Answer:
The account will be worth $2,363.25 at the end of 25 years.
Explanation:
Enter the following data in financial calculator
PV = - $1,000
r = 3.5 %
P/yr = 1
n = 25
PMT = $0
FV = ?
Using the Financial Calculator, the future value (FV) after 25 years will be $2,363.25.
Therefore, the account will be worth $2,363.25 at the end of 25 years.
Based on the HEADLINE article titled "Inflation and the Weimar Republic," which of the following is the best illustration of the wealth effect of inflation?
a. Workers were often paid daily and sometimes two or three times a day.
b. Debtors sought out creditors to pay them in valueless currency.
c. Profits fell as employees demanded frequent wage adjustments.
d. Businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
Answer: Businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
Explanation:
Inflation is when there is a general increase in the prices of goods and services on the economy.
The best illustration of the wealth effect of inflation based on the article titled "Inflation and the Weimar Republic," is that businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
This is because when there is inflation, theee will be rise in price and hence, the money the businessmen wanted to use won't be enough to get meet their needs hence they'll need more funds.
Ace Company purchased a machine valued at $310,000 on August 1. The equipment has an estimated useful life of six years or 2.5 million units. The equipment is estimated to have a salvage value of $7,200. Assuming the straight-line method of depreciation, what is the amount of depreciation expense that needs to be recorded at the end of the first year
Answer:
The amount of depreciation at the end of the first year = $21027.77
Explanation:
Given machine cost = $310000
The life of machine = 6 years
Salvage value = $7200
Now find the total depreciation by subtracting the salvage value from the cost of the machine.
Depreciation = Machine cost – salvage value
= 310000 – 7200
= 302800
Total depreciation of 6 years = $302800
Annual depreciation = 302800 / 6 = 50466.66
Since in the first year the machine is used from 1st August to 31st December. So, depreciation = 50466.66 *(5/12) = 21027.77
The centralized purchasing department for Ridgewood, Inc. has monthly expenses of $42,000. The department has prepared 3,500 purchase requisitions this month. Division L initiated 700 purchases and Division G initiated 500 purchases. How much Division G should be charged for purchases
Answer:
Division G should be charged $6,000
Explanation:
cost per purchase requisition = $42,000 / 3,500 = $12 per purchase requisition
Division G initiated 500 purchases, so it should be charged 500 x $12 = $6,000
Division L initiated 700 purchases, so it should be charged 700 x $12 = $8,400
The other departments should be charged the remaining amount = $42,000 - ($6,000 + $8,400) = $27,600
The windshield division of fast car co. makes windshields for use in fast car's assembly division. the windshield division inncurs variable costs of 248 per windshield and has capacity to make 590000 windshields per year. The market price is $450 per windshield. The Windshield division incurs total fixed costs of $3,000,000 per year.
Required:
Assuming the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions?
Use the following information to calculate cash paid for income taxes: Income tax expense $ 58,000 Income tax payable, January 1 13,600 Income tax payable, December 31 16,200
Answer:
Calculation of Cash Paid:Income tax payable, January 1 $ 13,600
Income tax expense 58,000
Total amount due 71,600
Income tax payable, December 31 16,200
Cash Paid $ 55,400
Explanation:
The Income tax payable on January 1 is added to the income tax expense for the year to obtain the amount that is due for payment this year, and then the December 31 Income tax payable is deducted to get the cash paid during the year. This arrangement can be reversed in its proper and normal order thus:
Income tax payable, January 1 $ 13,600
Income tax expense 58,000
Total amount due 71,600
Cash Paid 55,400
Income tax payable, December 31 16,200
Globus Autos sells a single product. 8 comma 3008,300 units were sold resulting in $ 84 comma 000$84,000 of sales revenue, $ 24 comma 000$24,000 of variable costs, and $ 18 comma 000$18,000 of fixed costs. If Globus reduces the selling price by $ 1.10$1.10 per unit, the new margin of safety is: (Round any intermedary calculations to the nearest cent.)
Answer:
$59,000
Explanation:
We will first determine the variable cost per unit
= $24,000/300
= $80
Contribution margin percentage =
$280 - ($80 - $1.10)/$280
= 0.72
= 72%
New break even point = $18,000/72%
= 25,000
Old break even point =
($280 - $80)/280
= 0.71
= 71%
= $18,000/71%
= $25,352
Margin of safety = $84,000 - $25,000
= $59,000
Jervis sells $3,900 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 3% factoring fee. What entry should Jervis make to record the transaction
Answer:
Dr cash $3783
Dr factoring fee expense $177
Cr accounts receivable $3900
Explanation:
The cash proceeds from the factoring arrangement would be 97% of the value of the receivables since 3% is the factoring fees expenses to be incurred.
Cash proceeds=$3900*97%=$ 3,783.00
Factoring fees expense=$3,900.00-$3,783.00=$117
Cash account and factoring fees expense would be debited with $3783 and $117 respectively, while accounts receivable is credited with $3900
Suppose Emilio offers you $500 today or $X in 10 years. If the interest rate is 6 percent, then at what value of X would you be indifferent between the two options
This question is impossible and implausible
Who is Emilio? How do we know he'll be around in 10 years? IS he good for the money, or is it counterfeit? Are we adjusting for inflation? The dollar is worth more in Malaysia than the U.S., so where are we starting and where are we ending? There's just not enough data here.
This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four different countries and asked to identify the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland
Answer:
Unemployment rate= 0.13= 13%
Explanation:
Giving the following information:
Of these 95 individuals, 75 are in the labor force and 65 are employed.
To calculate the unemployment rate, we need to use the following formula:
Unemployment rate= unmeployed population / labor force
Unemployment rate= 10/75
Unemployment rate= 0.13
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Cost Per Room Night (at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels
Answer:
$147
Explanation:
For the computation of contribution margin for a room night first we need to find out the variable cost per night which is shown below:-
Variable cost per room night = Housekeeping service + Utilities + Amenities
= $23 + $7 + $3
= $33 per room night
Contribution per room night under normal pricing = Normal price per room night - Variable cost per room night
= $180 - $33
= $147 per room night
Therefore for computing the contribution margin for a room night we simply applied the above formula.
Perry County University had the following account balances as of June 30, 2018. Debits are not distinguished from credits, so assume all accounts have a "normal" balance (i.e., cash is a debit and accounts payable a credit).
Accounts payable 310,000
Accounts receivable (net) 430,000
Capital assets, net of depreciation 6,200,000
Cash and cash equivalents 75,000
Cash and cash equivalents – restricted (noncurrent) 100,000
Deferred revenue-current 95,000
General obligation bonds payable - current portion (related to capital acquisition)390,000
General obligation bonds payable (related to capital acquisition) 1,700,000
Inventories 620,000
Investments - Endowment 3,000,000
Investments Long-term 1,700,000
Investments Short-term - unrestricted 800,000
Net position-restricted - expendable 1,200,000
Net position - restricted - nonexpendable 3,000,000
Revenue bonds payable (related to capital acquisition)2,000,000
Net position - Unrestricted ????????
Required
Prepare, in good form, a Statement of Net Position for Perry County State University as of June 30, 2018.
Answer and Explanation:
The Preparation a Statement of Net Position for Perry County State University as of June 30, 2018 is shown below:-
Perry County University
Statement of Net position
For the year June 30, 2018
Particulars Amount
Assets
Current assets
Cash and Cash equivalents
Short-term investment $75,000
Account receivable $430,000
Net inventories $630,000
Total current assets $1,925,000
Non current assets
Restricted Cash and cash equivalents $100,000
Long term investments $1,700,000
Endowment investment $3,000,000
Capital assets $6,200,000
Total non current assets $11,000,000
Total assets $12,925,000
Liabilities
Current liabilities
Accounts payable $310,000
Deferred revenue $95,000
General obligation bonds payable-
Current position $390,000
on august 1 2018 rocket retailers adopted a plan to discontinue in its income statement rocket would report a before-tax oss on discontinued operations of
Answer: $143,000
Explanation:
Before-tax loss on Discontinued Operations for the year ended January 31, 2019;
= Operating loss + Impairment of division assets
= $128,000 + $15,000
= $143,000
This loss will be recorded in the Income statement of Rocket Retailers separately from Continuing Operations and as it is a loss, it will most probably incur a future tax benefit. It will however reflect in the overall income of Rocket Retailers.
In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue. True or False?
Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follows:
Gross sales $2,000,000
Less: Estimated uncollectible accounts (40,000)
Net sales 1,960,000
Cost of goods sold (1,100,000)
Gross profit 860,000
Operating expenses (including $25,000 depreciation) (500,000)
Net income $360,000
The following are management’s goals and forecasts for 2015:
a. Selling prices will increase by 6 percent, and sales volume will increase by 4 percent.
b. The cost of merchandise will increase by 3 percent.
c. All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 percent. The company uses straight-line depreciation.
d. The estimated uncollectibles are 2 percent of budgeted sales.
Required
Prepare a budgeted functional income statement for 2015.
Answer:
Budgeted functional income statement for 2015
Gross sales ($2,000,000 × 1.04 × 1.06) $2,204,800
Less: Estimated uncollectible accounts ($2,204,800 × 2 %) ($44,096)
Net sales $2,160,704
Cost of goods sold (1,100,000 × 1.03) ($1,133,000)
Gross profit $1,027,704
Operating expenses (475,000 × 1.10) ($522,500)
Depreciation ($25,000)
Net income $480,204
Explanation:
Make the adjustments stated on the 2014 Income Statement.
For Operating Expenses, it is wise to first remove the depreciation expense and apply the increment of 10% to reflect Operating Costs for 2015.
Treat Depreciation Expense separately and at the same amount as for 2014, since depreciation is calculated on straight line method.
Incremental costs are the additional costs incurred if a company pursues a certain course of action. true or false
Answer:
The correct answer is the first option: True.
Explanation:
To begin with, the term of "Incremental Costs" is understood as the costs that are added to the total manufactured costs during the production when the company decides to produce one more unit and that action will cause that the whole costs increase a bit more and the complete sum of all the new costs that were aggregate due to that decision make are called incremental costs because as they name indicates, they increment the costs of production of the goods.
Russell Inc. had sales of $2,300,000 for the first quarter of 2017. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Cost of goods sold $940,000 $464,000
Selling expenses 74,000 54,000
Administrative expenses 96,000 145,000
Prepare a CVP income statement for the quarter ended March 31, 2017.
Answer:
$527,000
Explanation:
Preparation of a CVP income statement for the quarter ended March 31, 2017.
Russell Inc.income statement for the quarter ended March 31, 2017.
Sales $2,300,000
VARIABLE EXPENSES
Cost of goods sold $940,000
Selling expenses 74,000
Administrative expenses 96,000
Total Variable Expenses 1,110,000
Contribution Margin 1,190,000
($2,300,000-$1,110,000)
FIXED EXPENSES
Cost of goods sold $464,000
Selling expenses 54,000
Administrative expenses 145,000
Total Fixed Expenses 663,000
Net Income/(Loss) $527,000
(1,190,000-663,000)
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total
Labor-related DLHs $ 335,018 7,500 4,100 11,600
Product testing tests 51,247 950 1,050 2,000
Order size MHs 476,608 5,100 5,400 10,500
$ 862,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:_______
a. $28.88 per DLH
b. $48.81 per DLH
c. $53.94 per DLH
d. $431.44 per DLH
Answer:
Predetermined manufacturing overhead rate= $28.88 per direct labor hour
Explanation:
Giving the following information:
Labor-related DLHs $335,018 11,600
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 335,018/11,600
Predetermined manufacturing overhead rate= $28.88 per direct labor hour
The activity rate for the Labor-Related activity cost pool is option A. a. $28.88 per DLH
Calculation of the active rate:We know that
Activity Rate for Labor - Related Activity Cost Pool = Estimated Cost / Expected Activity
= $ 335,018 / 11,600 DLHs
= $ 28.88 per DLH
Hence the option a is correct.
And, the rest of the options are wrong.
learn more about rate here: https://brainly.com/question/24347131
A selection model in which an applicant moves on to the next stage in the process on the condition that she or he satisfies a score criterion on previous parts of the process is referred to as a _____ model. Group of answer choices
Answer:
multiple hurdle
Explanation:
The term is described in the question is known as a multiple hurdle model. In this specific approach, the individual applying needs to pass each step in the selection process in order to continue to the next one. Failure at any of the steps results in an automatic disqualification of the applicant from further consideration. Each step needs to be passed by meeting the minimum score that has been pre-set before starting the step.
Q
In the Metropolis forecast example, we are using cash as a plug number. To keep the examis
simple, we assume that the cash is not sitting in an interest-bearing bank account. Imagine the
cash were in an interest-bearing account, meaning the company would earn interest revenue
based on the cash balance. How would this affect your forecast and forecasting process?
Answer:
Consider average cash balance that was at the end of previous month and estimate the current month average cash balance and add or less any major increment that makes the forecasting realistic.Use excel or other softwares for forecasting purposes as it automatically adjusts the worksheet if corrections or additions are included in the computation.Explanation:
The interest earned would be calculated at the end of every day on the cash balance that the company holds in the interest-bearing bank account.
The cash balance would be adjusted to reflect realistic assumptions were made because unrealistic assumptions makes the forecasting unreasonable and meaningless. The first step is to take the previous month end average cash balance and add in it the current month average balance. This will give us the current month cash balance that will be based on realistic assumptions. Use the excel sheets to take affects of estimated cash and other factors that will change due to the change in the cash balances. Excel will take account of all the factors adjusted in the forecasting sheet and adjust these factor's effects within seconds.
Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory.
Required:
What is the total amount to be budgeted for manufacturing overhead for the month?
Answer:
Budgeted overhead= $2,877.6
Explanation:
Giving the following information:
Direct labor required:
Production= 870 units
Direct labor hours= 870*0.25= 218 hours
Direct labor cost= $12 an hour
Manufacturing overhead is applied at a rate of 110% of direct labor costs.
To calculate the allocated overhead for the period, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Direct labor cost= 218*12= $2,616
Allocated MOH= 1.1*2,616= $2,877.6
g Aggregate demand A. increases if the expected inflation rate increases. B. increases if aggregate supply increases. C. increases if the exchange rate rises. D. decreases if expected future income rises. E. increases if government expenditures decrease.
Answer:
A. increases if the expected inflation rate increases.
Explanation:
if it is expected that inflation would increase, consumers would want to buy goods at a cheaper rate, thus, they would increase demand now and a result aggregate demand would rise.
for example, if the price of bread is $10 dollars now and it is expected that price would increase to $12 next month. the demand for bread would increase now
The Botosan Factory has determined that its budgeted factory overhead budget for the year is $601,880 and budgeted direct labor hours are 367,000. If the actual direct labor hours for the period are 334,000, how much overhead would be allocated to the period
Answer:
Allocated MOH= $541,200
Explanation:
Giving the following information:
Estimated overhead= $601,880
Budgeted direct labor hours= 367,000
The actual direct labor hours for the period are 334,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 601,880/367,000
Predetermined manufacturing overhead rate= $1.64 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.64*334,000
Allocated MOH= $541,200
DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, DIP paid guaranteed payments to partner Percy of $20,000. If Percy owns a 40% capital and profits interest, how much income will he report for the year and what is its character?
Answer:
$24,000 ordinary income
$1,600 interest income
$20,000 guaranteed payment.
Explanation:
Calculation for what how much income will Percy report for the year and what is its character
Calculation for Percy Ordinary income: 120,000 - 40,000 - 20,000
= 60,000 x 40%
= 24,000.
Calculation for Percy Interest income:
4,000 x 40%
= 1,600
Guaranteed Payment: 20,000
Therefore what Percy will report will be: $24,000 ordinary income
$1,600 interest income
$20,000 guaranteed payment.
Assume that you are a marketing manager for a firm that markets tablet computers. Your firm introduces a new model of tablet annually to replace the offering currently on the market. To ensure that your firm is planning and creating tablets that the marketplace values and will buy, you conduct periodic conjoint analysis studies. Briefly describe your planned study for this year.
Answer:
Choose the product
Select its attributes that are potentially important for the customers
Choose the value for each attribute
Choose the form in which the combination of these attributes is presented.
Explanation:
Conjoint analysis is a survey based on statistical techniques for market research. In this analysis assumptions of a product or service is broken into various attributes. Conjoint analysis aims to find value that consumer places for each attribute of the tablet before they will make a decision to purchase it. Conjoint analysis is a quantitative technique which is used for research purpose.
Suppose the economy was experiencing a negative real shock and high unemployment and high inflation at the same time. Furthermore suppose the Federal Reserve decided to address the problem by decreasing the money supply money. Assuming the policy is effective what can we expect to occur as a result (in the short run)
Answer: b. We should expect less inflation but more unemployment
Explanation:
A high supply of money leads to higher inflation. This is because the citizens will have more money to spend on goods and services and so will demand more of them. As a result, the increased demand pulls prices upward. Reducing the money supply therefore will have the effect of reducing the amount of money that people have on hand. This will reduce their demand for goods and services which will then see their prices decrease as a result.
High money supply in the market however means that loans are easier to get because there is more money to give. This means that companies can embark on more projects. With a lower money supply, companies as well as individuals will reduce their borrowing. This will mean less capital projects which create employment. Lowering the money supply will therefore lead to higher unemployment.
With an increase in product advertising of $50 million you expect to increase sales by 10,000 units. If unit grow margin is $4,800, will the additional advertising increase product contribution?
Answer:
Income will decrease by $2,000,000.
Explanation:
Giving the following information:
Advertising increase= $50,000,000
Units increase= 10,000 units
Unit contribution margin= $4,800
To calculate the total effect on income, we need to use the following formula:
Effect on income= total contribution margin - increase in fixed costs
Effect on income= 10,000*4,800 - 50,000,000
Effect on income= $2,000,000 decrease
Income will decrease by $2,000,000.
One of the similarities between product focus and mass-customization is: the use of modules. the variety of outputs. the volume of outputs. many departments and many routings. All of these are similarities.
Answer: the variety of outputs
Explanation:
Process focus is a startegy on low volume, high variety. Mass customization is the ability of a company to mass produce products efficiently in order to meet the wants and needs of the customers.
One of the similarities between product focus and mass-customization is the variety of product.
The overhead costs for a company are presently $X per month. The management team of the company in cooperation with the employees is ready to implement a comprehensive improvement program to reduce these costs. If you (a) consider an observation of actual overhead costs for one month analogous to an output unit, (b) estimate the overhead costs for the first month of program implementation to be 1.15X due to extra front-end effort, and (c) consider a 90% improvement curve applicable to the situation, what is your estimate of the percentage reduction in present overhead costs per month after 30 months of program implementation
Answer:
31.42%
Explanation:
The computation of the estimate of the percentage reduction in present overhead costs per month is shown below:-
n = log s ÷ log2
= log 0.90 ÷ log 2
= -0.152
Now we will use the learning curve equation which is here below:
Z30 = 1.15X × 30^(-0.152)
= 0.685765148
So, the cost is reduced by
= 1 - 0.685765148
= 0.314234852
or
= 31.42%
A discount on bonds payable: Multiple Choice Occurs when a company issues bonds with a contract rate less than the market rate. Occurs when a company issues bonds with a contract rate more than the market rate. Increases the Bond Payable account. Decreases the total bond interest expense. Is not allowed in many states to protect creditors.
Answer:
Occurs when a company issues bonds with a contract rate less than the market rate.
Explanation:
As we know that
The premium on bond payable arise when the company issued the amount more than the face value amount this result in high interest rate as compared with the market interest rate
While on the other hand, the discount on note payable arise when the issued amount is less than the face value that results in low interest rate as compared with the market interest rate
Hence, the first option is correct
What represents a difference in the process by which a monopolistic competitor and a monopolist make their respective decisions about quantity and price?
Answer:
There is no need for the monopolists to have the fear for entry
Explanation:
So, this particular problem or question is what is the part of economics known as the microeconomics. So, let us take the definitions of some important terms in the question which is going to assist us in solving this particular problem or question.
=> MONOPOLISTIC COMPETITOR: the term monopolistic competitor will also mean to say imperfect competitor. That is to say the kind of competition in which sellers or competitors compete in order for them to get some kind of advantage over the prices of goods and services in the market. The demand curve thus now has a download slope.
=> MONOPOLIST: Monopolists have advantage over the price of products or services in the market.