Answer:
A. 50
B. 4%
Explanation:
We can easily find out how many new MBA graduates do Mt. Kinley has to hire every year by calculating the flow rate of associates by dividing the average inventory of associates by flow time of associates.
Requirement A:
The flow rate of associates = Average inventory of associates / Flow time of associates
The flow rate of associates = 200/4
The flow rate of associates = 50
Therefore the firm should assign 50 new MBAs every year.
Requirement B
Probability of associate becoming a partner = 20% x 20%
Probability of associate becoming a partner = 4%
The chances that a new hire at Mt. Kinley will become partner are 4%
Working
The flow rate of manager = Average inventory of manager/ Flow time of manager
The flow rate of manager = 60/6
The flow rate of manager = 10 managers/year
The flow rate of partner = Average inventory of partner/ Flow time of partner
The flow rate of manager = 20/10
The flow rate of manager = 2 partners/year
probability of becoming a manager = 10/50
probability of becoming a manager = 20%
Probability of becoming a partner = 2/10
Probability of becoming a partner = 20%
Oct. 1 Stockholders invest $33,540 in exchange for common stock of the corporation 2 Hires an administrative assistant at an annual salary of $41,520. 3 Buys office furniture for $3,690, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,190 (not paid by Roads at this time) 10 Receives cash of $155 as commission for acting as rental agent renting an apartment. 27 Pays $660 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,460 in salary for October.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the the problem.)
Date Account Titles and Explanation Debit Credit
Answer and Explanation:
The Journal entries are prepared below:-
1. Cash Dr, $33,540
To Common Stock $33,540
(Being the common stock issued is recorded)
2. No journal entry is required as the agreement has been entered
3. Office furniture Dr, $3,690
To Accounts payable $3,690
(Being the service revenue earned is recorded)
4. Accounts receivable Dr, $11,190
To Service revenue $11,190
(Being the service revenue earned is recorded)
5. Cash Dr, $155
To Service revenue $155
(Being the service revenue earned is recorded)
6. Accounts Payable Dr, $660
To Cash $660
(Being the payment of office furniture purchased is recorded)
7. Salary expense Dr, $3,460
To Cash $3,460
(Being the salaries paid to administrative staff is recorded)
On December 31, 2016, the manager of Jordan Creek Apartments noticed that four tenants had not paid their December rent amounting to $500 each. The manager spoke to each tenant individually and was promised by all 4 that the rent would be paid by January 15, 2017. Assuming the tenants follow through and make their payments by January 15, 2017, Jordan Creek should make the following entry as of December 31, 2016:______.
Cash (dr) $2,000
Rental Receivable (cr) $2,000
A. True
B. False
Answer:
B. False
The business should not make this entry on 31 December.
Explanation:
The accounting principle of prudence states that profits should not be overstated and losses should not be understated. This means that any profit should not be recorded until it is realized while any losses should be recorded as soon as they are anticipated. As the business has not received cash from tenants on 31 December 2016, it should not make any entry debiting cash and crediting the rent receivable.
The business should let the rent receivable balance intact until the rent is received on 15 January and till then record no entry to such as the above.
The Rivera's owned and operated a small pharmacy in New York. They spoke to Hyman a representative of CVS Pharmacy,inc. Hyman told them that for 25,000 CVS would build them a store and stock it for them. The Rivera's gave up their store and bought a lot on which CVS was to build the store. CVS then told them the price went up to 35,000. The Rivera's borrowed the extra money, but then CVS told them the cost would be 50,000. Negotiations broke off and the Rivera's sued.
(1) Is there a contract?
(2) and if there is not is there another way the Rivera's can recover any money?
Answer:
1. There is no contract between the two parties as the negotiation broke in the middle and no offer and acceptance were there during the entire process.
2. The principle of restitution of unjust enrichment can be used by the plaintiff in order to recover the amount that was invested by the plaintiff. As per this principle, the arrangement made for the proposed contract that broke during the negotiation, the other party has to pay the amount spent in the development of the infrastructure required in the contract.
On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $). Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 6%.
Table values are based on:
n = 30
i = 6%
Cash Flow Amount Present Value
Interest $111,300,000 $74,454,240
Principal $100,000,000 $13,137,000
Price of bonds $87,591,240
Answer:
Bond Price = $97.4457408 million rounded off to $97.45 million
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 113 million * 0.05 = 5.65 million
Total periods (n) = 30
r or YTM = 0.06 or 6%
The formula to calculate the price of the bonds today is attached.
Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06] + 113 / (1+0.06)^30
Bond Price = $97.4457408 million rounded off to $97.45 million
The March 29, 2012, edition of the Wall Street Journal Online contains an article by Miguel Bustillo entitled, "Best Buy Forced to Rethink Big Box." The article explains how the 1,100 giant stores, which enabled Best Buy to obtain its position as the largest retailer of electronics, are now reducing the company’s profitability and even threatening its survival. The problem is that many customers go to Best Buy stores to see items but then buy them for less from online retailers. As a result, Best Buy recently announced that it would close 50 stores and switch to smaller stores. However, some analysts think that these changes are not big enough.
Suppose the following data were extracted from the 2017 and 2012 annual reports of Best Buy. (All amounts are in millions).
2017 2016 2012 2011
Total assets at year-end $17,729 $18,390 $11,880 $10,234
Net sales 50,308 30,768
Net income 1,301 1,143
Using the data above.
Compute the profit margin, asset turnover, and return on assets for 2017 and 2012.
Answer:
2012Profit Margin
= Net income / Net sales
= 1,143 / 30,768 * 100
= 3.7%
Asset Turnover
= Net sales / Average operating assets
= 30,768 / [(10,234 + 11,880) / 2]
= 2.78 times
Return on Assets
= Net income / Average operating assets
= 1,143/ [(10,234 + 11,880) / 2]
= 10.3%
2017Profit Margin
= Net income / Net sales
= 1,301 / 50,308
= 2.6%
Asset Turnover
= Net sales / Average operating assets
= 50,308 / [(18,390 + 17,729) / 2]
= 2.79 times
Return on Assets
= Net income / Average operating assets
= 1,301 / [(18,390 + 17,729) / 2]
= 7.2%
You own a small real estate company in Indianapolis. You track the real estate properties you list for clients. You want to analyze sales for selected properties. Yesterday, you prepared a workbook with a worksheet for recent sales data and another worksheet listing several properties you listed. You want to calculate the number of days that the houses were on the market and their sales percentage of the list price. In one situation, the house was involved in a bidding war between two families that really wanted the house. Therefore, the sale price exceeded the list price.
For the purpose of grading the project you are required to perform the following tasks:
Step
Instructions
Points Possible
1. Start Excel. Download and open the file named e01_grader_h3.xlsx.
0.000
2. Delete row 8, which has incomplete sales data. The owners took their house off the market.
3.000
3. Type 2018-001 in cell A5 and use Auto Fill to complete the series to assign a property ID to each property in the range A6:A12.
5.000
4. Enter a formula in cell C5 that calculates the number of days the first house was on the market. Copy the formula to the range C6:C12. Format the range C5:C12 with Number format with zero decimal places.
10.000
5. Format the list prices and sold prices in the range F5:G12 with Accounting Number Format with zero decimal places.
5.000
6. Enter a formula in cell H5 that calculates the sales price percentage of the list price for the first house. The second house was listed for $500,250, but it sold for only $400,125. Therefore, the sale percentage of the list price is .7999. Copy the formula to the range H6:H12.
10.000
7. Format the values in the range H5:H12 with Percent Style with two decimal places.
5.000
8. Wrap the headings in the range A4:H4.
2.000
9. Insert a new column between the Date Sold and List Price columns. Move the Days to Market data to the new blank column F by moving the range C4:C12 to F4:F12. Delete column C.
5.000
10. Edit the list date of the 41 Chestnut Circle house to be 4/22/2018. Edit the list price of the house on Amsterdam Drive to be $355,000.
5.000
11. Select the property rows (rows 5:12) and set a 25 row height and apply Middle Align.
5.000
12. Apply the All Borders border style to the range A4:H12.
3.000
13. Apply Align Right and increase the indent two times on the days on market formula results in the range E5:E12.
5.000
14. Set the Days on Market column width to 9. Set the List Price and Sold Price column widths to 11.86.
5.000
15. Apply 120% scaling.
2.000
16. Delete the Properties sheet and insert a new sheet named Formulas.
5.000
17. Use the Select All feature to select all data on the Houses Sold worksheet and copy it to the Formulas worksheet.
5.000
18. Hide the Date Listed and Date Sold columns in the Formulas worksheet.
5.000
19. Display cell formulas. Set options to print gridlines and row and column headings. Set 6.86 column width for column E and 6 for column H.
3.000
20. Group the two worksheets. Select Landscape orientation. Center the page horizontally and vertically between the margins.
7.000
21. With both worksheets still grouped, insert a footer with the text Exploring Series on the left side, the sheet name code in the center, and the file name code on the right side.
5.000
22. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.
0.000
Total Points
100.000
J. Heaton Realty
Sales Report
Prop ID Property Days on Market Date Listed Date Sold List Price Sold Price % of List Price
125 Amsterdam Drive 1/12/18 4/12/18 350000 335000
341 North Oak Drive 11/15/17 3/1/18 500250 400125
100 South 325 West 12/3/17 4/30/18 650725 500750
386 East Elm Street 3/1/18
2304 West 39th Street 3/14/18 3/30/18 315000 325000
41 Chestnut Circle 2/22/18 5/18/18 423500 420750
973 East Mulberry Lane 11/30/17 3/1/18 375000 375000
538 North Oak Drive 10/4/17 1/5/18 475000 400000
64 Chancellor Estates 4/1/18 4/15/18 500999 495000
Answer:
Open excel program and then select a worksheet. Double click on the worksheet tab and rename it according to the file name. Click import data and the excel will start downloading the data to the worksheet. When the data is download save as the worksheet so that any editing does not harms the original file.
Explanation:
Excel is a spreadsheet program which is developed by the Microsoft. This enables the users to handle complex numerical calculations with ease. It provides a wide range of complex formula in which multiple worksheets can be linked together for various tasks.
Match each term on the left with the best definition on the right. Note: Not all definitions will be used.
A. Materials that cannot be directly or conveniently traced to a specific unit or job.
B. Total production cost assigned to goods that were produced during the period.
C. Cost of materials purchased from suppliers that have not yet been used in production.
D. Actual amount of indirect manufacturing costs incurred during the period.
E. Materials that can be directly and conveniently traced to a specific unit or job.
F. Indirect manufacturing costs that have been assigned to a specific unit or job using a predetermined overhead rate.
G. Cost of units or jobs that are incomplete at any given point in time.
H. Total manufacturing cost of jobs or units sold during the period.
I. Costs of all units completed and ready for sale at any given point in time.
1. Actual manufacturing overhead 2. Applied manufacturing overhead 3. Cost of goods manufactured 4. Cost of goods sold 5. Direct materials 6. Finished goods 7. Indirect materials 8. Raw material inventory 9. Work in process inventory
Answer:
A. Indirect materials.
B. Cost of goods manufactured
C. Raw material inventory
D. Actual manufacturing overhead
E. Direct materials.
F. Applied manufacturing overhead
G. Work in process inventory
H. Cost of goods sold.
I. Finished goods inventory.
Explanation:
A. Materials that cannot be directly or conveniently traced to a specific unit or job: Indirect materials.
B. Total production cost assigned to goods that were produced during the period: Cost of goods manufactured.
C. Cost of materials purchased from suppliers that have not yet been used in production: Raw material inventory.
D. Actual amount of indirect manufacturing costs incurred during the period: Actual manufacturing overhead.
E. Materials that can be directly and conveniently traced to a specific unit or job: Direct materials.
F. Indirect manufacturing costs that have been assigned to a specific unit or job using a predetermined overhead rate: Applied manufacturing overhead.
G. Cost of units or jobs that are incomplete at any given point in time: Work in process inventory.
H. Total manufacturing cost of jobs or units sold during the period: Cost of goods sold.
I. Costs of all units completed and ready for sale at any given point in time: Finished goods inventory.
In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576. During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.
Required:
A. Prepare a production cost report; the company uses weighted-average process costing.
RECYCLERS, INC.
Production Cost Report—FIFO
Flow of Production Units Compute Equivalent Units
Physical Units Conversion Costs
Units to be accounted for:
Beginning WIP inventory 300
Units started this period
Total units to be accounted for 300
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Units in ending WIP inventory
Total units accounted for 0 0
Costs Total Costs Conversion Costs
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for $0 $0
Cost per equivalent unit:
Conversion costs
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning inventory
Current costs added to complete beginning WIP inventory:
Conversion costs
Total costs from beginning inventory $0
Current costs of units started and completed:
Conversion costs
Total costs of units started and completed $0
Total costs of units transferred out $0
Costs assigned to ending WIP inventory:
Conversion costs
Total ending WIP inventory $0
Total costs accounted for $0 $0
B. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.
Work in Process Various Payables
Beginning inventory Beg.bal.
This period's costs: End.bal.
Ending inventory
Finished Goods Inventory
Beg.bal.
End.bal.
Answer:
Units to be accounted for:
Beg WIP 300 units
started 2700 units
Total 3,000 units
Equivalent units
physical materials conversion
tranferred 2,850 2,850 2,850
ending 150 150 (20%) 30
total 3,000 2,700 2,880
Cost to be accounted for:
materials conversion
beg WIP 0 576
incurred 0 10,800
Total 0 11,376
Equivalent unis cost
materials zero
conversion: $11,376 / 2,880 = $3.95
Cost assigned for:
Transferred units
2,850 units x 3.95 = 11,257.5
ending work in process units
30 units x 3.95 = 118.5
Total cost to be assigned for 11,376
Notice: Total cost to be asisgned for and assigned cost are the same.
Explanation:
1) We count the physical units
2) Then, we solve for the equivalent units which, under weighted average are:
transferred units + completion on ending work in process.
3) Now, we solve for equivalent unit cost:
for materials, this is zero are there is no cost associaed with.
4) Finally, we made the cost assignment which, should match the beginning WP cost and the incurred cost during the period.
Workman Software has 11.2 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 108.4 percent of par. a. What is the current yield on the bonds
Answer:
10.33%
Explanation:
The computation of the current yield on the bonds is shown below:-
current yield on the bonds = Coupon bond ÷ Current price of bond
= (Par value × Coupon rate) ÷ (Par value × Current selling price percentage)
= ($1,000 × 11.2%) ÷ ($1,000 ÷ 108.4%)
= $112 ÷ $1,084
= 10.33%
Therefore we have applied the above formula.
Which description of the parts of the compound interest expression is correct? P(1 + )nt P = principal; r = number of times interest is compounded per year; n = annual interest rate; t = time in years P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in number of compounding periods P = principal; r = monthly interest rate; n = number of times interest is compounded per year; t = time in number of compounding periods P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Answer:
P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Explanation:
Given the formula P(1 + r)^nt,
P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Compound interest is defined as interest on a loan, deposit or investment that is calculated on the basis of the principal invested, deposited or borrowed and the accumulated interest from previous periods.
Answer:
P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Explanation:
Governments most often influence market conditions by:
A. setting up natural monopolies for essential services.
B. increasing barriers to entry in pure competition markets.
C. encouraging price fixing by corporations in an oligopoly.
D. paying research and development costs for corporations
Answer:
a
Explanation:
just took it
Governments most often influence market conditions by setting up natural monopolies for essential services. Thus, the correct option is A).
What are the ways government can influence the market conditions?Government can influence the market conditions by creating subsidies, by collecting tax from the public and giving the money to an industry, or tariffs, by adding taxes to foreign products to lift prices up and make domestic products more appealing.
It has the authority to change the level and type of taxes, the formation of spending and its level, the degree of borrowing etc. which can directly influence the market conditions.
It can directly or indirectly influence the way resources are used in the economy and increase the efficiency in order to promote the economy growth.
Learn more about government influence on market conditions here:-
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Developing Business Writing TechniquesYou can improve your message by using mechanical emphasis, parallelism, voice, and well-placed descriptions.One way to achieve emphasis is through mechanical devices.Complete the following sentence. —used sparingly—can be an effective way to emphasize explanatory information.You can also improve your messages through stylistic emphasis in sentnce structure and word choice. Which of the following stylistic devices can be used to achieve emphasis? Check all that apply.Position important ideas first or last in a sentence.Use complex sentence patterns.Use general terms.Label descriptive modifiers.Use vivid words.In some cases it is necessary to de-emphasize an idea, such as bad nes. Does the following selection emphasize or de-emphasize the bad news?While we are unable to renew your contract for the upcoming year, we hope to have the position reposted once the funds are available.EmphasizeDe-emphasizeWhen you compose messages, you may use the active or passive voiceto convey meaning. Most business messages use the active voice. Which of the following are instances when you would use the passive voice in a business message? Check all that apply.To emphasize an action instead of the recipient of an actionTo avoid beginning the sentence with itTo create confusion for your readerTo conceal the doer of an actionDoes the following sentence use the active or passive voice?The Lifetime Achievement Award was presented to Christina Balian.PassiveActiveParallel sentences are balanced and easy for readers to understand. Choose which sentence has the better parallel structure.If you write well, speak well, and use good interpersonal skills, you will do well in this corporation.If you write well, speak well, and are using good interpersonal skills, you will do well in this corporation.Choose the best revision to the following sentence.Teagan saw the recommendations flipping through the report.Flipping through the report, Teagan saw the recommendations.Teagan saw the recommendations, flipping through the report.Effective business writers use various techniques to improve their messages. How could the following selection be improved?Because of the snowstorm, the roads are closed and the trains aren’t running, the office will be closed today.The problem in this ineffective selection is:Passive voiceNot emphasizing important ideasSentence length/comprehension rateWriters should use words carefully and construct sentences skillfully to emphasize main ideas and de-emphasize minor ideas.Choose the best responseWhich of the following emphasizes the main idea?We have now successfully concluded our interview process and you have passed.Congratulations! We would like to offer you the position of senior analyst.
Answer:
Developing Business Writing Techniques
Improving messages by using mechanical emphasis, parallelism, voice, and well-placed descriptions:
1. Devices:
Stylistic devices—used sparingly—can be an effective way to emphasize explanatory information.
2. Stylistic devices used to achieve emphasis:
a. Position important ideas first or last in a sentence.
b. Use vivid words.
3. De-emphasize bad news
4. When to use the Passive Voice:
To emphasize an action instead of the recipient of an action
To conceal the doer of an action
5. Passive
6. Sentence with better parallel structure:
If you write well, speak well, and use good interpersonal skills, you will do well in this corporation.
7. Best Revision:
Flipping through the report, Teagan saw the recommendations.
8. Not emphasizing important ideas
9. Congratulations! We would like to offer you the position of senior analyst.
Explanation:
Stylistic devices help writers to achieve emphasis and readers to achieve understanding of the message being communicated. While they should be used economically, their presence in any writing acts as an effective way to improve messages.
A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers and output increased by 100,000 pages per day. One month ago, they added five workers and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Answer:
Another Copier
Explanation:
Based on the information provided I would recommend that the company buy another copier as it provides the greatest benefit for the cost. For example, five workers are able to increase production by 50,000 pages per day. This means that 1 worker increases production by 10,000 pages per day, while one copier increases production by 50,000 per day.
Now 1 copier is worth 2 workers (double what a single worker costs), but two workers only increase production by 20,000 pages per day which is still 30,000 pages less per day than the copier. Therefore, the copier would provide the greatest benefit to the company.
Simon is a sales representative with McKesson who works with independent and chain drug stores to provide branded and private label over-the-counter medications, as well as a host of other supplies. Simon can match his customers' requirements to his broad product mix, and he also provides insights about what's selling in the marketplace so that store managers can make decisions about the allocation of shelf space. The approach is working, and Simon has been able to achieve his sales goals while also earning high customer satisfaction scores from his customer accounts. Which marketing management philosophy best applies to McKesson?
Answer:
Societal marketing orientation
Explanation:
Options include "a. Societal marketing orientation , b. Production orientation , C. Sales orientation , d. Market orientation
Societal marketing orientation is an idea to engage the customers in marketing movement of the company. If the customers evangelize the product on the company’s behalf the company finds success very easily and efficiently. Societal marketing orientation not only focuses on the needs of the customers but also on the fulfillment of the social responsibility
Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2016 (the end of its fiscal year).TABLETTE REPAIR SERVICE, INC.Trial BalanceDecember 31, 2016 Debit CreditCash $ 7,900 Accounts Receivable 15,700 Supplies 12,500 Prepaid Rent 3,200 Equipment 20,300 Accounts Payable $19,000Common Stock 30,100Retained Earnings 10,500$59,600 $59,600Summarized transactions for January 2017 were as follows:1. Advertising costs, paid in cash, $1,1702. Additional supplies acquired on account $3,6703. Miscellaneous expenses, paid in cash, $1,7904. Cash collected from customers in payment of accounts receivable $12,1605. Cash paid to creditors for accounts payable due $12,2406. Repair services performed during January: for cash $6,870; on account $8,6707. Wages for January, paid in cash, $2,2308. Dividends during January were $2,690Open T-accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2017.
Answer:
Cash
debit credit
beg. bal. 7,900
1. 1,170
3. 1,790
4. 12,160
5. 12,240
6. 6,870
7. 2,230
8. 2,690
end. bal. 6,810
Accounts receivable
debit credit
beg. bal. 15,700
4. 12,160
6. 8,670
end. bal. 12,210
Supplies
debit credit
beg. bal. 12,500
2. 3,670
end. bal. 16,170
Prepaid Rent
debit credit
beg. bal. 3,200
Equipment
debit credit
beg. bal. 20,300
Accounts Payable
debit credit
beg. bal. 19,000
2. 3,670
5. 12,240
end. bal. 10,430
Common Stock
debit credit
beg. bal. 30,100
Retained Earnings
debit credit
beg. bal. 10,500
Service revenue
debit credit
beg. bal. 0
6. 15,540
Advertising expenses
debit credit
beg. bal. 0
1. 1,170
Miscellaneous expenses
debit credit
beg. bal. 0
3. 1,790
Wages expenses
debit credit
beg. bal. 0
7. 2,230
Dividends expenses
debit credit
beg. bal. 0
8. 2,690
What's your tikto I will follow
On April 1, Sangvikar Company had the following balances in its inventory accounts:
Materials Inventory $12,720
Work-in-Process Inventory 21,320
Finished Goods Inventory 8,700
Work-in-process inventory is made up of three jobs with the following costs:
Job 114 Job 115 Job 116
Direct materials $2,774 $2,640 $3,650
Direct labor 1,800 1,560 4,300
Applied overhead 1,080 936 2,580
During April, Sangvikar experienced the transactions listed below.
a. Materials purchased on account, $30,000.
b. Materials requisitioned: Job 114, $16,500; Job 115, $12,400; and Job 116, $5,000.
c. Job tickets were collected and summarized: Job 114, 150 hours at $15 per hour; Job 115, 220 hours at $17 per hour; and Job 116, 80 hours at $18 per hour.
d. Overhead is applied on the basis of direct labor cost.
e. Actual overhead was $4,765.
f. Job 115 was completed and transferred to the finished goods warehouse.
g. (1) Job 115 was shipped, and (2) the customer was billed for 140 percent of the cost.
Required:
Prepare journal entries for the April transactions.
Answer:
a.
DR Raw Material Inventory $30,000
CR Accounts Payable $30,000
b.
DR Work in Process Inventory $33,900
CR Raw Material Inventory $33,900
Working
= Job 114 + Job 115 + Job 116
= 16,500 + 12,400 + 5,000 = $33,900
c.
DR Work in Process $7,430
CR Wages Payable $7,430
Working
= (150 * 15) + (220 * 17) + (80 * 18)
= $7,430
d.
DR Work in Process $4,458
CR Manufacturing Overhead $4,458
Working
Overhead as % of Direct labor cost using Job 115 = Applied Overhead / Direct labor = 936/1,560 = 60%
Manufacturing Overhead = Overhead rate * Direct labor
= 60% * 7,430 = $4,458
e.
DR Manufacturing Overhead $4,765
CR Accounts Payable $4,765
f.
DR Finished Goods $23,520
CR Work in Process $23,520
Job 115 costs = Beginning + Material + Labor + Overhead
= (2,640 + 1,560 + 936) + 12,400 + (220 * 17) + (220 * 17 * 60%)
= $23,520
g.
DR Cost of Goods sold $23,520
CR Finished Goods $23,520
DR Accounts Receivable $32,928
CR Cost of Goods sold $32,928
Working
= 23,520 * 140%
= $32,928
AAA Inc. has a current debt-to-equity ratio of 3, and is considering expanding its operations into a new industry. Firms in this new industry face a different set of risks than AAA Inc. However, the executives at AAA Inc. observe that a company in the new industry (BBB Inc.) has a cost of equity of 14%, a cost of debt of 7%, and a debt-to-value ratio of 40%. AAA Inc. plans to finance its expansion into the new industry with 50% debt and 50% equity. The cost of debt for AAA Inc. is also 7%, and the corporate tax rate is 25%. Solve for the discount rate that AAA Inc. should use when evaluating whether to go forward with the expansion.
Answer:
10% and it should go forward.
Explanation:
So, from the question above we have the following parameters which is going to help in solving this particular Question/problem.
=> The current debt-to-equity ratio of AAA Inc. = 3.
=> The cost of equity of BBB Inc. = 14%.
=>The cost of debt of BBB Inc. = 7%, and a debt-to-value ratio of 40%.
=> "AAA Inc. plans to finance its expansion into the new industry with 50% debt and 50% equity. "
=> "The cost of debt for AAA Inc. is also 7%, and the corporate tax rate is 25%. "
Therefore, the discount rate of AAA Inc = (0.5 × 14%) +0.5 × 7% × ( 1 - 25%) = 10%.
Also, the discount rate of BBB In. = =60 × 14% + 40 × 7% × ( 1 - 25% ) = 11%
The operation should go forward because the discount rate of BBB Inc is greater than thar of AAA inc.
10% and it should go forward.
Suppose the economy is characterized by the following behavioral equations:
C = c0 + c1YD
YD = Y-T
I = b0 + b1Y
Government spending and taxes are constant. Note that investment increases with output.
c0
is autonomous consumption,
c1 is the propensity to consume, and b0 is business confidence.
Solve for equilibrium output.
a. Y= ________
b. What is the value of the spending multiplier?
Explanation:
we have consumption function as:
c = c₀ +c₁yd
disposable income yd = y - t
consumption = c₀ + c₁(y - t)
investment i = b₀+ b₁Y
we have G as government spending and t as tax
total spending
Y = C + I +G
such that,
Y = c₀ + c₁(y - t) + B₀ + B₁Y + G
we take all values with y to the left hand side of the equation
y(1 - C₁ - B₁) = C₀+B₀+B₁Y+G
We divide through to get y
[tex]Y = \frac{C0 + B0 + B1Y}{1-C1-B1}[/tex]
b.
the spending multiplier would be 1/1−c1−b1
If C₀, b₀ and tax are held constant, and G goes up by 1 unit then we will have equilibrium output increase by
[tex]\frac{1}{1-c1-b1}[/tex]
Complete the Transaction" Worksheet: On the form provided, identify the accounts affected by each transaction and the amount of increase or decrease in each account. Make sure the accounting equation is in balance after each transaction.
1. Jan Swift, owner, deposited $30,000 in the business checking account.
2. The owner transferred to the business a desk and chair valued at $700.
3. WordService issued a check for $4,000 for the purchase of a computer.
4. The business bought office furniture on account for $5,000 from Eastern Furniture.
5. The desk and chair previously transferred to the business by the owner were sold on account for $700.
6. WordService wrote a check for $2,000 in partial payment of the amount owed to Eastern Furniture Company.
Use the Excel spreadsheet form for posting the transactions.
Determine the effects of the transations
Assets Liabilities + Owner's Equity Jan Swift, Capital Trans Cash in Bank + Accounts Receivable + Computer Equipment + Office Furniture Accounts Payable + + 2 3 4 5 6 Bal. +
Answer:
I used an excel spreadsheet since there is not enough room here
Explanation:
Which situation exemplifies public action?
A. The mafia in Cedia Republic demands "protection money" from successful domestic business owners.
B. Cedian proprietors in the hospitality industry often complain about protection rackets by criminal groups.
C. Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic.
D. The Cedian government has been criticized for its inability to curb theft of trade secrets of international businesses by private domestic owners.
E. To promote the Cedian culture, the government allows movies based on Cedian history to be made tax-free.
Answer:
C.
Explanation:
From the answer choices provided, the one that best exemplifies public action would be Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic. That is because in this scenario the bureaucrats are joining together in unison in order to demonstrate the power that they hold over their community, which by banding together they protect each other and become that much more powerful. Mainly because since they are unified they will have each other's backs and not interfere with the other's bribes.
Suppose that, in a competitive market without government regulations, the equilibrium price of hamburgers is $7 each. Indicate the followings whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
a. The government has instituted a legal minimum price of $5 each for hamburgers.
b. The government prohibits fast-food restaurants from selling hamburgers for more than $5 each.
c. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
Answer:
Price floor non binding
Price ceiling binding
Price ceiling binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
A. The minimum price is less than the equilibrium price, thus it is a non binding price floor
b. The maximum price is less than the equilibrium price, thus it is a binding price floor
c. Restaurants that would want to pay better wages are unable to do so. This means that there is a binding price maximum in place
Tim, a cash-basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Wren Corporation:
Adjusted Basis Fair Market Value
Cash $10,000 $10,000
Building 100,000 160,000
Mortgage payable (secured by the building and held for 5 years) 120,000 120,000
With respect to this transaction, Select one:
a. Wren Corporation's basis in the building is $100,000.
b. Tim has no recognized gain.
c. Tim has a recognized gain of $20,000.
d. Tim has a recognized gain of $10,000.
Answer:
a because it tis tbr modnfhtisnfbhrirfgh
Broussard Skateboard's sales are expected to increase by 25% from $9.0 million in 2019 to $11.25 million in 2020. Its assets totaled $3 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
Answer:
EFN = $120,000
Explanation:
External financing needed = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
A/S = assets / sales = 3/9 = 0.333 3
Δ Sales = change in sales = $2.25 million
L/S = current liabilities that change along with sales / sales = 0.9/9 = 0.1
PM = profit margin = 6%
FS = total forecasted sales = $11.25 million
1 - d = 1 - dividend payout ratio = 1 - 0.4 = 0.6
EFN = (3/9 x $2.25) - (0.1 x $2.25) - (0.06 x $11.25 x 0.6) = $0.75 - $0.225 - $0.405 = $0.12 million = $120,000
Makers Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $4.95 million. The company currently has 140,000 shares of common stock outstanding.
a. What are earnings per share?
b. What are dividends per share ?
c. What is the book value per share?
d. If the stock currently sells for $86 per share, what is the market-to-book ratio?
e. What is the price-earnings ratio?
f. If the company had sales of $4.69 million, what is the price-sales ratio?
Answer: See explanation
Explanation:
a. What are earnings per share?
Earnings per share:
= (additions to retained earnings+ cash dividends)/140000
= (174000+190000)/140000
= 364000/140000
Earnings per share = $ 2.60
b. What are dividends per share ?
Dividends per share will be:
= Dividend/Number of shares of common stock outstanding
= 190000/140000
= $ 1.36
c. What is the book value per share?
Book value per share will be:
= Ending total equity/Number of shares of common stock outstanding
= 4950000/140000
= $ 35.36
d. If the stock currently sells for $86 per share, what is the market-to-book ratio?
Market-to-book ratio will be:
= Market Value per share/Book Value per share
= 86/35.36
= 2.43
e. What is the price-earnings ratio?
Price-earnings ratio will be:
= Market Value per share/Earnings per share
= 86/2.6
= 33.08
f. If the company had sales of $4.69 million, what is the price-sales ratio?
Price-sales ratio will be the market value per share multiplied by the number of shares of common stock outstanding. This will be:
= (86 × 140000)/4690000
= 2.57 times
Steve’s Lumber Company features a large selection of materials for flooring, decks, moldings, windows, siding and roofing. It is a small, but profitable family business that is looking to expand. The prices of lumber and other building materials are constantly changing. When a customer places an order, typically inquiring about the price on pre-finished wood flooring, sales representatives consult the catalogue, and a manual price sheet and then call the supplier for the most recent price. The supplier in turn uses a manual price sheet, which has been updated each day. Often the supplier must call back Steve’s reps because the company does not have the newest pricing information immediately on hand. Of course, the customer’s order is delayed until a firm price is determined. Steve has hired you to assess the business impact of the situation.
1. What can be done for them to make this process more efficient.
2. Identify 3 metrics that could be put in place to measure the impact of the existing process on operational efficiency.
3. Explain how information systems could support those changes. Discuss what data the systems should capture and what decisions the system could improve.
Answer:
1. The major issue in the process is the lack of communication between different parties. The process being manually driven, might affect the customer satisfaction and lead to lost sales. The changes which need to be made is to make available the price information of different items at once, when the customer comes in to place an order. This can be made possible by asking the suppliers to send the updated sheet every morning before the day's business begins. It will be better if the entire uncatalogued as well as the price sheet is in electronic form, which can be updated immediately, as soon as the information is received from supplier in the morning. One better alternative is to connect the suppliers through an ERP so that their price might reflect at the company's end as soon as it is updated, It will reduce much hassle and mistakes that might creep in due to manual process.
2. a. The number of customers leaving per day / week to competitors due to inefficiency.
b. Total average delay in customer's order.
c. Customer satisfaction rating of the process as this will give the overall picture of customer's opinion about the company.
3. The information system might enable the suppliers to update their information each day which can then be used by the company reps to find out the right price of an item and enable him /her to provide the estimate immediately, leading to greater customer satisfaction, reducing the lost sales and eliminating the chances of a wrong quote being given.
Which of the following goods would be considered an elastic in demand?
1.) Milk
2.)candy
3.) designer clothes
4.) television
There is $257 in your account and you earn simple interest of 3.2% for 5 years. What is your new balance?
Answer:
I am not 100% sure but I think that the answer is $298.12
Income Statement
Net sales 7,600
Cost of goods sold 6,715
Depreciation 200
Earnings before interest and taxes 685
Interest paid 20
Taxable Income 666
Taxes 232
Net income 434
Dividends 195
Balance Sheet
Cash 2,150 Accounts payable 1,550
Accounts rec. 830 Long-term debt 260
Inventory 2,600 Common stock 2,400
Total 5,580 Retained earnings 4,480
Net fixed assets 3,110
Total assets 8,690 Total liabilities and
equity 8,640
If the Nitro Tap Company maintains a constant debt-to-equity ratio, what growth rate can it maintain? Assume no additional external equity financing is available.
Answer:
3.47%
Explanation:
sustainable growth rate = retention rate x ROE
ROE = net income / shareholders' equity = 434 / 6,880 = 6.308%
retention rate = 1 - dividends/net income = 1 - 195/434 = 1 - 0.4493 = 0.5507
sustainable growth rate = 6.308% x 0.5507 = 3.4738% ≈ 3.47%
A company's sustainable growth rate is the growth rate that the company may experience on a long term basis. In order for a company to be able to grow, it must be able to either reinvest their earnings, obtain external financing or raise additional equity. In this case, we were told that no additional equity would be raised and that the debt/equity ratio would remain constant.
Cool Car Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2014 are as follows:
The selling price per vehicle is $27000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
Requirements:
Prepare April and May 2014 income statements for Cool Car Motors under (a) variable costing and (b) absorption costing.
Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing.
Unit data April May
Beginning Inventory 0 100
Production 500 425
Sales 400 495
Variable Costs
Manufacturing cost/unit produced $11000 $11000
Operating (marketing) cost/unit sold 3200 3200
Fixed costs
Manufacturing costs $2000000 $2000000
Operating (marketing) costs 550000 550000
Answer:
Cool Car Motors
Income statements for April and May - variable costing
April May
Sales ($27000) $10,800,000 $13,365,000
Less Cost of Sales ($4,400,000) ($5,445,000)
Contribution $6,400,000 $7,920,000
Less Expenses :
Fixed Manufacturing costs ($2,000,000) ($2,000,000)
Operating (marketing) costs :
Variable ($3200) ($1,280,000) ($1,584,000)
Fixed ($550,000) ($550,000)
Net Income / (Loss) $2,570,000 $3,786,000
Cool Car Motors
Income statements for April and May - Absorption costing
April May
Sales ($27000) $10,800,000 $13,365,000
Less Cost of Sales ($6,000,000) ($7,425,000)
Gross Profit $4,800,000 $5,940,000
Less Expenses :
Operating (marketing) costs :
Variable ($3200) ($1,280,000) ($1,584,000)
Fixed ($550,000) ($550,000)
Net Income / (Loss) $2,970,000 $3,806,000
Cool Car Motors
Reconciliation of Absorption Costing Profit to Variable Costing Profit
April May
Absorption Costing Income $2,970,000 $3,806,000
Add Fixed Costs in Opening Inventory $0 $400,000
Less Fixed Cost in Closing Inventory ($400,000) ($120,000)
Variable Costing Income $2,570,000 $3,786,000
Explanation : The Fixed Costs deferred in closing inventory is the cause of the difference between operating income for each month under variable costing and absorption costing.
Explanation:
Summary of Units
April May
Beginning Inventory 0 100
Add Production 500 425
Available for Sale 500 525
Less Sales (400) (495)
Ending Inventory 100 30
Variable Costing Calculations :
April May
Cost of Sales
Beginning Inventory at $11000 $0 $1,100,000
Manufacturing Cost at $11000 $5,500,000 $4,675,000
Ending Inventory at $11000 ($1,100,000) ($330,000)
Cost of Sales $4,400,000 $5,445,000
Absorption Costing Calculations :
April May
Cost of Sales
Beginning Inventory at $15000 $0 $1,500,000
Manufacturing Cost at $15000 $7,500,000 $6,375,000
Ending Inventory at $15000 ($1,500,000) ($450,000)
Cost of Sales $6,000,000 $7,425,000