply curve of labor doesn't shift at all

5. Employees are worse off than before the mandated benefit.

Explanation:

The Equilibrium wage and employment level are at the point where demand and supply curves intersect. The new law will cause the demand and supply curve to shift down. Employers and employees are not made worse off rather they are well off as before.  

When the workers will not value the benefit as mandated in the law the supply curve will not shift down, the equilibrium quantity of labor will decline and wage rate will decline by less than $4. Employers are worse off than before because a greater total wage will be paid by employers plus benefit for few workers. This will result in greater total cost to employer.  

Suppose that General Motors Acceptance Corporation issued a bond with 10 years until​ maturity, a face value of $ 1 comma 000​, and a coupon rate of 7.0 % ​(annual payments). The yield to maturity on this bond when it was issued was 6.0 %. What was the price of this bond when it was​ issued?

Answers

Answer:

$1,073.60

Explanation:

bond's current price = PV of face value + PV of coupons

maturity = 10 years

face value = $1,000

coupon rate = 7% annual

market rate = 6%

PV of face value = $1,000 / (1 + 6%)¹⁰ =$558.39

PV of coupons = coupon x annuity factor (10 years, 6%) = $70 x 7.3601 = $515.21

market value at issue date = $558.39 + $515.21 = $1,073.60

since the bond's coupon rate was higher than the market rate, the bond was sold at a premium.

Brian and Kim have a 12-year-old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. Click here to access the income tax rate schedules. If Stan's parents elected to report Stan's income on his parents' return, what would the tax on Stan's income be?

Answers

Answer:

The answer is $393

Explanation:

Solution

In this case, we will find the tax on Stan's income which is stated below:

Stan's adjusted gross income = 4500

The standardized deduction = 1050

The unearned taxable income = 3450

With ordinary rate, the less statutory deduction is = 1050

The taxable income that is subject to his parent's rate = 2400

The tax with ordinary rate = (1050 * 10%) =105

The Tax with parent's rate is = (2400 * 12%) = 288

Hence,

The tax on Stan's income would be = 105 + 288 = $393

Note: Kindly find an attached copy of the Tax rate schedules as part of the question to this solution

Barbara owns a manufacturing plant with four facilities (North, South, East, and West) in the state of Indiana. The workers at one of those facilities, North, have just decided to join a union. The union negotiates with Barbara and receives average wages that are 5% higher than the workers at the South, East, and West facilities. This wage differential is a likely example of:

Answers

Answer:

Union power

Explanation:

The difference in wages is as a result of Union power because the North now belongs to a labor union that protects their interest. A labor union is an organization that plays the role of an intermediary between their members and their employers. The workers in the North through the union are able to negotiate for better wages. Through collective bargaining, the union gives workers In the North the power to request for better work pay than workers in the east, West and South facilities.

A couple borrows $200,000 for a mortgage that requires fixed monthly payments over 30 consecutive years. The first monthly payment is due in one month. If the interest rate on the mortgage is 5%, which of the following comes closest to the monthly payment?
When would the calculation of the effective annual interest rate be most useful?
a. When comparing two investments with different annuity amounts
b. When comparing two investments with different par values
c. When comparing two investments that end at different points in time
d. When comparing two investments that compound differently within a year
e. When comparing two investments that have different inherent risk

Answers

Answer:

(a) The monthly payment is $ 1,073.64

(b) The correct option is option D. When comparing two investments that compound differently within a year.

Explanation:

Monthly payment = $1,073.64

Using financial calculator BA II Plus - Input details:

                                                          $

I/Y = Rate = 5/12 =                           0.416667

FV = Future value =                             $0

N = Total payment term                 25*12 =  360

PV = Present value of loan             -$200,000

CPT > PMT = Monthly Payment       $1,073.64

1. The monthly payment by the couple is $1,073.64.

2. The calculation of the effective annual interest rate would be most useful d. When comparing two investments that compound differently within a year.

Data and Calculations:

The monthly payment is determined as follows:

(# of periods)   = 360 months (30 x 12)

I/Y (Interest per year) = 5%

PV (Present Value) = $200,000

FV (Future Value) = $0

Results:

Monthly Payment = $1,073.64

Sum of all periodic payments = $386,511.57

Total Interest = $186,511.57

Thus, the couple would pay $1,073.64 monthly for 30 years in order to pay off the mortgage of $200,000 at 5% interest.

Learn more about the monthly payment for mortgage here: https://brainly.com/question/25696498

Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase orders, sales invoices and suppliers’ invoices to prepare journal vouchers for general ledger entries. Each day he posts the journal vouchers to the general ledger and the related subsidiary ledgers. At the end of each month, he reconciles the subsidiary accounts to their control accounts in the general ledger to ensure they balance. Discuss the internal control weaknesses and risks associated with the above process.

Answers

Answer:

The possible monitoring vulnerability in this case will be as follows:

• No division of service

• Too much dependence on the individual

• credibility and location of information, if any, are questionable

• The measurement errors are high

Throughout such a situation, the programme would be configured to include end-users as well as GL offices with a comprehensive checklist of journal coupons and accounts operation records throughout order to prepare for the possible harm.

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows: 1 Sales $10,800,000.00 2 Manufacturing costs: 3 Direct materials $6,400,000.00 4 Direct labor 1,600,000.00 5 Variable manufacturing cost 1,280,000.00 6 Fixed manufacturing cost 320,000.00 9,600,000.00 7 Selling and administrative expenses: 8 Variable $1,080,000.00 9 Fixed 180,000.00 1,260,000.00Required:
1. Prepare an income statement based on the absorption costing concept.*
2. Prepare an income statement based on the variable costing concept.*
3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).

Answers

Answer:

Absorption Costing Net Income  1008,000

Variable Costing Net Income     976,000

Explanation:

Kodiak Fridgeration Company

Units Produced = 80,000

Units Sold = 72,000

Ending Inventory = 8000

Per Units Cost

Direct materials $6,400,000/80,000 = $ 80

Direct labor 1,600,000 /80,000= $ 20

Variable manufacturing cost 1,280,000/80,000= $ 16

Fixed manufacturing cost 320,000 /80,000 = $ 4            

Absorption Manufacturing Cost  per unit= 9,600,000/80,000= $ 120

Variable Manufacturing Costs per unit = $ 116

Kodiak Fridgeration Company

Income Statement

Absorption Costing

Sales                                                              $10,800,000

Manufacturing costs:

Direct materials $6,400,000

Direct labor 1,600,000

Variable manufacturing cost 1,280,000

Fixed manufacturing cost 320,000                 9,600,000

Less Ending Inventory (8000*120)                     (960,000)

Cost of Goods Sold                                           86,40,000

Gross Profit                                                         2160,000

Selling and administrative expenses:

Variable $ 72,000* 13.5=                                    972,000

Fixed                                                                      180,000                                                  

Net Income                                                        1008,000

Kodiak Fridgeration Company

Income Statement

Variable Costing

Sales                                                              $10,800,000

Variable manufacturing cost

(80,000*116)                                                       9280,000

Less Ending Inventory ( 8000*116)                     928,000

Cost of Goods Sold                                           83,52,000                  

Gross Contribution Margin                                 2448,000

Variable Selling and administrative expenses

(72000 * $1,080,000/80,000)                              972,000

Contribution Margin                                            1476,000

Less Fixed Expenses

Fixed manufacturing cost 320,000

Fixed 180,000                                                    500,000

Net Income                                                          976,000

3. The difference in absorption and variable costing income is because in absorption costing the fixed costs are treated as unit cost and in variable costs the fixed costs are treated as period costs. Also the fixed costs of the ending units is deducted in absorption costing where it is not deducted in variable costing.

Pennewell Publishing Inc. (PP) is a zero growth company. It currently has zero debt and its earnings before interest and taxes (EBIT) are $80,000. PP's current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. Refer to the data for Pennewell Publishing Inc. (PP). Assume that PP is considering changing from its original capital structure to a new capital structure with 35% debt and 65% equity. This results in a weighted average cost of capital equal to 9.4% and a new value of operations of $510,638. Assume PP raises $178,723 in new debt and purchases T-bills to hold until it makes the stock repurchase. PP then sells the T-bills and uses the proceeds to repurchase stock. How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?

Answers

Answer:

Price per share after repurchase = $51.064

Shares remaining after repurchase = 6500

Explanation:

Given the following :

Value of operations = $510,638

Value of T-bills = value of debt = $178,723

Therefore, value of equity = $510,638

Number of common shares = 10,000

Price per share = Value of equity / Number of shares

Price per share = $510,638 / 10,000 = $51.064

Price per share prior to repurchase is the same as price per share after repurchase.

However, number of shares repurchased equals;

$178,723 / $51.064 = 3499.99 = 3500 shares

Number of shares left after repurchase :

Totals shares - shares repurchased

10,000 - 3500 = 6,500

Granite Construction Company is considering selling excess machinery with a book value of $328,100 (original cost of $449,200 less accumulated depreciation of $121,100) for $222,800, less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of $217,860 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company’s costs of repairs, insurance, and property tax expenses are expected to be $16,708.
Required:
A. Prepare a differential analysis, dated November 7 to determine whether Granite should lease (Alternative 1) or sell (Alternative 2) the machinery.
B. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain.

Answers

Answer:

A)

book value = $328,100

net selling cost = $222,800 - 6% = $209,432

net lease revenue = $217,860 - $16,708 = $201,152

                                Granite Construction

                                 Differential analysis

                                        November 7

                                     Alternative 1      Alternative 2     Differential

                                     SELL                  LEASE               amount    

Revenue from sales     $222,800         $0                      $222,800

- sales expenses             ($3,368)         $0                         ($3,368)

Revenue from lease     $0                     $217,860           ($217,860)

- lease expenses          $0                      ($16,708)              $16,708

total                               $209,432         $201,152                $8,280

B) Granite Construction should sell the equipment since it will earn $8,280 more than leasing it, and that without considering the value of money in time (discount rate on lease revenue).

Deere is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the following information in its 2017 annual report. (In millions)
2017 2016 Inventories (LIFO) $2,267 $2,999
Current asset 32,910
Current liabilities 11,711
LIFO reserve 1,389
Cost of goods sold 15,661
Compute Deere inventory turnover for 2017 ratio.

Answers

Answer:

5.95

Explanation:

Deere inventory turnover for 2017 ratio is:

Formula for Inventory Turnover Ratio= Cost of Goods sold / Average Inventory

Where Average Inventory = (Previous Inventory + Current Inventory) / 2

= ($2,267 + $2,999) / 2

=$5,266 / 2

=$2,633

Average Inventory = $2,633

Therefore, Inventory Turnover Ratio =  $15,661 / $2,633 = 5.9479 = 5.95

Deere Inventory Turnover for 2017 Ratio is  5.95.

In contrast to a differentiator, a cost-leader will:

a. focus its research and development on process technologies to improve efficiency.
b. charge a premium price for its products and services.
c. avoid an organizational structure that relies on strict budget controls.
d. build an organizational culture where creativity and customer responsiveness thrive.

Answers

Answer: a. focus its research and development on process technologies to improve efficiency.

Explanation:

A Cost Leadership strategy entails reducing the costs associated with production to the point that you are the most efficient producer in the industry. By reducing cost, the company is able to see higher profitability margins and could be able to lower sales prices thereby capturing greater market share.

The Cost Leader will therefore focus on coming up with ways with which it can keep costs at a minimum because it is important to their mode of operations.

A Differentiator on the other hand aims to increase market share by creating a product that people will see as different and will buy due to the added value. They will focus more on supporting creativity to make better products as well as customer responsiveness to see what it is that the customers like so that they can offer it.

The cost of doing business is most likely to be the lowest in:_______.
a. closed totalitarian states.
b. primitive or undeveloped economies.
c. open democratic societies.
d. countries where local laws and regulations set strict standards with regard to product safety, safety in the workplace, and environmental pollution.
e. countries that lack well-established laws for regulating business practice.

Answers

Answer:

C. Open democratic societies.

Explanation:

Generally, the cost of doing business is most likely to be the lowest in an open democratic societies.

An open democratic society is one that is characterized by a degree of freedom for the populace and as such, it gives the people the privilege of fairly competing for all resources.

In an open democratic society, there's ease of doing business because the government would ensure there's an enabling environment by virtue of laws, regulations, policies, SME loans, taxation etc. The open society being opposed to autocracy, ensures that the government is typically responsive and tolerant to every individual living in the country. This simply means that, fundamental human rights and all the necessary infrastructures or amenities such as power, water, transportation systems are readily available and accessible to all.

Consequently, the cost of doing business becomes low and more individuals would be willing to startup their business; investors are confident of investing in the economy because they believe in the system put in place in an open democratic society.

On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $264,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $24,000. On March 1, 2021, the truck was sold for $115,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.Required: 1. Prepare the journal entry to update depreciation in 2021 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $141,000, prepare the journal entry to record the sale.

Answers

Answer:

1.

1 March 2021    

Depreciation expense                                          $5000 Dr

       Accumulated depreciation-Delivery truck             $5000 Cr

2.

1 March 2021

Accumulated depreciation-Delivery truck          140000 Dr

Cash                                                                          115000 Dr

Loss on Disposal                                                      9000 Dr

             Delivery Truck                                                   264000 Cr

3.

1 March 2021

Accumulated depreciation-Delivery truck          140000 Dr

Cash                                                                          141000 Dr

             Delivery Truck                                                   264000 Cr

             Gain on disposal                                                  17000 Cr

Explanation:

1.

Depreciation expense is the systematic allocation of an asset's cost over its estimated useful life.

The straight line method of depreciation charges a constant depreciation expense each period. The formula for depreciation expense per period under this method is,

Depreciation expense = (Cost - Residual value)  /  Estimated useful life of the asset

The depreciation expense per year of delivery truck under this method will be,

Depreciation expense per year =  (264000 - 24000) / 8 = $30000 per year

The depreciation expense to be charged in 2021 will be for 2 months.

Depreciation expense 2021 = 30000 * 2/12    = $5000

2.

The accumulated depreciation of truck on 1 March 2021 is,

Depreciation for 6 months of 2016 = 30000 * 6/12 = $15000

Depreciation for 4 years (2017 to 2020) = 30000 * 4 = $120000

Depreciation for 2 months of 2021 = $5000

Accumulated depreciation at 1 March 2021 = 15000 + 120000 + 5000

Accumulated depreciation at 1 March 2021 = $140000

Net Carrying value of asset = 264000 - 140000 = $124000

Loss on disposal as asset is sold for less than its carrying value is,

loss on disposal = 115000 - 124000   = - $9000 (loss on disposal)

3.

As the asset is sold for more than its carrying value, the gain on disposal is,

Gain on disposal = 141000 - 124000    = $17000 (gain on disposal)

Capitan Inc. made an entry to record the return of inventory that the company previously purchased on account. If the company uses a perpetual inventory system, the entry to record the returned inventory includes a:____________

Answers

Answer:

Dr Accounts payable

    Cr Merchandise inventory

Explanation:

The original purchase entry using the perpetual should be:

Dr Merchandise inventory XX

    Cr Accounts payable XX

If the company returns some or all the merchandise purchased, then the journal entry should be:

Dr Accounts payable YY

    Cr Merchandise inventory YY

If the company used the periodic inventory system, then the accounts would be different. Perpetual inventory directly debits or credits merchandise inventory account, it doesn't use the purchases account.

The original purchase entry using the periodic system should be:

Dr Purchases XX

    Cr Accounts payable XX

If the company returns some or all the merchandise purchased, then the journal entry should be:

Dr Accounts payable YY

    Cr Purchases returns and allowances YY

Kevin owns one share of Acme, Inc. stock. He purchased the stock three years ago for $29. The stock is currently trading for $29.50 per share. The stock has paid the following dividends over the past three years. o Year 1: $1.50 o Year 2: $2.00 o Year 3: $2.50 What is the compounded rate of return (IRR) that Kevin has earned on this investment

Answers

Answer:

Find below the multiple choices:

5.6%.

6.6%.

10.1%.

7.35%

The last option ,7.35% is correct

Explanation:

The excel IRR formula can be very useful in determining the IRR for the investment in stock, the formula is stated thus:

=IRR(values)

the values in the case are the cash flows (inflows and outflows) arranged from the earliest to the latest as shown in the attached spreadsheet.

A building is acquired on January 1, at a cost of $960,000 with an estimated useful life of 10 years and salvage value of $86,400. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)

Answers

Answer:

Year 1 - $192,000

Year 2 - = $153,600

Year 3 - $122,880

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2 x (1/10) = 0.2

Depreciation expense in the first year = 0.2 x $960,000 = $192,000

Book value at the beginning of year 2 = $960,000 - $192,000 = $768,000

Depreciation expense in year 2 = 0.2 x $768,000 = $153,600

Book value in year 3 = $768,000 - $153,600 = $614,400

Depreciation expense in year 3 = 0.2 x $614,400 = $122,880

I hope my answer helps you

Universal Containers wants to provide a more consistent service experience to its customers and is evaluating the Service Cloud macro feature. Which three configurations must be made?
A. Users must use Lightning Experience. B. Publisher Actions used in the macros must be on the page layout.C. The Macros widget or utility must be added to the console.D. The Run Macros Permission must be granted to users.E. The Run Macros Action must be on the page layout.

Answers

Answer:

B. Publisher Actions used in the macros must be on the page layout.

C. The macros widget or utility must be added to the console

D. The run Macros permission must be granted to users.

Explanation:

The macros are a function which specifies how an input function should be mapped in the computer software to produce defined output. Macros are used to make tasks less repetitive. The macros can be used in service cloud. To use macros in service cloud the macros permission must be granted to all users, the macros widget must be added to the console and the macros must be on the page layout.

An inexperienced accountant for Riverbed Corp showed the following in the income statement: income before income taxes $258,000 and unrealized gain on available-for-sale securities (before taxes) $94,900. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 34% tax rate. Prepare a correct statement of comprehensive income.

Answers

Answer:

Kindly check attached file for the Comprehensive report

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