Which of the following is a disadvantage of franchising? a. It requires the franchisees to create a new business model and plan strategies. b. It results in the franchisor taking all the financial burden of the franchisees. c. It does not provide sufficient incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs. d. It restricts the franchisor from expanding. e. It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.

Answer:

e. It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.

Explanation:

Indeed, by selling or granting (licensing) the right to use the company's name/brand, or employing the same method of operations to another enterprise (called the franchisee), a franchisor may face disadvantages resulting in loss of complete control.

In other words, the franchisee may begin to feel they could be and should be able to decide how to carry out their operations without help from the franchisor.

Lisa is a sales manager at a clothing retail store. She has hired you, a recent graduate with a marketing degree with an emphasis on marketing information systems. She wants you to analyze big data that the company has gathered on its customers to come up with Ideal Customer Profiles so that the firm can make marketing Investment decisions to attract such customers. Lisa explains that an ideal customer profile is a description of the demographics, psychographies, and behavior of the customers who are most likely to purchase their firm's product. In order to identify the ideal Customers, you must determine the Customer Acquisition Costs, Lifetime Value, Payback Periods, and Customer Retention. You are familiar with these concepts because you learned about them in your marketing classes.You are now ready to calculate the Customer Lifetime Value, which Lisa wants calculated as a forecast of the net profit related to the whole purchase future associated with a customer. It equals the monthly sales to a certain customer, multiplied by the gross profit percentage, multiplied by the number of lifetime months a customer is expected to purchase from a certain store. Using company data, you have determined that the gross profit percentage is 25 percent, or 0.25. The monthly sales to an average customer would be $150 for the first group and $210 for the second group.A. Monthly Sales to a CustomerB. Gross Profit Percentage C. Number of Lifetime Months D. Customer Lifetime Value Over a 240-month period, what is the Customer Lifetime Value for the first group? a. $11,000 b. $9,000 c. $10,000 d. $12,000

At the beginning of the period, the Cutting Department budgeted direct labor of $139,000, direct materials of $152,000 and fixed factory overhead of $13,000 for 7,700 hours of production. The department actually completed 11,700 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting

The following information was taken from the records of Whispering Inc. for the year 2020: Income tax applicable to income from continuing operations $243,100; income tax applicable to loss on discontinued operations $33,150, and unrealized holding gain on available-for-sale securities (net of tax) $19,500.
Gain on sale of equipment $ 123,500
Cash dividends declared $195,000
Loss on discontinued operations 97,500
Retained earnings January 1, 2020 3,480,000
Administrative expenses 312,000
Cost of goods sold 1,105,000
Rent revenue 52,000
Selling expenses 390,000
Loss on write-down of inventory 78,000
Sales Revenue 2,470,000
Shares outstanding during 2020 were 100,000.
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a comprehensive income statement for 2017, using the two statement format.

You are interviewing for an entry-level financial analyst position with Wayne Industries. Bruce Wayne, the senior partner, wants to be sure all the people he hires are very familiar with basic accounting principles. He gives you the following data and asks you to fill in the missing information. Each column is an independent case. Month and day reference are for the current year.
Case A Case B
Revenues 200,000
Expenses 70,000
Net Income
Retained Earnings, Jan 1 300,000 100,000
Dividends Paid 70,000 30,000
Retained Earnings, Dec 31 270,000
Current Assets, Dec 31 80,000
Non-current Assets, Dec 31 180,000
Total Assets, Dec 31 410,000
Current Liabilities, Dec 31
Total Liabilities, Dec 31 140,000
Total Stockholder's Equity, Dec 31 210,000

100 POINTS PLZ HELP
Career and Technical Student Organizations: Tutorial
Choosing a Professional Organization
This activity will help you meet these educational goals:
Content Standards— You will research and choose a professional organization for your chosen career path.
Inquiry—You will conduct online research in which you will collect information and communicate your results in written form.
21st Century Skills — You will use critical-thinking and problem-solving skills.
Directions
Read the instructions for this self-checked activity. Type in your response to each question, and check your answers. At the end of the activity, write a brief evaluation of your work.
Activity
Identify three professional organizations for your chosen career via Internet research. Describe the membership requirements, as well as any certifications that the organization might offer. Why would you join the organization? What are the benefits of joining it? What are the drawbacks? Do you have to get any certifications? Identify the one organization that you believe would be the best for a professional entering the field in that chosen career cluster, and explain why.

The modern business environment has been shaped by political and economic events. Rapid growth and change in many areas have been typical in the past two or three decades. In the midst of growth and change, some trends have emerged as the drivers of change. Political and economic trends have different dynamics.

The international business manager needs a clear vision and understanding of world events and the markets and countries in which he or she operates. Putting current events into the historical context provides the manager with the ability to distinguish anomalies from trend events. The same vision and understanding offer the manager insights into timing and opportunity.

The transformation of the political economy of the world's nations has been driven by a wave of democratic revolutions and the strong move toward a more free market economic model. International business managers must assess the attractiveness of specific locations. Countries with democratic regimes, market-based economic policies, and strong protection of property rights are more likely to attain a high and sustained growth rate. These countries are attractive locations for international business.

Identify whether the trend is primarily political or economic in nature.

a. Spread of market based systems
b. New world order
c. Privatization
d. Deregulation
e. Spread of democracy

During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021, you discover the following:

a. An insurance policy covering three years was purchased on January 1, 2021, for $6,600. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item.
b. During 2021, the company received a $850 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $850 was credited to sales revenue. No entry was recorded for the cost of merchandise.
c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $900 were on hand at December 31.
d. Hales borrowed $25,000 from a local bank on October 1, 2021. Principal and interest at 12% will be paid on September 30, 2022. No accrual was recorded for interest.
e. Net income reported in the 2021 income statement is $40,000 before reflecting any of the above items.

Required:
Determine the proper amount of net income for 2021.

Listed below are nine technical accounting terms introduced:


Variable costs Relevant range Contribution margin
Break-even point Fixed costs Semi-variable costs
Economies of scale Sales mix Unit contribution margin


Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.

a. The level of sales at which revenue exactly equals costs and expenses.
b. Costs that remain unchanged despite changes in sales volume.
c. The span over which output is likely to vary and assumptions about cost behavior generally remain valid.
d. Sales revenue less variable costs and expenses.
e. Unit sales price minus variable cost per unit.
f. The reduction in unit cost achieved from a higher level of output.
g. Costs that respond to changes in sales volume by less than a proportionate amount.
h. Operating income less variable costs.

4. What is a power machine's "throw"?
OA. The direct line out from the tool.
OB. The machine's horsepower.
OC. The speed of the machine's moving parts.
OD. The material the machine operates on.

Consider the subschema of a receiving clerk. The receiving clerk needs sufficient rights in her logical view to perform her duties but not be given rights that she does not need. Within her duties, she validates that items being received were ordered from a supplier before she accepts shipments from that supplier. To do so she must be able to see purchases from each supplier. Determine which rights (Create, Read, Update, and Delete) the receiving clerk should have for data corresponding to sales, cash receipts, purchases, and suppliers.

Auto Parts, Inc. is medium-sized company that manufactures auto parts in Buffalo, New York. The company currently loses $40,000 per month. The owner of the company is evaluating whether she should shut down the factory. She thinks that the factory should continue to operate until the economic environment improves and buyer for the factory can be identified. The logic of the owner is that her company has already invested millions of dollars in the factory over the years. The monthly fixed costs for the factory are $30,000. The CEO of Auto Parts, Inc. thinks the factory should be shut down because most the monthly fixed costs ($30,000/month) are sunk costs.
Do you agree with the owner or the CEO?

Gross wage refers to the wage an employee ears before deductions are subtracted.
True
False

Bacrometer, Inc., makes part no. 566 on one of its production lines. Each month Bacrometer makes 6,000 of part no. 566 at a variable cost of $4 per part. Bacrometer has been provided a bid for part no. 566 from another manufacturer that will make the part for $5 per part. Bacrometer knows the production line could be rented to another manufacturer for $8,000 per month. Fixed costs associated with the production line will remain unchanged regardless of the company's decision.
a. Compute the incremental cost to make with the incremental cost to buy. Remember the incremental cost to make includes the opportunity cost of the foregone rent revenue.b. Should Bacrometer continue to make part no. 566?

In the current year, Nighthawk Corporation, a calendar year C corporation, has $5,080,000 of adjusted taxable income and $152,400 of business interest income. Nighthawk has no floor plan financing interest. The business interest expense for the year is $2,032,000. a. Assume that Nighthawk has average gross receipts for the prior three-year period of $35,200,000. Determine Nighthawk's current-year deduction for business interest. $______ b. Assume that Nighthawk has average gross receipts for the prior three-year period of $19,500,000. Determine Nighthawk's current-year deduction for business interest. $______

how does a strong economy affect the demand for goods and services

Crawford corporation incurred the following transactions.
1. Purchased raw materials on account of $54,900.
2. Raw Materials of $42,500 were requisitioned to the factory, An analysis of the materials requisition slips indicated that $8,400 was classified as an individual.
3. labor costs incurred were $67,100, of which $50,800 pertained to factory wages payable and $16,300 pertained to employer payroll taxes.
4. Time tickets indicated that $54,300 was direct labor and $12,800 was indirect labor.
5. Manufacturing overhead costs incurred on account were $84,300.
6. Depreciation on the company's office building was $8,600.
7, Manufacturing overhead was applied at the rate of 150% of direct labor cost.
8. Goods costing $90,400 were completed and transferred to finished goods.
9. Finished goods costing $82,300 to manufacture were sold on account for $112,700.
Journalize the transactions. (credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Hair​ Stylists's adjusted trial balance and statement of retained earnings follow:

Daniel Hair Stylists Adjusted Trial Balance December 31, 2018

Account Balance Debit Credit
Cash $1,000
Accounts Receivable 900
Office Supplies 600
Equipment 19,700
Accumulated Depreciation - Equipment $2,000
Accounts Payable 900
Interest Payable 550
Notes Payable 3,400
Common Stock 10,650
Dividends 700
Service Revenue 14,100
Rent Expense 5,200
Supplies Expense 100
Depreciation Expense - Equipment 2,000
Interest Expense 1,400
Total $31,600 $31,600



Daniel Hair Stylists Statement of Retained Earnings Year Ended December 31, 2018:

Retained Earnings, January 1, 2018 $0
Net Income for the year 5,400
5,400
Dividends (700)
Retained Earnings, December 31, 2018 $4,700

Required:
Prepare Daniel's classified balance sheet at December 31, 2018. Assume the Notes Payable is due on December 1, 2025. Use the report form.

Urban Window Company had gross wages of $309,000 during the week ended July 15. The amount of wages subject to social security tax was $278,100, while the amount of wages subject to federal and state unemployment taxes was $39,000. Tax rates are as follows:

Social security 6.0%
Medicare 1.5%
State unemployment 5.4%
Federal unemployment 0.6%

The total amount withheld from employee wages for federal taxes was $61,800.

Required:
a. Journalize the entry to record the payroll for the week of July 15.
b. Journalize the entry to record the payroll tax expense incurred for the week of July 15.

JLR Enterprises provides consulting services throughout California and uses job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead and markup. JLR's director of cost management, Brent Dean, anticipates the following costs for the upcoming year. Cost Percentage of Cost Directly Traceable to ClientsProfessional staff salaries ………………………….$2,500,000 ………………………………80%Administrative support staff ………………………. 300,000 ……………………………… 60%Travel ……………………………………………… 250,000 ………………………… 90%Photocopying ………………………………………….50,000 ……………………………… 90%Other operating costs ………………………………. 100,000 ……………………………… 50%Total ……………………………………………… $3,200,000 …………………The firm’s partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to achieve that figure.On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs, $1,400.Required:Question 1. Determine JLR’s total traceable costs for the upcoming year and the firm’s total anticipated overhead.Question 2. Calculate the predetermined overhead rate. The rate is based on total costs traceable to client jobs.Question 3. What percentage of cost will JLR add to each job to achieve its profit target?Question 4. Determine the total cost of the Martin Manufacturing project. How much would Martin be billed for services performed?Question 5. Notice that only 50 percent of JLR’s other operating cost is directly traceable to specific client projects. Cite several costs that would be included in this category and difficult to trace to clients.Question 6. Notice that 80 percent of the professional staff cost is directly traceable to specific client projects. Cite several reasons that would explain why this figure isn’t 100 percent.

On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $90,000 in cash along with equipment having a $50,000 value in exchange for common stock. On May 21, Elegant Lawns purchases office supplies on credit for $680. On May 25, Elegant Lawns receives $9,800 cash for performing landscaping services. On May 30, Elegant Lawns receives $3,000 cash in advance of providing landscaping services to a customer.

Required:
For each transaction:

a. Analyze the transaction using the accounting equation
b. Record the transaction in journal entry form
c. Post the entry using T-accounts to represent ledger accounts.

Aubrey Inc. issued $4,000,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,500,000 of these bonds were converted into 30,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. Instructions a. Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued. (Round to nearest dollar.) b. Prepare the entry(ies) to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.

You buy a house for $299,000.
If you make a 20% down payment, find the value of the
a. Down payment $ 59800
If you take out a loan for the remainder of the house, find the
b. Loan amount $ 239200
Question 2
How much will your principal and interest payment be per month if you take out a 30-
year loan with an interest rate of 4.25%.
Question 3
How much would you pay in total per month for the 30-year loan if you pay $3200/year
in taxes, $1050/year in insurance and $28/month for the homeowner's association?
Question 4
How much of the first payment for the 30-year loan is interest?
Question 5
How much of the first payment for the 30-year loan is principal?
Question 6
How much in total will you pay for the 30-year loan?
Question 7
How much will you pay in interest for the 30-year loan?

You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate column.

1 Cash 8 Common Stock
2 Accounts Receivable 9 Retained Earnings
3 Paper Supplies 10 Dividends
4 Copy Machines 11 Service Revenue
5 Accounts Payable 12 Advertising Expense
6 Note Payable 13 Rent Expense
7 Unearned Revenue


Number(s) of account(s) debited Number(s) of account(s) credited

1. Stockholders invest $90,000 cash to start the business.
2. Purchased three digital copy machines for $400,000, paying $100,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,000 paper supplies on credit.
4. Cash received for photocopy services amounted to $7,000.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,500 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,000 cash advance from a customer for future copying.
10. Billed a customer for $450 for photocopy services completed.

A dairy producer has determined that almost all grocery consumers are potential customers for its products. Which type of marketing strategy should the
company use?

For each item below, indicate whether a debit or credit applies.
1. Decrease in Notes Payable
2. Increase in Dividends
3. Increase in Common Stock
4. Increase in Unearned Rent Revenue
5. Decrease in Interest Payable
6. Increase in Prepaid Insurance
7. Decrease in Salaries and Wages Expense
8. Decrease in Supplies
9. Increase in Revenues
10. Decrease in Accounts Receivable

Anchor, Inc. had income after taxes of $500,000 for the current year. An average of 125,000 shares of Anchor’s common stock was outstanding for the entire year, and 130,000 shares were outstanding at year-end. In addition, options were outstanding throughout the year to buy 12,000 shares of Anchor common stock at $7.50 per share. During the year, Anchor’s common stock had an average market price of $9 per share. The stock was selling for $10 per share at year-end. Anchor is subject to a 34% tax rate and amortizes its bonds using a straight-line method.
Anchor had the following convertible securities outstanding throughout the current year:
1. 6%, cumulative, convertible preferred stock. Each $10 par value share is convertible into 1.5 common shares. A total of $100,000 par value is outstanding.
2. 8%, 10-year, $1,000 par convertible bonds that were issued at 105. Total par value outstanding is $100,000. Each bond converts into 90 shares of common stock.
3. 13%, 5-year, $1,000 par convertible bonds that were issued at 97. Total par value outstanding is $30,000. Each bond converts into 30 shares of common stock.
4. 7%, 8-year, $1,000 par convertible bonds that were issued at 95. Total par value outstanding is $60,000. Each bond converts into 20 shares of common stock.
5. An 11%, 20-year, $1,000 par convertible bonds that were issued at face value. The total par value outstanding is $500,000. Each bond converts into 20 shares of common stock.
Required:
Calculate Anchor Inc.’s basic and diluted EPS for the current year.
Note: Use straight-line amortization for all the bonds. For example, if you have a 15 year, 10%, $1,000 face value bond issued at 85 and a $150 discount at issue, then $10 will be amortized each period using straight line amortization. You would have the following:
At issue:
Cash 850
Discount on B/P 150
Bonds Payable 1,000
Periodic entries:
Interest Expense 110
Discount on B/P 10
Cash 100

When the government decides to cut military spending, it is implementing a(n) _____ policy.

During the year, Belyk Paving Co. had sales of $2,275,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,285,000, $535,000, and $420,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.)
a. What is the company’s net income?
b. What is its operating cash flow?
c. Explain your results in parts (a) and (b)

A last-mile delivery service is looking into increasing capacity by purchasing new delivery vans. Two vans are being considered. Van A costs $50,000 with a variable cost of $12.00 per average delivery, all inclusive of gasoline, insurance, etc. Van B costs $70,000 with a variable cost of $11.00 per average delivery. The company is also considering a courier service which requires a $60,000 non-refundable joiner fee and a variable cost of $13.00 per average delivery. Last but not least the company is also considering a new drone delivery option that requires an investment in infrastructure of $100,000 and a delivery cost of $15.00 per delivery, but costs are expected to drop sharply in the foreseeable future.
a. What of the following is NOT true?
A. In the long run, Option B with its $11.00 variable cost is the best option
B. The drone option should be chosen because it is the least expensive in terms of both fixed and variable cost.
C. Option A requires the smallest initial cash outlay, followed by using the courier service, followed by Option B.
D. There is no point of indifference/break even between Option A and using the courier service
b. ________ is preferred at volumes below_______ while_______ is preferred at volume above_______
A. B and 30,000, A and 20,000
B. B and 5,000, C and 5,000
C. C is always preferred to A at every volume
D. A and 20,000, B and 20,000

The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 7,390 batteries at a cost of $145 per battery. It withdrew 6,800 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in cars being used by the company’s traveling sales staff. The remaining 6,700 batteries withdrawn from the storeroom were placed in cars being produced by the company. Of the cars in production during April, 90 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 30 percent were unsold at April 30th.

1. Determine the cost of batteries that would appear in eachof the following accounts at April 30.

a. raw materials
b. work in process
c. finished goods
d. cost of goods sold
e. selling expanse

2. Specify whether each of the above accounts would appear onthe balance sheet or on the income statement at April 30.