Answer:
Jackie's income, as she now needs to buy Converse and will have less to spend on other goods.
Explanation:
Jackie is a fashionista and so she would respond to trends. Since everyone around her is wearing converse, she would want to wear converses too. so her income would be affected as it would be reduced as she would buy the converse.
Braynerd Chemicals sells 40 million shares of stock in an SEO—25 million being primary shares issued by the company and 15 million being secondary shares sold by investors in the company. At the time of the sale, Braynerd's stock was selling at $21.00 per share. If the underwriter charges 5% of the gross proceeds as a fee, how much money was raised in the sale?
Answer: $498.75 million
Explanation:
Of the 40 million shares sold by Braynerd Chemicals, 15 million were sold as secondary shares by investors in the company. The proceeds from these 15 million will therefore not go to the company but to the investors so they are not counted.
Gross total money raised will be;
= 25 million * 21.00
= $525 million
The Underwriter charges 5% of the gross amount as a fee so the Net amount raised will be;
Net Total = 525 * ( 1 - 5%)
Net Total = $498.75 million
Zelda Partnership holds cash of $30,000 and inventory worth $60,000 (basis equals $42,000). Zelda makes a $30,000 cash liquidating distribution to Link, a one-third partner with an outside basis of $24,000. How much gain or loss, if any, does Link recognize
Answer:
6,000 ordinary gain
Explanation:
The computation of gain or loss is shown below:-
Given that
Worth of an inventory = $60,000
Basic inventory = $42,000
Now if we divide this two by each other so the percentage would be
= $60,000 ÷ $42,000 i.e to be greater than the 120% and it is said that the one third would be considered of $18,000
The $18,000 come from
= $42,000 - $24,000
= $18,000
Now its one third is $6,000 and the same is to be treated as ordinary gain
g Exodus Limousine Company has $1,000 par value bonds outstanding at 15 percent interest. The bonds will mature in 30 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the percent yield to maturity is
Question:
Exodus Limousine Company has $1,000 par value bonds outstanding at 15 percent interest. The bonds will mature in 30 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the percent yield to maturity is 10%
Note the tutor added 10% as the yield
Answer:
Price of bond= $1,471.35
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate
Value of Bond = PV of interest + PV of RV
The value of bond Exodus Limousine Company can be worked out as follows:
Step 1
PV of interest payments
PV = A × (1+r)^(-n)/r
A-annul interest payment:
= 15% × 1,000 = 150
r-Annual yield = 10%
n-Maturity period = 30
PV of interest payment:
=150× (1- (1+0.1)^(-30)/0.1= 1,414.037
Step 2
PV of Redemption Value
= 1000 × (1.1)^(-30) = 57.308
Step 3
Price of bond
=1,414.037 + 57.308 = 1,471.345
Price of bond= $1,471.345
Each of the following are types of________allocation methods: plantwide rate method, departmental overhead rate method and activity-based costing method.
______ = overhead
vote my answer the brainliest, please
Each of the following are types of Overheads allocation methods.
Types of overhead allocation method:Factory overheads like rent, electricity or water could not be traced directly to a cost object. At the time of measuring the cost of a cost object these overheads are apportioned to departments they pass via for processing or the actual job using an allocation method. The common methods for allocating overheads should be plant-wide rate method, departmental overhead rate method and activity-based costing method.
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Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:
Hours
Wait time 12.5
Process time 1.6
Inspection time 0.8
Move time 4.2
Queue time 5.9
The delivery cycle time was:______
Answer:
Santoyo Corporation
Tracking Time to Fill Orders:
The delivery cycle time was 25 hours.
Explanation:
The delivery cycle time sums the time occasioned by the supply delay and the reordering delay before the goods reach the customer. As an order is received by Santoyo Corporation there is usually a wait time of half a day or 12.5 hours. The processing of the order consumes 1.6 hours. Before delivery is made, the inspectors spend 0.8 hours or 48 minutes doing what they know best. Then, freight takes 4.2 hours for the delivery van to reach the customer's warehouse. At that point, another 5.9 hours are spent queueing for the receipt of the goods by the customer.
A state has strict laws stating that all employees, including part-time workers, must be compensated with employer-provided health benefits. Which of the following could result from this legislation?
1. More workers will be hired "informally" and be paid surreptitiously in cash.
2. Wages will decrease.
3. Unemployment will increase.
4. Any of the above could result from the legislation.
Answer: Any of the above could result from the legislation
Explanation:
From the question, we are informed that a state has strict laws stating that all employees, including part-time workers, must be compensated with employer-provided health benefits.
The likely effect of this law is that there will be a reduction on wages as employer's will try as much as possible to reducce cost incurred due to the health related compensation. Also, unemployment will increase and more workers will be hired "informally" and be paid surreptitiously in cash. This is because the cost of the employers will increase and they may need to lay some workers off.
What is the forecasted value of property, plan and equipment (PP&E) based on the following information: Capital asset turnover ratio: 2.5 Forecasted revenues: $120 Forecasted costs of goods sold: $80
Answer:
Forecasted value of property, plan and equipment (PP&E) is $48.
Explanation:
First note that Capital asset is the same thing as property, plan and equipment (PP&E).
In order to calculate this, we therefore use the formula for calculating the Capital asset turnover ratio which is the ratio of forecasted revenues to forecasted value of property, plan and equipment (PP&E) as follows:
Capital asset turnover = Forecasted revenues / Forecasted value of PP&E
Substituting for the values in the question into the equation above and solve for Forecasted value of PP&E, we have:
2.5 = 120 / Forecasted value of PP&E
Forecasted value of PP&E = 120 / 2.5 = $48
Therefore, the forecasted value of property, plan and equipment (PP&E) is $48.
The forecasted value of property, plan and equipment for the period for the statement quoted above is $48. The calculations can be implied by using the values given in the formula.
The value of the property, plan and equipment is important for estimating the current, short run and long run capital requirements of the firm for a given period using the ratios.
The values given to us are as the capital assets turnover ratio is 2.5 and the forecasted costs of goods sold is $80 whereas the forecasted revenues of the firm is $120.The calculation of estimated property, plan and equipment of a firm can be calculated by using the formula as given below by putting the available values.[tex]\rm Forecasted\ PP\&E= \dfrac {Forecasted\ Revenues}{Capital\ Assets\ Turnover\ Ratio}\\\\\\\\\rm Forecasted\ PP\&E= \dfrac {\$120}{2.5}[/tex]We get the forecasted PP&E of the firm as below, [tex]\rm Forecasted\ PP\&E= \$48[/tex]Therefore the value obtained for the forecasted PP&E of the firm is $48.Hence, the correct statement of the forecasted PP&E of the firm is $48 when the forecasted revenues are $120 and the assets turnover ratio stands at 2.5.
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Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfolio is 17%, and on the zero-beta portfolio it is 8%. What is the expected return on a portfolio with a beta of .6?
Answer:
10.4%
Explanation:
The computation of expected return on a portfolio is shown below:-
Expected return = Risk Free return + 5%Beta ( Market Return - Risk Free return)
= 5% + 0.60 × (17% - 8%)
= 5% + 5.4%
= 10.4%
Therefore for computing the expected return on a portfolio with a beta of .6 we simply applied the above formula.
The market return less risk free return is known as market risk premium
Direct Write-Off Method ournalize the following transactions using the direct write-off method of accounting for uncollectible receivables.
Jan. 17: Received $3,220 from Paula Spitler and wrote off the remainder owed of $6,630 as uncollectible. If an amount box does not require an entry, leave it blank.
Mar. 17 Allowance for Doubtful Accounts Accounts Receivable-Paula Spitler
Apr. 6: Reinstated the account of Paula Spitler and received $5,820 cash in full payment. Reinstate Collection Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $3,460,000; Allowance for Doubtful Accounts has a debit balance of $12,500; and sales for the year total $46,300,000. Bad Debt Expense is estimated at ½ of 1% of sales
a. Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
c. Determine the net realizable value of accounts receivable. 3,460,000.
Answer:
In percent of Sales method the balance for allowance for doubtful accounts on the balance sheet and the income statement is never the same as the old and new bad debts may have different balances.
Explanation:
Journal Postings
Date Particulars Debit Credit
Jan 17 Cash $3220
Bad Debts $ 6630
Accounts Receivable-Paula Spitler $ 9850
Mar 17 Accounts Receivable-Paula Spitler $5,820 Dr
Allowance for Doubtful Accounts $5,820 Cr
Re instating the account of Paula Spitler
Apr 6 Cash $ 5820 Dr
Accounts Receivable-Paula Spitler $5,820 Cr
Payment received in full.
Percent of Sales Method
Accounts Receivable $3,460,000;
Allowance for Doubtful Accounts $12,500 debit;
Sales $46,300,000.
Bad Debt Expense is estimated at ½ of 1% of sales
a. Adjusting entry for uncollectible accounts.
Bad debts = 1/2 of 1 % of $ 46,300,000;= $ 231500
Bad Debts Expense $ 231 500 Dr
Allowance for Doubtful Accounts 231,500 Cr
b. Accounts Receivable $3,460,000;
Less Allowance for Doubtful Accounts 231,500 Cr
Accounts Receivable Balance = $ 3228500
Bad Debts Balance $ 231 500
Allowance for Doubtful Accounts $231,500
c. Accounts Receivable $3,460,000;
Less Allowance for Doubtful Accounts 231,500 Cr
Net Realizable value of Accounts Receivable $ 3228500
Trendy Coats applies overhead based on labor hours. It has a predetermined overhead application or standard rate of $5.00/hour. If they had 1000 standard hours and an unfavorable variable overhead efficiency variance of $400 Unfavorable, how many actual hours were used?
Answer:
Actual quantity= 1,080 hours
Explanation:
Giving the following information:
Predetermined overhead application rate= $5.00/hour.
They had 1000 standard hours
Unfavorable variable overhead efficiency variance= $400
To calculate the number of actual hours incurred, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
-400 = (1,000 - AQ)*5
-400 - 5,000 = -5AQ
-5,400/5= -AQ
Actual quantity= 1,080 hours
A metal fabricator produces connecting rods with an outer diameter that has a 1 ± .01 inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.002 inches with a standard deviation of .003 inch.
a. Calculate the Cp of the process. (Round your answer to 3 decimal places.)
Cp =
b. Calculate the Cpk of the process. (Round your answer to 3 decimal places.)
Cpk =
Answer:
A) 1.111
B) 0.889
Explanation:
given data :
outer diameter of connecting rods = 1 ± 0.01 inch
sample mean outer diameter = 1.002 inches
standard deviation = 0.003 inches
A) Calculating the Cp of the process
mean = 1.002
Standard deviation = 0.003
LSL = 1 - 0.01 = 0.99
USL = 1 + 0.01 = 1.01
[tex]Cp = \frac{USL - LSL}{6 * STANDARD DEVIATION}[/tex] = [tex]\frac{1.01-0.99}{6*0.003}[/tex] = 1.111
B) calculate Cpk
mean = 1.002, LSL = 0.99, USL = 1.01 , deviation = 0.003
[tex]Cpk = min[\frac{mean-LSL}{3* deviation} , \frac{USL- mean}{3*deviation} ][/tex]
= min [(0.012/0.009) , (0.008/0.009) ]
= min [ 1.333, 0.889 ]
hence Cpk = 0.889
The US Public Debt was $18.2 trillion in 2015. This was up from $16.4 trillion in 2012. In 2015, Foreign ownership was 34% of that total, or $6.1 trillion. Of this $6.1 trillion, China held 20%, Japan 18%, and oil exporting nations 5%.
1) How does the fact that 34% (and increasing) of the debt is held by foreigners make you feel?
2) What are potential risks or pitfalls with foreigners owning an increasing amount of the US Debt?
3) How concerned should we feel?
Answer:
1) The fact that 34% and increasing of the debt of The US is held by Foreigners is worrisome
2) some of the pitfalls to this increasing debts owned by Foreigners includes : partial loss of the country sovereignty, devaluation of the dollar and difficulties in meeting repayment conditions
3 ) we as a Nation should feel very concerned and sort for other means of funding instead of accumulating foreign public debts .
Explanation:
Total debt owed in 2015 = $18.2 trillion
Total debt owed in 2012 = $ 16.4 trillion
increase in debt = $1.8 trillion percentage increase = 1.8 / 16.4 * 100 = 10.98%
1) The fact that 34% of the debt of The US is held by Foreigners is worrisome
2) some of the pitfalls to this increasing debts owned by Foreigners includes : partial loss of the country sovereignty, devaluation of the dollar and difficulties in meeting repayment conditions
3 ) we as a Nation should feel very concerned and sort for other means of funding instead of accumulating foreign public debts .
Your bank offers a savings account that pays 3.5% interest, compounded annually. If you invest $1,000 in the account, then how much will it be worth at the end of 25 years
Answer:
The account will be worth $2,363.25 at the end of 25 years.
Explanation:
Enter the following data in financial calculator
PV = - $1,000
r = 3.5 %
P/yr = 1
n = 25
PMT = $0
FV = ?
Using the Financial Calculator, the future value (FV) after 25 years will be $2,363.25.
Therefore, the account will be worth $2,363.25 at the end of 25 years.
BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form. Form Type Mix of Forms Form Cost A 0.5 $3.75 B 0.5 $1.25 The expected cost of digitizing a form is $ . Suppose the client and BPO agree to a deal, whereby the client pays BPO to digitize forms. The price of each form processed is equal to the expected cost of the form that you calculated in the previous part of the problem. Suppose that after the agreement, the client sends only forms of type A. The expected digitization cost per form of the forms sent by the client is $ . This leads to an expected loss of $ per form for BPO. (Hint: Do not round your answers. Enter the loss as a positive number.)
Answer:
BPO Servicesa. The expected cost of digitizing a form is $2.50
b. The expected digitization cost per form of the forms sent by the client is $3.75, without a mix of forms.
c. This leads to an expected loss of $1.25 per form for BPO.
Explanation:
1. Data:
Form Type Mix of Forms Form Cost
A 0.5 $3.75
B 0.5 $1.25
b. Calculation of Expected Cost of digitizing a form:
Form Type Mix of Forms Form Cost Expected Cost
A 0.5 $3.75 $1.875 (0.5 * $3.75)
B 0.5 $1.25 $0.625 (0.5 * $1.25)
Total expected costs $2.50
c. Calculation of Expected cost of Form actually sent by Client without a mix of forms:
A 01 $3.75 $3.75 (1 * $3.75)
Total expected costs $3.75
d. Calculation of Expected Loss:
Expected Price = $2.50
Expected cost = $3.75
Expected loss = $1.25
e. The expected value (cost, price, or gain or loss) from the form digitization is the sum of all possible values from the mix of forms, each multiplied by the probability of its occurrence.
5.The real risk-free rate of interest is 2%. Inflation is expected to be 3.5% the next 2 years and 6% during the next 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities
Answer:
17.50%
Explanation:
The computation of the yield on 3 year treasury securities is shown below:
The Yield on 3 year is
= Risk free rate of return + Inflation premium + Market risk premium
= 2% + (3.5% + 6% + 6%) ÷ 3 years + 0
= 2% + 15.5% + 0
= 17.50%
Hence, the yield on 3 years is 17.50% by applying the above formulas by considering the given information
An example of a societal ___________ is Germans' lack of interest in using credit cards like Visa and MasterCard, perhaps in part because the German word for 'debt' is the same as the word guilt.
Answer: values
Explanation:
Societal values can simply be defined as the moral principles defined by the traditions, society dynamics, and cultural beliefs.
These values impact on the behavior of the people. An example is Germans' lack of interest in using credit cards like Visa and MasterCard, because the German word for 'debt' is the same as the word guilt. This hae to do with their belief and values.
If a company produces the same number of units per period over an asset's useful life, each period's depreciation expense using the straight-line method will be the same as that recorded using the units-of-production method.
A. True
B. False
Answer:
The answer is true.
Explanation:
Straight-line method of depreciation spreads the depreciation cost evenly over the life of the asset. The amount of depreciation is the same year in year out. It can be calculated as follows:
(Cost of the asset - residual value) ÷ number of useful life of the asset.
While units-of-production method is almost the same as the straight-line method. It is calculated as:
(Cost of the asset - residual value) ÷ expected number of units of production throughout the useful life of the asset.
Since the number of units of production will be same throughout the life span of the asset, the depreciation expense will also be the same
In a memo to the college president, the athletic director argues for a new stadium scoreboard. One paragraph will describe the old scoreboard and why it needs to be replaced. Study the following list of ideas for that paragraph. 1. The old scoreboard is a tired warhorse that was originally constructed in the 1970s. 2. It is now hard to find replacement parts when something breaks. 3. The old scoreboard is not energy efficient. 4. Coca-Cola has offered to buy a new sports scoreboard in return for exclusive rights to sell soda pop on campus. 5. The old scoreboard should be replaced for many reasons. 6. It shows only scores for football games. 7. When we have soccer games or track meets, we are without any functioning scoreboard. 1. Which sentence should be the topic sentence? 2. Which sentence(s) should be developed in a separate paragraph? 3. Which sentences should become support sentences?
Answer:
Memo to the College President
New Stadium Scoreboard:
1. Topic Sentence:
5. The old scoreboard should be replaced for many reasons.
2. Sentence(s) for separate paragraph:
4. Coca-Cola has offered to buy a new sports scoreboard in return for exclusive rights to sell soda pop on campus.
3. Support Sentences:
1. The old scoreboard is a tired warhorse that was originally constructed in the 1970s.
2. It is now hard to find replacement parts when something breaks.
3. The old scoreboard is not energy efficient.
6. It shows only scores for football games.
7. When we have soccer games or track meets, we are without any functioning scoreboard.
Explanation:
1. Topic Sentence:
This is the theme or main topic of a paragraph that summarizes the information in the paragraph. It may be the first sentence or inserted elsewhere in the paragraph. But, all other sentences within the paragraph support it with points, reasons, or examples.
2. Support Sentences:
These are sentences that support the topic sentence by offering justifications and examples.
3. Separate Paragraph Sentence:
This is a sentence that introduces another idea which is not closely related to the idea contained in the other paragraph.
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $193,000) is worth $231,600 and Johnathan's land has a fair market value of $183,350, Johnathan also gives Logan cash of $48,250. a. Logan's recognized gain is $ . b. Assume that Johnathan's land is worth $208,440 and he gives Logan $23,160 cash. Logan's recognized gain is $ .
Answer:
a. Logan's recognized gain is $38,600
b. Logan's recognized gain is $23,160
Explanation:
a. If the worth of the land for Jonathan is $183,350, then the gain recognized by Logan would be;
the lower of the realized gain between the amount realized of $231,600 - adjusted basis of $193,000 = $38,600
or the fair market worth of the received boot i.e $48,250.
Therefore, Logan's recognized gain is $38,600
b. Suppose Jonathan's land is worth, $208,440, then we can calculate Logan's recognized gain to be ;
the lower of the realized gain I.e amount realized of $231,600 - adjusted basis $193,00 = $38,600
or the fair market value of the received boot I.e $23,160 .
Therefore, Logan's recognized gain is $23,160
Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased and used 86,000 gallons Total quantity of DM budgeted to be used in May production 81,400 gallons Actual cost of DM purchased and used in May $230,200 Unfavorable DM quantity variance $12,880 What is the DM price variance in May
Answer:
Direct material price variance = $ 10,600 favourable
Explanation:
The Direct material quantity variance($) = Direct material qty variance × standard price
Standard price = Direct material quantity variance ($)/Direct material quantity variance in units
Direct material quantity variance in units= 86,000 - 81,400 = 4,600
Standard price = $12,880/4,600 units = $2.8
Direct material price variance occurs when the actual quantity of materials are purchased at an actual price per unit higher or lower than the standard price.
Direct material price variance $
86,000 gallons should have cost (86,000× $2.8) = 240,800
But did cost 230,200
Direct material price variance 10,600 favourable
Direct material price variance = $ 10,600 favourable
A "flat tax" on personal income, in which the same tax rate is applied to every dollar of income earned by each taxpayer, is an example of
Answer:
proportional tax
Explanation:
The description stated in the question is an example of a proportional tax. Like mentioned, this is a type of income tax system that enforces the same percentage tax rate to every single individual regardless of their overall income. This applies to low, middle, and high-income taxpayers. Therefore, if a low-income tax individual is charged 10% then the middle and high-income taxpayers will also be charged 10%.
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 6,900 copies. The cost of one copy of the book is $13. The holding cost is based on an 15% annual rate, and production setup costs are $155 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the production lot size model to compute the following values:
a. Minimum cost production lot size
b. Number of production runs per year
c. Cycle time
d. Length of a production run
e. Maximum inventory
f. Total annual cost
g. Reorder point
Answer:
(a) 863.07 copies
(b) 7.99 runs per year
(c) 31.27 days
(d) 10.04 days
(e) 586.08 copies
(f) $1,810.61
(g) 414 copies
Explanation:
Given that ;
Annual demand (D) = 6,900 copies
Cost of the book (C) = $13
Holding cost (H) = 15% of cost of book
= 15% × $13
= $1.95
Set up cost (S) = $155
Annual production volume= 21,500 copies
Number of working days = 250
Lead time(L)= 15
Daily demand (d) = Annual demand ÷ Number of working days
= 6,900 ÷ 250
= 27.6 copies
Daily production (P) = Annual production ÷ Number of working days
= 21,500 ÷ 250
= 86 copies
(a) Minimum cost of production lot size
Q = √ 2×D×S/H × (1-d/p)
Q = √2×6,900×155/1.95 × (1-27.6/86)
Q = 863.07 copies
(b) Number of production runs
= Annual demand (D) ÷ Production quantity (Q)
= 6,900 ÷ 863.07
= 7.99 runs per year
(c) Cycle time = Production quantity (Q) ÷ Daily demand (D)
= 863.07 ÷ 27.6
= 31.27 days
(d) Length of a production run = Production quantity (Q) ÷ Daily production (P)
= 863.07 ÷ 86
= 10.04 days
(e) Maximum inventory (IMAX)
= Q × (1-d÷p)
= 863.07 × (1-27.6÷86)
= 586.08 copies.
(f) Total annual cost
= Annual holding cost + Annual set up cost
= [(Q÷2) × H × (1-d÷p)] + [(D÷Q) × S]
= [(863.07÷2)×1.95×(1-27.6÷86)] + [(6,900÷863.07)×155]
= 571.43 + 1,239.18
= $1,810.61
(g) Reorder point
= Daily demand × lead time
= 27.6 × 15
= 414 copies
If a check correctly written and paid by the bank for $936 is incorrectly recorded in the company's books for $963, how should this error be treated on the bank reconciliation
Answer:
The difference of $27 will be added in the bank reconciliation statement.
Explanation:
With regards to the above information,
Since bank paid $936 but was recorded as $963 in the company's books.
The difference would therefore be ;
= $963 - $936
= $27.
This means that in the company's books, the balance is shown less than the actual balance by $27
Therefore, $27 will be added to the balance in the bank with regards to the books while preparing the bank reconciliation statement.
Hence, $27 which is $963 - $936 will be added in the bank reconciliation statement.
3. Explain how perception errors such as the Primacy effect has negative impact on job performance of an individual
Explanation:
The primacy effect entails an individual's perceived memory priority, and so may negatively impact an individual's job performance as he may bigin to recall details of only earlier job task over later ones, or may recall earlier company policies on a list over those mentioned last.
This tendency if found in an individual may reduce his job performance as most employers require their employees to pay close attention to details.
In March, Kelly Company had the following unit production costs: materials $11 and conversion costs $8. On March 1, it had no work in process. During March, Kelly transferred out 22,000 units. As of March 31, 4,100 units that were 45% complete as to conversion costs and 100% complete as to materials were in ending work in process.
Required:
a. Compute the total units to be accounted for.
b. Compute the equivalent units of production.
c. Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process.
Answer:
a. 26,100 units
b. Materials = 26,100 units Conversion Costs = 23,845 units
c.
cost reconciliation schedule
Inputs
Beginning Work In Process $0
Started $477,500
Totals = $477,500
Outputs
Completed and Transferred Out : (22,000 × $19) = $418,000
Ending Work In Process : = $59,500
Materials (4,100 × $11)
Conversion Costs (1,845 × $8)
Totals = $477,500
Explanation:
a.Total units to be accounted for
Units Completed and Transferred Out 22,000
Units in Ending Work In Process 4,100
Total units to be accounted for 26,100
b. Compute the equivalent units of production.
Materials
Units Completed and Transferred Out (22,000 × 100%) = 22,000
Units in Ending Work In Process (4,100 × 100%) = 4,100
Total units to be accounted for = 26,100
Conversion Costs
Units Completed and Transferred Out (22,000 × 100%) = 22,000
Units in Ending Work In Process (4,100 × 45%) = 1,845
Total units to be accounted for = 23,845
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.
Current Year Prior Year
Balance Sheet
Assets
Cash $ 78,900 $ 99,300
Accounts Receivable 108,000 94,500
Merchandise Inventory 81,000 87,750
Property and Equipment 152,000 81,000
Less:
Accumulated Depreciation (43,280) (22,000)
Total Assets $ 376,620 $ 340,550
Liabilities:
Accounts Payable $ 13,500 $ 16,200
Salaries and Wages Payable 2,700 1,350
Notes Payable, Long-Term 67,500 81,000
Stockholders’ Equity:
Common Stock 128,000 108,000
Retained Earnings 164,920 134,000
Total Liabilities and Stockholders’ Equity $ 376,620 $ 340,550
Current Year
Income Statement
Sales $ 340,000
Cost of Goods Sold 180,000
Depreciation Expense 21,280
Other Expenses 85,000
Net income $ 53,720
Other information from the company’s records includes the following:
1. Bought equipment for cash, $71,000.
2. Paid $13,500 on long-term note payable.
3. Issued new shares of common stock for $20,000 cash.
4. Cash dividends of $22,800 were declared and paid to stockholders.
5. Accounts Payable arose from inventory purchases on credit.
6. Income Tax Expense ($4,000) and Interest Expense ($3,000) were paid in full at the end of both years and are included in Other Expenses.
Required:
Prepare a schedule summarizing operating, investing, and financing cash flows using the T-account approach.
Answer:
A Schedule Summarizing Operating, Investing, and Financing Cash Flows, using the T-account approach:
Operating Investing Financing
Debit Credit Debit Credit Debit Credit
1. Equipment $71,000
2. Note Payable $13,500
3. Common Stock $20,000
4. Cash Dividends $22,800
5. Accounts Payable $2,700
6. Income Tax Expense $4,000
7. Interest Expense $3,000
8. Net Income $53,720
9. Depreciation $21,280
10. Tax & Interest $7,000
11. Accts receivable $13,500
12. Inventory $6,750
13. Salaries Payable $1,350
Total inflows/
outflows $83,350 ($26,950) ($71,000) $20,000 ($39,300)
Net cash from $56,400 ($71,000) ($19,300)
Operating activities $56,400
Investment activities ($71,000)
Financing activities ($19,300)
Net cash flows ($33,900)
Explanation:
a) Data and Calculations:
1. Current Year Prior Year
Balance Sheet
Assets
Cash $ 78,900 $ 99,300
Accounts Receivable 108,000 94,500
Merchandise Inventory 81,000 87,750
Property and Equipment 152,000 81,000
Less:
Accumulated Depreciation (43,280) (22,000)
Total Assets $ 376,620 $ 340,550
Liabilities:
Accounts Payable $ 13,500 $ 16,200
Salaries and Wages Payable 2,700 1,350
Notes Payable, Long-Term 67,500 81,000
Stockholders’ Equity:
Common Stock 128,000 108,000
Retained Earnings 164,920 134,000
Total Liabilities &
Stockholders’ Equity $ 376,620 $ 340,550
2. Current Year Income Statement
:
Sales $ 340,000
Cost of Goods Sold 180,000
Depreciation Expense 21,280
Other Expenses 85,000
Net income $ 53,720
3. The Wickersham Brothers Inc.'s Statement of Cash Flows is one of the three main financial statements that the management of Wickersham Brothers Inc. must prepare and present to the stockholders of the company and the general public. It details the Wickersham's cash flows under the operating activities, investing activities, and financing activities sections.
However, the debt issues also raises the probability of bankruptcy. You company has a 30% chance of going bankrupt after 3 years. If it does go bankrupt, it will incur bankrupt costs of $200,000. Again, the discount rate is 10%. What is the expected cost of bankruptcy at the end of the third year? And what is the present value of this cost as of today? (Hint: if there is a 30%t chance of costing shareholders $200,000, what is the expected cost? And, it could only happen at the end of the third year.)
Answer:
Expected Cost = $60,000
Present Value of Expected Cost = $45,079
Explanation:
The chance that the bankruptcy will happen is 30% and the cost it will incur if it happens is $200,000. The expected cost is the probability of the event happening multiplied by the cost of the event happening.
Expected Cost = 200,000 * 0.3
= $60,000
The present value of this cost assuming a discount rate of 10% is;
= [tex]\frac{60,000}{(1 + 0.10)^{3} }[/tex]
= $45,078.89
= $45,079
"All vice-presidents in the company drive a Mercedes. Since Eric is a vice-president, he must also drive a Mercedes." This argument is best considered
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Inductive
b) Deductive
And the correct answer is the option B: Deductive.
Explanation:
To begin with, the term of "Deductive Reasoning", in the logic field, refers to the process that involves the reasoning from one or more statements (that are called premises) with the main purpose of reaching to a conclusion that is drawn from those premises in first place. So therefore that the arguement is best considered to be a deductive one due to the fact that the conclusion of Eric driving a Mercedes because is a vice-president and all the other vice-presidents do it is logically deducted from those facts (premises).
Smith & Smith has a bond rating of B and an Altman s Z-score of 1.0. This suggests that:
Answer:
"The firm has high credit risk" is the correct answer.
Explanation:
A Z-Score exceeding 2.99 indicates an organization becomes focused mostly on the economic projections throughout the safe space. Throughout the Grey Zone, a Z-Score among 1.8 as well as 2.99 means that there is indeed a reasonable possibility that the business will go bankrupt throughout the next 2 years. In the meantime, mostly in Distress Zone, just one Z-Score under 1.80 suggests a high likelihood of discomfort during this timeframe.Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent.
Year
0 1 2 3 4 5
Glass Flows $51100 $13150 $16050 $23900 $12400 $3050
The discounted payback period is:________.
a. 0.39 year longer than the payback period.
b. 0.64 year longer than the payback period.
c. 0.76 years longer than the payback period.
d. 0.25 years longer than the payback period.
Answer:
c. 0.76 years longer than the payback period.
Explanation:
Payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.
the amounted invested in the project = $-51100
In year 1, the amount recovered = $-51,100 + $13150 = $-37,950
In year 2, the amount recovered = $-37,950 + $16050 = $-21,900
In year 3, the amount recovered = $-21,900 + $23900 = $2000
the amount invested is recovered in 2 + 21,900 / 23900 = 2.92 years
Discounted payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.
discounted cash flows
$13150 / 1.08 = $12,175.93
$16050 / 1.08^2 = $13,760.29
$23900 / 1.08^3 = $18972.59
$12400 / 1.08^4 = $9114.37
the amount is recovered in 3 + 6191.19 / 9114.37 = 3.68 years
the discounted payback is longer than the payback period by 3.68 years - 2.92 years = 0.76 years