Grey Company is evaluating two manufacturing process layout options, each of which has the following characteristics for producing a batch of output:

Process Activity Minutes per Batch
Alternative 1 Alternative 2
Setup time 50 20
Movement time (from start to finish) 20 28
Waiting time 6 32
Inspection time 10 14
Processing time 80 60
Total time (in minutes) 166 154

Required:
a. Determine the production (manufacturing) lead time per batch for each decision alternative.
b. Determine the process cycle efficiency (PCE) for each system.

Answers

Answer 1

Answer:

Production (manufacturing) Lead Time per batch

Production Lead Time = Total Time required to manufacture which includes Setup time, Movement time, Inspection Time, Processing Time and Wait Time.

Decision Alternative 1: 166 Minutes

Decision Alternative 2: 154 Minutes

Process Cycle Efficiency

PCE = Value Added Time / Cycle Time

Except Processing Time all are Non Value Added

Decision Alternative 1 = 80/166 = 0.48

Decision Alternative 2 = 60/154 = 0.39


Related Questions

What is the variable cost of sterilizing an instrument using the new equipment
After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the out-dated autoclave equipment she inherited from the previous dentist. Now as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records:
Month Number of instruments used Total autoclave cost
January 634 $7,466
February 534 6,526
March 734 7,148
April 934 9,028
May 834 7,744
June 1,034 8,596
July 1,234 10,009
August 1,134 9,924
What is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 15.25.)
Variable cost _____ $ per instrument
What is the fixed cost of the autoclave equipment? (Round answer to 0 decimal places, e.g. 5,275.)
Fixed cost $ ________
What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs for next year

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Month Number of instruments used Total autoclave cost

January 634 $7,466

February 534 6,526

March 734 7,148

April 934 9,028

May 834 7,744

June 1,034 8,596

July 1,234 10,009

August 1,134 9,924

To determine the fixed and variable cost, we need to use the high-low method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (10,009 - 6,526) / (1,234 - 534 )

Variable cost per unit= $4.9757 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 10,009 - (4.9757*1,234)

Fixed costs= $3,869

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 6,526 - (4.9757*534)

Fixed costs= $3,869

Total cost= 3,869 + 4.9757x

x= number of instruments

When the economy is doing well, the financial market is also guaranteed to do well.
True
False

Answers

False I’m just guessing
The state of the kind of be alone can predict have the financial market will perform. Even if the economy is declining the financial market can still do well.

Please give me brainliest!

You're getting the idea that Julio's departure may negatively affect the employees' job attitudes. You're concerned about employee levels of job satisfaction, job involvement, organizational commitment, perceived organizational support, and employee engagement. What would you like to do on your first week as restaurant manager

Answers

Answer:

Consider conducting a comprehensive, anonymous poll of the employees to determine if they are happy in their current positions.

Explanation:

In the given scenario an employee Julio is leaving, and you feel this may affect the other employees attitude.

The best action to take when you are concerned with employee satisfaction is to conduct a comprehensive, anonymous poll of the employees to determine if they are happy in their current positions.

As the poll is anonymous this will encourage employees to respond honestly.

The information gained will give insight on level of employee satisfaction.

Measures can now be taken to ensure improvement in levels of job satisfaction, job involvement, organizational commitment, perceived organizational support, and employee engagement.

Whitch of the following is required to be considered an entrepreneur?

Answers

Answer:

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures

Explanation:

How to get a series 7 license

Answers

Take and Pass SIE exam

Secure a Sponsorship

Study for series 7 exam

Pass it :)

December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020 Accounts receivable (net) $ 20 $ 16 Net sales $ 115 $ 100 Cost of goods sold $ 60 $ 55 Net income $ 20 $ 17 Inventory turnover 5.22 Return on assets 10.3 % Equity multiplier 2.36 Dowling's 2021 profit margin is (rounded):

Answers

Answer:

17.40%

Explanation:

Profit margin = Net income / Net sales * 100

Profit margin = $20 million / $115 million * 100

Profit margin = 0.1739130 * 100

Profit margin = 17.3913%

Profit margin = 17.40%

So, Dowling's 2021 profit margin is 17.40%

The Changing Workforce The composition of the modern labor force is changing rapidly. Increasing diversity in race, ethnicity, and gender, a shift in age distribution, and a shift in the skill levels required of the workforce have created new challenges for human resource professionals. It is critical for human resource managers to be aware of the changing trends in workforce composition because these trends will impact the organization's options for creating an internal labor force with the skills and motivation to help the organization gain a competitive advantage
Read the case below and answer the questions that follow Jennifer thought she had done a good job as her company's HR director in terms of forecasting employee needs, but there were clearly some trends that she had not anticipated. The most significant of these trends was the huge increase in the number of immigrants now living in the local community. Although these newcomers were willing and capable of performing many jobs in the company's plant, there were some definite issues with language and cultural differences.
Jennifer also sensed some reservation on the part of long-time employees toward accepting the newcomers. Jennifer now knows she needs to be proactive in preventing workforce issues and making the best use of this new group of potential employees. Which of the following is not a trend in the composition of the labor force impacting HRM practices today?
a. skills needed have shifted away from physical strength
b. older workers are staying in the workforce longer
c. younger workers between 16 and 24 will be fewer
d. asian and other groups are the fastest growing category
e. more women are in the pald labor force than in the past

Answers

Answer:

e. more women are in the paid labor force than in the past

Explanation:

The labor force is also known as the work force. It is defined as the labor pool that is either in the employment or the unemployed. It generally describes those people who are working for an organization.

The workforce today is changing and is different from the early days. The modern labor force is rapidly changing. There is a huge challenge for the HR professionals as there is increase in the diversity of race, gender, ethnicity , age distribution and the requirement of skills. Now-a-days more and more women are engaged in the paid labor force as compared to the early days. More women are learned and skilled and work under a paid labor force. They have shown success in many fields and are sometimes better performer than men.

Thus now more women are in the paid labor force when compared to the past.

Which of the following is incorrect in terms of data warehousing and business intelligence? Group of answer choices Operational information is mainly current Does not include information from other operational applications Operational information frequently has quality issues Operational systems are integrated

Answers

Answer:

Operational systems are integrated.

Explanation:

A data warehouse can be defined as a large collection of data gathered or collected from various sources within an organization and managed to provide a guide for making decisions by the management.

This ultimately implies that, a data warehouse avails the management of an organization the ability to collect, analyze and manage data in order to gain meaningful insights and aid in the decision-making process.

In terms of data warehousing and business intelligence, the following statements are true and correct;

I. Does not include information from other operational applications.

II. Operational information is mainly current.

III. Operational information frequently has quality issues.

Verbal/linguistic learners prefer learning activities that involve reading, writing, and speaking.
False
True

Answers

Answer:

I would assume it is true

Explanation:

true i’m 80 percent sure

State and federal governments actively support education at the primary, secondary, and collegiate levels. But they mandate education at the primary and secondary levels, while merely providing subsidies and loan guarantees at the collegiate level. Of the key rationales for public provision of education described, which do you think underpins this differential treatment?

Answers

Answer:

1. positive externalities

2. educational credit for the market failure

3. redistribution

4. failure to maximize the family utility

Explanation:

There are generally four rationales or logical thinking for the public provisions for education. They are the positive externalities, failure to maximize the family utility, educational credit for the market failure, redistribution.

Now each rationales provides reasons that educations is more likely to be underprovided without any intervention from the government. But many of them does not provide any reasons for the mandate of education.

Like suppose the government can support and solve any educational credit market failure by just offering some loan guarantees for the students while letting them chose to receive education or not.

Similarly government can also address positive externalities that are associated with productivity gains or just letting a person educated without any mandating it.

And finally, government redistributes the poor families through the progressive taxation or the offerings of free education without any mandating them.

Larry is considering two investment strategies. The first strategy involves putting all of his available funds in Project X. If Project X succeeds, he will receive a $10,000 return, and if it fails, he will suffer a $2,000 loss. There is a 70% chance Project X will succeed and a 30% chance it will fail.
The second strategy involves diversification: investing half of his funds in Project X and half of his funds in Project Y (which has the same payoff structure as Project X).

If both projects succeed, he will receive a $5,000 return from Project X and a $5,000 return from Project Y, for a net gain of $10,000.
If both projects fail, he will suffer a $1,000 loss on Project X and a $1,000 loss on Project Y, for a net loss of $2,000.
If one project succeeds and one fails, he will receive a $5,000 return from the successful project and will suffer a $1,000 loss on the failed project, for a net gain of $4,000.

As with Project X, there is a 70% chance that Project Y will succeed and a 30% chance that it will fail. Assume that the outcomes of Project X and Project Y are independent. That is, the success or failure of Project X has nothing to do with the success or failure of Project Y.
The expected payoff from the first strategy (investing everything in Project X) is :__________

Answers

Answer: $6,400

Explanation:

The expected return is simply a weighted average of the different returns given their probability of happening.

If everything was invested in Project X, there is a 70% chance of success and 30% of failure. Payoff is $10,000 if successful and $2,000 if unsuccessful:

= (70% * 10,000) + ( 30% * -2,000)

= 7,000 - 600

= $6,400

What is the first step in the standard purchasing process practiced by most companies

Answers

Answer:

requisition

Explanation:

its correct :D

The first step in the standard purchasing process practised by most companies is requisition.

What do you understand by requisition?

Requisition is a request for goods or services made by an employee to the person or department in a company that is responsible for purchasing. If the request is approved, that entity will submit a purchase order to a supplier for the goods or services. In this context, a requisition is also known as a purchase requisition.

Requisitions are usually submitted in a standardized format on paper form or through e-procurement software that automates some of the tasks involved and reduces duplication of effort. A requisition form, whether physical or digital, typically includes the details about the item requested, the date of the request, the individual and department making the request and the location where the goods should be delivered.

Copies of the requisition, the purchase order, the invoice and the packing slip are usually stored together.

Learn more about requisition, here:

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you are in a 98 story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. How long do you have for your elevator pitch ?

Answers

Answer: 50 seconds

Explanation:

I took the test just now.

You are in a 98-story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. Around 50 seconds you can have for your elevator pitch.

What is an elevator pitch?

An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period.

This description typically explains who the thing is for, what it does, why it is needed, and how it will get done. When explaining a person, the description generally explains one's skills and goals, and why they would be a productive and beneficial person to have on a team or within a company or project.

An elevator pitch does not have to include all of these components, but it usually does at least explain what the idea, product, company, or person is and their value.

Learn more about elevator, here:

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Pronghorn Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PRONGHORN COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $241,500 Accounts receivable (net) 351,500 Inventory (lower-of-average-cost-or-market) 412,500 Equity investments (marketable)-at cost (fair value $131,500) 151,500 Property, plant, and equipment Buildings (net) 581,500 Equipment (net) 171,500 Land held for future use 186,500 Intangible assets Goodwill 91,500 Cash surrender value of life insurance 101,500 Prepaid expenses 23,500 Current liabilities Accounts payable 146,500 Notes payable (due next year) 136,500 Pension obligation 93,500 Rent payable 60,500 Premium on bonds payable 64,500 Long-term liabilities Bonds payable 511,500 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 301,500 301,500 Additional paid-in capital 171,500 Retained earnings ?

Answers

599$ and 99c hhdiihfbk gulch

While attending a baseball game cheering for the home team a fan of the other team sneaks up behind jack and hits jack on the head with a hard piece of pretxel injuring jack. Jack has no ideas he is about to be hit an dis embarrassed when his friends see that he was injured by a pretzel. Which of the following torts has the fan committed?
a) assault and battery.
b) battery and negligent infliction of emotional distress.
c) battery.
d) assault.
e) assault, battery, and negligent infliction of emotional distress.

Answers

Answer:

C) Battery

Explanation:

From the question we are informed about an instance, While attending a baseball game cheering for the home team a fan of the other team sneaks up behind jack and hits jack on the head with a hard piece of pretxel injuring jack. Jack has no ideas he is about to be hit an dis embarrassed when his friends see that he was injured by a pretzel. In this case, The torts that the fan has committed is the battery. A tort as regards common law jurisdiction can be regarded as a civil wrong which make a claimant to count losses/ harm which resulted in legal liability on the part of the person that committed the tortious act. These could be invasion of privacy as well as injuries

Sales (8,700 units) $ 269,700 $ 31.00 Variable expenses 174,000 20.00 Contribution margin 95,700 $ 11.00 Fixed expenses 54,100 Net operating income $ 41,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units

Answers

Answer:

Missing word "Required: Prepare a new contribution format Income Statement under each of the following conditions (consider each case independently): 1. The sale volume increases by 90 units. 2. The sales volume decreases by 90 units"

a.        Contribution Income Statement

                                               Total    Per unit

Sales (8,790 units)            $272,490   $31.00

Variable Expenses            $175,800   $20.00

Contribution Margin          $96,690    $11.00

Fixed Expenses                 $54,100

Net Operating Income     $42,590

b.        Contribution Income Statement

                                              Total      Per unit

Sales (8,610 units)             $266,910   $31.00

Variable Expenses            $172,200   $20.00

Contribution Margin          $94,710      $11.00

Fixed Expenses                 $54,100

Net Operating Income     $40,610

Which of the following statements are true oflong-term investments?

a. They can include bonds and stocks not intended to be sold in the near future.
b. They can be considered cash equivalents.
c. They can include assets not used in operations, such as investments in land.
d. They generally include investments that will mature in 3 to 12 months.
e. They are reported with noncurrent assets on the balance sheet.
f. They are always easily sold and therefore qualify as being marketable.

Answers

Answer:

a. They can include bonds and stocks not intended to be sold in the near future.

c. They can include assets not used in operations, such as investments in land.

e. They are reported with noncurrent assets on the balance sheet.

Explanation:

Long term investment or assets are those that are typically held in a company's balance sheet for many years. They can include assets such as land, equipment like machinery, buildings and vehicles.

They also include sticks and bonds that won't be used in the short term.

So long term investment are not cash equivalents because cash can be used in the short term.

Also it cannot be used within 3 - 12 months.

They are not easily sold as they sold so they are not considered marketable asset in the short run.

Long term investment is considered to be a non current asset as they last longer than a year on the balance sheet.

Bramble Corp. applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

Estimated annual overhead cost $4100000
Actual annual overhead cost $4070000
Estimated machine hours 500000
Actual machine hours 495000

Answers

Answer:

$11,000 under applied

Explanation:

To compute the under or over applied overhead, we need to find out the predetermined overhead rate

Predetermined overhead rate = Total estimated manufacturing overhead ÷ Estimated machine hours

= $4,100,000 ÷ 500,000

= $8.2

Then, the overhead applied is;

= Actual machine hours × Predetermined overhead rate

= 495,000 × $8.2

= $4,059,000

Now, the under applied or over applied overhead is

= Actual annual overhead cost - Applied overhead

= $4,070,000 - $4,059,000

= $11,000 under applied

I don’t know what the percentages are for each one

Answers

Answer:

thats correct

Explanation:

Jake Fleming sells graphic card update kits for computers. Jake purchases these kits for $20 and sells about 250 kits a year. Each time Jake places an order, it costs him $25 to cover shipping and paperwork. Jake figures that the cost of holding an update kit in inventory is about $3.50 per kit per year. What is the economic order quantity

Answers

Answer:

60 Kits

Explanation:

Cost price (C) = $20/Kit

Yearly se (D)  = 250 kit/year

Shipping cost / Ordering cost (Co) = $25

Holding cost (Ch) = $3.5/Kit-year

Economic order quantity = √2.D.Co / Ch

Economic order quantity = √2*250*25/3.5

Economic order quantity = √12500/3.5

Economic order quantity = √3571.4285

Economic order quantity = 59.7614305

Economic order quantity = 60 Kits

Bailey Corp. has the following information: Beginning Inventory (Jan 1) Ending Inventory (Dec 31) Raw Materials Inventory $ 25,300 $ 39,100 Work in Process Inventory $ 24,100 $ 26,600 Finished Goods Inventory $ 39,000 $ 21,900 Additional information for the year is as follows: Raw materials purchases $ 106,100 Direct labor $ 81,600 Manufacturing overhead applied $ 87,000 Indirect materials $ 0 Compute the cost of goods manufactured.

Answers

Answer:

See below

Explanation:

The cost of goods manufactured is computed as;

Beginning inventory

$25,300

Add ;

Raw materials purchases

$106,100

Cost of goods available for sale

$131,400

Less:

Ending inventory

$39,100

Cost of goods sold

$92,300

Add:

Beginning work in process

$24,100

Less:

Ending work in process

($26,600)

Cost of goods manufactured

$89,800

Tom is comparing two printers for his small business. The purchase price for Printer A is $1,000, with maintenance and operations costs of $400. Printer B increases productivity by $100, and reduces the maintenance and operations costs by half. The expected lifetime value is one year for both printers. What is the economic value to the customer (EVC) of Printer B

Answers

Answer:

EVC = $1300

Explanation:

In this question, we need to find the economic value to the customer (EVC) of Printer B.

First of all we need to know the basics of Economic value of a product,

It is basically starts with evaluating the additional values of the product first which are associated with it and then, those values are added to the next best product in the market. In this case, Printer A is the next best product whose price is $1000.

We know that, Printer B increase productivity by $100

Reduce the maintenance and operations costs by half, which means $400/2 = $200.

Additional value of the product = $100 + $200

Cost of the next best product = $1000

So,

According to the EVC definition and understandings, we must add the additional values of the product to value of the next best product.

Hence,

EVC = $1000 + $100 + $200

EVC = $1300

Question 2 (5 points)
(01.07 MC)
How do we know our current money has value? (5 points)
а
People talk about money a lot.
Ob
It is backed by gold.
Ос. .
People accept it in exchange for goods or services,
od
It has many security measures.

Answers

Answer:

It's C

Explanation:

a and d are kind of a result of C but C is still correct

we no longer back our money with gold

Wade Company estimates that it will produce 6,800 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $8, direct labor $13, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,300 for depreciation and $3,500 for supervision. In the current month, Wade actually produced 7,300 units and incurred the following costs: direct materials $51,800, direct labor $87,400, variable overhead $124,400, depreciation $8,300, and supervision $3,780.
Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.) Wade Company Static Budget Report Difference Favorable Neither Favorable Budget Actual nor Unfavorable Were costs controlled?

Answers

Answer:

Wade Company

Static  Budget Report

                                Budget        Actual     Variance

Units of production  6,800        7,300        500        Favorable

Variable manufacturing costs:

Direct materials      $54,400    $51,800    $2,600    Favorable  

Direct labor               88,400      87,400       1,000     Favorable

Overhead                115,600     124,400     (8,800)    Unfavorable

Sub-Total             $258,400   263,600    ($5,200)    Unfavorable

Fixed manufacturing costs:

Depreciation         $8,300        $8,300         $0          Neither

Supervision             3,500          3,780         (280)      Unfavorable

Sub-Total              $11,800      $12,080       ($280)      Unfavorable

Total                 $270,200   $275,680    ($5,480)      Unfavorable

Some costs were controlled (direct materials and labor).  The overhead costs were not very well controlled.

Explanation:

a) Data and Calculations:

Estimated units of production of product IOA = 6,800 units

Budgeted variable manufacturing costs:

Direct materials  $8 * 6,800 =  $54,400

Direct labor       $13 * 6,800 =  $88,400

Overhead         $17  * 6,800 = $115,600

Total=               $38              

Budgeted fixed manufacturing overhead costs:

Depreciation = $8,300

Supervision =     3,500

Total =             $11,800

Actual:

Units produced = 7,300

Direct materials cost = $51,800

Direct labor cost = $87,400

Variable overhead = $124,400

fixed manufacturing overhead costs:

Depreciation = $8,300

Supervision =     3,780

Total =            $12,080

Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
Beginning Balance Ending Balance
Raw materials $ 11,700 $ 15,800
Work in process $ 32,700 $ 14,600
Finished goods $ 102,000 $ 121,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,500 machine-hours and incur $262,500 in manufacturing overhead cost. The following transactions were recorded for the year:
• Raw materials were purchased, $415,000.
• Raw materials were requisitioned for use in production, $410,900 ($382,000 direct and $28,900 indirect).
• The following employee costs were incurred: direct labor, $332,000; indirect labor, $71,000; and administrative salaries, $154,000.
• Selling costs, $115,000.
• Factory utility costs, $27,000.
• Depreciation for the year was $124,000 of which $110,000 is related to factory operations and $14,000 is related to selling, general, and administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,200 machine-hours.
• Sales for the year totaled $1,283,000.
Required:
a. Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values.)
b. Was the overhead underapplied or overapplied? By how much? (Do not round predetermined overhead rate. Input the amount as a positive value.)
c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. (Input all amounts as positive values.)

Answers

Answer:

Part a

Cost of goods manufactured

Beginning Work In Process Inventory                              $32,700

Add Manufacturing Costs :

Raw Materials Cost                                   $410,900

Direct Labor                                              $332,000

Applied Overheads                                   $213,000     $955,900

Less Ending Work In Process Inventory                        ($14,600)

Cost of Goods Manufactured                                        $974,000

Part b

Under-applied overheads =  $23,900

Part c

income statement for the year

Sales                                                                               $1,283,000

Less Costs of Sales

Beginning Finished Goods Inventory       $102,000

Add Cost of Goods Manufactured           $974,000

Less Ending Finished Goods Inventory   ($121,000)                        

                                                                 $1,197,000

Add Under - Applied Overheads               $23,900 ($1,220,900)

Gross Profit                                                                        $62,100

Explanation:

Applied Overheads = $262,500 / 17,500 x 14,200 = $213,000

Raw Materials Cost = $11,700 + $415,000 - $15,800 = $410,900

Actual Overheads = $28,900 + $71,000 + $27,000 + $110,000 = $236,900

Under-applied overheads = $236,900 - $213,000 = $23,900

At December 31, 2021, Newman Engineering's liabilities include the following:

a. $12 million of 6% bonds were issued for $12 million on May 31, 1999. The bonds mature on May 31, 2029, but bondholders have the option of calling (demanding payment on) the bonds on May 31, 2022. However, the option to call is not expected to be exercised, given prevailing market conditions.
b. $16 million of 5% notes are due on May 31, 2022. A debt covenant requires Newman to maintain current assets at least equal to 177% of its current liabilities. On December 31, 2021, Newman is in violation of this covenant. Newman obtained a waiver from National City Bank until June 2022, having convinced the bank that the companyâs normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2022.
c. $9 million of 8% bonds were issued for $9 million on August 1, 1989. The bonds mature on July 31, 2022. Sufficient cash is expected to be available to retire the bonds at maturity.

Required:
Classify the above mentioned debts as current liabilities or noncurrent liabilities.

Answers

Answer:

1. Classify as Current liabilities up to the sum of $12 million

Since the bondholder have the option to demand the payment in the near future irrespective of whether they will exercise or not, it will be treated as current liability.

2. Classify as Current liabilities up to the sum of $16 million

The notes payable are due within a year and despite the violation of maintaining the condition, it will be treated as current liability.

3. Classify as Current liabilities up to the sum of $9 million

Since the bond matures within a year and there is sufficient amount of cash available for redemption which signifies that there is fair chances of retirement of bonds exits, hence, need to classified as current liability.

Based on accounting practices, the following are true:

a. Current liability.b. Current liability.c. Current liability.

Why are the above current liabilities?

The bondholders can call the bond on May 31, 2022 which is within a year of December 2021. This is therefore a current liability.

Even though they are in violation of the covenant, the amount is still due within the year which makes it a current liability.

The bonds maturing on July 31, 2022 are within a year of the date of the statements which is December 31, 2021.

Find out more on current liabilities at https://brainly.com/question/13388204.

Before any month-end adjustments are made, the net income of Russell Company is $37,000. However, the following adjustments are necessary: office supplies used, $3,060; services performed for clients but not yet recorded or collected, $2,940; interest accrued on a note payable to bank, $3,540. After adjusting entries are made for the items listed above, Russell Company's net income would be: Group of answer choices

Answers

Answer:

the net income would be $33,340

Explanation:

The computation of adjusted net income is shown below:

= Net income - office supplies used + service performed for clients - interest accrued to bank

- $37,000 - $3,060 + $2,940 - $3,540

= $33,340

Hence, the net income would be $33,340

John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Years Amount
1-6 $ 89,000
7 79,000
8 69,000
9 59,000
10 49,000
If purchased, the restaurant would be held for 10 years and then sold for an estimated $790,000.
Required:
Determine the present value, assuming that John desires an 11% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Answers

Answer and Explanation:

The computation of the present value is as follows:

Years      Value         Factor at 11%       Present value

1-6          $89,000       4.2305             $376,515

7             $79,000        0.4817             $38,054

8             $69,000        0.4339           $29,939

9             $59,000      0.3909            $23,063

10            $49,000       0.3522          $17,258

10           $790,000      0.3522          $278,238

Present value                                     $763,067

it should be rejected as it less than the initial investment

Wildhorse Locomotive Corporation purchased for $604,000 a 40% interest in Lopez Railways, Inc. This investment enables Wildhorse Locomotive to exert significant influence over Lopez Railways. During the year, Lopez Railways earned net income of $159,000 and paid dividends of $27,000. Prepare ZaneLocomotive’s journal entries related to this investment.

Answers

Answer:

Dr Equity Investments $604,000

Cr Cash $604,000

Dr Equity Investments $63,600

Cr Investment Income $63,600

Dr Cash $10,800

Cr Equity Investments $10,800

Explanation:

Preparation of ZaneLocomotive’s journal entries related to this investment.

Dr Equity Investments $604,000

Cr Cash $604,000

(Being to record Investment)

Dr Equity Investments $63,600

Cr Investment Income $63,600

(40% × $159,000)

(Being to record share in net income)

Dr Cash $10,800

Cr Equity Investments $10,800

(40% × $27,000)

(Being to record shares in dividend)

The following errors took place in journalizing and posting transactions:
a. Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash.
b. A $1,760 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable.
Note: Prepare the entry to reverse the original entry first. Journalize the entries to correct the errors. If an amount box does not require an entry, leave it blank.

Answers

Solution :

a).

Cash account drawn $ 17600

To the fees earned is $ 8800

To the account receivable is $ 8800

(It is now rectified, being wrong entry made earlier)

b).

The accounts payable Dr 1760

To the supplies expenses is $ 1760

To supplies account Dr is 1760

Cash $ 1760

(It is now rectified, being wrong entry made earlier)

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