Answer:
A. Chocolate Candy Bars Total Utility (utils) Marginal Utility (utils
0 0 —
1 25 25
2 42 17
3 54 12
4 62 8
5 66 4
6 65 –1
2. Soda
Explanation:
A.Chocolate Candy Bars Total Utility (utils) Marginal Utility (utils)
0 0 —
1 25 25
2 42 17
3 54 12
4 62 8
5 66 4
6 65 –1
1. In a situation where the consumption go up from 0 to 1, this means that total utility will from 0 to 25.
Therefore the , marginal utility will be 25 (25 – 0).
2. Total utility will be 42(25+17)
3. Marginal utility will be 12 (54-42)
4. The total utility for quantity of 5 is 66, while the marginal utility is 4.
Hence the total utility will be 62 (66 – 4) while marginal utility will be 4(12-8)
6. Total utility will be 65(66-1)
B. Based on( A )above Marco already has two candy bars, which gave him a total utility of 42 this means that when we Add soda his utility would increase to 64 (42 + 22)
And in a situation where he consumes four candy bars which is 2 candy bars + another 2 extra candy bars this means his utility will be only 62.
Based on this Soda will be the preferred one
Consider the market for minivans (Some would describe a minivan as a family car). Looking at the two statements, which one is true and which one is false? Then again, are they both true or both false? Statement 1: People decide to have fewer children. The demand curve for minivans will shift to the right. Statement 2: The stock market crashes lowering people’s wealth (Hint: Minivan would be considered a normal good). The demand curve for minivans will shift to the right.
Answer:
both statements are false
Explanation:
if People decide to have fewer children, there would be less demand for minivans as a result the demand curve would shift to the left.
also, if The stock market crashes lowering people’s wealth and minivans are normal goods, the demand for minivans would fall and the demand curve would shift to the left.
A leftward shift signifies a fall in demand while a rightward shift signals a rise in demand
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Psymon Company, Inc. sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31:________.
Account Titles Debits Credits
Cash $ 45,190
Accounts Receivable 19,200
Inventory 69,500
Property and Equipment 53,000
Accumulated Depreciation $ 22,300
Liabilities 32,100
Common Stock 96,000
Retained Earnings, January 1 12,200
Sales Revenue 195,500
Sales Returns and Allowances 7,300
Sales Discounts 8,600
Cost of Goods Sold 105,200
Salaries and Wages Expense 18,200
Office Expense 19,200
Interest Expenses 2,300
Income Tax Expense 10,410
Totals $ 358,100 $ 358,100
Prepare a multistep income statement that would be used for internal reporting purposes. Treat Sales Discounts and Sales Returns and Allowances as contra-revenue accounts. TIP: Some of the accounts listed will appear on the balance sheet rather than the income statement.
Prepare a multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales.
Compute the gross profit percentage.
Answer:
Prepare a multi-step income statement that would be used for internal reporting purposes.
Psymon Company, Inc.
Income Statement
For the year ended December 31, 202x
Sales revenue $195,500
Sales discounts $8,600
Sales returns and allowances $7,300
Net sales $179,600
Cost of goods sold $105,200
Gross profit $74,400
Expenses:
Salaries and Wages Expense $18,200
Office Expense $19,200
Income from operations $37,000
Interest Expenses $2,300
Income Tax Expense $10,410
Net income $24,290
Prepare a multi-step income statement that would be used for external reporting purposes
Psymon Company, Inc.
Income Statement
For the year ended December 31, 202x
Net sales $179,600
Cost of goods sold ($105,200)
Gross profit $74,400
Gross profit margin 41.43%
Operating expenses:
Salaries and Wages Expense $18,200 Office Expense $19,200 ($37,400)Income from operations (EBIT) $37,000
Other revenues and expenses:
Interest Expenses $2,300Earnings before taxes $34,700
Income Tax Expense $10,410
Net income $24,290
Kelly Woo, owner of Flower Mode, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Woo wants to set the delivery fee based on the distance driven to deliver the flowers. Woo wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months:_______.
LOADING...
(Click the icon to view the data.)
Use the high-low method to determine
Flower Paradise's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 15,000 miles.
Let's begin by determining the formula that is used to calculate the variable cost (slope).
Change in cost / Change in volume = Variable cost (slope)
Now determine the formula that is used to calculate the fixed cost component.
Total operating cost - Total variable cost = Fixed cost
Use the high-low method to determine
Flower Paradise's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.)
y = $
x + $
Enter any number in the edit fields and then click Check Answer.
Data Table
Month Miles Driven Van Operating Costs
January. . . . . .
. . . . . . . . . 15,500 $5,390
February. . . . . . .
. . . . . . . . 17,400 $5,280
March. . . . . . . . .
. . . . . . . . 15,400 $4,960
April. . . . . . . . .
. . . . . . . 16,300 $5,340
May. . . . . . . .
. . . . . . . . 16,500 $5,450
June. . . . . . . .
. . . . . . . . 15,200 $5,230
July. . . . . . . . .
. . . . . . . . . . 14,400 $4,680
Answer:
Use the high-low method to determine Flower Paradise's cost equation for van operating costs.
y = $ 0.20x + $1,800
Use your results to predict van operating costs at a volume of 15,000 miles.
y = ($0.20 x 15,000) + $1,800 = $4,800
Explanation:
Month Miles Driven Van Operating Costs
January 15,500 $5,390
February 17,400 $5,280
March 15,400 $4,960
April 16,300 $5,340
May 16,500 $5,450
June 15,200 $5,230
July 14,400 $4,680
In order to calculate the fixed and variable costs using the high-low method, we must take the month with the highest activity (February) and the month with the lowest activity (July):
variable costs = ($5,280 - $4,680) / (17,400 - 14,400) = $600 / 3,000 = $0.20 per mile driven
fixed costs = $4,680 - (14,400 x $0.20) = $4,680 - $2,880 = $1,800
A firm contemplating foreign expansion must make three basic decisions: which markets to enter, when to enter those markets, and on what scale. Once a firm decides to enter a foreign market, the question arises as to the best mode of entry. Firms can use six different modes to enter foreign markets: exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm, or setting up a new wholly owned subsidiary in the host country. Each entry mode has advantages and disadvantages.
Read each advantage and disadvantage listed below and then match it to corresponding mode.
a. Development cost and operational Strategy
b. Costs, risks, and profits
c. Manufacturing and transportation costs
d. Host country and controls
e. FDI and foreign country
f. Risks and capital investment
1. Exporting
2. Turnkey Contracts
3. Licensing
4. Franchising
5. Joint Ventures
6. Who Ply-own
7. Subsidiaries
Answer:
1. Exporting - c. Manufacturing and transportation costs
2. Turnkey Contracts e. FDI and foreign country
3. Licensing f. Risk and Capital investment
4. Franchising d. Host country and controls
5. Joint Venture - a. Development cost and Operational Strategy
6. Who Ply-own - Risks and profits
7. Subsidiaries - b. Costs, risks and profits
Explanation:
Exporting is beneficial for a country as it brings money to the country but it has many disadvantages. There is high manufacturing and transportation cost. There can be trade barriers in some countries which will restrict the trade benefit. Owing a subsidiary is beneficial when it is profitable but when subsidiary incurs loss the parent has to bear it. It involves high risk investment.
The advantage and disadvantage listed below and their matches in their corresponding mode.
Exporting- Manufacturing and transportation costs Turnkey Contracts- FDI and foreign country Licensing - Risk and Capital investment Franchising- Host country and controls Joint Venture - Development cost and Operational Strategy Who Ply-own (wholly owned subsidiary)- Risks and profits Subsidiaries - Costs, risks and profitsFirms can often use different modes to enter foreign markets. They can use exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm etc.
Turnkey project : the contractor is in good terms and agrees to handle every detail of the project for a foreign client.
Licensing agreement : licensor often gives the rights to intangible property to another entity for time period under a fee. Franchising is involve longer-term commitments than licensing.
Learn more from
https://brainly.com/question/15188713
King enterprises has an Total Asset Turnover ratio of 5.0, Profit margin of 3%, and a ROE equals to 18%. What is the firm's equity mulitplier (Total Asset/Equity)? Use DuPont Analysis.
Answer: 1.2
Explanation:
The DuPont Analysis is a method of calculating the Return on Equity by using various other ratios. It shows the relatiosnhips between variables in a firm and can help the firm know which areas to target to improve ROE.
Using the DuPont Analysis, the Return on Equity is;
ROE = Profit Margin * Asset Turnover * Equity Multiplier
18% = 3% * 5 * Equity Multiplier
18% = 0.15 * Equity Multiplier
Equity Multiplier = 18%/0.15
Equity Multiplier = 1.2
Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level).
Annual demand 2,870 mufflers Ordering cost $65per order
Standard deviation of daily demand 6 mufflers per working day Service probability 76%
Item cost $31.00 per muffler Lead time 2 working days
Annual holding cost 22% of item value Working days 205 per year
Review period 16working days
a. What is the optimal target level (order-up-to level)? (Use Excel's NORMSINV) function to find the correct critical value for the given
α-level. Do not round intermediate calculations. Round ''z'' value to 2 decimal places and final answer to the nearest whole number.)
b. If the service probability requirement is 97 percent, the optimal target level will:
_____Increase
_____Decrease
_____Stay the same
Answer:
A.) 270 units (b.) Increase
Explanation:
Given the following :
Annual demand (A) = 2870
Working days = 205
Review period (P) = 16 working days
Lead time (L) = 2 working days
Standard deviation (σ) = 6 per working day
Service probability = 76%
Therefore, z = NORMSINV(0.76) = 0.71
Average demand (D) = 2870 / 205 = 14
Optimum target level, (S) is given by the relation:
D×(P+L) + z×σ×√(P+L)
14×(16+2) + 0.71×6×√(16+2)
(14×18) + 4.26 × √18
252 + 4.26*4.242
252 + 18.07
= 270.07 units = 270 units
B) If service probability increases to 97%, Z will automatically increase, hence a corresponding increase in the optimal target level.
A company's board of directors votes to declare a cash dividend of $1.00 per share of common stock. The company has 20,000 shares authorized, 15,000 issued, and 14,500 shares outstanding. The total amount of the cash dividend is:
Answer:
$14,500
Explanation:
From the above, the below details are given;
Authorized share capital , which represent maximum number of shares that a company is allowed to issue.
Issued shares, which is the number of shares issued by a company including shares purchased and backed by a company(treasury stock).
There is also outstanding shares which is treasury stock less issued shares.
We do also know that treasury stock does not have any right of dividend because the shares are held by the company hence cannot pay dividend to itself.
Therefore, the total amount of the cash dividend is = 14,500 × $1.00
= $14,500
❗️❗️can anyone help me out with BIM PLEASE ❗️❗️(banking & credit cards)❗️Which terms describe an account that does not have sufficient funds to cover all the charges made to it? Select all that
apply.
Overdrawn
Non-sufficient funds
Insufficient funds
Loan
Overdraft
Answer:
Overdrawn
Insufficient funds
Explanation:
An account that doesn't have sufficient funds to cover all charges made against it, has special terms which bankers use to describe it. They include:
i. Insufficient funds: this refers to situation where the amount in the account is less than amount drawn on it or charges made against it.
ii. Account overdrawn: this doesn't have a special bank permit to withdraw more than what is in the account.
he inventory of Marigold Corp. was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $55,000, Sales Returns and Allowances $1,100, Purchases $33,500, Freight-In $1,500, and Purchase Returns and Allowances $1,600. Determine the merchandise lost by fire, assuming: A beginning inventory of $21,500 and a gross profit rate of 40% on net sales.
Answer:
$22,560
Explanation:
The computation of the inventory lost is shown below:
To beginning inventory $21,500 By net sales($55,000 - $1,100) $53.900
To net purchases
($33,500 - $1,600) $31,900 By merchandise lost(balance) $22,560
To freight $1,500
To gross profit
($53,900 × 40%) $21,560
Total $76,420 Total $76,420
ABG Corporation has the following dividend forecasts for the next three years: Year Expected Dividend 1 $ .25 2 $ .50 3 $ 1.25 After the third year, the dividend will grow at a constant rate of 5% per year. The required return is 10%. What is the price of the stock today?
Answer:
Price of share today = $21.302
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
Step 1 : PV of dividend from year 1 to 3
Year PV of Dividend
1 0.25 × 1.1^(-1) = 0.227
2 0.50 × 1.1^(-2) = 0.413
3 1.25 × 1.1^(-3) = 0.939
Strep 2 : PV of dividend from year 4 to infinity
PV (in year 3 terms) of dividend= 1.25 × 1.05/(0.1-0.05) = 26.25
PV in year 0 terms = 26.25 × 1.1^(-3) = 19.72
Present Value = 0.227 + 0.413 + 0.939 + 19.72 = 21.302
Price of share today = $21.302
Considering the added value chain, backward integration refers to acquiring capabilities toward suppliers, while forward integration refers to acquiring capabilities toward distribution or even customers.
a) true
b) false
Answer:
a) true.
Explanation:
Backward integration can be defined as a process in which companies use a strategy of integrating with their suppliers in order to add value to their value chain. The advantages of this process are increased production efficiency, decreased costs, increased quality, increased profitability.
Forward integration refers to a company's control process in its supply chain. It is the process that a company acquires some resources to improve essential elements of the supply chain until the product or service reaches the final customer. The benefits are: increased market share, creation of competitive barriers, maintenance of process quality, etc.
causes of child labor
Selam!
I am Turkish.
çocuk işçiliğini kötü insanlar yapar. mesela amerikanlar, ruslar ve benzeri.
İyi dersler :)
https://eodev.com/app/profile/7139574 'i takip et!
Wine and Roses, Inc., offers a bond with a coupon of 5.0 percent with semiannual payments and a yield to maturity of 5.90 percent. The bonds mature in 10 years. What is the market price of a $1,000 face value bond?
Answer:
$932.7
Explanation:
First step
Semi- annual coupon rate = 5.0%/2 = 2.5%
Interest payment = 2.5% × $1,000 = $25
Semi annual yield = 5.90%/2 = 2.95%
PV of interest payment
= A × [1-(1+r)^(-n)]/r
A means interest payment of $25
n means to maturity -10×2 = 20 periods
= $25 × [1-(1+0.0295)^(-10×2)]/0.0295
= $25 × [1-(1.0295)^(-20)]/0.0295
= $25 × 14.94648325
= $373.6620813
Second step
PV of redemption value RV
= RV × (1+r)^(-n)
= 1,000 × (1+0.0295)^(-10×2)
= 1,000 × 0.5590787441
= $559
Third step
Price of bond
= $373.7 + $559
= $932.7
From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $340,000, and March sales totaled $370,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th?
Part of the Question:
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
April May June Total
Budgeted sales (all on account) $310,000 $510,000 $160,000 $980,00
Answer:
1. A Schedule of Expected Cash Collections from Sales:
April May June Total for the
Quarter
25% sales month $77,500 $127,500 $40,000 $245,000
60% 2nd month 222,000 186,000 306,000 714,000
15% 3rd month 51,000 55,500 46,500 153,000
Total cash collections $350,500 $369,000 $392,500 $1,112,000
2. Accounts Receivable balance on June 30th:
Total beginning balance $328,500
Total quarter sales $980,000
Total due from customers $1,308,500
Cash receipts for quarter $1,112,000
Balance on June 30th $196,500
Explanation:
a) Data and Calculations:
Feb. Mar. April May June Total for the
Quarter
Sales $340,000 $370,000 $310,000 $510,000 $160,000 $980,00
Cash:
25% sales month $77,500 $127,500 $40,000 $245,000
60% 2nd month 204,000 222,000 186,000 306,000 714,000
15% 3rd month 51,000 55,500 46,500 153,000
Total cash collections $350,500 $369,000 $392,500 $1,112,000
b) Account Receivable balance
April 1, Beginning balance $51,000 from February
April 1, Beginning balance $277,500 from March
Total beginning balance $328,500
Total quarter sales $980,000
Total due from customers $1,308,500
Cash receipts for quarter $1,112,000
Balance on June 30th $196,500
c) The accounts receivable balance is the difference between the beginning balance of $328,500, the sales on account for the quarter of $1,308,500, and the cash receipts from customers for the quarter of $1,112,000. This gives a balance of $196,500, which represents 75% of June sales of $120,000 and 15% of May Sales of $76,500.
1. Total cash collections is = $1,112,000
2. Accounts Receivable balance on June 30th $196,500
Calculation of Cash collections from sales
Silver Company makes a creation that is very popular as a Mother’s Day gift. Therefore, peak sales occur in May of each year, as indicated in the company’s sales budget for the second quarter given downward:
April May June Total
Budgeted sales (all on account) $310,000 $510,000 $160,000 $980,00
Calculation of
1. A Schedule of Expected Cash Collections from Sales:
April May June Total for the
Quarter
25% sales month $77,500 $127,500 $40,000 $245,000
60% 2nd month 222,000 186,000 306,000 714,000
15% 3rd month 51,000 55,500 46,500 153,000
The Total cash collections $350,500 $369,000 $392,500 $1,112,000
2. Accounts Receivable balance on June 30th:
The Total beginning balance is $328,500
Then Total quarter sales $980,000
After that Total due from customers was $1,308,500
Then Cash receipts for the quarter of $1,112,000
The Balance on June 30th is $196,500
a) Now Data and also Calculations:
Feb. Mar. April May June Total for the
Quarter
Sales $340,000 $370,000 $310,000 $510,000 $160,000 $980,00
Cash:
25% sales month $77,500 $127,500 $40,000 $245,000
60% 2nd month 204,000 222,000 186,000 306,000 714,000
15% 3rd month 51,000 55,500 46,500 153,000
Total cash collections $350,500 $369,000 $392,500 $1,112,000
b) Now Account Receivable balance are:
April 1, Beginning balance $51,000 from February
April 1, Beginning balance $277,500 from March
The Total beginning balance is $328,500
Total quarter sales $980,000
Total due from customers $1,308,500
Cash receipts for quarter $1,112,000
Therefore, the Balance on June 30th $196,500
c) When The accounts receivable balance is the dissimilarity between the beginning balance of $328,500, Then the sales on account for the quarter of $1,308,500, and the cash receipts from customers for the quarter of $1,112,000. This gives a balance of $196,500, which represents 75% of June sales of $120,000 and also 15% of May Sales of $76,500.
Find more information about Cash collections from sales here:
https://brainly.com/question/16895931
Eppich Corporation has provided the following data for the most recent month: Raw materials, beginning balance $ 20,500 Work in process, beginning balance $ 32,800 Finished Goods, beginning balance $ 50,800 Transactions: (1) Raw materials purchases $ 79,100 (2) Raw materials used in production (all direct materials) $ 77,900 (3) Direct labor $ 52,800 (4) Manufacturing overhead costs incurred $ 92,500 (5) Manufacturing overhead applied $ 72,800 (6) Cost of units completed and transferred from Work in Process to Finished Goods $ 190,000 (7) Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold ? (8) Finished goods are sold $ 221,700 Required: Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.
Answer:
Raw Materials T - Account
Debit :
Beginning Balance $ 20,500
Raw materials purchases $ 79,100
Total $99,600
Credit :
Raw materials used in production $ 77,900
Closing Balance $ 21,700
Total $99,600
Overheads T - Account
Debit :
Manufacturing overhead costs incurred $ 92,500
Totals $ 92,500
Credit :
Manufacturing overhead applied $ 72,800
Understatement of Overheads $ 19,700
Totals $ 92,500
Work In Process T - Account
Debit :
Beginning Work In Process $ 32,800
Raw materials $ 77,900
Direct Labor $ 52,800
Manufacturing overhead applied $ 72,800
Totals $236,300
Credit :
Transferred to Finished Goods $ 190,000
Ending Work In Process $46,300
Totals $236,300
Finished Goods T - Account
Debit :
Beginning Balance $ 50,800
Transferred from Work In Process $ 190,000
Totals $240,800
Credit :
Trading Account $ 221,700
Ending Balance $ 19,100
Totals $240,800
Cost of Goods Sold = $241,400
Explanation:
Cost of Goods Sold = $ 221,700 + $ 19,700 (under-applied overheads)
= $241,400
Julie is a sales associate for ABC Realty. She sold a house that was listed in the MLS from XYZ REALTORS®. The list price was $340,000 and the property sold at 95% of list. The commission rate to the seller was 7% and the brokers divided the commission--55% to 45%--with Julie's broker getting 45%. Julie and her broker split the commission equally. How much did Julie make in commission on this sale?
Answer:
Julie made $5,087.25 in commission on this sale.
Explanation:
Selling price of the property = Listed price * Percentage of listed at which the property is sold = $340,000 * 95% = $323,000
Commission on sales of the property = Selling price of the property * Commission rate = $323,000 * 7% = $22,610
Amount of the commission to Julie's broker = Commission on sales of the property * Commission share percentage to Julie's broker = $22,610 * 45% = $10,174.50
Since Julie and her broker split the commission equally, we have:
Commission made by Julie from the property sale = Amount of the commission to Julie's broker / 2 = $10,174.50 / 2 = $5,087.25
Therefore, Julie made $5,087.25 in commission on this sale.
The Oriole Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $1,760 per month
Maid service $24 per room
Other costs $46 per room
Determine the inn’s break-even point in number of rented rooms per month.
Answer:
Break-even point in units= 402 rooms a month
Explanation:
Giving the following information:
The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $1,760 per month
Maid service $24 per room
Other costs $46 per room
First, we need to calculate the total fixed costs and the unitary variable cost.
Total fixed costs= salaries + utilities + depreciation + maintenance
Total fixed costs= $12,060
Unitary variable cost= 24 + 46= $70
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,060/ (100 - 70)
Break-even point in units= 402 rooms a month
The American Recovery and Reinvestment Act introduced a large amount of government spending into the economy—$789 billion! Suppose the marginal propensity to consume in the United States is 0.85. How much would the program increase total spending in the economy?
Answer:
$5,262.63
Explanation:
The computation of the program increase in total spending in economy is shown below:
But before that we need to find out the government spending multiplier is '
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.85)
= 6.67
Now
The increase in total spending is
= increase in spending × spending multiplier
= $789 billion × 6.67
= $5,262.63
Hence it would be increased by $5,262.63
An account is today credited with its annual interest thereby bringing the accountbalance to $12,490. The interest rate is 5.70% compounded annually. You plan tomake annual withdrawals of $1,450 each. The first withdrawal is in exactly one yearand the last in exactly 9 years. Find the account balance immediately after the lastwithdrawal.
Answer:
Explanation:
Let the account balance be B .
Equating the present value of money at 5.7 % discount
12490 = 1450 ( PVIFA , 5.7 , 9 ) + B ( PVIF , 5.7 , 9 )
= 1450 x 6.8938 + .6072 x B
= 9996.01 + .6072B
.6072 B = 2494
B = 4107
A machine costing $57,000 with a six-year life and $54,000 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation.
Answer:
$9,000
Explanation:
The computation of the depreciation expense using the straight-line method is shown below;
= (Purchase value of machinery - residual value) ÷ (estimated useful life)
= $54,000 ÷ 6 years
= $9,000
The depreciation cost is the cost which is come after considering the salvage value and the same is to be considered
Hence, the depreciation expense is $9,000
Baxter Company produces Frisbees using a threeminusstep sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated Manufacturing Overhead?
The options are:
A) When the Frisbees are in WIP InventoryWIP Inventory-Molding
B) When the Frisbees are in WIP InventoryWIP Inventory-Finishing
C) When the Frisbees are in WIP InventoryWIP Inventory-Coloring
D) All of the above
Answer:
D) All of the above
Explanation:
Manufacturing overhead is defined as all manufacturing cost incurred in producing a good that cannot be traced directly to the product in an economically feasible way.
For example processes in Work In Process stage of manufacturing such as labour and utility expenses are manufacturing overhead costs. Work in process is the manufacturing stage where goods are converted from raw goods to partially finished goods.
So all the options given which are on the WIP are correct.
The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 30,000 shares were originally issued and 5,000 were later reacquired. what is the number of shares outstanding?
Answer:
The answer is 25,000 shares.
Explanation:
The 100,000 shares is the authorised shares which is the maximum number of shares an entity is permittee to issue to investors as being stipukated in its articles of incorporation.
The 30,000 shares is the outstanding shares which is the total number of shares issued to existing shareholders.
The 5,000 shares reacquired is known as treasury stock. Companies repurchased the shares.
So total number of outstanding shares is:
30,000 shares - 5,000 shares
= 25,000 shares
The number of shares outstanding is 25,000.
The calculation is as follows:
= Originally issued - reacquired shares
= 30,000 - 5,000
= 25,000
Therefore we can conclude that The number of shares outstanding is 25,000.
Learn more; brainly.com/question/17429689
A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Union. Its choices are given below. The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. If these are the firm's only options, which one would you advise it to choose? Why?
a. Manufacture the product at home and let foreign sales agents handle marketing.
b. Manufacture the product at home and set up a wholly owned subsidiary in Europe to handle marketing.
Answer:
Correct Answer:
a. Manufacture the product at home and let foreign sales agents handle marketing.
Explanation:
For the small Canadian company, manufacturing the product at home (Canada) would afford them the opportunity to protect their new medical product from piracy. Also, they would be able to receive tax incentives from their government as well file for patent of their new innovation.
The foreign agent would strictly be focused on the marketing of the finished product without having access to the detailed information of the product.
Life Savers Gummies Fruit Splosions, liquid-filled gummies combined with a burst of real fruit juice, are a new product for The Wrigley Co. Before marketing the product nationwide, Wrigley gave out samples of the candy at several rock concerts and then recorded consumers' feelings about the candy, its taste, and its name. In which stage of the new-product development process would this have happened
Answer: D. Test marketing
Explanation:
Test Marketing is a stage in the New Product Development process where the product is tested in the real world or the Field Laboratory as it is otherwise known. Here the consumers are given a sample of the products and their responses are recorded without them knowing they are part of a test making their reactions as genuine as can be.
This stage helps the company more accurately ascertain how the new product will fare in the real world thereby giving them a chance to fix whatever needs fixing.
Which of the following will cause an increase in the supply of a product?
A.)production increases
B.)establishment of new companies
C.)both a and b
D.)neither a or b
Answer:
C.)both a and b
Explanation:
when production increases more unit of goods will be produced. when more number of goods will be produced, more will be available for supply in market.Hence, we can say that production increase cause an increase in the supply of a product.
When new company companies establishes for production of a same same type of product, the production of product will increase when product production is measured altogether for the product and hence number of product in the market will increase and hence the supply of product will increase. Hence, we can say that establishment of new companies cause an increase in the supply of a product.
Thus, option C both a and b is the correct answer.
Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost $240,000 and have a useful life of five years. The system yields an incremental after-tax income of $69,230 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $9,000. A machine costs $170,000, has a $13,000 salvage value, is expected to last nine years, and will generate an after-tax income of $38,000 per year after straight-line depreciation.
Answer:
Investment Payback period(in years)
A 2.08
B 3.066
Explanation:
The payback period is the length of time in years it will take the net cash inflow of a project to recoup its initial cost
Payback period = Initial cost of investment /Annual net cash inflow
Investment A
Annual depreciation = (Cost - Salvage value)/Number of years
= (240,000 - 9,000)/5 =
Annul cash inflow = 69,230 + 46200 = 115,430
Payback period = Initial cost of investment /Annual net cash inflow
= 240,000/ 115,430 = 2.079
Investment B
Annual depreciation = (Cost - Salvage value)/Number of years
= (170,000 - 13,000)/9 = 17,444.444
Annul cash inflow= 38,000 + 17,444.44= 55,444.44
Payback period = 170,000 /55,444.44 =3.067
Investment Payback period(in years)
A 2.08
B 3.066
If the supplies on hand at the end of January totaled $500 and the Supplies on Hand account before adjustment is $900, what should be the adjustment at month-end
Answer:
The adjustment at month-end is :
Supplies Expense $400 (debit)
Supplies $400 (credit)
Explanation:
The Supplies Account is an asset Account that decreases as the supplies are used in the business.
The use of supplies prompts the recognition of an expense and de-recognition of an asset as follows :
Supplies Expense $400 (debit)
Supplies $400 (credit)
New Era Cleaning Service, Inc. opened for business on July 1, 2010. During the month of July, the following transactions occurred:
July 1: Issued $18,000 of common stock for $18,000 cash.
July 1: Purchased a truck for $11,000. Paid $4,000 in cash and borrowed the remainder (long term) from the bank.
July 3: Purchased cleaning supplies for $900 on account.
July 5: Paid $1,800 on a one-year insurance policy, effective July 1.
July 12: Billed customers $4,800 for cleaning services.
July 18: Paid $1,500 of the amount owed on the truck.
July 18: Paid $500 of the amount owed on cleaning services.
July 20: Paid $1,700 for employee salaries.
July 21: Collected $1,200 from customers billed on July 12.
July 25: Billed customers $1,900 for cleaning services.
July 31: Paid gas and oil for the month on the truck, $500.
July 31: Paid a $800 dividend.
Please complete the following tasks: Post the July transactions to the general journal and the general ledger "T" account
repare an unadjusted trial balance; Post the following adjustments:
(a) Earned but unbilled fees at July 31 were $1,400
(b) Depreciation for the month was $200
(c ) One-twelfth of the insurance expired
(d) An inventory count showed $300 of cleaning supplies remaining on July 31
Answer:
New Era Cleaning Service, Inc.
a) General Journal:
July 1:
Debit Cash Account $18,000
Credit Common Stock $18,000
To record the issue of common stock for cash.
July 1:
Debit Truck $11,000
Credit Cash $4,000
Credit Bank Loan $7,000
To record the purchase of a truck.
July 3:
Debit Supplies $900
Credit Accounts Payable $900
To record the purchase of cleaning supplies on account.
July 5:
Debit Prepaid Insurance $1,800
Credit Cash Account $1,800
To record the payment of insurance for a year.
July 12:
Debit Accounts Receivable $4,800
Credit Service Revenue $4,800
To record services rendered on account.
July 18:
Debit Bank Loan $1,500
Credit Cash Account $1,500
To record payment on bank loan.
July 18:
Debit Accounts Payable $500
Credit Cash Account $500
To record payment on account.
July 20:
Debit Salaries $1,700
Credit Cash Account $1,700
To record payment of salaries.
July 21:
Debit Cash Account $1,200
Credit Accounts Receivable $1,200
To record receipt of cash on account.
July 25:
Debit Accounts Receivable $1,900
Credit Service Revenue $1,900
To record services rendered on account.
July 31:
Debit Automobile Fuel $500
Credit Cash Account $500
To record payment for gas and oil for the month.
July 31:
Debit Dividends $800
Credit Cash Account $800
To record payment for dividends.
b) General Ledger "T-account":
Cash Account
July 1 Common Stock $18,000 July 1 Truck $4,000
July 21 Accounts Receivable 1,200 July 5 Insurance 1,800
July 18 Bank Loan 1,500
July 18 Accounts Payable 500
July 20 Salaries 1,700
July 31 Automobile Fuel 500
July 31 Dividend 800
July 31 Balance c/d 8,400
19,200 19,200
Balance b/d 8,400
Common Stock
July 1 Cash account $18,000
Bank Loan
July 18 Cash 1,800 July 1 Truck $7,000
July 31 Balance c/d 5,200
7,000 7,000
Balance b/d 5,200
Truck
July 1 Cash $4,000 July 31 Balance c/d $11,000
July 1 Bank loan 7,000
11,000 19,200
Balance b/d 11,000
Supplies
July 3 Cash 900
Accounts Payable
July 18 Cash 500 July 3 Supplies 900
July 31 Balance c/d 400
900 900
Balance b/d 400
Prepaid Insurance
July 5 Cash 1,800
Service Revenue
July 31 Balance c/d 6,700 July 12 Accounts Receivable $4,800
July 25 Accounts Receivable $1,900
6,700 6,700
Balance b/d 6,700
Accounts Receivable
July 12 Service Revenue $4,800 July 21 Cash $1,200
July 25 Service Revenue 1,900 July 31 Balance c/d 5,500
6,700 6,700
Balance b/d 5,500
Salaries
July 20 Cash $1,700
Automobile Fuel
July 31 Cash $500
Dividend
July 31 Cash $800
Trial Balance as of July 31:
Description Debit Credit
Cash $8,400
Common Stock $18,000
Bank Loan 5,200
Truck 11,000
Supplies 900
Accounts Payable 400
Prepaid Insurance 1,800
Service Revenue 6,700
Accounts Receivable 5,500
Salaries 1,700
Automobile Fuel 500
Dividends 800
Total
c) Adjusting Journal Entries at July 31:
a) Debit Accounts Receivable $1,400
Credit Service Revenue $1,400
To record unbilled fees.
b) Debit Depreciation Expense $200
Credit Accumulated Depreciation $200
To record depreciation expense for the month.
c) Debit Insurance Expense $150
Credit Prepaid Insurance $150
To record a month's insurance expense.
d) Debit Supplies Expense $300
Credit Supplies $300
To record supplies expense.
Explanation:
Journal entries initially record transactions on a day-to-day basis. From the journal, the transactions are posted to the ledger accounts (e.g. T-accounts) and a trial balance is extracted to check if the two sides are in agreement. At the end of the accounting period, adjusting entries are recorded in the general journal to ensure that accounts are based on the accrual concept and not on cash basis.
The trial balance for Skysong, Inc. appears as follows: Skysong, Inc. Trial Balance December 31, 2022 Cash $280 Accounts Receivable 480 Prepaid Insurance 75 Supplies 166 Equipment 3680 Accumulated Depreciation, Equipment $550 Accounts Payable 353 Common Stock 1100 Retained Earnings 1290 Service Revenue 2768 Salaries and Wages Expense 920 Rent Expense 460 $6061 $6061 If, on December 31, 2022, the insurance still unexpired amounted to $18, the adjusting entry would contain a:
Answer:
Debit Insurance expenses for $57
Credit Prepaid insurance for $57
Explanation:
From the Trial Balance, Prepaid Insurance is $75. Since on December 31, 2022, the insurance still unexpired amounted to $18, the insurance expenses for the year can therefore be calculated as follows:
Insurance expenses = $75 - $18 = $57
The adjusting entries will therefore be as follows:
Particulars Dr ($) Cr ($)
Insurance expenses 57
Prepaid insurance 57
(To record insurance expenses for the year.)
Note that the amount of $18 unexpired insurance will now be the Prepaid insurance that will appear as an asset under the Current Asset in the balance sheet, while the $57 insurance expenses will be charged as an expense in the income statement.
Based on the following information for Builtrite, calculate the current value of its stock if the current dividend is $3.00, a projected super normal growth for three years at 20%, the growth rate after year 3 should remain constant at 9% and you want to earn a 16% annual return. What would you be willing to pay for Builtrite stock?
Answer:
$61.35
Explanation:
The computation of the current value of the stock is shown below:
Current Dividend = D0 = $3.00
Super Normal growth for next 3 years = g1 = 20% or 0.20
Growth Rate after 3 year = g2 = 9% or 0.09
Required rate of Return = r = 16% or 0.16
Now
as we know that
Value of Share (P0) is
= [D1 ÷ (1 + r)] + [D2 ÷ (1 + r)^2] + [D3 ÷ (1 + r)^3] + [P3 ÷ (1 +r )^3]
Where
D1 = Dividend in year 1
D2 = Dividend in year 2
D3 = Dividend in year 3
P3 = Value of share at the end of year 3
Now first we have to compute the P3 value which is
P3 = D4 ÷ (r - g2)
= D0 × (1 + g1)^3 (1 + g2) ÷(r - g2)
= $3.00 × (1 + 0.20)^3 (1 + 0.09) ÷ (0.16-0.09)
= $5.65056
Now
Value of Share (P0) is
= [D1 ÷ (1 + r)] + [D2 ÷ (1 + r)^2] + [D3 ÷ (1 + r)^3] + [P3 ÷ (1 + r)^3]
= [D0 × (1 + g1) ÷ (1 + r)^1] + [D0 × (1 + g1)^2 ÷ (1 + r)^2] + [D0 × (1 + g1)^3 ÷ (1 + r)^3] + [P3 ÷ (1 + r)^3]
= [$3.00 × (1 + 0.20) ÷ (1 + 0.16)^1] + [$3.00 × (1 + 0.20)^2 ÷ (1 + 0.16)^2] + [$3.00 × (1 + 0.20)^3 ÷ (1 + 0.16)^3] + [$5.65056 ÷ (1 + 0.16)^3]
= $3.10 + $3.21 + $ 3.32 + $51.72
= $61.35