On January 1, you sold short one round lot (that is, 100 shares) of Four Sisters stock at $21 per share. On March 1, a dividend of $2 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. What is the value of your account on April 1?

Answers

Answer 1

Answer:

The value of your account on April 1 is $300

Explanation:

Proceed from short sales

Sales proceed =     $2,100 ($21 * 100 shares)

Less Commission= $50 ($0.50 * 100 shares)

Proceeds =             $2,050

Dividend payment

= 100 shares * $2

=$200

Total Cost of buy back

Buy back= $1,500 ($15 * 100 shares)

Add commission= $50 ($0.50 * 100 shares)

Total cost =           $1,550

Value of Account on April 1

Proceed =                               $2,050

Less Dividend payment =      $200

Less Total cost of buy back= $1,550

Value of Account =                  $300

Therefore, the value of your account on April 1 is $300


Related Questions

The difference between Karson's behavior at the end of the 12 weeks versus the promise to cure Karson of ADHD can be described as the measure of the:________.
A. expectation interest.
B. reliance interest.
C. restitution interest.
D. All of these are correct.

Answers

Answer:

A. Expectation interest.

Explanation:

Expectation interest is explained as the party of interest being in a good position in the point or financial angles during a business dealing. Here he/she is said to have a good stance of a deal or a contract been contacted for. Sometimes, it is seen to be triggered by net profits and losses less any costs or losses, which are sometimes tool in weighing the reasonable measure of damages. Therefore, when no contracts are be agreed on, determination must be made as to whether or not one party benefited from contact with the other party.

Wren Pork Company uses the relative market value method/Value basis method of allocating joint costs in its production of pork products. Relevant information for the current period follows:
Product Pounds Price/lb.
Loin chops 3,080 $5.40
Ground 10,200 2.20
Ribs 4,120 5.05
Bacon 6,160 3.70
The total joint cost for the current period was $45,400. How much of this cost should Wren Pork allocate to Loin chops?
A. $0.
B. $6,443.
C. $9,134.
D. $11,350.
E. $45,400.

Answers

Answer:

C. $9,134

Explanation:

Product              Pounds     Price/Ib      Total Value

Loin chops          3,080        $5.40           $16,632

Ground                10,200       $2.20           $22,440

Ribs                      4,120         $5.05           $20,806

Bacon                   6,160         $3.70           $22,792

                                                                    $82,670  

The Total Joint cost = $45,400

Hence Joint cost to Lopin chops = $45,400 * $16,632 / $82,670

Joint cost to Lopin chops = $9,134

On September 3, 20X8, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The transaction is denominated in Swiss francs (SFr). The payment is made on October 10. The exchange rates were

Answers

Answer:

A.

DR Foreign Currency Transaction loss 1,000

CR Accounts Payable (SFr) $1,000

Explanation:

When the transaction was agreed on September 3, 20X8, the exchange rate was;

$0.85  : 1 franc

Therefore the $17,000 was valued at;

= 17,000/0.85

= 20,000 francs

When the transaction was paid for however, on October 10, the Franc had gained on the dollar by;

= 0.9 - 0.85

= $0.05

This means that the dollar got weaker by $0.05 so the company made a loss of

= 20,000 francs * 0.05

= 1,000 francs

This will be recorded as;

DR Foreign Currency Transaction loss 1,000

CR Accounts Payable (SFr) $1,000

Vibrant Company had $970,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $535,000 in each of those years. It also maintained a $270,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $250,000 rather than the correct $270,000.
1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.

Answers

Answer:

Explanation:

From the give information; we are to:

1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.

The correct amount of the company's gross profit in each of the years 2016 - 2018 can be seen as computed in the table below.

                     VIbrant Company Income statement

                             2016                      2017                    2018

Sales                   970,000                970,000              970,000

-

Cost of good  

sold:                  

Beginning           270,000                270,000               270,000        

Inventory

+

Purchase             535,000               535,000               535,000      

The cost of good

available for sale   805000                 805000                 805000  

is:                      

-

Ending Inventory    270,000                270,000               270,000      

Cost of good sold   535,000               535,000               535,000

Gross Profit              435 000               435000                435000      

N:B ;

Gross Profit = Sales - Cost of good sold

Gross Profit = 970000- 535000

Gross Profit = 435000

2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.

For 2016; the comparative income statement is computed as follows:

                                        Debit           Credit

Sales                                                   970000

Less:(-)

Cost of good sold

Beginning Inventory       270000

Add Purchase                 535000

Cost of goods available  805000

for sale

Less (-)

Ending Inventory              250000

Cost of good sold                               555000

Gross profit                                          415000

For 2017; the comparative income statement is computed as follows:

                                        Debit           Credit

Sales                                                   970000

Less:(-)

Cost of good sold

Beginning Inventory       250000

Add Purchase                 535000

Cost of goods available  785000

for sale

Less (-)

Ending Inventory              270000

Cost of good sold                               515000

Gross profit                                          455000

For 2018; the comparative income statement is computed as follows:

                                        Debit           Credit

Sales                                                   970000

Less:(-)

Cost of good sold

Beginning Inventory       270000

Add Purchase                 535000

Cost of goods available  805000

for sale

Less (-)

Ending Inventory              270000

Cost of good sold                               535000

Gross profit                                          435000

T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2.00 each. At this level of output, the average total cost is 2.50 and the average variable cost is $2.20. Based on these data, the firm should

Answers

Answer:

shutdown in the short run

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A firm should shut down in the short run if price is less than average variable cost.

for T-Shirt Enterprises, price is $2 which is less than average variable cost

Assume Strands, a local hair salon, provides cuts, perms, and hairstyling services. Annual fixed costs are $150,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $300,000.
(a) Determine its break-even point in sales dollar
(b) Determine last year's margin of safety in sales dollars.
(c) Determine the sales volume required for an annual profit of $80,000.
Round your answer to the nearest dollar.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Annual fixed costs are $150,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $300,000.

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 150,000 / [(300,000*0.6)/300,000]

Break-even point (dollars)= $250,000

Now, we can determine the margin of safety:

Margin of safety= (current sales level - break-even point)

Margin of safety= 300,000 - 250,000= $50,000

Finally, the sales dollar required to reach $80,000 profit:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (150,000 + 80,000) / 0.6

Break-even point (dollars)= $383,333.33

Which of the following are functions of the Federal Reserve? Check all that apply. Maintaining federal government checking accounts and gold Maintaining and circulating currency Ensuring all banks make a profit Making a profit for the federal government Being the lender of last resort for banks

Answers

Answer:

1. Maintaining federal government checking accounts and gold.

2. Maintaining and circulating currency.

3. Being the lender of last resort for banks

Explanation:

The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. The Fed began operations in 1914. It was founded by President Woodrow Wilson under the Federal Reserve Act, which was aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.

The following are functions of the Federal Reserve;

1. Maintaining federal government checking accounts and gold.

2. Maintaining and circulating currency.

3. Being the lender of last resort for banks.

Additionally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America and seven (7) board of governors.

Nicolas Enterprises sells a product for $67 per unit. The variable cost is $33 per unit, while fixed costs are $231,200. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $73 per unit.

Answers

Answer:

a)Break-even point = 6,800  units

b) Break-even point =5780  units

Explanation:

Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.

The break-even point is calculated as  

Units to achieve target profit = (Total general fixed cost for the period)/ contribution per unit

Contribution per unit = Selling Price - Variable cost

Contribution per unit = 67 - 33 = 34

Fixed cost =231,200

So the units requited to achieve break-even point:

Break-even point = 231,200/34  = 6,800  units

Break-even point = 6,800  units

b) If the selling price wete increased to 73

The break-even point = 231,200/ (73- 33) = 5,780  units

Break-even point =5780  units

The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market

Answers

Answer:

Demographic

Explanation:

A market is segmented so as to narrow down a large market into a narrow base, or a target market. This helps the organization to be better focused on providing its services to these target groups of people. A market can be segmented on the basis of demography, psychography, behavior, and geography. Demography deals more with statistical data of the population being studied and would typically include; age, gender, race, income levels, etc.

So, when the manufacturer Mike and Ike changes its packaging and developed contests all geared to 12-17-years-old, he has segmented the market according to demography and age.

Answer:

im sorry

Explanation:

Smathers Corp. stock has a beta of .89. The market risk premium is 7.20 percent and the risk-free rate is 2.93 percent annually. What is the company's cost of equity

Answers

Answer: 9.31%

Explanation:

Given: Smathers Corp. stock has a beta of 0.89.

⇒ Beta = 0.89

Risk-free rate = 2.93 percent

Market risk premium = 7.20 percent

Formula: Cost of Equity = [ Risk free rate + (Beta) × ( Market risk premium) ]

Substitute all values, we get

Cost of Equity =  [ 2.9 + (0.89) × ( 7.20) ]%

= [2.9+6.41]%

= 9.31%

Hence, the company's cost of equity is 9.31%.

A 30 year $1,000 par 4 3/4% Treasury Bond is quoted at 95-11 - 95-15. The note pays interest on Jan 1st and Jul 1st. A customer buys 1 bond at the ask price. What is the current yield, disregarding commissions

Answers

Answer:

4.98%

Explanation:

Calculation for the current yield

First step

Since the the bond was purchased at 95 +15/32nds this means that we have to find the bond percentage.

Calculated as

Bond Percentage = 95 + 15/32nds

Bond percentage =95.46875%

Second step is to multiply the bond percentage by $1,000

95.46875% *$1,000

= $954.6875

The last step is to find the current yield

Current yield=$47.50 /$954.6875

Current yield = 4.98%

Therefore the current yield will be 4.98%

Proposal preparation is completed by Select one: a. a large team for a simple project. b. a single person when proposing a multimillion-dollar project. c. a proposal manager regardless of the project size. d. one or more people depending upon the requirements of the proposal.

Answers

Answer:

d. one or more people depending upon the requirements of the proposal.

Explanation:

A proposal can be defined as a plan or suggestion which are formally written to present an idea to an individual or organization for consideration.

Proposal preparation is completed by one or more people depending upon the requirements of the proposal.

In order to prepare a good proposal, it is very important to make it as formal as possible. The content of the proposal is strictly based on what the initiators wants to do or achieve, as well as how they wish to achieve.

Hence, a proposal is only prepared with regard to the requirements of the proposal and the number of people involved. Proposals are usually used by project managers or contractors seeking for a contract.

Dalrymple Bay Coal Terminal, a coal-handling facility and export terminal in Queensland, Australia, has issued triple-A rated bonds for $680 million in Australian dollars. The bonds will be used to refinance existing bank debt caused by the acquisition of eases from the Queensland government in 2002. The Commonwealth Bank of Australia acted as investment bankers to the transaction. This means the Commonwealth Bank of Australia:

Answers

Answer: B. Bought the bonds from Dalrymple and sold them to the public

Explanation:

Investment Banks help companies issuing new securities in diverse ways to ensure that they raise the capital they are looking for. Some of the ways they help include; underwriting securities and market research. The main way they help companies issuing new securities however, is underwriting.

With Underwriting, the Investment Bank usually buys all the securities on offer from the Issuing company, then sells them at higher price to make a profit. This helps the issuing company because they get to sell all or most of their securities so it reduces uncertainty.

The Commonwealth Bank of Australia therefore bought the bonds from Dalrymple and sold them to the public.

Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1, 20X6, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of the common shares of Sandbox held by the noncontrolling interest was $90,000. Sandbox's balance sheet contained the following balances:

Preferred Stock ($10 par value) $200,000
Common Stock ($5 par value) 150,000
Retained Earnings 210,000
Total Stockholders' Equity $560,000

Required
Give the eliminating entries needed to prepare a consolidated balance sheet immediately after Clayton purchased the Topple shares.

Answers

Answer:

Elimination Journal.

Retained  Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest  $90,000 (credit)

Explanation:

When dealing with consolidation of Financial Statements, the Equity and Retained Earning in the Subsidiary has to be eliminated from the records whilst the Investment in Subsidiary and the Non-Controlling Interest in Subsidiary are recognized.

Elimination of the common items in consolidation is done by the use of Pro-forma Journals.

Goodwill or Gain on Bargain Purchase are also recognized on the date of acquisition of subsidiary.

Goodwill is the excess of Purchase Price and Non-Controlling interest over the Net Assets Acquired.While Gain on Bargain Purchase is the excess of Net Assets Acquired over Purchase Price and Non-Controlling interest.

Elimination Journal.

Retained  Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest  $90,000 (credit)

Land​ Services, Inc. owns 35​% of voting stock of World​ Investments, Inc. During the year​ 2018, World​ Investments, Inc. earned profits of $300,000. Under the equity​ method, which of the following journal entries will Land Services​ record?
A) Long-term Investments—Grey Investments Inc.: 250,000
Cash: 250,000
B) Cash: 75,000
Dividend Revenue: 75,000
C) Cash: 75,000
Long-term Investments—Grey Investments Inc.: 75,000
D) Long-term Investments—Grey Investments Inc.: 75,000
Revenue from Investments: 75,000

Answers

The correct question is:

Glitter Services Inc. owns 30% of voting stock of Grey Investments Inc. During the year 2015, Grey Investments Inc. earned profits of $250,000. Under the equity method, which of the following journal entries will Glitter Services record?

Answer:

D) Debit Long-term Investments—Grey Investments Inc.: 75,000

Credit Revenue from Investments: 75,000

Explanation:

Equity method is used in accounting to treat a companie's investment in associate companies. Usually equity accounting is used when a company owns 20 to 50% of shares in an associate company.

In this case Glitter Services, Inc. owns 30% of voting stock of World​ Investments, Inc.

Grey Investments, Inc. earned profits of $250,000.

So the value of investment is 0.3 * 250,000 = $75,000

So this amount is Debited from Long Term Investment account and credited to Revenue from Investments

Which of the following companies use a mass customization approach? Dell Align Technology Arnold Palmer hospital Frito-Lay Dell and Align Technology

Answers

Answer: Dell and Align technology

Explanation:

Mass customization, is used in marketing and it is a term that describes using computer aided manufacturing systems that are flexible in order make custom output.

Align Technology and Dell uses mass customization method. This brings about efficiency and low cost.

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%. The probability distribution of the risky funds is as follows: Expected Return Standard Deviation Stock fund (S) 20 % 30 % Bond fund (B) 12 15 The correlation between the fund returns is 0.10. a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds. (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) a-2. What is the expected value and standard deviation of the minimum variance portfolio rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

Answers

The expected value and standard deviation of the minimum variance portfolio rate of return are 16.20% and 42.61% respectively.

The same old deviation of a portfolio measures how a good deal of the funding returns deviate from the suggestion of the opportunity distribution of investments. placed certainly, it tells traders how a good deal the investment will deviate from its anticipated return.

The same old deviation of the portfolio is usually the same to the weighted average of the same old deviations of the property in the portfolio. A high fashionable deviation in a portfolio indicates a high hazard as it suggests that the profits are especially volatile and unstable.

calculation:-

Weight of Stock =( (17%-5.6%)*40%^2 - (8%-5.6%)*(46%*40%*0.16))/((17%-5.6%)*40%^2 +  (8%-5.6%)*46%^2 - (17%-5.6%+8%-5.6% )*(46%*40%*0.16))

Weight of Stock = 0.9106

Weight of Bond = 1- 0.9106= 0.0894

Portfolio invested in the stock = 91.06%

Portfolio invested in the bond = 8.94%

The expected return of portfolio = Weight of Stock* E(rs) + Weight of Bond *E(rb)

Expected return of portfolio = 91.06%*17 +8.94%*8

Expected return of portfolio = 16.20%

The standard deviation of Portfolio = (Weight of Stock^2 * SD of Stock^2 + Weight of Bond^2 * SD of Bond^2 + 2* weight of Stock*Weight of Bond* COV(S, B))^(1/2)

Standard deviation of Portfolio = (0.9106^2*46%^2 + 0.0894^2*40%^2 + 2*0.9106*0.0894*(46%*40%*0.16))^(1/2)

Standard deviation of Portfolio = 42.61%

Learn more about the Standard deviation of a Portfolio here:-https://brainly.com/question/17191184

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Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,039,600, divided into four activity pools: fabrication,, $448,000; assembly, $180,000; setup, $222,600; and inspection, $189,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Fabrication Assembly Setup Inspection
Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections
Bass boat 21,000 7,500 370 612
28,000 dlh 30,000 dlh 420 setups 700 inspections
Each product is budgeted for 5,000 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication $ per direct labor hour
Assembly $ per direct labor hour
Setup $ per setup
Inspection $ per inspection
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
Speedboat $ per unit
Bass boat $ per unit

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated factory overhead:

fabrication, $448,000

assembly, $180,000

setup, $222,600

inspection, $189,000

Fabrication Assembly Setup Inspection

Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections

Bass boat 21,000 7,500 370 612

28,000 dlh 30,000 dlh 420 setups 700 inspections

Each product is budgeted for 5,000 units of production for the year.

First, we need to calculate the predetermined overhead rate for each activity using the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

fabrication= 448,000/28,000= $16 per direct labor hour

assembly= 180,000/30,000= $6 per direct labor hour

setup= 222,600/420= $530 per setup

inspection= 189,000/700= $270 per inspection

Now, we can allocate overhead to each product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Speed boat:

Allocated MOH= 7,000*16 + 22,500*6 + 50*530 + 88*270= $297,260

Bass boat:

Allocated MOH= 21,000*16 + 7,500*6 + 370*530 + 612*270= $742,340

Finally, the unitary overhead cost:

Speed boat= 297,260/5,000= $59.45

Bass boat= 742,340/5,000= $148.47

If Treasury bills are currently paying 6.5 percent and the inflation rate is 1.3 percent, what is the approximate and the exact real rate of interest

Answers

Answer:

the approximate real interest rate = nominal rate - inflation rate = 6.5% - 1.3% = 5.2%

the exact real interest rate is calculated using the following formula:

(1 + nominal interest rate) = (1 + real interest rate) (1 + expected rate of inflation)

(1 + 0.065) = (1 + real interest rate) x (1 + 0.013)

1 + real interest rate = (1 + 0.065) / (1 + 0.013) = 1.065 / 1.013 = 1.05133

real interest rate = 1.05133 - 1 = 0.05133 = 5.13%

The following events occur for Morris Engineering during 2018 and 2019, its first two years of operations.
February 2, 2018 Provide services to customers on account for $32,600.
July 23, 2018 Receive $22,500 from customers on account.
December 31, 2018 Estimate that 25% of uncollected accounts will not be received.
April 12, 2019 Provide services to customers on account for $45,600.
June 28, 2019 Receive $6,000 from customers for services provided in 2018.
September 13, 2019 Write off the remaining amounts owed from services provided in 2018.
October 5, 2019 Receive $40,500 from customers for services provided in 2019.
December 31, 2019 Estimate that 25% of uncollected accounts will not be received.
1. Record transactions for each date. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.
3. Calculate the net realizable value of accounts receivable at the end of 2018 and 2019.

Answers

Answer:

1)

February 2, 2018 Provide services to customers on account for $32,600.

Dr Accounts receivable 32,600

    Cr Service revenue 32,600

July 23, 2018 Receive $22,500 from customers on account.

Dr Cash 22,500

    Cr Accounts receivable 22,500

December 31, 2018 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,525

    Cr Allowance for doubtful accounts 2,525

April 12, 2019 Provide services to customers on account for $45,600.

Dr Accounts receivable 45,600

    Cr Service revenue 45,600

June 28, 2019 Receive $6,000 from customers for services provided in 2018.

Dr Cash 6,000

    Cr Accounts receivable 6,000

September 13, 2019 Write off the remaining amounts owed from services provided in 2018.

Dr Allowance for doubtful accounts 4,100

    Cr Accounts receivable 4,100

October 5, 2019 Receive $40,500 from customers for services provided in 2019.

Dr Cash 40,500

    Cr Accounts receivable 40,500

December 31, 2019 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,850

    Cr Allowance for doubtful accounts 2,850

Allowance for doubtful accounts = $1,575 (to cancel debit balance) + [($45,600 - $40,500) x 25%] = $1,575 + $1,275 = $2,850

2)

            Cash                                Accounts receivable

Debit               Credit                   Debit               Credit

22,500                                         32,600

6,000                                                                   22,500

40,500                                         45,600

69,000                                                                 6,000

                                                                             4,100

                                                                             40,500

                                                     5,100

Allowance for doubtful accounts

Debit               Credit  

                       2,525

4,100

                       2,850

                       1,275

3) net realizable value of accounts receivable = $5,100 - $1,275 = $3,825

The following information is taken from the financial statements of Clybourn Company for the current year: Current Assets $ 400,000 Total Assets 895,000 Cost of Goods Sold 655,000 Gross Profit 205,000 Net Income 125,000 The gross profit percentage for the current year rounded to the nearest whole percent is closest to:

Answers

Answer: 24%

Explanation:

The following information can be gotten from the question:

Current Assets = $ 400,000

Total Assets = 895,000

Cost of Goods = Sold 655,000

Gross Profit = 205,000

Net Income = 125,000

Gross profit percent will be:

Gross profit/(Gross profit + cost of goods sold) × 100

= 205,000/(205,000 + 655,000) × 100

= 205000/860,000 × 100

= 23.8%

= 24%

In the United States, the standard methodology for consumers with respect to privacy is to _______________, whereas in the EU it is to ______________.

Answers

Answer:

In the United States, the standard methodology for consumers with respect to privacy is opt-out with respect to the United States and her Privacy Law, whereas in the EU it is opt-in.

Explanation:

Privacy laws are laws that provide protection and regulation against storing, using data that might be considered private to an individual or any organisation. such laws act as a guard against any usage of information by governments, public or private organisations, or even other individuals in any part of the world without the owner of such data giving their consent.

Privacy laws, rules, and policies are different from one country to another which all depends on their legal framework and cultural sensitivities in such a nation.

In the United States, the standard methodology for consumers with respect to privacy is opt-out with respect to the United States and her Privacy Law, whereas in the EU it is opt-in.

Opting-out laws cover a spectrum that consists of methods used by an individual to avoid receiving unsolicited service information. When receiving unsolicited service information as a result of data collection a consumer might seek an out way to stop it and to opt-out require affirmative steps to prevent unsolicited service and products. Under opt-out a user can be signed up much more easily.

Opt-In is when an individual chooses to join or participate in something and acknowledging interest in a product or service. Opt-in is used under European data protection rules which grant individuals more control of their data when the person agrees to receive the specified services.

________ refers to the idea that policy-makers have formulated and implemented policy that addresses problems in an optimal or efficient manner.

Answers

Answer:

Rationality.

Explanation:

Rationality refers to the idea that policy-makers have formulated and implemented policy that addresses problems in an optimal or efficient manner.

This ultimately implies that, policy-makers act rationally in order to achieve best goals, objectives and interests of the people effectively and efficiently.

For instance, in a bid to mitigate or eliminate global warming, policy-makers developed and enacted the pollution prevention act. This would limit or regulate the amount of pollutants that is being emitted by an organization in a particular geographical location as well as improving environmental sanitation and reducing environmental degradation.

Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $667,000 with 465,000 estimated direct labor hours. It is further estimated that small lamp production will require 299,000 direct labor hours and desk lamp production will need 166,000 direct labor hours. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 249,000. a.$356,070 b.$800,936 c.$1,000,500 d.$310,930

Answers

Answer:

Allocated MOH= $356,070

Explanation:

Giving the following information:

Estimated overhead= $667,000

Estimated direct labor hours= 465,000

Actual direct labor hours for lamp desk= 249,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 667,000/465,000

Predetermined manufacturing overhead rate= $1.43 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.43*249,000

Allocated MOH= $356,070

Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets. Its tax bracket is 40%. If the firm uses short-term debt, its rate will be 7.5%, and if it uses long-term debt, its rate will be 9%. By how much will their earnings after taxes change if they choose the more aggressive financing plan instead of the more conservative plan

Answers

Answer:

Hicks Health Clubs, Inc. earnings after taxes will change by minus $10,800 if they choose the more aggressive financing plan instead of the more conservative plan.

Explanation:

Note: I experienced a difficulty submitting the explanation here. Kindly find attached the full answer and explanation in the attached Microsoft word document.

Marigold Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 balance in the Raw Materials Inventory account.
During the month of January, Marigold Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $125,660 and $162,740, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $92,700 on account.
2. Incurred factory labor costs of $72,100. Of this amount $16,480 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,510; indirect labor $20,600; depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,300 $5,150
51 40,170 25,750
52 30,900 20,600
(a) Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $840,000, direct labor costs of $700,000, and direct labor hours of 20.000 for the year.
(b) Open job cost sheets for Jobs 50. 51. and 52. Enter the January 1 balances on the job cost sheet for Job 50.
(c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
(d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.
(e) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
(f) Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
(g) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?
(h) What is the amount of over- or underapplied overhead?

Answers

Answer:

Marigold Company

a) Calculation of the predetermined overhead rate for 2020, assuming (Lott) Marigold Company estimates total manufacturing overhead costs of $840,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year.

Predetermined overhead rate, based on the direct labor costs:

= Total manufacturing overhead costs/direct labor costs

= $840,000/$700,000 = $1.20 per direct labor cost

Predetermined overhead rate, based on the direct labor hours:

= Total manufacturing overhead costs/direct labor hours

= $840,000/20,000 = $4.20 per direct labor hour

b) Job Cost Sheets

                                             Job 50        Job 51         Job 52

Beginning inventory          $49,440

Direct materials                    10,300       $40,170        $30,900

Direct labor                            5,150         25,750          20,600

Manufacturing overhead      6,180         30,900          24,720

Finished goods inventory $71,070      $96,820                      $76,220

c) Journal Entries:

i) Purchase of raw materials:

Debit Inventory $92,700

Credit Accounts Payable $92,700

To record the purchase of raw materials.

ii) Factory labor costs incurred:

Debit Factory labor costs $72,100

Credit Employer Payroll Taxes Expense $16,480

Credit Factory Salary and Wages $55,620

To record factory labor costs.

iii) Manufacturing overhead costs incurred:

Debit Manufacturing overhead $66,950

Credit Inventory for indirect materials $17,510

Credit Salaries & Wages $20,600

Credit Equipment Depreciation $12,360

Credit Accounts Payable $16,480

To record manufacturing overhead

d) Journal Entries:

Debit Job 50 $21,630

Credit Direct materials $10,300

Credit Direct labor $5,150

Credit Manufacturing overhead $6,180

To allocate manufacturing costs to job 50.

Debit Job 51 $96,820

Credit Direct materials $40,170

Credit Direct labor $25,750

Credit Manufacturing overhead $30,900

To allocate manufacturing costs to job 51.

Debit Job 52 $76,220

Credit Direct materials $30,900

Credit Direct labor $20,600

Credit Manufacturing overhead $24,720

To allocate manufacturing costs to job 52.

e) Journal Entries:

Debit Finished Goods Inventory $167,890

Credit Job 50 $71,070

Credit Job 51 $96,820

To record finished goods from Jobs 50 and 51

f) Journal Entries for Sale of Jobs:

Debit Accounts Receivable $288,400

Credit Sales Revenue $288,400

To record the sale of Jobs 49 and 50 on account.

Debit Cost of goods sold $163,770

Credit Finished goods inventory $163,770

To record the cost of Jobs 49 and 50 sold.

g) Balance in Finished Goods Inventory account:

Beginning balance: Job 49 $92,700

Debit Job 50                         $71,070

Debit Job 51                        $96,820

less: cost of jobs sold        $163,770

Ending balance: Job 51      $96,820

The balance consists of Job 51 which had been completed but not sold.

h) Amount of over-or underapplied overhead:

Actual total overhead        $66,950

Total overhead applied        61,800  

Underapplied overhead     $5,150                  

Explanation:

a) Data:

1. Job 50 in process:

Beginning Job 50 in process:

Direct materials               $20,600

Direct labor                       $12,360

Manufacturing overhead $16,480

Total                                 $49,440

2. Jan. 1 Job 49 completed at $92,700 (part of finished goods inventory)

3. Beginning raw materials inventory = $15,450

4. Production, Completion, and Sales of Jobs:

Production started on Jobs 51 and 52

Completed Jobs 50 and 51

Sold on account:

Job 49  $125,660

Job 50  $162,740

5. Additional events:

Purchase of raw materials on account = $92,700

Factory labor costs of $72,100 ($16,480 of it, employer payroll taxes)

Manufacturing overhead costs:

Indirect materials                            $17,510

Indirect labor                                $20,600

Equipment Depreciation              $12,360

Other manufacturing overheads $16,480 (on account)

Total manufacturing overhead   $66,950

6. Allocation of direct materials and labor to jobs:

Job No.     Direct Materials    Direct Labor

50                  $10,300             $5,150

51                     40,170             25,750

52                  30,900             20,600

                    $81,370            $51,500

6. Job costing system accumulates and allocates Marigold Company's direct material, labor, manufacturing overhead costs to jobs based on their usage of the various resources in the production of goods and services.

Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000.

Answers

Answer:

get competitive bids from at least three prospective suppliers

Explanation:

In these specific situations, organizational buyers must often get competitive bids from at least three prospective suppliers. This is because due to the fact that the purchasing amounts are very large there can also be large amounts of money saved by saving a couple of percentages on a purchase. Also since the seller can make large profits from a large order like this one, most suppliers place competitive bids in order to win the transaction.

Because you can adapt to your audience while you are speaking, don't worry about analyzing the audience for an oral presentation.
A. True
B. False

Answers

Answer:

B. False.

Explanation:

This statement is false, due to the fact that a good oral presentation must be prepared before the presentation in accordance with all the procedures to be covered in the presentation. Therefore, the ideal is to know your audience before the presentation, so that there is a preparation aligned with their values ​​and behaviors, in order to retain the attention and interaction of the participants, which makes the presentation more interesting and effective.

Scripting the presentation also avoids possible unforeseen events, in addition to being ideal to also be open to interactions, to provide important and impactful information, to prepare supporting material such as slides, and to always practice before the presentation, to be prepared and interacted on the subject addressed.

yle Co. has $1.1 million of debt, $3 million of preferred stock, and $1.2 million of common equity. What would be its weight on common equity

Answers

Answer:

0.22

Explanation:

Calculation for the weight on common equity

Using this formula

Weight of Common equity = Common Equity/(Debt + Preferred Equity+Common Equity)

Where,

Common Equity=1.2

Debt =1.1

Preferred Equity=3

Let plug in the formula

Weight of common equity = 1.2/(1.1+ 3+ 1.2)

Weight of common equity=1.2/5.3

Weight of Common Equity=0.22

Therefore the weight on common equity will be 0.22

When using the cost of production report to analyze the change in direct materials cost per equivalent unit compared to conversion cost per equivalent unit, an investigation may reveal that direct materials costs:_____.
a. will never decrease due to the way the cost is calculated.
b. will never increase due to the way the cost is calculated.
c. may increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.
d. will only increase if conversion costs increase as well.

Answers

Answer:

The correct answer is the option C: May increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.

Explanation:

To begin with, in the field of business a manager or an account would perfectly know that when using the cost of production report with the purpose to analyze the change in direct materials costs per equivalent unit compared to conversion cost per unit the investigation will reveal that the direct material costs may increase or decrease between periods, depending on the fluctuation of the cost of those materials due to the fact that the fluctuation mentioned will arise if the company starts using more direct material in the production so that means that the volumen will increase as well as the costs of it

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