Answer:
1.69
Explanation:
asset turnover ratio = net sales / average assets
I looked up the missing information and found the following:
total assets year 1 = $4,000,000
total assets year 2 = $4,300,000
net sales year 2 = $7,000,000
average assets = ($4,000,000 + $4,300,000) / 2 = $4,150,000
asset turnover ratio = $7,000,000 / $4,150,000 = 1.6867 = 1.69
The higher the asset turnover ratio, the more efficient a company is. Therefore, a higher asset turnover ratio is always better although there is no fixed parameter.
Cheryl's marginal rate of substitution between apples and bananas is four apples for one banana. If apples are on the vertical axis and bananas are on the horizontal axis, the slope of Cheryl's indifference curve is
Answer:
The correct answer is: -4 (minus four).
Explanation:
To begin with, the concept of "Marginal Rate of Substitution" indicates how much of a good a consumer is willing to sacrifice to obtain a unit more of another good without changing the total satisfaction of the consumer. Therefore that this term is explained as the difference between one good and the other and that is why that the concept comprehends the slope of the indifference curve. That is why that if Cheryl's MRS of apples for banas is four then she is willing to sacrifice four apples for one banana and that indicates that the slope of the indiference curve is minus four (-4) because the result is always negative because it shows the sacrifice.
The Mahoney Company failed to accrue Rent Revenue on 12/31/23. The error was discovered on 2/1/24, before any cash was collected and after the 2023 books were closed. On 2/1/24, Mahoney would record:
Answer:
Mahoney would record record on the 2023 books A debit to rent receivables
Explanation:
As error of failure to accrue rent revenue on 12/31/2023 was discovered before closing of books, therefore on 02/01/2024 Mahoney would record on the 2023 books "A debit to rent receivables"
Calculate the earnings of workers A, B and C under the Straight Piece
Rate System and Merrick’s Differential Piece Rate System from the
following particulars.
Normal rate per hour: Rs. 5.40
Standard time per unit: 1 minute
Output per day is as follows.
Worker A – 390 units
Worker B – 450 units
Worker C – 600 units.
Working hours per day are 8
Answer:
Earnings of Workers:
Rates Systems
Worker Straight Piece Merrick's Differential Piece
A $35.10 $28.08
B $40.50 $32.40
C $54.00 $64.80
Explanation:
a) Data:
Normal rate per hour: Rs. 5.40
Standard time per unit: 1 minute
Output per day is as follows.
Worker A – 390 units
Worker B – 450 units
Worker C – 600 units
Working hours per day are 8
b) Calculations:
i) Standard units per day = 8 x 60 minutes = 480 units
ii) Earnings per day is as follows.
Worker A – 390 units :
Straight piece Wages = 390 / 60 x $5.40 = $35.10
Merrick's Earnings = 390/60 x $5.40 x 0.8 = $28.08
Worker B – 450 units :
Straight piece Wages = 450 / 60 x $5.40 = $40.50
Merrick's Earnings = 450/60 x $5.40 x 0.8 = $32.40
Worker C – 600 units:
Straight piece Earnings = 600 / 60 x $5.40 = $54
Merrick's Earnings = 600/60 x $5.40 x 1.2 = $64.80
c) The factor for multiplying the rate is obtained by dividing the units produced by the number of minutes in an hour, in order to convert output to a rate based on the hour.
d) The standard output per day helps Merrick in calculating the weights to be assigned to each worker and differentiate the slow worker from the superior worker (hence, the name: Merrick's Differential Piece Rate). The slow workers (those who produce below the standard output) are paid a rate lower than the standard rate by adding a weight of 0.8 as a punishment while the superior worker is assigned a weight of 1.20 as a reward for good performance. Meanwhile, a standard performer who produced 480 units will be paid the normal rate or weighed as 1.0.
The Book of Mormon is one of the biggest musical hits on Broadway. It has received many awards including Tony and Grammy Awards. According to Wikipedia, "High attendance coupled with aggressive pricing allowed the financial backers to recoup their investment of $11.4 million after just nine months of performances." While the highest ticket price was $477, the average price is $170. What is the variable cost per ticket
Answer:
variable cost per ticket = $129.60
Explanation:
some information is missing and I looked it up:
30 performances per month
1,100 seats in the theater and 95% occupancy rate
number of tickets sold during the first 9 months = 30 x 9 x 1,100 x 0.95 = 282,150 tickets
total revenue during the first 9 months = 282,150 x $170 = $47,965,500
variable costs = total revenue - fixed costs = $47,965,500 - $11,400,000 = $36,565,500
variable cost per ticket = $36,565,500 / 282,150 tickets = $129.5959 ≈ $129.60
Lenore, Inc. gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation: Ending cash balance per books, 10/31$7,000 Deposits in transit 300 Interest received from bank 1,700 Bank service charge for check printing 60 Outstanding checks 4,000 NSF check of T. Owens 350 The up-to-date ending cash balance on October 31 is:_______
A. $7,940
B. $4,590
C. $8,290
D. $5,290
Answer:The up-to-date ending cash balance on October 31 is: $8,290---C
Explanation:
A bank Reconciliation statement helps to match a company's book record to its bank record and adjust discrepancies, If any.
Here, the deposits in transit and outstanding checks fall under the bank's accounting records and will not be involved in the company's additions or deductions in the accounting book balance records.
Ending cash balance as per books = $7,000
Add:
Interest received from Bank = +$1,700
subtotal $8,700
Deduct
Bank Service charge = -$60
NSF check = -$350
Up-to-date ending cash balance = $8,290
The up-to-date ending cash balance on October 31 is: C. $8,290.
Using this formula
Up-to-date ending cash balance = Ending cash balance per books + Interest received from the bank − Bank service charge − NSF check of T. Owens
Let plug in the formula
Up-to-date ending cash balance = $7,000 + $1,700 − $60 − $350
Up-to-date ending cash balance = $8,290
inconclusion the up-to-date ending cash balance on October 31 is: C. $8,290.
Learn more about ending cash balance here:https://brainly.com/question/24979735
What are the three major elements that include in presentation?
Answer:
The three major elements that are included in a presentation are:
a) The introduction
b) The body
c) The Conclusion
Explanation:
1. The introduction kickstarts the presentation with an introduction suitable to the topic. It is usually a summary of the topic (the problem being addressed), the presenter, the venue or location, the purpose, and the date of the presentation.
2. The body of the presentation presents balanced information about the topic to address each requirement, including the supporting and opposing views. It also includes the presentation of observations, evidence, and calculated data to support the viewpoints expressed.
3. The conclusion summarizes the presentation in such a manner that the recommendations that offer possible solutions to the identified problem(s) are distinctly outlined.
What is unique about Costco’s channel management process? What components can other retailers borrow or implement?
Answer:
Its quick purchase and distribution of products and impeccable marketing.
Other retailers could implement or borrow are their branding strategies and eliminate costly and expensive management steps.
Explanation:
One of the main elements of Costo's success is its efficient and extremely competitive marketing strategy. In addition to this, product management strategies were also extremely effective in this company. This is because Costo manages the purchase and distribution of its products very quickly, preventing their shortages. This is done through purchases made in direct contact with suppliers, who send the products directly to the company's warehouses, which causes numerous steps in the supply process (made by producers and intermediaries) to be eliminated, thus ensuring speed and less economic expense.
26. Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC
Answer:
2.11%
Explanation:
From the information given; we use the Excel spreadsheet to compute the difference between this bond's YTM(Yield to maturity) and its YTC(Yield to call).
From the diagram; we will see that the
YTM(Yield to maturity) = 8.91%
YTC(Yield to call).= 6.81%
Therefore the difference between this bond's YTM and its YTC = (8.91 - 6.81)%
the difference between this bond's YTM and its YTC = 2.11%
The online retailer Lands' End communicates a remarkable commitment to its ________ with these unconditional words: "We accept any return, for any reason. Guaranteed Period."
Answer:
Customers
Explanation:
By making such statements the online retailer is trying to build trust with customers. And to satisfy their purchase experience about the value they will derive from the product. It is a good marketing strategy employed by some businesses today.
Assume the economy is at full employment but planned investment exceeds saving. Other things being equal, what fiscal policy actions would best address this problem?
Answer:
Increase taxes and decrease government spending
Explanation:
Fiscal policy is used to bring an economy back to normal.
When the economy is at full investment and planned investment is greater than savings, the best policy action would be to Increase taxes and decrease government spending. By increasing taxes there would be a fall in disposable income and household spending would decrease.
Changes in fiscal policy has effects on GDP, unemployment, and inflation. In this question this would be contractionary fiscal policy. Aggregate demand would fall and there would be lower output, lower employment and lower price level
g Profit maximazation for a monopolist and a perfect competitor occurs where marginal revenue equals marginal cost. At this profit-maximizing output, the monopolist will charge a price ________ marginal revenue and a perfect competitor will charge a price ________ marginal revenue.
Answer: Higher than; Equal to
Explanation:
Profit maximazation for a monopolist and a perfect competitor occurs where marginal revenue equals marginal cost.
The Marginal Revenue curves are different for either of them though and this impacts what price they sell at. This is because the price the good will be sold at depends on where the maximising output touches the demand curve.
The Monopolist has a Marginal Revenue curve that is lower than the Demand Curve. Therefore the point where Marginal Revenue and Marginal Cost intersect, will not be on the demand curve but lower than it. The price charged will therefore be the point where the maximising output touches the Demand Curve.
The Perfectly Competitive Firm however is in a market where Price is equal to the Demand curve and equal to the Marginal Revenue curve as well. The point where the Marginal Cost intersects with Marginal Revenue will also be the point where the maximising output touches the Demand curve so the price will be the same as the Marginal Revenue.
Journalize the following transactions in the accounts of Simmons Company:
Mar. 1 Received a $60,000, 60-day, 6% note dated March 1 from Bynum Co. on account.
18 Received a $25,000, 60-day, 9% note dated March 18 from Solo Co. on account.
Apr. 30 The note dated March 1 from Bynum Co. is dishonored, and the customer’s account is charged for the note, including interest.
May 17 The note dated March 18 from Solo Co. is dishonored, and the customer’s account is charged for the note, including interest.
July 29 Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Co. on April 30.
Aug. 23 Wrote off against the allowance account the amount charged to Solo Co. on May 17 for the dishonored note dated March 18.
Answer and Explanation:
The journal entries are shown below:
On Mar 1
Notes Receivable $60,000
To Accounts Receivable $60,000
(Being the note receivable is recorded)
On Mar 18
Notes Receivable $25,000
To Accounts Receivable $25,000
(Being the note receivable is recorded)
On Apr 30
Accounts Receivable $60,600
To Notes Receivable $60,000
To Interest Revenue ($60,000 × 2 ÷ 12 × 6%) $600
(Being the note receivable and interest revenue is recorded)
On May 17
Accounts Receivable $25,375
To Notes Receivable $25,000
To Interest Revenue ($25,000 × 9% × 2 ÷ 12) $375
(Being the note receivable and interest revenue is recorded)
On Jul 29
Cash $61,812
To Accounts Receivable $60,600
To Interest Revenue (60,600 × 8% × 90 ÷ 360) $1,212
(Being the note receivable and interest revenue is recorded)
On Aug 23
Allowance for Doubtful Accounts $25,375
To Accounts Receivable $25,375
(Being the allowance for doubtful debts is recorded)
Assume that the parent company acquires its subsidiary by exchanging 55,000 shares of its Common Stock, with a market value on the acquisition date of $40 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except for a building that it feels is undervalued by $500,000, an unrecorded License Agreement that the parent values at $250,000, and an unrecorded Customer List owned by the subsidiary that the parent values at $100,000.
Any further discrepancy between the purchase price and the book value of the subsidiary's Stockholders' Equity is attributed to expected synergies to be realized by the consolidated company as a result of the acquisition.
Given the following acquisition-date balance sheets of the parent and subsidiary, at what amounts will each of the following be reported on the consolidated balance sheet?
Balance Sheet
Parent Subsidiary
Assets
Cash $910,500 $201,600
Accounts receivable 384,000 417,600
Inventory 582,000 536,400
Equity investment 2,200,000
Property, plant and equipment (PPE), net 2,799,600 992,400
$6,876,100 $2,148,000
Liabilities and stockholders' equity
Accounts payable $188,100 $127,000
Accrued liabilities 220,800 221,000
Long-term liabilities 1,000,000 600,000
Common stock 220,000 120,000
APIC 3,740,000 150,000
Retained earnings 1,507,200 930,000
$6,876,100 $2,148,000
Answer:
Consolidated Balance Sheet:
Balance Sheet
Parent Subsidiary Consolidated
Assets
Cash $910,500 $201,600 $1,112,100
Accounts receivable 384,000 417,600 801,600
Inventory 582,000 536,400 1,118,400
Equity investment 2,200,000 0
Property, plant and
equipment (PPE), net 2,799,600 1,492,400 4,292,000
License Agreement 250,000 250,000
Customer List 100,000 100,000
Goodwill 1,000,000
Total Assets $6,876,100 $2,998,000 $8,674,100
Liabilities & stockholders' equity
Accounts payable $188,100 $127,000 315,100
Accrued liabilities 220,800 221,000 441,800
Long-term liabilities 1,000,000 600,000 1,600,000
Unrealized gain from fair value:
Building 500,000 500,000
License Agreement 250,000 250,000
Customer List 100,000 100,000
Common stock 220,000 120,000 220,000
APIC 3,740,000 150,000 3,740,000
Retained earnings 1,507,200 930,000 1,507,200
Total liabilities and equity $6,876,100 $2,998,000 $8,674,100
Explanation:
a) Data:
Balance Sheet
Parent Subsidiary
Assets
Cash $910,500 $201,600
Accounts receivable 384,000 417,600
Inventory 582,000 536,400
Equity investment 2,200,000
Property, plant and
equipment (PPE), net 2,799,600 992,400
Total Assets $6,876,100 $2,148,000
Liabilities & stockholders' equity
Accounts payable $188,100 $127,000
Accrued liabilities 220,800 221,000
Long-term liabilities 1,000,000 600,000
Common stock 220,000 120,000
APIC 3,740,000 150,000
Retained earnings 1,507,200 930,000
Total liabilities and equity $6,876,100 $2,148,000
b) For the consolidated balance sheet, the assets and liabilities of the parent and subsidiary are consolidated based on their fair values. The investment in the subsidiary is eliminated. If the assets increased in their fair values, unrealized gains on fair values are created for the revalued assets. On the equity side, the subsidiary's equity is eliminated. Any difference is attributed to Goodwill on acquisition.
You usually go to the theater to see a lot of movies. Now you are considering buying a DVD player and renting movies instead. You currently pay $9 per movie when you go to the theater but if you buy the DVD player you will have to pay only $5 per movie rental. You estimate that the DVD player will cost $400 (at t = 0) and will last 3 years. Except for cost, you are indifferent to seeing movies at home or in the theater. Assume that the cost of theater tickets and rental payments occur at the end of each month and that you use the DVD player only to watch movies. Assume that you watch the same number of movies every month. Your discount rate is 1% per month. Assume that there is no inflation. How many movies per month must you watch for the DVD player purchase to be a smart purchase?
Answer:
You must watch minimum of 200 movies per month for the DVD player purchase to be a smart purchase.
Explanation:
Let assume that you watch 100 movies in a month:
For going to theater:
$9 × 100 = $900
For renting movies and using the DVD Player:
Renting = $5 × 100 = $500
DVD Player cost: $400
Total spent in a month = $500 + $400 = $900
Therefore, in a month, the amount spent going to theater = the amount spent using DVD Player and renting the Film.
Let assume you watch 200 movies in a month:
For going to theater:
$9 × 200 = $1800
For renting movies and using the DVD Player:
Renting = $5 × 200 = $1000
DVD Player cost: $400
Total spent in a month = $1000 + $400 = $1400
Therefore, amount spent using DVD Player and renting movies is cheaper than going to theater to watch movies in a month.
It is safe to conclude that for the DVD Player to be a smart purchase by you, you must watch minimum of 200 movies in a month.
Performance Gloves, Inc. produces three sizes of sports gloves: small, medium and large.
A glove pattern is first stenciled onto leather in the Pattern Department.
The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together.
Performance Gloves uses tha multiple production department factory overhead rate method of allocating factory overhead costs.
Its factory overhead costs were budgeted as follows:
Pattern Department overhead $165,200
Cut and Sew Department overhead $273,000
Total $438,200
The direct labor estimated for each production department was as follows:
Pattern Department 2,900 direct labor hours
Cut and Sew Department 3,500
Total 6,300 direct labor hours
Direct labor hours are used to allocate the production department overhead to the products.
The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows:
Production Departments Small Glove Medium Glove Large Glove
Pattern Department 0.04 0.05 0.06
Cut and Sew Department 0.08 0.10 0.12
Direct labor hours per unit 0.12 0.15 0.18
If required, round all per unit answers to the nearest cent.
Required:
a. Determine the two production department factory overhead rates.
b. Use the above production department factory overhead rates to determine the factory overhead per unit for each product.
Answer:
A.Pattern Department 57 per DLH
Cut and Sew Department 78 per DLH
B.Small glove 8.52
Medium glove 10.65
Large glove 12.78
Explanation:
a) Calculation to Determine the two production department factory overhead rates.
Pattern Department = 165,200/2,900
= 56.9 Approximately 57 per DLH
Cut and Sew Department = 273,000/3,500
= 78 per DLH
Therefore two production department factory overhead rates will be :
Pattern Department 57 per DLH
Cut and Sew Department 78 per DLH
b) Calculation of the factory overhead cost per unit
Small glove (57*.04+78*.08)=8.52
Medium glove (57*.05+78*.10)=10.65
Large glove (57*.06+78*.12)=12.78
Therefore the factory overhead per unit for each product will be: Small glove 8.52
Medium glove 10.65
Large glove 12.78
Department 1 completed and transferred out 450 units and had ending work in process inventory of 60 units. The ending inventory is 20% complete for materials and 60% complete for labor and overhead. The equivalent units of production for labor and overhead is ______ units.
Answer:
Equivalent units= 486 units
Explanation:
Giving the following information:
Units completed= 450
Ending work in process= 60 units
The ending inventory is 20% complete for materials and 60% complete for labor and overhead.
To calculate the equivalent units of production, we need to use the following formula:
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Units started and completed = 450 - 0= 450
Ending work in process completed= 60*0.6= 36
= 486 units
Answer:462
Explanation:
Suppose that two things happen simultaneously in the market for fish. First, a new technology allows fishing boats to catch more fish while using the same number of crew-members. At the same time a new study shows that eating fish at least three times a week helps prevent heart attacks. How will the market for fish respond?
A. Equilibrium quantity will increase but the effect on the equilibrium price is unknown without more information.
B. Equilibrium price and quantity will both increase.
C. Equilibrium quantity will decrease but the effect on the equilibrium price is unknown without more information.
D. Equilibrium price will decrease but equilibrium quantity will increase.
E. Equilibrium price will increase but the effect on the equilibrium quantity is unknown without more information.
Answer:
Option A, Equilibrium quantity will increase but the effect on the equilibrium price is unknown without more information, is the right answer.
Explanation:
Option A is correct because the change in technology allows the person to catch more fish with the same crew. Thus, this will increase the supply, and the supply curve will shift rightwards. Moreover, the new study shows that a reduction in heart attack will cause an increase in the demand for fish. So the demand curve will shift rightwards. Here, we can see the increase in equilibrium quantity but we can not explain the effect on price due to lack of information. Therefore, option A will be right.
A stock has a beta of 1.15, the expected return on the market is 10.3 percent, and the risk-free rate is 3.8 percent. What must the expected return on this stock be
Answer:
11.28%
Explanation:
A stock has a beta of 1.15
The expected return on the market is 10.3%
The risk-free rate is 3.8%
Therefore, the expected return on the stock can be calculated as follows
Expected return= Risk-free rate+beta(expected return on the market-risk-free rate)
= 3.8%+1.15(10.3%-3.8%)
= 3.8%+(1.15×6.5)
= 3.8%+7.475
= 11.28%
Hence the expected return on the stock is 11.28%
The risk-free interest rate is 3.7% per year, the market risk premium is 5.6% per year, and a stock’s beta is 0.84. What is the stock’s annual expected return? Question 16 options: A) 9.8% B) 8.4% C) 9.1% D) 9.5% E) 8.7%
Answer:
The answer is B. 8.4%
Explanation:
To solve this, we will use Capital Asset Pricing Model(CAPM)
Stock’s annual expected return=
Rf + beta(Rm-Rf)
Rf is the risk free rate
Risk premium is (Rm-Rf) - the difference between market interest rate and the risk free rate.
Rf is 3.7%
Risk premium is 5.6%
Beta is 0.84
3.7% + 0.84(5.6%)
3.7% + 4.7%
= 8.4%
Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose to open a hair salon, a babysitting service, a record store, or many other things. This can be the same type of company you chose in assignment 8, or it can be different.
a. Describe the type of company you chose.
b. If you needed to get funding for your company, would you prefer to get debt funding or equity funding? Explain why you would prefer this type.
Answer:
Find the explanation below.
Explanation:
1. The company I chose to operate would be Celebrity Hair Salon. The Celebrity Hair Salon is a standard salon with comfortable furnishings and state-of-the-art equipment intended to tend to the needs of celebrities. Clients are expected to make appointments for their services which the salon strictly adheres to.
2. I would prefer to fund this new business through debt financing. Debt funding entails borrowing funds from Creditors with the intention of paying back at a later time with the attached interest. Equity funding entails giving an investor a certain percentage of the company's returns thus making him a co-owner of the company. This affords him the right to make decisions for the business. Detaching the investor from this business is difficult because it requires buying him out.
I would prefer debt financing because I wish to retain sole ownership of the business. I can also go through some government agencies to obtain funds at lower interest rates. Moreso, there is a fixed debt repayment plan that I can set a target to meet until the debt is paid. Finally, I can regain my freedom after the payment is completed, thus regaining my business and not entitling me to anyone.
Suppose a bank has $500 million in deposits and $35 million in required reserves, and it is holding no excess reserves. What is the required reserve ratio
Answer:
The required reserve ratio is $17500 million.
Explanation:
The given deposit with the banks = $500 million
Required reserves = $35 million
We already have the deposits with the bank and the required reserves. Now we have to calculate the required reserve ratio and it can be calculated by multiplying the bank deposit with required reserves.
Required reserve ratio = Bank deposits × Required reserve
= 500 × 35
= $17500 million
A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit. The company's break-even point in dollars is:
Answer:
Break-even point (dollars)= $275,040
Explanation:
Giving the following information:
Selling price per unit $120
Variable cost per unit $90
Fixed expense per month $68,760
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)= 68,760 / [(120 - 90)/120]
Break-even point (dollars)= $275,040
Moss County Bank agrees to lend the Cullumber Company $695000 on January 1. Cullumber Company signs a $695000, 6%, 9-month note. What entry will Cullumber Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30
Answer:
The interest on notes is calculated as follows
Interest payable = Face value of bonds * Interest rate * (Time of maturity / 12 months)
= $695,000 * 6% * 9/12
=$31,275
Cullumber company will pay the face value of the notes as the notes are payable at par, along with interest rate of 6% for the period of 9 months. This will result in outflow of cash, thereby crediting cash account. The liability on account of notes payable and interest payable will be settles, thereby debiting the payable account
General Entry
Date Account Title and Explanation Debit Credit
30 Sep. Notes payable $695,000
Interest payable $31,275
Cash $726,275
(To record the amount to be paid at maturity)
A Plus Appliances sells dishwashers with a fouryear warranty. In 2019, sales revenue for dishwashers is . The company estimates warranty expense at % of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31, 2019? A Plus Applicances began operating in 2019. (Round your final answer to the nearest dollar.)
A Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31,2019? A Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.)
Answer:
$4230
Explanation:
Given that, the sales revenue to the dishwashers is equal to $94,000
Also the company estimated warranty expense cost is equal to 4.5% of revenues,
Thus, the estimated warranty payable can be determined by the following formula:
Annual sales revenue for the dishwashers * warranty expense revenues
= $94,000 * 4.5% = $94,000 * 0.045
= $4230
Hence, the total estimated warranty payable of A Plus Appliances as of December 31, 2019 = $4230
You have just taken a job at a manufacturing company and have discovered that they use absorption costing to analyze product costs and subsequent cost-volume-profit decisions. You would like to introduce them to variable costing and explain to them why this costing method can be used and why it is helpful.
Compose a short email - 2 to 3 short paragraphs because the president it too busy to read anything longer than that - proposing a variable costing system and what that might mean for reports, analysis and comparisons. You could give a brief example if you feel that is necessary for your explanation to the president.
Answer and Explanation:
Respected Sir,
Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions
As per your requirement please find the explanation below:
Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.
Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.
Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.
The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.
Regards
ABC
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 26 $ 28 $ 32 B 500 31 27 34 C 900 19 18 24 D 900 23 20 22 E 800 30 28 29 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Answer:
A)
A 1,000 x $26.00 = $ 26,000
B 500 x $30.60 = $ 15,300
C 900 x $ 19.00 = $ 17,100
D 900 x $ 19.80 = $ 17,820
E 800 x $26.10 = $ 20,880
Total $ 97,100
B)
102,240
C)
Write-down at NRV 1,060 debit
Inventory 1,060 credit
Explanation:
We have to calculate the net realizable value(NRV) for each item and compare with the historic cost:
Units// Cost /// NRV
A 1,000 $ 26 $ 32(1 - 0.1) = 28.8
B 500 $ 31 $ 34(1-0.1) = 30.60
C 900 $ 19 $ 24(1-0.1) = 21.60
D 900 $ 23 $ 22(1-0.1) = 19.80
E 800 $ 30 $ 29(1-0.1) = 26.10
We will always pick the lowest to valuate the goods:
A 1,000 x $26.00 = $ 26,000
B 500 x $30.60 = $ 15,300
C 900 x $ 19.00 = $ 17,100
D 900 x $ 19.80 = $ 17,820
E 800 x $26.10 = $ 20,880
Total $ 97,100
Total Cost:
1,000 x 26
+ 500 x 31
+ 900 x 19
+ 900 x 23
+ 800 x 30
103,300
Total NRV
1,000 x 28.80
+ 500 x 30.60
+ 900 x 21.60
+ 900 x 19.80
+ 800 x 26.10
102,240
Comparing at the entire inventory level we get the following adjustment
103,300 - 102,240 = 1,060
c. Using the midpoint formula, a decrease in price from $60 to $50 per bathing suit represents a(n) ______ decrease in price.
Answer: 18.18% decease
Explanation:
The Midpoint formula uses the average Price (as denominator) to calculate the change in price instead of the original price by the following formula;
% Decrease in price = Change in price / Average price
= (50 - 60) / ((60 + 50)/2)
= -10 / (55)
= -0.1818
= -18.18%
Using the midpoint formula, a decrease in price from $60 to $50 per bathing suit represents an 18.18% decrease in price.
Using the midpoint formula, a decrease in price from $60 to $50 per bathing suit represents a 18.18% decrease in price.
The Midpoint Formula
It calculates the percentage change in price of a good by dividing change in price to the average price of the good.
Following is the formula
% Decrease in price = Change in price / Average price
Solution:
old price = 60, new price = 50, Change in price = -10
⇒ (50 - 60) / ((60 + 50)/2)
⇒ -10 / (55)
⇒ -0.1818
⇒ -18.18%
Hence, by using the midpoint formula, we can say that bathing suit represents a -18.18% decrease in price.
Learn More about The Midpoint Formula here:
https://brainly.com/question/5016495
Gugenheim, Inc., has a bond outstanding with a coupon rate of 5.8 percent and annual payments. The yield to maturity is 7 percent and the bond matures in 14 years. What is the market price if the bond has a par value of $2,000?
A. $1,790.11
B. $1,825.91
C. $1,788.00
D. $1,792.86
E. $1,795.22
Answer:
The market price if the bond has a par value of $2,000 is A. $1,790.11
Explanation:
The Market Price, PV of the Bond can be determined as follows :
PMT = $2,000 × 5.80% = - $116
P/yr = 1
YTM = 7 %
n = 14
Fv = - $2,000
Pv = ?
Using a financial calculator, the Market Price, PV is $1,790.1088 or $1,790.11.
g Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,400 units at $280 each) $ 2,912,000 Variable costs (10,400 units at $210 each) 2,184,000 Contribution margin 728,000 Fixed costs 567,000 Pretax income $ 161,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $44,500 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine.
Answer:
Forecasted contribution margin income statement for 2020
Sales (10,400 units at $280 each) $ 2,912,000
Variable costs (10,400 units at $202 each) ($ 2,100,800)
Contribution margin $ 811,200
Fixed costs ($567,000 + $44,500) ($ 611,500)
Pretax Income $199,700
Explanation:
Adjust the 2019 Contribution Income Statement by :
Decreasing variable costs by $8 per unit and,Increasing Fixed cost by $44,500Stanley Systems completed the following stock issuancetransactions:
May 19 Issued 1,200 shares of $2 par value common stock for cash of $12.00 per share.
Jun. 3 Isssued 500 shares of $8, no-par preferred stock for $25,000 cash.11 Received equipment with a market value of $70,000 in exchange for 4,000 shares of the $2 par value common stock
Requirements
1. Journalize the transactions. Explanations are not required.
2. How much paid-in capital did these transactions generate for
StanleyStanley
Systems?
Date
Accounts
Debit
Credit
May 19
Cash
Common Stock—$2 Par Value
Paid-In Capital in Excess of Par—Common
And if possible please help me with,
Pioneer Amusements Corporation had the following stockholders' equity on November 30:
Stockholders' Equity
Paid-In Capital:
Common Stock—$5 Par Value; 1,300 shares
authorized, 150 shares issued and outstanding $
750
Paid-In Capital in Excess of Par—Common 2,250
Total Paid-In Capital 3,000
Retained Earnings 56,000
Total Stockholders' Equity $
59,000
(Click the icon to view the stockholders' equity.) On December 30,Pioneer purchased 100 shares of treasury stock at $ 14 per share.
Read the requirements
1. Journalize the purchase of the treasury stock.
2. Prepare the stockholders' equity section of the balance sheet at December 31,
20182018.
Assume the balance in retained earnings is unchanged from
NovemberNovember
3030.
3. How many shares of common stock are outstanding after the purchase of treasury stock?
Date
Accounts and Explanation
Debit
Credit
Dec. 30
Treasury Stock—Common
1000
Cash
1000
Purchased treasury stock.
Answer:
cash 14,400 debit
common stock 2,400 credit
additional paid-in CS 12,000 credit
--to record May 19th transactions--
cash 12,500 debit
preferred stock 4,000 credit
additional paid-in PS 8,500 credit
--to record June 3th transactions--
Equipment 70,000 debit
common stock 8,000 credit
additional paid-in CS 62,000 credit
--to record third transactions--
Total paid-in afterl these three transactions:
12,000 + 8,500 + 62,000 = 82,500
Explanation:
1,200 shares x $12 each = $14,400 cash received
1,200 shares x $ 2 each = $ 2,400 common stock
Additional paid-in $ 12,000
500 shares x $25 = $12,500 cash received
500 shares x $ 8 = $ 4,000 preferred stock
addtional paid-in $ 8,500
70,000 equipment
common stock 4,000 shares x $2 = 8,000
additional paid-in 70,000 - 8,000 = 62,000