Answer:
Equivalent Units
Material cost = 26,560
Conversion Cost= 25,540
Explanation:
We would assume the company uses weighted average method of valuation.
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Material cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 100%× 1,360 1360
Total equivalent units 26,560
Conversion Cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 25%× 1,360 340
Total equivalent units
The Converting Department of Osaka Napkin Company uses the average cost method and had 2,000 units in work in process that were 60% complete at the beginning of the period.
A. To determine the number of whole units to be accounted for and to be assigned costs for the period, let's calculate the total equivalent units of production.
Whole units at the beginning of the period = 2,000 unit
Units started and completed during the period = 25,200 units
Whole units in process at the end of the period = 1,100 units
Total whole units to be accounted for:
= Whole units at the beginning + Units started and completed during the period + Whole units in process at the end
= 2,000 units + 25,200 units + 1,100 units
= 28,300 units
B. To determine the number of equivalent units of production for the period, we need to consider the percentage of completion for the units in process at the beginning and the units in process at the end.
Equivalent units of production for units in process at the beginning:
= Whole units at the beginning × Percentage of completion at the beginning
= 2,000 units × 60%
= 1,200 equivalent units
Equivalent units of production for units in process at the end:
= Whole units in process at the end × Percentage of completion at the end
= 1,100 units × 30%
= 330 equivalent units
Total equivalent units of production for the period:
= Equivalent units of production for units in process at the beginning + Equivalent units of production for units in process at the end + Units started and completed during the period
= 1,200 equivalent units + 330 equivalent units + 25,200 units
= 26,730 equivalent units
Therefore, the number of equivalent units of production for the period is 26,730 units.
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Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of Accounts of $525,000 for Apri, $535,000 for May, and $560,000 for June. The beginning balance of Accounts Receivable is $400,000 on April 1
Prepare a schedule of budgeted cash receipts for April, May, and June Answer is complete but not entirely correct. April May Jur 30% |$ 157,500 $ 160,5000$ 70% Cash sales 374,500 535,000 5 Sales on account 367,500 Total sales $ 525,000 $ JASPER COMPANY Cash Receipts Budget For April, May, and June
Answer:
Jasper Company
Cash Receipts Budget for April, May, and June:
April May June Total
Cash Sales 30% $157,500 $160,500 $168,000 $486,000
Credit Sales 70% 400,000 367,500 374,500 1,142,000
Total $557,500 $528,000 $542,500 $1,628,000
Explanation:
1. Cash Receipts Budget shows the estimated cash receipts from customers and other sources.
2. Calculations:
a) Cash Sales for April = 30% of April Sales = 30% * $525,000 = $157,500. The difference of 70% is received in May.
b) Sales received on account for April = 100% of Accounts Receivable = $400,000.
c) Cash Sales for May = 30% of April Sales = 30% * $535,000 = $160,500. The difference of 70% is received in June.
d) Cash Sales for June = 30% of April Sales = 30% * $560,000 = $168,000. The difference of 70% is received in July.
An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Rajiv can either mow 2 lawns or wash 1 car; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 1 lawn or wash 2 cars. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns.
(A) All three spend all their time washing cars
(B) All three spend half their time on each activity.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
(D) Identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Yakov Charles
Answer:
(A) All three spend all their time washing cars
In 10 hours Rajiv will wash 10 cars, because he can wash 1 car per hour.
Yakov will also wash 10 cars because he can wash 1 car per hour.
And, Charles will wash 20 cars because he can wash 2 cars per hour.
(B) All three spend half their time on each activity.
In 5 hours, Rajiv will mow 10 lawns, and wash 5 cars.
Yakov will mow 5 lawns and wash 5 cars.
And Chalres will mow 5 lawns and wash 10 cars.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
Rajiv will mow 10 lawns and wash 10 cars.
Yakov will wash 10 cars.
And Charles will mow 10 lawns.
(D) Identify the opportunity cost of washing cars for each worker.
For Rajiv, the opportunity cost of washing 1 car is not mowing 2 lawns.
For Yakov, the opportunity cost is not mowing 1 lawn.
For Charles, the opportunity cost is not mowing half a lawn.
Classify the following activities in providing medical services at Healthsmart Clinic.
Activity Control Level Activity Driver
A. Registering patients
B. Cleaning beds
C. Stocking examination rooms
D. Washing linens
E. Ordering medical equipment
F. Heating the clinic
G. Providing security services
H. Filling prescriptions
1. classify each activity as unit level (U), batch level (B), product level (P), or facility level (F).
2. identify an activity driver that might be used to measure these activities at the clinic.
Answer:
The following Classification of activities for medical services at health smart clinic is categorized below
Explanation:
Solution
Given that:
The following activities for providing medical services at health smart Clinic is stated below:
Activity Control level Activity Driver
A. Patient registering - Unit level - Number of patients
B. Cleaning beds - Unit level - bed, patients, labor hours
C. Stocking examination rooms - Facility Level - Number of rooms
D. Washing linens - Batch level - Loads
E. Ordering medical equipment - Facility Level - Cost of equipment, Number of suppliers
F. Heating the clinic - Facility Level - Degree days, space
G. Providing security services - Facility level - No. of days , area covered
H. Filing prescriptions - Batch level - No. of prescriptions
You put money into an account that earns a 5 percent nominal interest rate. The inflation rate is 2 percent, and your marginal tax rate is 40 percent. What is your after-tax real rate of interest
Answer: 1%
Explanation:
The Nominal interest rate has not been adjusted for inflationary effects yet and as such is considered overstated.
The Real Interest rate has been adjusted for inflation and is believed to show the actual return one receives.
Tax is calculated on the Nominal rate.
After tax Nominal Rate = 5% * ( 1 - 40%)
= 3%
Then adjust for inflation to find real rate,
= 3% - 2%
= 1%
The After-tax real rate is 1%.
In no case can "market" in the lower-of-cost-or-market rule be more than:_______.
a. estimated selling price in the ordinary course of business.
b. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal, an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
c. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal.
d. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal and an allowance for an approximately normal profit margin.
Answer:
b. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal, an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
Explanation:
Note that the lower of cost market rule is explicitly encouraging businesses to record the lowest cost of inventory; for example using the original cost or its current market price, whichever is favourable.
Thus, the "market" must not be more than the estimated selling price in the ordinary course of business, with an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
Torino Company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $3,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Answer:
The answer is $4,300
Explanation:
Solution
We recall that:
Torino company has 1,200 shares of = $50 per value
The cumulative and nonparticipating preferred stock of = 6.0%
They also have 13,00 shares
Common stock outstanding = $10 per value
Total dividends = $3,500
Now,
The first year amount of dividend that was paid in the first year of working is stated as follows:
6% * 1300 * 50 = $3900
The paid dividend = $3,500
The amount amount payable during the second year to the common stakeholders is
=$3900 + 400 = $4,300
Note: preferred shares are cumulative, for this the amount paid to the stakeholders was $4,300
Piper is a manager in a corporation that was organized in Canada by one of his former coworkers. The company provides consulting services and training for architects employed by construction companies. The company recently went public, with shares being sold to hundreds of investors. Piper’s company would be a __________ corporation.
Answer:
A Public company.
Explanation:
A public company can be described as a commercial organization that has its share capital formed by shares, that is, the company sells its shares to the public, who become partners in the company.
The shares of a public company are traded on the stock exchange freely, without the need for any type of public bookkeeping.
The company's shareholders can be composed of any type of person who is interested in buying shares in the company.
Private companies generally become public because of the possibility of obtaining capital, which generates greater revenue for the company and greater possibility for growth and investment in business.
Compton Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for the firm's services is very competitive. To compete successfully, Compton must deliver quality services at a low cost. Compton presents the following data for 2016 and 2017.Compton Associates is an architectural firm that has been inArchitect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year.Required1. Is Compton Associate's strategy one of product differentiation or cost leadership? Explain briefly.2. Describe key measures you would include in Compton's balanced scorecard and your reasons for doing so.
Answer:
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
Explanation:
1) Do you think there is/are any action(s) by Jessops Group Limited, that can be considered as a Corporate Social Responsibility (CSR) activity? 2) If yes, can you identify and explain a benefit of the CSR activity to Jessops Group Limited?
Answer:
YesExplanation:
Yes, Jessops is fulfilling its corporate social responsibility due to its contribution to the local councils for developing the collection facilities of discarded electronic goods and also by raising awareness for WEEE regulations, setting up plants to recycle used batteries can also be counted as a corporate social responsibility as it is an initiative to reduce environmental pollution caused by batteries.
There are four types of corporate social responsibility: Environment conservation, philanthropy, volunteerism, diversity and labor practices. Many corporations give money for preservation of wildlife and land, and take up environmental clean up efforts.
CSR helps the companies in many ways. It includes brand recognition and business reputation, it gives competitive edge to a company as companies prefer suppliers with responsible policies. It enhances customer loyalty and increases sales, it saves operational cost by reducing emissions and waste.
The CSR efforts helps the companies to attract talent and retain them as employees are motivated to work with companies taking up CSR initiatives.
CSR efforts also improves relations with the authorities and makes it easy to get financial access.
So, Jessop group will also get all these benefits from its CSR initiatives that will help it to become market leader in imaging industry.
Management of Carla Vista, Inc., is planning to raise $1,215,000 in new equity through a private placement. If the sale price is $20.25 per share, how many shares does the company have to issue
Answer:
Number of shares to be issued = 60,000 units
Explanation:
A private placement involves the issue of new shares to a few number of individual and institutional investors. Unlike initial public offering, here the shares are not offered to the general public.
The number of units to be issued is determined as follows
Units to be issued = Total capital to be raised / issue price per share
Number of units to be raised = $1215,000/$20.25 per share= 60,000 units
Number of shares to be issued = 60,000 units
A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season starts this week. (a) The sale of the season tickets before the first show. (b) The revenue from fulfilling the performance obligation by putting on the first show.
Answer:
Dr cash $375,000
Cr unearned revenue $375,000
Dr unearned revenue $37,500
Cr revenue $37,500
Explanation:
The total amount realized from the sale of tickets is $375,000($250*1500)
However,the cash proceeds should be debited to cash while it is also credited to unearned revenue
The revenue from fulfilling the performance obligation=1/10*$375,000=$37,500
The $37,500 is debited to unearned revenue and credited to sales revenue as that amount has now been earned
a) The cash realized from the sale for all the season tickets is $375,000.
b) The revenue to be recognized after fulfilling the performance obligation of the first show is $37,500.
Data and Calculations:
Selling price per ticket package = $250
Number of ticket packages sold = 1,500
Number of show seasons = 10
On the average, each show season will take = 150 tickets (1,500/10)
Proceeds from sale of season tickets = $375,000 ($250 x 1,500)
Revenue from first show = $37,500 ($375,000/10) or (150 x $250)
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Corn is an input in the production of tortillas. If you don't know anything about the demand curve, which of the following can you say for certain will happen in the market for tortillas if there is an increase in the price of corn ?
a. overall supply will decrease
b. overall supply will increase
c. quantity supplied will decrease
d. quantity supplied will increase
Answer:
3.14
Explanation:
Blythe Company has provided the following information: Sales price per unit $40 Variable cost per unit 18 Fixed costs per month 12,800 What is the amount of sales in dollars required for Blythe to break even? (Round any percentages to two decimal places and your final answer to the nearest dollar.)
Answer:
Break-even sales in dollars = $23,273
Explanation:
The break-even point is the selling price at which the selling price, equals the cost of production. no profit is made, but no loss is incurred too.
we will use the formula for calculating required selling price, to calculate the break-even price as follows:
Required selling price = (Fixed costs + Target profit) ÷ (Contribution margin ratio)
Contribution margin ratio = Contribution margin ÷ net sales revenue
Contribution margin = sales price - variable cost
contribution margin = 40 - 18 = $22
Net sales revenue = $40
∴ contribution margin ratio = (Contribution margin ÷ net sales revenue) × 100
= 22 ÷ 40 = 55.00% = 0.55
∴ Required selling price = (Fixed costs + Target profit) ÷ (Contribution margin ratio)
Required selling price = (12,800 + 0) ÷ 55.00%
= 12,800 ÷ 0.55 = 23,272.7 = 23,273 (to the nearest dollars)
Break-even sales in dollars = $23,273
Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $1,400,000 of 5-year, 6% bonds at a market (effective) interest rate of 3%, receiving cash of $1,593,666. Interest is payable semiannually on April 1 and October 1.
Required:
a. Journalize the entries to record the following.
1. Issuance of bonds on April 1, Year 1.
2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)
b. Explain why the company was able to issue the bonds for $22,282,220 rather than for the face amount of $21,300,000.
Answer:
a. Journalize the entries to record the following.
1. Issuance of bonds on April 1, Year 1.
Dr Cash 1,593,666
Cr Bonds payable 1,400,000
Cr Premium on bonds payable 193,666
2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)
premium per coupon = $193,666 / 10 coupons = $19,366.60
Dr Interest expense 22,633.40
Dr Premium on bonds payable 19,366.60
Cr Cash 42,000
b. Explain why the company was able to issue the bonds for $1,593,666 (not $22,282,220) rather than for the face amount of $1,400,000 (not $21,300,000).
Since the bond's coupon rate was higher than the market rate, investors were willing to pay more for the bond (premium) than its face value. At $1,593,666, the actual returns will equal the returns of a $1,400,000 bond issued at market rate.
Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs [LO4-1, 4-3, 4-4] Esquire Comic Book Company had income before tax of $1,650,000 in 2021 before considering the following material items: Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $405,000. The division generated before-tax income from operations from the beginning of the year through disposal of $630,000. The company incurred restructuring costs of $70,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Net income = $1,353,750
Note: See the income statement below.
Explanation:
Before preparing the income statement, the following calculations are done first:
Income from operations of discontinued component = Income before-tax generated by the division - Before-tax loss on disposal = $630,000 - $405,000 = $225,000
Income from continuing operations = Income before tax - Restructuring costs = $1,650,000 - $70,000 = $1,580,000
The income statement can now be prepared as follows:
Esquire Comic Book Company
Partial Income Statement
For the year ended December 31, 2021
Details $
Income from continuing operations 1,580,000
Discontinued operations gain (loss):
Income from discontinued component 225,000
Total income before tax 1,805,000
Tax expenses (1,805,000.00 * 25%) (451,250)
Net income 1,353,750
Hopewell Corporation Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 21,000 Liabilities 20,000 Other Assets 26,000 Equity 27,000 Total Assets 47,000 Total Liabilities & Equity 47,000 Hopewell Corporation Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 5,500 Expenses 2,600 Net Income 2,900 Between January 1 and March 31, 2020: 1. Cash decreases by $100,000 2. Liabilities decrease by $300,000 3. Paid-In Capital does not change 4. Dividends paid of $300,000 What is the value for Other Assets on March 31, 2020?
Answer:
The value for Other Assets on March 31, 2020 $29,000,000
Explanation:
Hopewell Corporation Balance Sheet As of December 31, 2019
Cash = $21,000,000
Other Assets = $26,000,000
Total Assets = $47,000,000
Liabilities = $20,000,000
Equity = $27,000,000
Total Liabilities & Equity = $47,000,000
Hopewell Corporation Income Statement January 1 to March 31, 2020
Revenue = $5,500,000
Expenses = $2,600,000
Net Income = $2,900,000
Between January 1 and March 31, 2020:
1. Cash decreases by $100,000
2. Liabilities decrease by $300,000
3. Paid-In Capital does not change
4. Dividends paid of $300,000
Assets
Cash = $21,000,000 - $100,000 = $20,000,000
Liabilities = $20,000,000 - $300,000 = $19,700,000
Equity = $27,000,000 + $2,600,000 - $300,000 = $29,300,000
Total Liabilities & Equity = $19,700,000 + $29,300,000 = $ 49,000,000
Other assets = $49,000,000 - $20,000,000 = $29,000,000
A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: Location (X,Y) A 7,2 B 4,7 C 5,5 D 6,2 E 8,4 If the amount of fabric shipped to each plant are equal, what is the optimal location for the fabric plant?
Answer:
(6,4)
Explanation:
The computation of optimal location for the fabric plant is shown below:-
X Y
A 7 2
B 4 7
C 5 5
D 6 2
E 8 4
Total 30 20
[tex]\bar X = \frac{Total\ of\ X}{Total\ number\ of\ locations}[/tex]
[tex]\bar X = \frac{30}{5}[/tex]
= 6
[tex]\bar Y = \frac{Total\ of\ Y}{Total\ number\ of\ locations}[/tex]
[tex]\bar Y = \frac{20}{5}[/tex]
= 4
So, the optimal location for the fabric plant is (6,4)
For the next 2 questions, use the financials of Acme Corporation. After adjusting revenue for accounts receivable and deferred revenue, how much cash did Acme generate from revenue for the nine months ending September 30, 2017
Answer: B. $892.1 million
Explanation:
The Revenue was $939,393 million
When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.
Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.
Increase in Receivables = 309,196 - 221,504
= $87,692 million
Increase in Deferred Revenue= 374,730 - 334,358
= $40,372 million
The Cash generated is therefore;
= 939,393 - 87,692 + 40,372
= $892,073
= $892.1 million
I have attached the Financial Statements of Acme Corporation.
In a situation of neither input nor output fixed, the proper economic criterion is to _________________. A. Maximize the output B. Minimize the inputs C. Minimize (inputs - outputs) D. Maximize (outputs - inputs)
Answer:
D. Maximize (outputs - inputs)
Explanation:
The input is the raw material, labor, the efforts that is used in making the product while the output is the product or the result arising from the input
The profit arises when output and the input varies from each other
i.e
Profit = Output - input
In the case where there is neither an input nor output fixed, so we have to maximize the profit i.e (output - input) but the condition is that they are different from each other
Hence, the correct option is D.
This year, Napa Corporation received the following dividends: KLP Inc (a taxable Delaware corporation in which Napa holds an 8% stock interest) - $55,000 Gamma Inc (a taxable Florida corporation in which Napa holds a 90% stock interest) - $120,000 Napa and Gamma do not file a consolidated tax return. Compute Napa's dividends-received deduction. Please show complete calculation.
Answer:
$147,500
Explanation:
Computation of Napa's dividends-received deduction
Napa is said to holds less than 20% stock interest in KLP Inc which means that the dividends received deduction in the case of dividends received from KLP would be 50%.
And in case of dividends received from Gamma, the dividends received deduction would be 100% reason been that KLP holds more than 80% of the stock interest in Gamma.
Hence:
Napa’s dividends-received deduction will be:
= ($55,000 x 50%) + $120,000
=$27,500 +$120,000
= $147,500
Therefore Napa's dividends-received deduction will be $147,500
Betterton Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs—equipment depreciation and supervisory expense-are allocated to three activity cost pools—Machining, Order Filling, and Other—based on resource consumption. Data to perform these allocations appear below:
Overhead costs:
Equipment depreciation $ 49,000
Supervisory expense $ 3,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining Order Filling Other
Equipment depreciation 0.50 0.30 0.20
Supervisory expense 0.10 0.40 0.50
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity: Activity:
MHs (Machining) Orders (Order Filling)
Product A8 3,000 500
Product K2 17,000 1,500
Total 20,000 2,000
What is the overhead cost assigned to Product A8 under activity-based costing?
Answer:
$7,695
Explanation:
The computation of overhead cost assigned to Product A8 under activity-based costing is shown below:-
Overhead Amount Machining Amount Order Amount Other Amount
Filling
Equipment
Depreciation $49,000 0.5 $24,500 0.3 $14,700 0.2 $9,800
Supervisory
Expense $3,000 0.1 $300 0.4 $1,200 0.5 $1,500
Total $52,000 $24,800 $15,900 $11,300
Cost per Activity pool unit
Particulars Machining Order Filling Allocated Cost a $24,800 $15,900
Activity b 20,000 hours 2,000 order Fillings Cost per Activity pool unit 1.24 7.95
c = a ÷ b per machine Hour per order fillings
Here, in reference to Product A8
Machine Hours 3,000
Cost per Activity pool unit 1.24 per Machine Hour
Total Cost 3,720
To reach total cost we simply multiply the machine hours with cost per activity pool unit
Order Filling 500
Cost per Activity pool unit 7.95 per order fillings
Total Cost 3,975
To reach total cost we simply multiply the order filling with cost per activity pool unit
Total Overhead cost assigned to Product A8 = Total cost of machine hours + Total cost of order filling
= $3,720 + $3,975
= $7,695
4. You may think of your college or university as an organization that offers a line of different educational products. Assume that you have been hired as a marketing consultant by your university to examine and make recommendations for extending its product line. Develop alternatives that the university might consider: a. Upward line stretch b. Downward line stretch c. Two-way stretch d. Filling-out strategy
Answer:
c. Two-way stretch
Explanation:
For the extension of the product line, the marketing consultant will consider the upwards line stretch as to being In the new products and raise the competition. The two-way stretch can be considered as it allows for the price flexibility to meet both the lower and higher ends customers. A product line extension is a process by which the companies can go beyond their lengths to satisfy the refined segment of the market. It may be done horizontally and vertically.A company reported the following information at December 31, Year 1: Accounts payable $ 4,690 Accounts receivable $ 9,540 Cash $ 25,390 Common Stock $ 91,900 Equipment $ 51,400 Inventory $ 33,100 Notes Payable due December 31, Year 3 $ 2,690 Retained Earnings, December 31, Year 1 $ 14,280 Wages payable $ 5,870 What is the amount of current liabilities on the classified balance sheet?
Answer:
$13,250
Explanation:
Current liabilities can be defined as the amount of money incurred by a company. This debt must be repaid back within a period of one year.
From the question above a company reported the following information on its classified balance sheet at December 31.
Account payable= $4,690
Account receivable= $9,540
Cash= $25,390
Common stock= $91,900
Equipment= $51,400
Inventory= $33,100
Notes payable= $2,690
Retained earnings= $14,280
Wages payable= $5,870
The amount of current liabilities can be calculated by adding up the different debts incurred by the company
Account payable+Notes payable+ wages payable
= $4,690+$2,690+$5,870
= $13,250
Hence the amount of current liabilities recorded on the classified balance sheet is $13,250
An increase in savings by consumers is seen as a(n):_________.
a. decrease in investment spending in the economy increase in government spending in the economy.
b. decrease in exports in the economy.
c. increase in imports in the economy.
d. leakage in spending in the economy.
Answer:
d. leakage in spending in the economy.
Explanation:
In the economy firms spend money on labour, input, and business expansion. While in the personal household there is spending on food, rent, and other expenses.
When money is taken out of this cycle and not used for a particular purpose then it is considered to be a leakage.
Leakages include taxes savings and imports.
Savings occurs when an individual has excess income and decides to reserve some for a future use. This fund does not have a particular use in the economy so it is considered to be a leakage.
Answer:
D. Leakage in spending in the economy.
Explanation:
It is observed that if consumers have a rise in their wages, they tend to benefit and this helps the economic situation of the said country or nation as seen in some economies of the world lately. Also alteration in interest rates can have different consumer effects which ranges from spending habits depending on a number of factors to other habits that may end up boosting the economy also current rate levels, expected future rate changes, confidence of the consumer, and the overall health of the economy.
atton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2021, paying $1,410,375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity. On July 1, 2021, Patton Company should debit its Debt Investments account for the Scott Company bonds by__________ and credit its Interest Revenue account by __________.
Answer:
Patton Company should debit its Debt Investments account for the Scott Company bonds by $2,571 and credit its Interest Revenue account by $155,283
Explanation:
On July 1 2021, Patton Company should increase its Debt Investments account for the Scott Company bonds by =
Amount of discount amortized = Interest revenue - Interest received
= ($1,410,375 × 11% × 6/12) - ($1,500,000 × 10% × 6/12)
= $77,571 - $75,000
= $2,571
Interest revenue on 31 December 2021 = ($1,410,375 + $2,571) × 11% × 6/12
= $77,712
For the year ended December 31, 2021, Patton Company should report interest revenue from the Scott Company bonds of = $77,571 + $77,712 = $155,283
Sandy wants to persuade her audience that the high cost of daily and seasonal ski passes led to the largest decline in revenue that Colorado's major ski resorts have seen in nearly a decade, and that ticket costs should be reduced. She should use what organizational pattern
Answer: argument from cause to effect
Explanation:
Arguments of Cause and Effect. or better still Claims of cause and effect are hypothesis which are supported the thought that one event usually controls or causes another. example from the question.
we all know that sometimes a rise in cost also can result in a decrease in sale or revenues because the case could also be. The reason for Colorado decline in revenue is as a results of visit sales thanks to high cost, and also the effect is that the decline in revenues generated.
Tamarisk Corporation had the following 2020 income statement. Sales revenue $189,000 Cost of goods sold 129,000 Gross profit 60,000 Operating expenses (includes depreciation of $20,000) 54,000 Net income $6,000 The following accounts increased during 2020: Accounts Receivable $14,000, Inventory $10,000, Accounts Payable $12,000. Prepare the cash flows from operating activities section of Tamarisk’s 2020 statement of cash flows using the indirect method.
Answer:
Kindly check attached picture for Tamarisk Corporation Statement Of Income 2020 (indirect method)
A firm expects to have net income of $5,000,000 during the next year. The company’s target capital structure is 35% debt and 65% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $6,000,000. If SL Computer follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is the firm’s expected dividend payments?
Answer:
$1,100,000
Explanation:
The firm expected to have 5,000,000 as net Income
Capital Structure; Debt=35% , Equity= 65%
$6,000,000 is determined to be the Optimal capital budget for the coming year
The firm’s expected dividend payments following a residual distribution policy is = Net Income – [Total Capital Budget x Equity Ratio]
Where Net Income =5,000,000 Total capital budget =6,000,000 Equity Ratio= 65%
Hence Total Dividend Payment = $5,000,000 – [$6,000,000 x 65%]
= $5,000,000 - $3,900,000
= $1,100,000
The firm’s expected dividend payments is = $1,100,000,
Consider the business Dave’s Doughnuts. Which of the following is a sunk cost of this business? Group of answer choices The monthly rent Dave must pay to use a building downtown The wages Dave pays to his workers who make the doughnuts The expenses that went into research and development of a new doughnut flavor The salary that Dave could be earning elsewhere if he didn’t own the business None of the above
Answer:
The expenses that went into research and development of a new doughnut flavor
Explanation:
A sunk cost is a cost that has already been incurred and cannot be recovered. It is money that has already been spent. Sunk costs are bygone and are not to be considered when deciding whether to continue an investment project.
The expenses that went into research and development of a new doughnut flavor is a sunk cost since the cost has been incurred already and cannot be recovered because it is not a relevant cost.
Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $20,000 $26,000 $40,000
Cash payments 28,000 30,000 22,000
Required:
Prepare a cash budget for July, August, and September.
Answer:
Karim Corp
Cash Budget
July August September
Cash inflows: $20,000 $26,000 $40,000
Cash outflows: ($28,000) ($30,000) ($22,000)
Monthly cash flow: ($8,000) ($4,000) $18,000
Monthly interests: $0 ($76) ($116.76)
Initial cash balance: $8,400 $8,000 $8,000
Ending cash balance: $400 $3,924 $25,883.24
Required bank loan: $7,600 $4,076 $0
Payment of bank loan: $0 $0 ($11,676)
Total $8,000 $8,000 $14,207.24
Explanation:
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.
