Answer:
1.97%
Explanation:
The formula to calculate the holding period return is:
HPR=(Income generated+(ending value-initial value)/Initial value)*100
Income generated= $24
Ending value= $884.89
Initial value= $891.26
HPR=(24+(884.89-891.26)/891.26)*100
HPR=(24+(-6.37)/891.26)*100
HPR=(17.63/891.26)*100
HPR=0.0197*100
HPR= 1.97%
According to this, the holding period return (HPR) on the bond as of today is 1.97%.
Sibling Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow:
Furniture has three sales representatives: Archie, Bryce, and Crissy. Archie sold 70 tables with 8 chairs each. Bryce sold 50 tables with 4 chairs each. Crissy sold 80 tables with 6 chairs each.
Requirement
Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places) Before calculating the total contribution margin, begin by identifying and calculating the total number of tables and chairs sold by each sales representative for the period.
Sales representative Tables sold Chairs per table Total chairs sold
Archie
Bryce
Cory
Answer:
contribution margin CMR (%)
Archie $51,100 39.9%
Bryce $26,500 20.7%
Cory $50,400 39.4%
Total $128,000 100%
Explanation:
sales price per table $1,100
variable production costs $715
sales commissions $55
contribution margin per table $330
sales price per chair $100
variable production costs $45
sales commissions $5
contribution margin per chair $50
Archie sold 70 tables and 560 chairs, total contribution margin:
tables ⇒ 70 x $330 = $23,100
chairs ⇒ 560 x $50 = $28,000
total = $51,100
Bryce sold 50 tables and 200 chairs, total contribution margin:
tables ⇒ 50 x $330 = $16,500
chairs ⇒ 200 x $50 = $10,000
total = $26,500
Cory sold 80 tables and 480 chairs, total contribution margin:
tables ⇒ 80 x $330 = $26,400
chairs ⇒ 480 x $50 = $24,000
total = $50,400
contribution margin %
Archie $51,100 39.9%
Bryce $26,500 20.7%
Cory $50,400 39.4%
Total $128,000 100%
A. Why may a hotel charge such very high prices for wine, soft drinks or even bottled water and yet quite reasonable prices for food and still get away with such high prices?
Answer:
The justification given is indeed the performance, product as well as the location which makes up for the exorbitant cost charged.
Explanation:
It's indeed primarily although together with the goods, they have their service. The hotels wouldn't go out of operation even though they demand these high costs since perfect pairing some other considerations included within the amount, including the environment, infrastructure, facilities, services, etc.The income elasticity becomes extremely relatively elastic, which means the demand doesn't really exist based on the paid costs.MacKenzie Company sold $620 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 5.0% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:
Answer:
DR Cash $589
DR Credit Card expense $31
CR Sales $620
(To record sales via credit card)
Working
Cash
= 620 * ( 1 - 5%)
= $589
Credit Card Expense
= 620 * 5%
= $31
Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent. The current yield on these bonds is 7.55 percent. How many years do these bonds have left until they mature?
Answer:
11.057 years
Explanation:
For computing the number of years we need to apply the NPER formula i.e to be represented in the attachment below:
Given that,
Present value = $1,000 × 8% ÷ 7.55% = $1,059.60
Assuming Future value = $1,000
Rate of interest = 7.2%
PMT = $1,000 × 8% = $80
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the number of years is 11.057 years
Wolfpack Construction has the following account balances at the end of the year. Accounts Balances Equipment $ 19,000 Accounts payable 1,600 Salaries expense 26,000 Common stock 12,000 Land 11,000 Notes payable 13,000 Service revenue 32,000 Cash 4,600 Retained earnings ?
Answer:
$6,000
Explanation:
Net income for the year = Service revenue - Salaries
= $32,000 - $26,000
= $6,000
Since Net income = retained earnings,
Therefore, retained earnings = $6,000
According to the international fisher effect (IFE), the exchange rate percentage change should be approximately equal to the differential in income levels between two countries.
a. True
b. False
A firm's profit function is pi (q) = R(q) = C(q) = 40q - (110 + 20q + 10q^2).
1. What is the positive output level that maximizes the firm's profit (or minimizes its loss)?
2. What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run?
3. The output level at which the firm's profit is maximized is q =. (Enter your response as a whole number.)
Answer:
1) [tex]\frac{d\pi (q) }{dq} = 40 - 20 - 20q = 0[/tex]
2) variable cost would be = 20 + 10 = 30, revenue = 40 , -100
3) Q = 1
Explanation:
The firm's profit function is given as
[tex]pi (q) = R(q) = C(q) = 40q - (110 + 20q + 10q^2).[/tex]
1) The positive output level that maximizes the firm's profit
can be expressed as the derivative of the given function
= [tex]\frac{d\pi (q) }{dq} = 40 - 20 - 20q = 0[/tex]
2) The firm's revenue, variable cost and profit
variable cost = 20 + 10q ( from the given function )
when q = 1 variable cost would be = 20 + 10 = 30
TR = 40q = revenue ( from given function)
when q = 1 then revenue = 40
hence variable cost is less than Revenue ( firm should operate in short run)
profit = Revenue - total cost = 40 - 140 = -100
3) The output level at which the firms profit is maximized is
q = 1
The five generic types of competitive strategy are not characterized by a ________ provider strategy. Multiple Choice best-cost broad low-cost focused differentiation focused low-cost focused high-cost
Answer:
focused high-cost.
Explanation:
The five generic types of competitive strategy developed by Porter are:
low-cost provider strategiesbroad differentiation strategiesbest-cost provider strategies,focused low-cost strategiesfocused differentiation strategiesPorter's five generic types of competitive strategy were developed to assist an organization to develop a strategy that makes the company in a competitive position in the market, these strategies are based on three fundamental principles: cost leadership, differentiation and the focus.
According to the author, these bases would lead companies to implement offensive or defensive strategic actions that would lead to gaining advantages in relation to their competitors.
Therefore, The five generic types of competitive strategy are not characterized by a focused high-cost provider strategy
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 260 64 Desired inventory (units), June 30 299 56 Expected sales volume (units): Midwest Region 3,650 3,200 South Region 4,900 4,250 Unit sales price $135 $210 a. Prepare a sales budget.
Answer:
Sonic Inc.
a) Sales Budget:
Rumble Thunder
Total units sold 8,550 7,450
Unit sales price $135 $210
Sales value $1,154,250 $1,564,500
b) Production Budget:
Rumble Thunder
Total units sold 8,550 7,450
Desired inventory (units), June 30 299 56
Estimated inventory (units), June 1 260 64
Units to be produced 8,589 7,442
Explanation:
a) Data and Calculations:
Rumble Thunder
Total units sold 8,550 7,450
Desired inventory (units), June 30 299 56
Estimated inventory (units), June 1 260 64
Units Produced 8,589 7,442
Rumble Thunder
Expected sales volume (units):
Midwest Region 3,650 3,200
South Region 4,900 4,250
Total units sold 8,550 7,450
Unit sales price $135 $210
a) The Sonic Inc.'s sales budget determines the production budget. When the quantity to be sold is obtained, then production planning can take place based on meeting customers' demand for goods or services.
b) The Production budget is a bye-product of the sales budget, though, it is critical in the whole value chain. It is the production budget that guides production planning, including the type, design, and other features of the product.
Suppose today is May 1, 2014, and your firm produces breakfast cereal and needs 90,000 bushels of corn in July 2014 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and July. Each contract is for 5,000 bushels; the settle price for July 2014 is $5.19 per bushel. Suppose corn prices are $5.09 per bushel in July. What will your cumulative mark to market be
Answer:
$467,100
Explanation:
The solution of cumulative mark to market is shown below:-
Total cost for 90,000 bushels = Per bushel × Needed bushels
= $5.19 × 90,000
= $467,100
Therefore for calculating the total cost we simply applied the above formula i.e by multiplying the per bushel with the needed bushels so that the total cost for 90,000 bushels could arrive
Builtrite has two bond issues outstanding(sold two separate groups of bonds over the years). One issue has a 7 year maturity and the other issue had a 12 year maturity.Both bonds are paying 4.25% annual interest. Investors only require a 3.75% return, which of the following statements is true?
a) The 7 year bond issue is riskier than the 12 year bond issue
b) Both bond issues have the same amount of risk
c) The 7 year bond price will be selling closer to par value
d) The 12 year bond price will be selling closer to par value
Answer:
C
Explanation:
Here, we want to select which of the given options in the question is true/correct.
From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.
Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price
4. Sales tax is taken on
O A. selling price minus trade discount.
B. shipping charges.
O c. trade discounts.
0 D. cash discounts.
Answer:
A. selling price minus trade discount.
Explanation:
you want to borrow $89000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1850, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60 month APR loan?
Answer:
9.06%
Explanation:
Given that :
The amount to be borrowed = $89000
Monthly payment PMT = $1850
Period = 60 month
The highest rate that can be afforded on the 60 month APR loan is determined by using the EXCEL Spreadsheet to compute the solution to this question. The spreadsheet screenshot can be seen below for better understanding.
Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:
Answer:
Paul Hyatt is fully liable for all business debts
Explanation:
Unlimited liability in this scenario, means that Paul Hyatt is fully liable for all business debts. That is because unlimited liability is defined as the full legal responsibility that business owners and partners assume for all business debts, and since Paul Hyatt is a sole proprietor which means that he both owns and runs DeepCleans and there is no legal distinction between him and the business entity, then he is fully liable for debts and profits of DeepClean.
In your opinion, does having two different existing labor federations (AFL-CIO and Change to Win) strengthen or weaken the ability of organized labor to represent the interests of employees today? Support your position.
Answer:
They weaken their ability to represent the interests of employees
Explanation:
The two organizations American Federation of Labor(AFL) and Congress of Industrial organizations(CIO) work differently regarding their approach to representing labor or employees. They have had disagreements in the past, from CIO breaking out of AFL to some violent exchanges and differing policies to representing labour. These differences make it less effective to represent employees as these unions are not entirely unified.
Mr. Jones has a salary of $75,000 and $5,000 in dividends, for a total adjusted gross income of $80,000. He also has two real estate investments that he acquired this year: (a) a limited partnership with losses of $4,000, and (b) a real estate project in which he actively participates and owns 15%, with his share of losses equal to $15,000. How much of his losses can he deduct from the income on a joint return
Answer:
$15,000
Explanation:
Based on the information given we were told that Mr. Jones have gross income of the amount of $80,000 and he had a real estate project in which he owns 15%, which makes Mr. Jones share of losses to be the amount of $15,000. Based on this we can vividly say that Mr. Jones losses will be the amount of $15,000 which is the amount of money Mr. Jones can deduct from the income on a joint return .
Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,447,990.Required:a. Prepare the January 1, 2013, journal entry to record the bonds issuance.b. Prepare the first two years of an amortization table using the straight-line method.c. Prepare the journal entries to record the first two interest payments.
Answer:
a.
Cash $2,447,990 (debit)
Investment in Bonds $2,447,990 (credit)
b.
Amortization Table for the first two years will be :
2013
Capital $22.307
Interest $97.693
Balance $2,425,683
2014
Capital $34,472
Interest $145,528
Balance $2,402,475
c.
First Payment : June 30, 2013
Interest Expense $48,957 (debit)
Investment in Bonds $11,043 (debit)
Cash $60,000 (credit)
Second Payment : December 31, 2013
Interest Expense $48,736 (debit)
Investment in Bonds $11,264 (debit)
Cash $60,000 (credit)
Explanation:
On the day of issuance of the Bonds, the entries will be :
Cash $2,447,990 (debit)
Investment in Bonds $2,447,990 (credit)
Use the data given to prepare an amortization schedule
Hint : First find the YTM as follows :
n = 15 × 2 = 30
FV = - $2,000,000
PV = $2,447,990
PMT = ($2,000,000 × 6%)/2 = $60,000
P/ yr = 2
YTM = ? 3.998
Using a financial calculator, the YTM is 3.998 or 4 %
Amortization Table for the first two years will be :
2013
Capital $22.307
Interest $97.693
Balance $2,425,683
2014
Capital $34,472
Interest $145,528
Balance $2,402,475
Journal Entries for the Payment of Interest :
First Payment : June 30, 2013
Interest Expense $48,957 (debit)
Investment in Bonds $11,043 (debit)
Cash $60,000 (credit)
Second Payment : December 31, 2013
Interest Expense $48,736 (debit)
Investment in Bonds $11,264 (debit)
Cash $60,000 (credit)
The following costs result from the production and sale of 4,500 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $300 each. The company has a 35% income tax rate.
Variable production costs
Plastic for casing $121,500
Wages of assembly workers 414,000
Drum stands 162,000
Variable selling costs
Sales commissions 112,500
Fixed manufacturing costs
Taxes on factory 15,000
Factory maintenance 30,000
Factory machinery depreciation 90,000
Fixed selling and administrative costs
Lease of equipment for sales staff 30,000
Accounting staff salaries 80,000
Administrative management salaries 160,000
Required:
1. Prepare a contribution margin income statement for the year.
2. Compute its contribution margin per unit and its contribution margin ratio.
3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income?
Answer:
Tight Drums Company
1. Contribution Margin Income Statement for the year ended December 31, 2019:
Sales Revenue $1,350,000
Variable production costs:
Plastic for casing $121,500
Drum stands 162,000
Wages of assembly workers 414,000
Total variable prodn. costs $697,500
Variable selling costs :
Sales commissions 112,500
Total variable costs $810,000 810,000
Contribution $540,000
Fixed manufacturing costs:
Taxes on factory 15,000
Factory maintenance 30,000
Factory machinery depreciation 90,000
Total Manufacturing overhead $135,000 135,000
Fixed selling and administrative costs :
Lease of equipment for sales staff 30,000
Accounting staff salaries 80,000
Administrative management salaries 160,000
Total fixed selling and admin. costs $270,000 270,000
Operating Profit (Pre-Tax) Income $135,000
Income Tax Expense (Rate = 35%) 47,250
Net Income $87,750
2.Computation of Contribution Margin per unit and Contribution Margin Ratio:
a) Contribution Margin per unit
= Contribution Margin divided by Units sold
= $540,000/4,500
= $120 per unit
b) Contribution Margin Ratio
= Contribution per unit/Selling price * 100
= $120/$300 * 100
= 40%
3. For each dollar of sales, contribution per dollar
= 40% of $1
= $0.40
Explanation:
a) Data:
Sales = 4,500 drums
Selling price = $300 each
Sales Revenue = 4,500 x $300 = $1,350,000
Variable production costs:
Plastic for casing $121,500
Drum stands 162,000
Wages of assembly workers 414,000
Total variable prodn. costs $697,500
Variable selling costs :
Sales commissions 112,500
Total variable costs $810,000
Fixed manufacturing costs:
Taxes on factory 15,000
Factory maintenance 30,000
Factory machinery depreciation 90,000
Total Manufacturing overhead $135,000
Fixed selling and administrative costs :
Lease of equipment for sales staff 30,000
Accounting staff salaries 80,000
Administrative management salaries 160,000
Total fixed selling and admin. costs $270,000
Income Tax Rate = 35%
b) Tight Drums Company's contribution margin income statement is a financial statement that separates all the variable costs from the fixed costs. The difference between Tight Drums' Sales Revenue of $1,350,00 and the Total Variable Costs of $810,000 is called the Contribution Margin.
The Contribution margin of $540,000 shows how much of the sales revenue is left to cover the fixed costs totalling $405,000 and generate operating income, after deducting all the variable costs.
This contribution margin can be expressed per unit by dividing the contribution margin of $540,000 by the 4,500 units sold. The per unit value can then be expressed as a ratio of the selling price. From the contribution margin ratio, we can estimate how much is left per dollar of sales for Tight Drums Company to cover its fixed costs and generate operating income.
Global Commerce Corporation purchased trading debt investments for $136,000 on December 31, 2018. There is a decrease of $3,400 in the fair value of the trading debt investments by the end of the year 2019. Which of the following is the correct journalentry?
A Unrealized Holding
Losslong dash—Trading 3,400
Fair Value
Adjustmentlong dash—Trading 3,400
B. Fair Value
Adjustmentlong dash—Trading 3,400
Unrealized Holding
Losslong dash—Trading 3,400
C. Trading Debt Investments 3,400
Unrealized Holding
Losslong dash—Trading 3,400
D. Unrealized Holding
Losslong dash—Trading 3,400
Retained Earnings
Answer:
A. Unrealized Holding Loss - Trading 3,400
Fair Value Adjustment - Trading 3,400
Explanation:
Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:
Dr Unrealized loss on trading security 3,400
Cr Debt investments 3,400
This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.
Fenwick operates a grocery store and his retail building was completely destroyed by a hurricane on August 22, Year 10. The fair market value of the building before the hurricane was $1,200,000 with an adjusted basis of $800,000. His insurance company reimbursed him $1,200,000 of December 2, Year 10. When is the last date that Fenwick can replace this building with qualifying property and avoid recognizing gain from this transaction.A. December 31, 2013.B. August 22, 2015.C. December 31, 2015.D. December 31, 2016.
Answer:
D. December 31, 2016.
Explanation:
Fenwick company had retail building which was destroyed on August 22, hurricane. The hurricane was so intense that complete building was damaged. The building already had an insurance policy due to which the fair value of the building is reimbursed. Fenwick can claim the fair value of the building from an insurance company. If he replaces the building with qualifying building on the date he gets the insurance claim he will not be required to record gain of the transaction.
"The net present value of the investment, excluding the annual cash inflow, is −$403,414. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)"
Answer: c. $81,202
Explanation:
The inflow will be annual and constant which makes it an annuity. Given the discount rate of 12% and a useful life of 8 years, the present value interest discount factor based on the table is = 4.968.
Option 1 present value
= 48,410 * 4.968
= $240,500.88
Option 2 present value
= 50,427 * 4.968
= $250,521.34
Option 3 present value
= 81,202 * 4.968
= $403,412
Option 3 is the closest option with the difference being down to rounding errors. The annual inflow would have to be $81,202 to make the investment in the equipment financially attractive.
In 2012, the nominal wage rate for unionized carpenters was $37.50 and the CPI was 204. Calculate the real wage rate for this group of workers.
Answer:
$18.38
Explanation:
The nominal wage rate for unionized carpenters in 2012 was $37.50
The CPI was 204
Therefore, the real wage rate can be calculated as follows
Real wage rate= Nominal wage rate/CPI × 100
= $37.50/204 × 100
= 0.1838 × 100
= $18.38
Hence the real wage rate for unionized carpenters is $18.38
Linda and Richard are married and file a joint return for 2019. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. Linda and Richard also used $850 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline. Richard is employed at State University as an accounting clerk. Under a tuition reduction plan, Richard saved $4,000 in tuition fees during 2019. He is studying for a master's degree in business at night while still working full-time. Richard also had $30 worth of personal typing done by his administrative assistant at the University.
Required:
What is the amount of fringe benefits that should be included in Linda and Richard's gross income on their 2018 tax return?
Answer:
$4,850
Explanation:
The free passes are customer discounts and does not qualifies for taxable in kind benefits. The $850 is an in-kind benefits and thus must be included in the gross income. Furthermore, the $4,000 fee reduction is all because of the university employment and thus must be included in the gross income.
The $30 worth of personal typing done by Richard's administrative assistant is a third party favor and this favor was not from the employer so it has nothing to do with tax.
The increase in taxable gross income will be as under:
Increase in Taxable Gross Income = $850 + $4,000 = $4,850
Happy Frog Inc. is analyzing a project with the following cash flows: Year Cash Flow 0 -$762,000 1 $300,000 2 $-550,000 3 $660,000 4 $440,000 This project has cash flows. Happy Frog Inc.’s WACC is 8.00%. Calculate this project’s modified internal rate of return (MIRR).
Answer:
Happy Frog Inc.
Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1
= ($1,400,000 /-$1,198,700) (1/5) - 1
= -1.167932 x -0.8
= 0.934
MIRR = 9.34%
Explanation:
a) Future Value of positive cash flows:
1 $300,000
3 $660,000
4 $440,000
Total $1,400,000
b) Present value of negative cash flows:
0 -$762,000
2 -$436,700 ($550,000 x 0.794)
Total -$1,198,700
c) The Modified Internal Rate of Return for Happy Frog Inc. is greater than its Weighted Average Cost of Capital. Therefore, the project looks very promising and should be accepted.
All of the following items should be considered when setting an export price
except
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
D. Repatriation restrictions
Answer:
D. Repatriation restrictions should not affect the prices of commoditiesExplanation:
Repatriation has to do with the conversion of foreign currency to home based currency. this is done in a bid to carry out international transaction effectively
while these items affects the prices of export
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
Beatrice invests $1,320 in an account that pays 4 percent simple interest. How much more could she have earned over a 5-year period if the interest had been compounded annually
Answer:
How much more earned is $21.98
Explanation:
Calculation of the amount earned when investment in paying on simple interest
Interest = Amount * Interest rate * No of years
Interest = 1320 * 4% * 5
Interest = $264
Total amount = Interest + Amount invested
Total amount = $1320 + 264
Total amount = $1,584
Therefore, the total amount earned when earning on simple interest of 4% is $1,584
Calculation of the amount earned when investment interest in paying compounded annually
Pv= 1320
n= 5
i= 4%
Fv= ?
Fv= P(1+i)^-n
Fv= 1320(1+0.04)^5
Fv= 1320(1.04)^5
Fv= 1320(1.216652)
Fv= $1605.98
Therefore, the total amount earned when earning on interest compounded annually is $1,605.98
Calculation of how much more earned
Amount earned = Amount earned as per compounded interest - Amount earned as per simple interest
Amount earned = $1,605.98 - $1,584
Amount earned = $21.98
Therefore, how much more earned is $21.98
During August, Boxer Company sells $359,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $13,100 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,700 in parts for repairs. The entry to record the customer warranty repairs is:
Answer:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Explanation:
Preparation of the entry to record the customer warranty repairs
Based on the information given we were told that Customers had to returned the merchandise for warranty repairs in which the amount of $9,700 was used in parts for repairs this means the journal entry to record the customer warranty repairs will be:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Trade-offs must be made among space, labor, and ____ with respect to warehousing design. Group of answer choices Construction materials Speed Mechanization Cost
Answer:
Mechanization
Explanation:
When a ware house is being setup, the aim is to get an efficient one that can service demand in a timely manner.
In order to minimise cost and maximise efficiency there is need to space, labour, and mechanisation that will be used on the production process.
Various analysis like capacity analysis and equipment analysis are carried out to ensure fast and cheap operation of the warehouse.
Inefficient warehouse designs leads to delay in service delivery and extra cost to the business.
Net sales $296,000 Cost of goods sold 138,000 Average inventory 50,000 What is the average days in inventory (round to the nearest whole day)?
Answer:
132 days
Explanation:
average days in inventory = number of days in a period / inventory turnover
Inventory turnover = costs of good sold / average inventory
Inventory turnover = 138,000 / 50,000 = 2.76
assuming a 365 day period, average days in inventory = 132.25 days = 132 days
Assume that over the past 85 years, the total annual returns on large-company common stocks averaged 12.3 percent, small-company stocks averaged 17.4 percent, long-term government bonds averaged 5.7 percent, and U.S. T-bills averaged 3.8 percent. What was the average risk premium earned by long-term government bonds, and small-company stocks respectively?
Answer:
1.9%
13.6%
Explanation:
Average risk premium earned by long-term government bonds =
long term average returns on Government bonds - average returns on US T-bills = 5.7% - 3.8% = 1.9%
Average risk premium earned by small-company stocks =
average returns on Company stock - average returns on US T-bills = 17.4% - 3.8% = 13.6%