Answer:
Amounts owed to suppliers for products and/or services purchased on credit
Explanation:
Amounts owed to suppliers for products and/or services purchased on credit
Accounts Payable are due to a particular creditor when it order goods or services without paying immediately which means that you bought goods on credit.
Lane Inc. just reported net income of $2,800,000, and its current stock price is $33 per share. Lane is forecasting $4,000,000 in net income next year, but it also expects it will have to issue 500,000 new shares of stock (raising its shares outstanding from 1,500,000 to 2,000,000). If Lane's forecast turns out to be right, and its price/earnings (P/E) ratio does not change, what does Lane expect its stock price to be one year from now?
Answer:
Price per share Year 1= $35.36
Explanation:
The P/E ratio or the price earnings ratio is an indicator that calculates the dollar amount that an investor is willing to invest in a company for each 1 dollar of that company's earnings. It is calculated as follows,
P/E = Price per share / Earnings per share
The first thing we do is to determine the earnings per share today.
Earnings per share = Net Income / No. of shares outstanding
Earnings per share = 2800000 / 1500000
Earnings per share = $1.867
We need to determine the P/E ratio today which is expected to remain the same for next year also.
P/E ratio = 33 / 1.867
P/E Ratio = 17.675 rounded off to 17.68
The earnings next year will be,
Earnings per share year 1 = 4000000 / 2000000
Earnings per share Year 1 = $2
Taking the constant P/E and year 1's earnings per share, we calculate the price in year 1 to be,
17.68 = Price per share / 2
17.68 * 2 = Price per share
Price per share Year 1= $35.36
Consider the market in which clothing producers operate. Suppose that the price ofthe price of a pair of jeansa pair of jeans risesrises. Explain how this event will change the quantity of jeansjeans supplied and the supply of jeansjeans today. A. The supply of jeans is unchangedsupply of jeans is unchanged and the quantity of jeans supplied decreases.and the quantity of jeans supplied decreases.
Answer:
D. The supply of jeans is unchanged and the quantity of jeans supplied increases
Explanation:
According to the law of supply if the price of the good increased than the quantity supplied is also increased and vice versa i.e it shows the direct relationship between the quantity supplied and the price
So since the price of the jeans is rises so the quantity supplied is also raised without impact the supply of jeans
Hence, the correct option is D.
Ecker Company reports $1,925,000 of net income for 2017 and declares $269,500 of cash dividends on its preferred stock for 2017. At the end of 2017, the company had 300,000 weighted-average shares of common stock.
1. What amount of net income is available to common stockholders for 2017?
2. What is the company's basic EPS for 2017?
Answer:
(A) $1,655,500
(B) $5.52 per share
Explanation:
Ecker company announced a net income of $1,925,000
They also declare a cash dividend of $269,500
The company has 300,000 weighted average shares of common stock
(A) The amount of net income available to common stockhloders for 2017 can be calculated as follows
Net income available to common stockhloders= Net income- Preferred Cash dividend
= $1,925,000-$269,500
= $1,655,500
(B) The common basic EPS for 2017 can be calculated as follows
Common basic EPS= Net income available to stockholders/weighted average outstanding shares
= $1,655,500/300,000
= $5.52 per share
Assume that both labor and capital exhibit diminishing returns. Suppose you can hire an additional unit of labor for $10, and she can product 50 units. You could also buy an additional machine at the cost of $200, and that machine would allow you to produce 1000 units.
If your main concern is minimizing average cost, what should you do?
a) Buy the machine, because it will allow you to produce more
b) Nothing, because you are already minimizing cost
c) There is not enough information to make a legitimate response
d) Hire more labor, because it is cheaper
Answer:
b) Nothing, because you are already minimizing cost
Explanation:
cost of producing one additional unit by hiring more workers = $10 / 50 units = $0.20 per unit
cost of producing one additional unit by buying the machine = $200 / 1,000 units = $0.20 per unit
Since labor exhibits a diminishing return, the next unit of labor will produce less than 50 units. This means that if you want to increase production, you should buy the machine.
Using the same logic, the previous units of labor were able to produce more than 50 units, which means that the average total cost was lower using labor than the machine. So if the company's concern is to minimize costs, then they are already doing so.
Compute the payback for each of these two seperate investments:
a. A new operating system for an existing machine is expected to cost $250000 and have a useful life of 6 years. The system yields an incremental after-tax income of $72115 each year after deducting its straight line depreciation. The predicted salvage value of the system is $10000.
b. A machine costs $200,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after-tax income of $39,000 per year after straight-line depreciation.
Answer:
a. 2.23
b. 3.21
Explanation:
a. Answer to Part A
Payback Period = Investment / Annual Cash Inflow
= 250000 / 112115
= 2.23
Answer to Part B
Payback Period = Investment / Annual Cash Inflow
= 200000 / 62375
= 3.21
Working Note
Particulars Case A Case B
After Tax Income 72115 39000
Add: Depreciation 40000 23375
Cash Inflow 11,2115 62375
Particulars Case A Case B
Cost of Machine 250000 200000
Less: salvage Value 10000 13000
Depreciable Value 240000 187000
Life of the Asset 6 8
Annual Depreciation 40000 23375
g The Federal Reserve can lower short-run output by Group of answer choices lowering the real interest rate. increasing the money supply. decreasing the money supply. lowering the nominal interest rate. None of these answers is correct
Answer: Decreasing the money supply
Explanation:
When the Fed reduces money supply, it will remove the amount of excess money that people have to spend in the economy. This will lead to prices reducing because people no longer have a lot of money to spend on products therefore they will demand less goods. This will lead to the Aggregate demand curve shifting to the left. The new intersection with the Aggregate Supply curve will be at a point where prices will be lower and less quantity will be demanded which will signify a drop in the short-run output of the economy.
Starbucks (Croatia). Starbucks opened its first store in Zagreb, Croatia, in October 2010. In Zagreb, the price of a tall vanilla latte is 25.70 Croatian kunas (kn or HRK). In New York City, the price of a tall vanilla latte is $2.65. The exchange rate between Croatian kunas and U.S. dollars is kn5.6288.
(a) According to purchasing power parity, is the Croatian kuna overvalued or undervalued?
(b) By what percent is the kuna overvalued or undervalued?
Answer:
a. Overvalued
b. 72.3% overvalued
Explanation:
a. Purchasing power parity when held, shows that prices of a specific good is the same across the world.
Price in New York = $2.65
Price in Zagreb = kn25.70
$1 = 25.70/2.65
$1 = kn9.6981
According to PPP, Croatian Kuna is Overvalued as the exchange rate per the Vanilla Latte is higher than the official exchange rate.
b. = [tex]\frac{9.6981 - 5.6288}{5.6288.}[/tex]
= [tex]\frac{4.0693}{5.6288}[/tex]
= 72.3% overvalued
Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. What is the present value of its growth opportunities (PVGO) if the required return is 12%?
Answer: $0.25
Explanation:
Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.
The present value of its growth opportunities (PVGO) will be:
= $50 - ($5.97/12%)
= $50 - ($5.97/0.12)
= $50 - $49.75
= $0.25
Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x)= 760-13x, where q is the quantity of cookies sold when the price per cookie, in cents, is x.
Required:
a. Find the elasticity.
b. At what price is the elasticity of demand equal to 1?
c. At what prices is the elasticity of demand elastic?
d. At what prices is the elasticity of demand inelastic?
Answer:
Please refer to the below for explanation.
Explanation:
From the above, the demand function is given as ;
D(x)=760-13x
a) Find the elasticity
It means finding the derivative of the function
D'(X)=-13, hence elasticity is expressed as
xD'(x) / D'(x)
= x(-13) / 760 - 13x
= 13x / 760 - 13x
The elasticity expression is thus ; E(x)= 13x / 760 - 13x
b) At what price is the elasticity demand equal to 1.
The above means that E(X) = 1
Putting 1 for E(X) in the elasticity equation,
E(x) = 13x / 760 - 13x
1 = 13x / 760 - 13x
When you cross multiply, you'll have
760 - 13x = 13x
Collecting like terms, you'll have
760 = 13x + 13x
760 = 26x
Dividing both sides by 26, you'll have
x = 760 /26
x = 29.23
It means that the elasticity at the price of demand = 1 is 29.23
c) At what price is the elasticity of demand elastic.
The above means that E(X) > 1
Thus;
13x / 760 - 13x > 1
When you cross multiply, you'll have
13x > 760 - 13x
Collecting like terms, you'll have
13x + 13x > 760
26x > 760
Dividing both sides by 26, you'll have
x > 760/26
x > 29.23
It means that the elasticity of demand is elastic at x > 29.23
d) At what price is the elasticity of demand inelastic
The above means that E(X) < 1
Hence;
13x / 760 - 13x < 1
When you cross multiply, you'll have
13x < 760 - 13x
Collecting like terms, you'll have
13x + 13x < 76
26x < 760
Dividing both sides by 26, you'll have
x < 760/26
x < 29.23
It means that the elasticity of demand is inelastic at x < 29.23
Badger Company had $1,060,000 of sales in each of three consecutive years 2012–2014, and it purchased merchandise costing $580,000 in each of those years. It also maintained a $360,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2012 that caused its year-end 2012 inventory to appear on its statements as $340,000 rather than the correct $360,000.
Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2012−2014.
Answer:
COGS more in 2012 less in 2013
Gross Profit Less in 2012 more in 2013
Explanation:
Badger Company
Comparative Income Statements
2012 2013 2014
Sales $1,060,000 $1,060,000 $1,060,000
Beginning Inventory $360,000 $340,000 $360,000
Add purchases $580,000 $580,000 $580,000
Less Ending $340,000 $360,000 $360,000
Cost Of Goods Sold $600,000 $ 560,000 $580,000
Gross Profit $ 460,000 $ 500,000 $480,000
The company's gross profit would be understated in 2012 by $ 20,000 and overstated in 2013 by $ 20,000. This $ 20,000 amount is equal to the the difference in the amount of the wrong inventory entry and the correct ending inventory. However the company will have regular profit in the third year. The wrong entry would have no effect in the third year.
The Cost of Goods Sold would be overstated both in 2012 by $ 20,000 and understated in 2013 by $ 20,000. The Cost of Goods Sold will show no effect of wrong entry in the third year.
Rockville, Inc. which uses a job costing system, began business on January 1, 20X3 and applies to manufacture overhead on the basis of direct labor cost. The following information relates to 20X3: Budgeted direct labor and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively. Jobs number #1, #2, and #3 were begun during the year and had the following charges for direct material and direct labor:
Job number DM DL
#1 $145,000 $35,000
#2 320,000 65,000
#3 55,000 80,000
Job #1 and #2 were completed and sold on account to customers at a profit of 60% of the cost. Job #3 remained in production. The actual manufacturing overhead by year-end totaled $233,000. Rockville adjusts all under- and overapplied to the cost of goods sold.
Required:
Compute Rockville's ending WIP inventory
Compute Rockville's COG Manufactured
Compute Rockville's income statement.
Answer:
Rockville's ending WIP inventory= $ 135,000
Rockville's COG Manufactured Total Cost of Goods Manufactured = $ 815,000
Net Income $ 793,800
Explanation:
Rockville, Inc.
Budgeted Direct Labor $200,000
Manufacturing Overhead $250,000,
Job number DM DL
#1 $145,000 $35,000
#2 320,000 65,000
#3 55,000 80,000
Rockville's ending WIP inventory= Job#3 = Direct Materials + Direct Labor = 55,000 + 80,000= $ 135,000
Rockville's COG Manufactured
= Job #1 + Job #2= Direct Materials + Direct Labor = $145,000 + $35,000 + 320,000 + 65,000= 565,000
Applied Overhead $250,000
Total Cost of Goods Manufactured = $ 815,000
Less Ending Inventory $ 135,000
Cost of Goods Sold= $ 500,000
Actual Manufacturing Overhead = $ 233,000
Applied Overhead $250,000
Less Over applied Overhead $ 17,000
Adjusted Cost of Goods Sold $ 483,000
Rockville's income statement.
Sales $ 798,000*1.6= $ 1276,800
Less COGS $ 483,000
Net Income $ 793,800
Buhao Construction currently is all-equity-financed. It has 17,000 shares of equity outstanding, selling at $100 a share. The firm is considering a capital restructuring. The low-debt plan calls for a debt issue of $270,000 with the proceeds used to buy back stock. The debt will pay an interest rate of 11%. The firm pays no taxes.
a. What will be the debt-to-equity ratio if it borrows $220,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Debt-to-equity ratio
b. If earnings before interest and tax (EBIT) are $130,000, what will be earnings per share (EPS) if Reliable borrows $220,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
EPS $
c. What will EPS be if it borrows $420,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
EPS $
Answer:
Buhao Construction
a) Debt-to-Equity Ratio if it borrows $220,000
= Debit/Equity
= $220,000/$1,700,000
= 12.94%
b. EPS = $195,800/17,000
= $11.52
c. EPS = $173,800/17,000
= $10.22
Explanation:
a) Data and Calculations:
Outstanding Equity = 17,000 shares x $100 = $1,700,000
Interest rate = 11%
It is assumed that Buhao Construction pays no taxes
EBIT = $130,000
Debit = $220,000
Interest Expense = $24,200
Net Income = $195,800 ($220,000 - 24,200)
Debit = $420,000
Interest Expense = $46,200
Net Income = $173,800 ($220,000 - 46,200)
b) Debt-to-Equity Ratio of Buhao Construction is the relationship in ratio terms between debts and equity of the company. It shows the percentage of debts over the stockholders' equity.
c) EPS or Earnings per share shows the net income of Buhao Construction that can be attributed to each share. Stockholders use this measure to learn the profits that are generated for each share by the company during the period. A high EPS indicates that the business is profitable for stockholders.
Skysong, Inc. reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 250 $5 $ 1,250 12 Purchase 500 9 4,500 23 Purchase 375 11 4,125 30 Inventory 125 Calculate Weighted Average Unit Cost
Answer:
Weighted average unit cost = $8.78
Explanation:
The weighted average method of inventory determines the average cost per unit of inventory each time a new batch is received. or every new batch received the average cost per unit is re-computed by dividing the total value of stock by the outstanding number of units.
The explanation is completed using calculation below:
Total value of stock = (250× $5) + (500×$9) + (375 × 11) = $9,875
Total units of stock = 250 + 500 + 375 = 1,125 units
Weighted average unit cost = Total value of stock / total units of stock
= $9875 / 1125 units = $8.78
Weighted average unit cost = $8.78
Mary, a merchant, was in the business of selling flowers to local florists. Melissa was the owner of Little Flower, Inc. and she regularly purchased her flowers from Mary. One day, Melissa called Mary and ordered 20 dozen roses, 15 dozen carnations, 10 dozen daisies, baby breaths, 6 dozen tulips, and some plants. Everything totaled $1,200, and was to be delivered in 14 days. After the two ended their call, Mary sent Melissa an e-mail detailing the order and her acceptance. Melissa never responded to the e-mail. Eleven days later, Mary delivered the merchandise to Melissa, but she refused shipment. Mary sued Melissa for breach of contract. What is the likely result?
Answer:
Generally UCC rules establish that contracts involving the sale of goods worth more than $500 must be in writing and signed. But this rule doesn't apply to merchants that are involved in routine buy/sell activities. In this case, both Mary and Melissa are considered merchants and the phone call and the email are enough proof against Melissa for breach of contract. In my opinion, Mary would win the lawsuit.
A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36.
SAMPLE
1 2 3 4 5 6 7 8 9 10
5 6 9 10 9 10 9 12 8 9
8 9 9 8 12 11 9 9 6 10
6 8 5 7 10 8 10 9 4 12
4 7 3 8 8 6 12 10 4 11
5 4 2 9 8 6 8 6 5 7
Using information from the above table:
Calculate the standard deviation of the sample means, σ×.
Determine the control limits for the mean chart, using A2 and σ× if z=3.
Determine the control limits for the range chart.
Construct mean (using A2) and range control charts by using information from (ii) and (iii).
Comment on your results.
Answer:
nu
bartleby
search
message
Q&A
Sign in
Business
Operations Management
Q&A Library
Question : A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36. SAMPLE 1 2 3 4 5 6 7 8 9 10 5 6 9 10 9 10 9 12 8 9 8 9 9 8 12 11 9 9 6 10 6 8 5 7 10 8 10 9 4 12 4 7 3 8 8 6 12 10 4 11 5 4 2 9 8 6 8 6 5 7 Using information from the above table: Calculate the standard deviation of the sample means, σ×. Determine the control limits for the mean chart, using A2 and σ× if z=3. Determine the control limits for the range chart. Construct mean (using A2) and range control charts by using information from (ii) and (iii). Comment on your results.
Question : A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36. SAMPLE 1 2 3 4 5 6 7 8 9 10 5 6 9 10 9 10 9 12 8 9 8 9 9 8 12 11 9 9 6 10 6 8 5 7 10 8 10 9 4 12 4 7 3 8 8 6 12 10 4 11 5 4 2 9 8 6 8 6 5 7 Using information from the above table: Calculate the standard deviation of the sample means, σ×. Determine the control limits for the mean chart, using A2 and σ× if z=3. Determine the control limits for the range chart. Construct mean (using A2) and range control charts by using information from (ii) and (iii). Comment on your results.
close
50% off! Get your first month of bartleby learn for only $4.99
arrow_forward
Question
Asked Apr 22, 2020
360 views
Question :
A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36.
SAMPLE
1
2
3
4
5
6
7
8
9
10
5
6
9
10
9
10
9
12
8
9
8
9
9
8
12
11
9
9
6
10
6
8
5
7
10
8
10
9
4
12
4
7
3
8
8
6
12
10
4
11
5
4
2
9
8
6
8
6
5
7
Using information from the above table:
Calculate the standard deviation of the sample means, σ×.
Determine the control limits for the mean chart, using A2 and σ× if z=3.
Determine the control limits for the range chart.
Construct mean (using A2) and range control charts by using information from (ii) and (iii).
Comment on your results.
check_circle
Expert Answer
Step 1
Note- We’ll answer the first three subparts of the question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered.
Given data,
Samples
Observation
1
2
3
4
5
6
7
8
9
10
1
5
6
9
10
9
10
9
12
8
9
2
8
9
9
8
12
11
9
9
6
10
3
6
8
5
7
10
8
10
9
4
12
4
4
7
3
8
8
6
12
10
4
11
5
5
4
2
9
8
6
8
6
5
7
Step 2
The method of standard deviation is similar to the population standard deviation.
Operations Management homework question answer, step 2, image 1
The standard deviation of the sample mean can be calculated by the following formula.
Operations Management homework question answer, step 2, image 2
On substituting the given value in the formula.
Operations Management homework question answer, step 2, image 3
Hence, the standard deviation for the sample mean is 0.60
Step 3
Ans 2:
(x-bar) is calculated by calculating the average of given numbers in a column and Range is calculated by subtracting the largest value from the smallest value.
Samples
Observation
1
2
3
4
5
6
7
8
9
10
1
5
6
9
10
9
10
9
12
8
9
2
8
9
9
8
12
11
9
9
6
10
3
6
8
5
7
10
8
10
9
4
12
4
4
7
3
8
8
6
12
10
4
11
5
5
4
2
9
8
6
8
6
5
7
5.6
6.8
5.6
8.4
9.4
8.2
9.6
9.2
5.4
9.8
Range R
(8-4)
= 4
(9-4)
= 5
(9-2)
= 7
(10-7)
= 3
(12-8)
= 4
(11-6)
= 5
(12-8)
= 4
(12-6)
= 6
(8-4)
= 4
(12-7)
= 5
...
Explanation:
it is too tough PlZzzzz follow me
Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour $4.70 Actual variable overhead costs $335,750 Actual direct labor hours worked (AH) 69,200 Actual production in units 14,000 Standard hours (SH) allowed for actual units produced 70,000 Required: 1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable (F) or Unfavorable (U).
Answer:
Variable overhead spending variance $10,380 U
Variable efficiency variances $ 3,760.00 F
Total variable overhead variance $ 6,620.00 U
Explanation:
1. Calculation for the variable overhead spending and efficiency variances
AH * AH
69,200*4.85=335,620.00
AH* SR
69,200 * 4.7=325,240.00
SH * SR
70,000*4.7= 329,000.00
Hence, the variable overhead spending will be:
AH * AH- AH* SR
=335,620.00-325,240.00= $10,380 U
The efficiency variances will be:
AH* SR- SH * SR =325,240.00- $329,000.00 =$ 3,760.00 F
2.Calculation for the variable overhead spending variance.
Using this formula
Variable overhead efficiency variance = SR × (AH – SH)
Let plug in the formula
SR = Standard variable manufacturing overhead rate = $4.70
AH = Actual hours worked during the period = 69,200
SH = Standard hours allowed for actual output or production = 70,000
Variable overhead efficiency variance = SR × (AH – SH) = 4.70 (69,200 -70000)
= 4.70* 800 =3,760.00 F
3.
Using this formula
Variable Overhead Spending variance = (Actual Rate * Actual Hour - Standard Rate * Actual Hour )
= AH (AR - SR)
Let plug in the formula
AR = 33,5750/69200
= $ 4.8
AH = Actual hours worked during the period = 69,200
SR = Standard variable manufacturing overhead rate = $4.70
Variable overhead spending variance = 69200 ( 4.85 - 4.70)
$ 10,380.00 U
4. Calculation for total variable overhead variance
Using this formula
Total Variable Overhead variance = (Actual Hour * Actual Rate - Standard Hour * Standard Rate)
Let plug in the formula
AH = Actual hours worked during the period = 69,200
SH = Standard hours allowed for actual output or production = 70,000
AR = 335750/69200 = $ 4.85
SR = Standard variable manufacturing overhead rate = $4.70
Total Variable Overhead variance = (69200*4.85) - (70000*4.7)
=$ 6,620.00 U
A company needs to locate three departments X, Y, and Z in the three areas I, II, and III of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices:
Distances meters Flows Loads per week
From / To I II III From / To X Y Z
I - 10 20 X - 0 80
II - - 10 Y 30 - 150
III - Z 100 130 -
If the company were to locate departments X, Y, and Z in areas 1, 2, and 3, respectively, what would be the total distance (in meters) loads would be moved each week?
A. 3,100
B. 3,600
C. 6,200
D. 7,200
E. 8,200
Answer: A. 3,100
the total distance (in meters) loads that would be moved each week is 3,100
Explanation:
First we arrange the workflow of the departments in descending order while the distance will be in ascending order.
TRIPS DISTANCE(metres)
1 -11 10
11 - 111 10
1 - 111 20
DEPARTMENTAL PAIR WORKFLOW
Y-Z 150
Z-Y 130
Z-X 100
X-Z 80
Y-X 30
Given that question provided to allocate departments X, Y, and Z in areas 1, 2, and 3 respectively.
So, having that in mind, allocate the distance for each suitable departmental pair;
DEPARTMENTAL PAIR WORKFLOW DISTANCE TOTAL DISTANCE
(meter loads)
Y-Z 150 10 1500
Z-Y 130 -
Z-X 100 10 1000
X-Z 80 -
Y-X 30 20 600
3100
Therefore the total distance (in meters) loads that would be moved each week is 3,100
Interviewers believe that when a candidate says negative things about their current employer, it shows the candidate is emotionally ready to switch to a new company.
a) Mostly true
b) Mostly false
Answer:
b) Mostly false
Explanation:
An Interview is the most essential part for the interviewer or an interviewee. The Interview is a part of a formal meeting where two or more people engage for evaluating, consulting etc. so that both the parties can determine their requirement.
Therefore according to the given situation, it is false to think that interviewer can judge that when the interviewee says the bad things for this current organization or their profile, this does not mean that the employee is ready to switch the job.
So, the right answer is b.
On April 1, Garcia Publishing Company received $3,258 from Otisco, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Garcia Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period?
Answer:
$814.50
Explanation:
The computation of the amount of revenue recorded by using a calender year is shown below:
= Received amount × number of months ÷ total number of months in a year
= $3,258 × 9 months ÷ 36 months
= $814.50
The nine months should be considered from April 1 to December 31 and the same is to be considered for this computation part
Bonita Industries applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $5100. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is 45000?
Answer:
Direct Materials $ 33525
Explanation:
Bonita Industries
Job No. 130,
Manufacturing overhead $5100.
Direct Labor = $ 6375
5100 80
x 100
Using cross product direct labor = 5100 *100/80= 6375.
We have
Work in Process inventory $ 45000
Less
Manufacturing overhead $5100.
Direct Labor $ 6375
Direct Materials $ 33525
The Work in Process is debited with Direct Materials, Direct Labor and Manufacturing Overheads.
As we know the Direct Labor and Manufacturing Overheads we can find out the Direct Materials by subtracting the Direct Labor and Manufacturing Overheads from the Work In Process Inventory balance.
Marin Inc. issues $2, 084, 300 of 10% bonds due in 13 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%. What amount will Marin receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458, 581.) Amount received by Marin when bonds were issued $________________
Answer:
$1,943,618.62
Explanation:
the current market price of the bond = present value of the face value + present value of coupon payments
present value of face value = $2,084,300 / (1 + 11%)¹³ = $536,736.96
present value of coupon payments = $208,430 x 6.7499 (annuity factor, 11%, 13 years) = $1,406.881.66
market value of the bonds = $1,943,618.62
the journal entry to record the issuance of the bonds:
Dr Cash 1,943,618.62
Dr Discount on bonds payable 140,681.38
Cr Bonds payable 2,084,300
Cooley Company's stock has a beta of 1.40, the risk-free rate is 25%, and the market risk premium is 5.50%. What is the firm's required rate of return
Answer: 12.2%
Explanation:
Given the variables available, the required rate of return can be computed using the Capital Asset Pricing Model with the formula;
Required Return = Risk-free rate + beta ( Market risk premium)
Required return = 4.25% + 1.4 * 5.5%
Required return = 4.25% + 7.7%
Required return = 12.2%
Note; The actual question says the Risk-free rate is 4.25%.
Galvatron Metals has a bond outstanding with a coupon rate of 6.1 percent and semiannual payments. The bond currently sells for $947 and matures in 23 years. The par value is $1,000 and the company's tax rate is 40 percent. What is the company's aftertax cost of debt
Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Budgeted Activity Cost Activity Base Casting $282,600 Machine hours Assembly 150,360 Direct labor hours Inspecting 20,790 Number of inspections Setup 52,150 Number of setups Materials handling 42,770 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 4,990 4,430 9,420 Direct labor hours 4,300 6,440 10,740 Number of inspections 1,440 450 1,890 Number of setups 280 70 350 Number of loads 720 190 910 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.
Answer:
Casting = $ 30 per machine hour
Assembly = $ 14 per labor hour
Inspecting = $ 11 per inspection
Setup = $ 149 per setup
Materials handling = $ 47per load
Explanation:
Garfield Inc. Manufacturers
Activity Budgeted Activity Cost Activity Base
Casting $282,600 Machine hours
Assembly 150,360 Direct labor hours
Inspecting 20,790 Number of inspections
Setup 52,150 Number of setups
Materials handling 42,770 Number of loads
Activity Base Entry Dining Total
Machine hours 4,990 4,430 9,420
Direct labor hours 4,300 6,440 10,740
Number of inspections 1,440 450 1,890
Number of setups 280 70 350
Number of loads 720 190 910
Units produced 10,000 5,000 15,000
Activity Budgeted Activity Cost Activity Rate
Casting $282,600 $282,600/9420= $ 30 per machine hour
Assembly 150,360 150,360 / 10,740 = $ 14 per labor hour
Inspecting 20,790 20,790/1890= $ 11 per inspection
Setup 52,150 52,150 /350= $ 149 per setup
Materials handling 42,770 42,770/910= $ 47per load
The formula for Activity rate = Activity Cost/ Activity Base Cost
Beginning inventory, purchases, and sales data for hammers are as follows:
Mar. 3 Inventory 12 units at $15
11 Purchase 13 units at $17
14 Sale 18 units
21 Purchase 9 units at $20
25 Sale 10 units
Assuming the business maintains a perpetual inventory system, complete the subsidiary inventory ledger and calculate the cost of merchandise sold and ending inventory under the following assumptions:
(a) First-in, first-out
Purchases Cost of Merchandise Sold Inventory
Date Qty Unit Total Qty Unit Total Qty Unit Total
Cost Cost Cost Cost Cost Cost
Mar. 3
11
14
21
25
Balances
Cost of merchandise sold $
Ending Inventory $
(b) Last-in, first-out
Purchases Cost of Merchandise Sold Inventory
Date Qty Unit Total Qty Unit Total Qty Unit Total
Cost Cost Cost Cost Cost Cost
Mar. 3
11
14
21
25
Balances
Cost of merchandise sold $
Ending Inventory $
Answer:
a) under FIFO
COGS = $461
ending inventory = $120
b) under LIFO
COGS = $491
ending inventory = $90
Explanation:
inventory:
March 3 Inventory 12 units at $15
March 11 Purchase 13 units at $17
March 14 Sale 18 units
March 21 Purchase 9 units at $20
March 25 Sale 10 units
under FIFO COGS:
March 14
Dr Cost of goods sold 282
Cr Merchandise inventory 282
March 25
Dr Cost of goods sold 179
Cr Merchandise inventory 179
under LIFO COGS:
March 14
Dr Cost of goods sold 296
Cr Merchandise inventory 296
March 25
Dr Cost of goods sold 195
Cr Merchandise inventory 195
Effect of Inventory Errors During the taking of its physical inventory on December 31, 20Y3, Sellers Company incorrectly counted its inventory as $303,295 instead of the correct amount of $327,560 Indicate the effect of the misstatement on Sellers's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value
Cost of goods sold
Current assets
Gross profit
Inventory
Net income
Stockholders' equity
Total assets
Answer:
Cost of goods sold = overstated : $24,265
Current assets = understated : $24,265
Gross profit = understated : $24,265
Inventory = understated : $24,265
Net income = understated : $24,265
Stockholders' equity = understated : $24,265
Total assets = understated : $24,265
Explanation:
Inventory was understated by $24,265 ($327,560 - $303,295). Since inventory is an Asset, also it is a Income Statement element and consequently affects Retained Earnings (Distributions to Shareholders) , the effect is shown above.
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Per Unit 15,000 Units Per Year Direct materials $ 14 $ 210,000 Direct labor 10 150,000 Variable manufacturing overhead 3 45,000 Fixed manufacturing overhead, traceable 6 * 90,000 Fixed manufacturing overhead, allocated 9 135,000 Total cost $ 42 $ 630,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value).
Required:
1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier?
2. Should the outside supplier’s offer be accepted?
3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier?
4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?
Answer:
1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier?
financial disadvantage = $525,000 - $435,000 = $90,0002. Should the outside supplier’s offer be accepted?
No, it shouldn't be accepted3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier?
financial advantage = -$90,000 + $150,000 = $60,0004. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?
Yes, it should be acceptedExplanation:
outside vendor offer: cost per unit $35 x 15,000 = $525,000
production costs:
direct materials $14 x 15,000 = $210,000
Direct labor $10 x 15,000 = $150,000
Variable manufacturing overhead $3 x 15,000 = $45,000
Fixed manufacturing overhead, traceable $6 x 15,000 = $90,000 ($60,000 are non-avoidable)
Fixed manufacturing overhead, allocated $9 x 15,000 = $135,000 (all are non-avoidable)
Total cost $42 x 15,000 = $630,000
avoidable production costs = $435,000
The requirements are detailed as follows:
1. Make Buy Difference
Direct materials $ 210,000
Direct labor 150,000
Variable manufacturing overhead 45,000
Fixed manufacturing overhead, traceable 60,000
Total cost $465,000 $525,000 $60,000
Thus, the financial disadvantage of buying 15,000 carburetors from the outside supplier is $60,000.
2. The outside supplier's offer should not be accepted as it costs more.
3. Based on the new assumption of obtaining segment margin of $150,000 from alternative use of capacity, the financial advantage of buying 15,000 carburetors from the outside supplier is $90,000.
4. Based on the new assumption, the outside supplier's offer should be accepted.
Data and Calculations:
Outside supplier's price per unit = $35
Per Unit 15,000 Units Per Year
Direct materials $ 14 $ 210,000
Direct labor 10 150,000
Variable manufacturing overhead 3 45,000
Fixed manufacturing overhead, traceable 6 90,000
Fixed manufacturing overhead, allocated 9 135,000
Total cost $ 42 $ 630,000
Supervisory salaries = $30,000 ($90,000 x 1/3)
Depreciation of special equipment = $60,000 ($90,000 x 2/3)
Outside supplier's cost = $525,000 ($35 x 15,000)
Learn more: https://brainly.com/question/23412337
Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. The policy will cause the natural rate of unemployment to
Options:
a. Fall
b. Shift the long-run aggregate supply curve to the right
Answer:
b. Shift the long-run aggregate supply curve to the right
Explanation:
Indeed, in the long run the aggregate supply or the number of available unemployed workers in the economy would increase, due to an increase in the number of those looking for jobs, since they stand to get reduced unemployment benefits.
This change would be clearly visible if plotted on a labor supply graph. In a sense, the unemployed no longer want to remain unemployed because of reduced unemployment benefits.
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:
Penske Stanza
Revenues 700,000 400,000
Cost of goods sold 250,000 100,000
Depreciation expense 150,000 200,000
Investment income Not given __
Dividend declared 80,000 60,000
Retained earnings 600,000 200,000
Current assets 400,000 500,000
Copyrights 900,000 400,000
Royal agreements 600,000 1,00,0000
Investment in stanza ---- -------
Liabilities 500,000 13,80,000
Common stock 600,000 200,000
Additional paid capital 150,000 80,000
On January 1, 2018, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000.
a. As of December 31, 2018, what is the consolidated copyrights balance?
b. For the year ending December 31, 2018, what is consolidated net income?
c. As of December 31, 2018, what is the consolidated retained earnings balance?
d. As of December 31, 2018, what is the consolidated balance to be reported for goodwill?
Answer:
a. Consolidated Copyright
Penske (Book value) $900,000
Stanza (Book value) $400,000
Allocation $120,000
Less: Excess Amortization ($20,000)
Total $1,400,000
b. Consolidated Net Income 2019
Revenues $1,100,000
Expenses:
Cost of goods sold $350,000
Depreciation Expenses $350,000
$700,000
Excess amortization $20,000 $720,000
Consolidated Net Income $380,000
Workings
Cost of goods sold = 250,000 + 100,000 = 350,000
Depreciation Expenses = 150,000 + 200,000 = 350,000
3. Consolidated Retainer earnings on December 31,2018
Retained Earnings 1/1/28 $600,000
Net Income 2018 $380,000
Less: Dividend Declared 2018 (Penske) ($80,000)
Total $900,000
d. Consolidated Balance to be reported for goodwill
Stanza acquisition fair value $680,000
(10,000 in stock issue costs reduced
additional paid in capital)
Book value of subsidiary $480,000
(1/1/18 Stockholder equity balance)
Fair value in excess of book value $200,000
Less: Excess fair value allocated $120,000
to copy right based on fair value
Goodwill $80,000
Workings
Stockholder equity balance 1/1/18
Common stock 200,000
Additional paid-in capital 80,000
Retained earnings 200,000
Stockholder equity 480,000
Excess fair value
Copyright fair value 560,000
Less Copyright book value 440,000
Excess fair value allocated 120,000
Copyright year 6 years
Annual Excess Amortization $20,000
The Green Balloon just paid its first annual dividend of $0.49 a share. The firm plans to increase the dividend by 3.7 percent per year indefinitely. What is the firm's cost of equity if the current stock price is $17.2 a share
Answer:
3.80%
Explanation:
The computation of the cost of equity is shown below:
Cost of equity is
= Annual dividend paid × (1 + growth rate) ÷ Stock price + Growth rate
where,
Annual dividend paid is $0.49
Growth rate is 3.7%
And, the stock price is $17.2
Now placing these values to the above formula
So, the cost of equity is
= $0.49 × (1 + 0.037) ÷ $17.20 + 0.037
= 0.00105 + 0.037
= 3.80%