Answer:
Is the $4,000 savings per year sufficient to cover the anticipated college expenses?
No, since the maximum withdrawal per year (for 4 years) earning an 8% interest rate is $12,846.23. Her parents will be $7,153.77 short every year.Is Linda's 529 account underfunded?
Yes, her account will have $42,548 when she turns 18 and that isn't enough to cover her college expenses.What should be the annual deposit in Lynda's 529 account to cover entirely her tuition and fees?
$6,227.51What will be the PV of Lynda's college tuition on her 18th birthday?
If Lynda's parents want to cover her college expenses, they need to have $66,242 on her 529 account.Explanation:
Lynda's 529 account will have the following balance when she is 18:
future value = annual payment x annuity factor (FV annuity factor, 8%, 8 periods) = $4,000 x 10.637 = $42,548
her parents will make 4 withdrawals:
present value = annual withdrawal x annuity factor (PV annuity factor, 8%, 4 periods)
maximum annual withdrawal = $42,548 / 3.3121 = $12,846.23
required balance = $20,000 x 3.3121 = $66,242
annual payment = $66,242 / 10.637 = $6,227.51
School Days Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units which are sold to public school systems throughout the midwest. The controller of the company's Desk Division is currently preparing a budget for the third quarter of the year.
The following sales forecast has been made by the division's sales manager.
July 5,000 desk-and-chair sets
August 6,000 desk-and-chair sets
September 7,500 desk-and-chair sets
Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $60. Pine planks cost $0.60 per board foot, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements.
The division incurs a cost of $21.00 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next month's sales.
Required:
Complete the following budget schedules.
1. Sales budget:
2. Production budget (in sets):
3. Raw material purchases:
4. Direct-labor budget:
Answer:
Production Budget ( July August September) 5200, 6300, 9000
Sales Budget ( July August September) $ 300,000 $ 360,000 $ 450,000
Direct Materials Budget ( July August September) $ 31860 $ 39,420 $ 48,600
Direct Materials Units Budget ( July August September) 53,100 65,700 81,000
Direct Labor Budget ( July August September) $ 163,800 $ 198450 $ 283,500
Direct Labor Hours Budget ( July August September)7800 9450 13500
Explanation:
The formula used are
1) Production Budget = Sales + Desired Ending Inventory Less Opening Inventory
2) Sales Budget= Sales * Price Per unit
3) Raw Materials Budget = Production + Desired Ending Inventory Less Opening Inventory
Raw Materials Costs= Raw Materials Budget * Costs
4) Direct Labor Hours Budget = Production * Direct Labor Hours
Direct Labor Budget = Direct Labor Hours Budget* Wages Per Hour
School Days Furniture, Inc.
Production Budget
July August September
Sales 5000 6000 7500
+ Desired
Ending Inventory 1200 1500 ------(assuming zero inv)
Less Opening
Inventory 1000 1200 1500
Production Budget 5200 6300 9000
Production Budget = Sales + Desired Ending Inventory Less Opening Inventory
School Days Furniture, Inc.
Sales Budget
July August September
Sales 5000 6000 7500
Price Per unit $ 60 $60 $ 60
Sales Budget $ 300,000 $ 360,000 $ 450,000
Sales Budget= Sales * Price Per unit
School Days Furniture, Inc.
Raw Materials Budget
July August September
Production Budget 5200 6300 9000
+ Desired
Ending Inventory 630 900 ------(assuming zero inv)
Less Opening
Inventory 520 630 900
Materials Requiremnt 5310 6570 8100
Board (feet) 10 10 10
Direct Materials 53,100 65,700 81,000
Plank Costs 0.60 0.60 0.60
Direct Materials $ 31860 $ 39,420 $ 48,600
Raw Materials Budget = Production + Desired Ending Inventory Less Opening Inventory
Raw Materials Costs= Raw Materials Budget * Costs
School Days Furniture, Inc.
Direct Labor Budget
July August September
Production Budget 5200 6300 9000
Direct Labor hours 1.5 1.5 1.5
Direct Labor Hours 7800 9450 13500
Wages Per hour $ 21 $ 21 $21
Direct Labor Budget $ 163,800 $ 198450 $ 283,500
Direct Labor Hours Budget = Production * Direct Labor Hours
Direct Labor Budget = Direct Labor Hours Budget* Wages Per Hour
The following formulas should be used:
1) Production Budget = Sales + Desired Ending Inventory - Opening Inventory
2) Sales Budget= Sales × Price Per unit
3) Raw Materials Budget = Production + Desired Ending Inventory -Opening Inventory
Raw Materials Costs= Raw Materials Budget × Costs
4) Direct Labor Hours Budget = Production × Direct Labor Hours
Direct Labor Budget = Direct Labor Hours Budget × Wages Per Hour
School Days Furniture, Inc.
Production Budget
July August September
Sales 5000 6000 7500
+ Desired
Ending Inventory 1200 1500
Less Opening
Inventory 1000 1200 1500
Production Budget 5200 6300 9000
School Days Furniture, Inc.
Sales Budget
July August September
Sales 5000 6000 7500
Price Per unit $ 60 $60 $ 60
Sales Budget $ 300,000 $ 360,000 $ 450,000
School Days Furniture, Inc.
Raw Materials Budget
July August September
Production Budget 5200 6300 9000
+ Desired
Ending Inventory 630 900
Less Opening
Inventory 520 630 900
Materials Requirement 5310 6570 8100
Board (feet) 10 10 10
Direct Materials 53,100 65,700 81,000
Plank Costs 0.60 0.60 0.60
Direct Materials $ 31860 $ 39,420 $ 48,600
School Days Furniture, Inc.
Direct Labor Budget
July August September
Production Budget 5200 6300 9000
Direct Labor hours 1.5 1.5 1.5
Direct Labor Hours 7800 9450 13500
Wages Per hour $ 21 $ 21 $21
Direct Labor Budget $ 163,800 $ 198450 $ 283,500
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James is an agreeable and emotionally stable person. A _______ , he inspires his employees to believe in the changes he wants to make to the organization.
a) transformational leader
b) transactional leader
Answer:
transformational leader
Katie Simpson: Do you have time to meet this afternoon? Carl Mendoza: Sure. What’s up? Katie Simpson: We need to finalize the Bakersfield offer. 2:00? Carl Mendoza: 2:00 is perfect. I’ll come by your office then. Katie Simpson: Great. Thanks! Does the preceding IM transcript apply professional best practices? Yes No
Answer:
Yes
Explanation:
Based on the given details of the conversation that transpired between Katie Simpson and Carl Mendoza we can vividly say that the preceding IM transcript apply professional best practices reason been that Katie Simpson who is the caller went straight to point to the main reason why she called the receiver which is Carl Mendoza, And during the course of the preceding TRANSCRIPT the proper use of grammers and words , spelling, full stop, exclamation mark and question mark were on point and accurate.
Suppose the real rate is 2.1 percent and the inflation rate is 3.4 percent. What rate would you expect to see on a Treasury bill? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
5.57%
Explanation:
The real rate is 2.1 percent
The inflation rate is 3.4 percent
To find the rate which is to be expected on a treasury bill we have to apply the fishers equation
1+R= (1+r)(1+h)
Therefore, the rate on the treasury bill can be calculated as follows
1+R= (1+r)(1+h)
r= 2.1%
= 2.1/100
= 0.021
h= 3.4%
= 3.4/100
= 0.034
R= (1+r)(1+h)-1
= (1+0.021)(1+0.034)-1
= (1.021×1.034)-1
= 1.0557-1
= 0.0557×100
= 5.57%
Hence the rate expected on the treasury bill is 5.57%
The valuation of marketable securities on the balance sheet requires the securities on the balance sheet requires the separation of investment securities into three categories: held to maturity: trading securities and securities available for sale trading and securities available for sale.
a. True
b. False
Answer: True
Explanation:
The valuation of marketable securities on the balance sheet requires the securities on the balance sheet requires the separation of investment securities into three categories.
The categories are held to maturity which are the securities that are bought and then kept until they mature; the trading securities and then the securities that are available for sale.
The Allowance for Doubtful Accounts: Multiple Choice Is credited when bad debts expense is estimated and recorded. All of the options are correct. Is a contra asset account. Is used instead of reducing accounts receivable directly.
Answer: All of the options are correct.
Explanation:
The Allowance for Doubtful Account is a contra account because it reduces the value of the Accounts Receivable Account and does so in order to account for the possibility that some customers will not pay the amounts they owe.
It is credited when Bad debts are estimated and recorded; that way this reduction in Accounts receivable does not have to go out of the Accounts Receivable account directly.This will ensure that the Accounts Receivable Account is not volatile as it attempts to keep up with all the bad debts incurred.
Division A reported income from operations of $975,000 and total service department charges of $675,000. As a result, a.consolidated net income was $300,000 b.the gross profit margin was $300,000 c.income from operations before service department charges was $1,650,000 d.net income was $300,000
Answer:
c.income from operations before service department charges was $1,650,000
Explanation:
We can see from the information in the question, that income from operations and service department charges sum a total of $1,650,000
Gross income before service department charges = $975,000 + $675,000
= $1,650,000
The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuation in economic activity around its long-run trend.
a) The vertical axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following?
A. An economy's price level.
B. The amount of a particular representative good produced in the economy.
C. The price of a particular representative good produced in the economy.
b) Which of the following are reasons that the short-run aggregate supply curve slopes upward?
A. As the price level rises, firms expand their production because they can sell their output for more money.
B. As the price level rises, firms find it more profitable to hire workers at any given wage.
C. As the price level rises, firms decrease their investment, because it is more expensive to purchase capital.
Answer:
The correct answers are:
a) A. An economy's price level.
b) A. As the price level rises, firms expand their production because they can sell their output for more money.
Explanation:
On the one hand, in this type of economic model, the aggregate supply and demand represent the economy's price and quantity level regarding the output of the country as a whole. Therefore that in the vertical axis of the diagram the curves measures the price level of the economy and in the horizontal axis the curves measure the output that the economy produces at that given price.
On the other hand, the slope of the aggregate supply is upward because of the same reason as it is in the supply curve, because of the law of the supply, that states that there is a direct relationship between the price of the good an its quantity offered. Thefore that when the price level rises the firms will produce more because they can sell their production at a higher price.
calculate the net present value of a business deal that cost $2500 today and will return $1500 at the end of this year. use interest rate of 13%
Answer:
NPV= -$1,172.57
Explanation:
Giving the following information:
Initial investment= $2,500
Cash flow= $1,500
Discount rate= 13%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
NPV= -2,500 + (1,500/1.13)
NPV= -1,172.57
10. You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade occurred on the NYSE. This is an example of:
Answer:
A secondary market transaction
Explanation:
Secondary market transaction: In this transaction, the transaction which is already issued to the public are sold by another investors.
In this type market, the investors buy and sell securities which are theirs . It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.
So in the question, the transfer was made through a broker which implies it deals in the secondary market.
Primary market transaction: In this transaction, the company directly sells the new stocks, bonds, etc to the public for the first time.
Future market transaction: This is the transaction which occurs in the near future to buy some specific quantities at the future price.
Green Moose Industries is a company that produces iBooks, among several other products. Suppose that Green Moose Industries considers replacing its old machine used to make iBooks with a more efficient one, which would cost $1,800 and require $250 annually in operating costs except depreciation. After-tax salvage value of the old machine is $600, while its annual operating costs except depreciation are $1,100. Assume that, regardless of the age of the equipment, Green Moose Industries’s sales revenues are fixed at $3,500 and depreciation on the old machine is $600. Assume also that the tax rate is 40% and the project’s risk-adjusted cost of capital, r, is the same as weighted average cost of capital (WACC) and equals 10%.
Based on the data, net cash flows (NCFs) before replacement are___________ and they are constant over four years.
Answer:
Based on the data, net cash flows (NCFs) before replacement are $1,680 and they are constant over four years.
Explanation:
annual operating costs before replacement = $1,100
sales revenue = $3,500
depreciation of old machine = $600
tax rate = 40%
net cash flow = [(revenues - current cost - depreciation) x (1 - tax rate)] + depreciation = [($3,500 - $1,100 - $600) x (1 - 40%)] + $600 = $1,680 per year
Answer the question on the basis o the amounts of all nonlabor resources are fixed.
No. of workers Units of output
0 0
1 40
2 90
3 126
4 150
5 165
6 180
Assume that Number of Us Out Diminishing marginal returns become evident with the addition of the:________,
A) sixth worker.
B) fourth worker.
C) third worker.
D) second worker
Answer:
B
Explanation:
Dinmishing marginal returns occurs when as more units of labour is added, marginal output declines.
marginal output is change in total output as more units of labour are employed.
Marginal output = total output 2 - total output 1
total output = number of workers x units of output
Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance.
Accounts Payable $34,304
Accounts Receivable 22,016
Accumulated Depreciation's Equipment 87,040
Cash 10,240
Common Stock 44,800
Cost of Goods Sold 786,304
Freight-Out 7,936
Equipment 200,960
Depreciation Expense 17,280
Dividends 15,360
Gain on Disposal of Plant Assets 2,560
Income Tax Expense 12,800
Insurance Expense 11,520
Interest Expense 6,400
Inventoryv 33,536
Notes Payable 55,680
Prepaid Insurance 7,680
Advertising Expense 42,880
Rent Expense 43,520
Retained Earnings 18,176
Salaries and Wages Expense 149,760
Sales Revenue 1,157,120
Salaries and Wages Payable 7,680
Sales Returns and Allowances 25,600
Utilities Expense 13,568
Additional data: Notes payable are due in 2021.
Required:
Prepare a multiple-step income statement. (List other revenues before other expenses.)
Answer:
Wolford Department Store
Income Statement
For the year ended November 30. 2017
Sales Revenue
Total sales $1,157,120
Less Sales return $25,600
Net Sales Revenue $1,131,520
Less : Cost of goods sold $786,304
Gross Profit $345,216
Operating Expenses
Selling Expenses
Freight out $7,936
Advertising expenses $42,880
Administrative expenses
Depreciation Expenses $17,280
Salaries and wages Expenses $149,760
Rent Expenses $43,520
Utilities Expenses $13,568
Insurance Expenses $11,520
Total Operating Expenses $286,464
$58,752
Other Income and Expenses
Gain on disposal of equipment $2,560
Less: Interest Expenses $11,520
Net Other Income and Expenses -$8,960
Less: Income Tax Expenses $12,800
Net Income $36,992
Twelve months ago, you purchased 10-year Treasury notes with a face value of $1,000. The interest rate is 2.45 percent. What is the dollar amount of interest you will receive each year for each note? (Round your answer to 2 decimal places.)
Answer:
$24.50
Explanation:
Relevant data provided
Face value = $1,000
Interest rate = 3.45%
Based on the above information
The computation of the dollar amount of interest is shown below:-
Interest per year = Face value × Interest rate
= $1,000 × 2.45%
= $24.50
Therefore for computing the interest per year we simply applied the above formula.
IMC is the process of coordinating all activities performed by entities of the distribution channel to make sure that the right product is in the right place and at the right time for consumers. a.True b. False
Answer:
IMC
a.True
Explanation:
The coordination of all distributive activities is a just part of the integrated marketing communication that is IMC, as it tries to offer seamless consumer experience. For instance, if Company XYZ fails to provide the right product in the right place and at the right time for consumers, then the essence of its IMC is lost.
IMC means Integrated Marketing Communication. It is a marketing communication approach that integrates many components for marketing communication effectiveness. The foundation component ensures that IMC approach provides the right products in the right place and at the right time for consumers. IMC also integrates the corporate culture, with a focus on branding and customer satisfaction.
Since IMC aims to increase sales and profits, sharpen the brand's competitive advantage, and achieve brand loyalty, it means that the goals cannot be achieved when Company XYZ's distribution channel offers empty promises by not putting the right XYZ product in the right place and at the right time for consumers.
Romano’s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:
Units
12" Pizza 16" Pizza
Budgeted production volume 15,200 26,900
There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:
12" Pizza 16" Pizza
Direct materials:
Dough 0.90 lb. per unit 1.50 lbs. per unit
Tomato 0.60 1.00
Cheese 0.80 1.30
In addition, Lorenzo’s has determined the following information about each material:
Dough Tomato Cheese
Estimated inventory, September 1 490 lbs. 230 lbs. 275 lbs.
Desired inventory, September 30 580 lbs. 185 lbs. 340 lbs.
Price per pound $0.50 $2.20 $2.60
Required:
Prepare September’s direct materials purchases budget for Lorenzo’s Frozen Pizza Inc.
Answer:
Due to lack of space I prepared an excel spreadsheet:
Len contracts to work for Media Corporation during May for $4,500. On April 30, Media cancels the contract. Len declines a similar job with New Ads Inc., which would have paid $3,500. Len files a suit against Media. As compensatory damages, Len can recover:________.
a. $4,500.
b. $3,500.
c. $1,000.
d. $0.
Answer:
The correct answer is:
$3,500 (b.)
Explanation:
Compensatory damages are money paid to the plaintiff, to pay for losses incurred, injury or damages by negligence or unlawful conduct of the defendant in a civil court case. Before these compensations can be paid, the plaintiff has to prove in amount, the losses incurred and that these losses are directly related to the activity of the other party. Since the amount lost due to the choosing of the failed contract is $3,500, the plaintiff can file a suit for the compensation of the same amount.
On another hand, punitive damage may be compensation that is over and above the losses incurred by the plaintiff, and this is aimed mainly to provide an incentive against the repetition of such acts that caused the plaintiff such losses.
Chinawa, a major processor of cheese sold throughout the United States, employs one hundred workers at its principal processing plant. The plant is located in Heartland Corners, which has a population that is 50 percent white and 25 percent African American, with the balance Hispanic American, Asian American, and others. Chinawa requires a high school diploma as a condition of employment for its cleaning crew. Three-fourths of the white population complete high school, compared with only one-fourth of those in the minority groups. Chinawa has an all-white cleaning crew. Has Chinawa violated Title VII of the Civil Rights Act of 1964?
Answer:
Chinawa has violated Title VII of the Civil Rights Act of 1964
Explanation:
Title VII of the Civil Rights Act of 1964 states that:
It will be unlawful employment practice for an employer -
(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or
(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.
Since one-fourth of those in minority group complete high school, it is expected of him to hire from those group in-order to balance his cleaning crew.
At the beginning of the current fiscal year, the balance sheet of Hughey Inc. showed stockholders' equity of $523,000. During the year, liabilities increased by $28,000 to $232,000; paid-in capital increased by $37,000 to $174,000; and assets increased by $259,000. Dividends declared and paid during the year were $46,000.
Required:
Calculate net income or loss for the year.
Stockholders’ Equity
Assets = Liabilities + PIC + RE
Beginning = + + $260,000 SE
Changes 130,000 = 11,000 + 20,000 +
Ending = $116,000 + $90,000 +
Answer:
net income = $240,000
Explanation:
beginning stockholders' equity $523,000
beginning liabilities $204,000, ending liabilities $232,000 ($28,000 increase)
beginning paid in capital $137,000, ending $174,000 ($37,000 increase)
assets increased by $259,000
dividends $46,000
assets = liabilities + equity
beginning assets = $204,000 + $523,000 = $727,000
ending assets = $727,000 + $259,000 = $986,000
ending equity = ending assets - ending liabilities = $986,000 - $232,000 = $754,000
beginning equity = beginning paid in capital + retained earnings
beginning retained earnings = $523,000 - $137,000 = $386,000
ending equity = ending paid in capital + retained earnings
ending retained earnings = $754,000 - $174,000 = $580,000
ending retained earnings = beginning retained earnings + net income - dividends
$580,000 = $386,000 + net income - $46,000
net income = $580,000 + $46,000 - $386,000 = $240,000
Variable costs as a percentage of sales for Lemon Inc. are 74%, current sales are $697,000, and fixed costs are $178,000. How much will operating income change if sales increase by $46,300
Answer:
Effect on income= $12,038 increase
Explanation:
Giving the following information:
Variable costs as a percentage of sales for Lemon Inc. are 74%
How much will operating income change if sales increase by $46,300.
To calculate the effect on income, we need to calculate the increase in total contribution margin:
Total contribution margin change= 46,300*(1-0.74)
Total contribution margin change= $12,038 increase
Effect on income= $12,038 increase
Wolverine Company financial statements included the effects of these errors: Reported Net Income for Year 1 was $20,000. Reported Net Income for Year 2 was $18,000. Indicate the error in 12/31/2 Retained Earnings:
Answer:
Net income year 2 = $21,300
Explanation:
I looked for the missing information and found this:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $2,000
2 $4,000 $2,700
If your question doesn't include the same values, just adjust the answer.
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300
After reviewing his budget, Josh realizes he can't spend more than $40 on a pair of new shoes, so he decides to shop only at stores that carry shoes in his price range. What is this an example of? A. A rational choice B. A value-added motivation C. An emotional choice D. An impulsive selection
Answer:
A. A rational choice
Explanation:
I think that this is an example of a rational choice because there is a logical reason that Josh wants to buy shoes that cost less than $40. Value-added wouldn't work, because there is no added value. Emotional choice wouldn't work either because the question does not say that Josh wants a specific type of shoes. Lastly, impulsive selection doesn't fit because the reason Josh doesn't want to spend more than $40 dollars is not random.
Identity which of the following are project resources that can be managed: (choose all that apply)
buildings the company owns
cash from the company
team member skills
problems the team encounters
the finished product
Answer: 1,2,3
Explanation:
According to the project resources that can be managed are buildings the company owns, cash from the company, and team member skills.
Project resources are components required for the proper completion of a project.
They include people, equipment, money, time, and knowledge - in short, whatever you would need from project planning through project delivery.
These are divided into three categories: work, materials, and expenses.
The project manager defines resource needs to determine the resources required to complete the project's task.
Therefore, the correct option is as follows:
Buildings the company ownsCash from the companyTeam member skillsTo know more about the project resources, visit:
https://brainly.com/question/13783563
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A dentist shares an office building with a radio station. The electrical current from the dentist's drill causes static in the radio broadcast, causing the radio station to lose $10,000 in profits. The radio station could put up a shield at a cost of $30,000; the dentist could buy a new drill that causes less interference for $6,000. Either would restore the radio station's lost profits. What is the economically efficient outcome
Answer:
The dentist should get a new drill and it does not matter who pays for the new drill
Explanation:
Based on the information given the economically efficient outcome is that The dentist should get a new drill and it does not matter who pays for the new drill reason been that the building is been share by both the dentist and the radio station in which the electrical current from the dentist's drill was the one who causes static in the radio broadcast making them to lose some amount of money which means the dentist should go ahead and buy a new drill in which it does not matter who pays for the drill because they both shared the building .
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $40,000 at the beginning of the month and $26,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $58,600 and direct labor cost of $33,400. The actual manufacturing overhead cost incurred was $54,800. The manufacturing overhead cost applied to Work in Process was $54,600. The cost of goods manufactured for June was:
Answer:
$160,600
Explanation:
The computation of the cost of goods manufactured is shown below:
= Direct material cost + direct labor cost + manufacturing cost applied + beginning work in process - ending work in process
= $58,600 + $33,400 + $54,600 + $40,000 - $26,000
= $160,600
Hence, the cost of goods manufactured for June is $160,600
Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $195,000 and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed
Answer:
Return on equity (ROE) would have changed by 6.27%.
Explanation:
In accounting ratio, we know that:
Asset Turnover = Sales/Total Assets .............................. (1)
From equation (1), we can solve for Total Assets as follows:
Total Assets = Sales / Asset Turnover ............................ (2)
Substituting the values in the question into equation (2), we have:
Total Assets = $195,000 / 1.33 = $146,616.54
Also, we know that:
Equity Multiplier = Total Assets/Total Equity ......................... (3)
We can solve Total Equity from equation (3) as follows:
Total Equity = Total Assets / Equity Multiplier ..................... (4)
Substituting the relevant values into equation (4), we have:
Total Equity = $146,616.54 / 1.75 = $83,780.88
As a result, we have:
Return on Equity = Net Income/Total Equity = $10,549 / $83,780.88 = 0.1259, or 12.59%
If the company had operated more efficiently, we would have:
New net income = Net income + Amount of increase in net income = $10,549 + $5,250 = $15,799
New return on equity = New net Income / Total Equity = $15,799 / $83,780.88 = 0.1886, or 18.86%
Change in return on equity = New return on equity - Return on Equity = 18.86% - 12.59% = 6.27%
Therefore, return on equity (ROE) would have changed by 6.27%.
Wanda contracted to sell Mike 100 boxes of ball bearings.The contract did not specify a place of delivery.The ball bearings now reside at Wanda's place of business.Wanda refuses to ship the 100 boxes to Mike,and Mike refuses to come to Wanda's place of business to pick them up.Who is right? Why?
Answer:
Wanda is right since the contract did not specify a place of deliveryExplanation:
Wanda is right, since the contract did not specify the place of delivery or whether Wanda is expected to deliver the bearing to Mikes place.
If it is in Wanda terms of business that normally boxes above 100 when purchased, delivery is free and he defaults, then he is wrong, but in this case it was not specified who will bear the cost of shipping, and it is not in Wanda terms of business that delivery is free, so Wanda is right in my own opinion.
Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)
Answer: B) Debit Cash $25,437.50, credit Interest Revenue $437.50; credit Notes Receivable $25,000.
Explanation:
The interest revenue for the period of 90 days will be;
= 25,000 * 7% * [tex]\frac{90}{360}[/tex]
= $437.50
Total to be received
= 25,000 + 437.50
= $25,437.50
The entry to record will therefore be;
DR Cash $25,437.50
CR Interest Revenue $437.50
CR Notes Receivable $25,000
The Apple stock’s price is $112.92 on 8/1/15 and becomes $110.30 on 9/1/15. In August, Apple gives a dividend of $0.52 per share. What is the holding period monthly return for Apple in August?
Answer:
The holding period monthly return for Apple in August is -2.00%.
Explanation:
Holding period return (HPR) refers to total return that is received by an investor when he holds an asset or portfolio of assets over a period of time.
The holding period return is generally expressed as a percentage can be estimated using the following formula:
HPR = [Income + (P1 - Po)] / Po ....................... (1)
Where;
Income = Dividend = $0.52
P1 = End-of-period value = $110.30
Po = Initial value = $112.92
Substituting the values into equation (1), we have:
HPR = [$0.52 + ($110.30 - $112.92)] / $112.92
HPR = [$0.52 - $2.62] / $112.92
HPR = -$2.10 / $112.92
HPR = -0.02, or -2.00%
Therefore, the holding period monthly return for Apple in August is -2.00%.
Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ( in thousands)
Net sales $6,020
Less: Cost of goods sold 4,290
Less: Depreciation 365
Earnings before interest and taxes$1,365
Less: Interest paid 32
Taxable Income $1,333
Less: Taxes 467
Net income $866
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $115 $220 Accounts payable $1,580 $1,560
Accounts rec1,010 850 Long-term debt 820 620
Inventory 1,685 2,070 Common stock $3,260 $3,290
Total $2,810 $3,140 Retained earnings 890 1,140
Net fixed assets 3,740 3,470
Total assets $6,550 $6,610 Total liab. & equity $6,550 $6,610
How many dollars of sales are being generated from every dollar of fixed assets?
a. $0.92
b. $0.91
c. $1.73
d. $1.67
e. $1.61,
Answer: d. $1.67
Explanation:
The amount of sales that a company generates per $1 of fixed assets is known as the Fixed Assets turnover Ratio.
Formula is;
= [tex]\frac{Net Sales}{Average Fixed Assets}[/tex]
Average Fixed Assets = [tex]\frac{Beginning Balance + Ending Balance}{2}[/tex]
= [tex]\frac{3,740 + 3,470}{2}[/tex]
= $3,605
Fixed Asset Turnover Ratio = [tex]\frac{6,020}{3,605}[/tex]
= 1.67