Answer:
Amos Company
Statement of Retained Earnings for the year ended December 31, 2019:
December 31, 2018 balance $852,000
adjustment of error:
Depreciation expense for 2017 -44,600
Adjusted Retained Earnings $807,400
Income for the year 219,000
less Dividends -13,000
Retained Earnings, Dec. 31, 2019 $1,013,400
Explanation:
The depreciation expense of $44,600 would be recorded by deducting it from the beginning retained earnings. This adjusts the balance to reflect the previous year's errors. Then the year's earnings are added before the payment of dividends. The resultant figure is the retained earnings to be carried to the next accounting period.
Skysong, Inc. acquires a delivery truck at a cost of $54,000. The truck is expected to have a salvage value of $13,000 at the end of its 5-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method.
Answer:
Annual depreciation= $8,200
Explanation:
Giving the following information:
Skysong, Inc. acquires a delivery truck for $54,000. The truck is expected to have a salvage value of $13,000 at the end of its 5-year useful life.
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (54,000 - 13,000)/5
Annual depreciation= $8,200
Product differentiation is a key component of monopolistic competition. Given the following scenarios, label them accordingly by how products are differentiated.
GrrrArg! Productions attempts to carve out a niche in the crowded zombie film industry by specializing in movies featuring only finger -puppet zombies._______
Jay is a Korean pop star, and as such, he has long, flowing hair. One day, he decides to retire from the singing industry and walks to the local Products right outside his apartment, despite it being more expensive than the Supercuts 10 minutes away.________
Wayne is a beginning photographer. He is in the market to buy a new camera lens and notes that certain lenses take clearer pictures but they become exponentially more expensive to purchase as the sharpness of the image increases. He chooses to start with the lowest grade lens (i.e. the cheapest)._________
The video game industry caters to a wide array of people, with games like Final Fantasy to appeal to the role playing type, Tekken for those who like fighting games, Halo for the first person shooters, and Super Mario for the adventurous.__________
Answer:
1. differentiated by style or type
2. differentiated by Location
3. differentiated by quality
4.differentiated by style or type
Explanation:
For creating a monopoly in a market place first thing the firm should do is to introduce their unique product so the chances of the competition could be less
Here are the cases given, based on this, the type of product differentiation is as follows
a. In the first case, the differentiation in the product is done by style or by type
b. In the second case, the differentiation in the product is done by location as the two locations are given in the question
c. In the third case, the differentiation in the product is done by quality as the discussion is for the cameral lens i.e cheap and expensive one
d. In the fourth case, the differentiation in the product is done by style or by type as the different person has different playing roles
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,600 cushions and 15,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 13,000 cushions November 15,000 cushions December 18,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion. Required a. Prepare a production budget for October and November. Do not use a negative sign with your answers.
Answer:
Production budget for October and November
October November
cushions cushions
Budgeted Sales 13,000 15,000
Add Budgeted Closing Inventory 3,000 3,600
Total Production needed 16,000 18,600
Less Budgeted Opening Inventory (2,600) (3,000)
Production Budget 13,400 15,600
Explanation:
A Production Budget shows the quantities of finished goods that must be produced to meet expected sales plus any increase in inventory levels that might be required.
Activity-based costing for a service company
Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs:
Activity Activity Rate
Room and meals $240 per day
Radiology $215 per image
Pharmacy $50 per physician order
Chemistry lab $80 per test
Operating room $1,000 per operating room hour
The activity usage information associated with the two patients is as follows:
Patient Putin Patient Umit
Number of days 6 days 4 days
Number of images 4 images 3 images
Number of physician orders 6 orders 2 orders
Number of tests 5 tests 4 tests
Number of operating room hours8 hours 4 hours
Complete the Activity Table:
A. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.
B. Use the activity rates in (A) to determine the total and per-unit activity costs associated with patient.
Answer:
A.
Room and meals= $240 per day
Radiology = $215 per image
Pharmacy = $50 per physician order
Chemistry lab = $80 per test
Operating room = $1,000 per operating room hour
B.
Patient Putin
Unit = $1,585
Total = $10,640
Patient Umit
Unit = $1,585
Total = $6,025
Explanation:
Activity rate = Total Overhead Cost / Total Activity
Room and meals= $240 per day
Radiology = $215 per image
Pharmacy = $50 per physician order
Chemistry lab = $80 per test
Operating room = $1,000 per operating room hour
Patient Putin
Unit Total
Room and meals $240 $1,440
Radiology $215 $860
Pharmacy $50 $300
Chemistry lab $80 $40
Operating room $1,000 $8,000
Total $1,585 $10,640
Patient Umit
Unit Total
Room and meals $240 $960
Radiology $215 $645
Pharmacy $50 $100
Chemistry lab $80 $320
Operating room $1,000 $4,000
Total $1,585 $6,025
An investment earns 35% the first year, earns 40% the second year, and loses 37% the third year. The total compound return over the 3 years was ______. Multiple Choice 158.93% 19.07% 38.00% 6.36%
Answer:
19.07%
Explanation:
The computation of the total compound return over the 3 years is shown below:
= (1 + investment percentage earned in first year) × (1 + investment percentage earned in second year) × (1 + investment percentage loss in second year)
= (1 + 0.35) × (1 + 0.40) × (1 - 0.37)
= 1.35 × 1.40 × 0.63
= 1.1907
= 19.07%
21. Preferred stock pays quarterly dividend of $3 a share. If investors require 12% return on a stock of a similar risk level, what is the price
Answer: $100
Explanation:
A value of a Preferred Stock is calculated like a perpetuity which means that it is derived by dividing the cash-flow by the annual interest rate.
This Stock pays $3 per quarter. It will pay _____ per year;
= $3 * 4
= $12
Value of Preferred Stock = [tex]\frac{Annual Cash-flow}{Annual Interest}[/tex]
= [tex]\frac{12}{0.12}[/tex]
= $100
: Imagine that Canada, the US, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for the flow of trade and investment between all three countries
Answer:
The exchange rate would benefit the U.S. and Canada more, that it would benefit Mexico.
This is because the Mexican currency: Mexican Peso, is devalued when compared to the U.S. Dollar and the Canadian Dollar. This means that Mexican exports are comparatively cheaper than American or Canadian exports, causing a great growth of Mexican manufacturing in recent decades.
In a fixed exchange rate system, Mexico would lose this competitive advantage. It would still have lower labor costs, but the amount of manufacturing that would move from the U.S. and Canada to Mexico would probably be less.
Patricia is a business owner who is trying to determine the cost of goods sold for 2019. She bought 20 units of inventory at $11, then 26 units at $9, and finally 18 units at $14. She sold 30 units in 2019 and uses FIFO for her inventory valuation. What was her cost of goods sold in 2019, assuming that there was no inventory at the beginning of the year?
Answer:
COGS= $310
Explanation:
Giving the following information:
She bought 20 units of inventory at $11, then 26 units at $9, and finally 18 units at $14.
She sold 30 units in 2019.
Under the FIFO (first-in, first-out) valuation method, the cost of goods sold is calculated using the cost of the firsts units incorporated into inventory.
COGS= 20*11 + 10*9
COGS= $310
Coronado, Inc. had net sales in 2017 of $1,493,700. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $329,800 debit, and Allowance for Doubtful Accounts $4,060 credit. If Coronado estimates that 9% of its receivables will prove to be uncollectible. Prepare the December 31, 2017, journal entry to record bad debt expense.
Answer:
December 31,
DR Bad Debt Expense $25,622
CR Allowance for Doubtful Accounts $25,622
Explanation:
The Allowance for Doubtful Accounts helps provide a sort of cushion for the business by accounting for potential bad debts for the business so that if bad debts occur, they are taken from this account and not the Receivables account.
Coronado estimates that 9% of receivables will be uncollectible so;
= 9% * 329,800
= $29,682
However, $4,060 is already in the account so the new balance that should be brought into the account to ensure that it totals $29,682 is;
= 29,682 - 4,060
= $25,622
You are given the following information for Watson Power Co. Assume the company’s tax rate is 40 percent.
Debt: 5,000 7.2 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 108 percent of par; the bonds make semiannual payments.
Common stock: 440,000 shares outstanding, selling for $62 per share; the beta is 1.05.
Preferred stock: 22,000 shares of 3 percent preferred stock outstanding, currently selling for $82 per share.
Market: 11 percent market risk premium and 5.2 percent risk-free rate.
What is the company's WACC?
Answer:
14.06%
Explanation:
The computation of the company WACC is shown below:
Particulars After tax Market value Weights WACC
(cost % × weights)
Common stock 16.75% $27,280,000 0.79 13.25%
(440,000 shares × $62)
Preferred stock 3.66% $1,804,000 0.05 0.19%
(22,000 shares × $82)
Debt 3.95% $5,400,000 0.16 0.62%
(5,000 shares × $1,000 × 108%)
Total $34,484,000 1
WACC 14.06%
Working note
Cost of common equity is
= Risk free rate of return + Beta × market risk premium
= 5.2% + 1.05 × 11%
= 5.2% + 11.55%
= 16.75%
Cost of preferred stock is
= Annual dividend ÷ Market price per share
= 0.03 ÷ $82
= 3.65%
And, the cost of debt is calculated by using the RATE formula i.e
= RATE(NPER,PMT,-PV,FV)
= RATE(30 × 2, $1,000 × 7.2% ÷ 2, -$1,080, $1,000)
After calculated this, the rate of interest should be multiplied by 2 and then applied the tax rate of (1 - 0.40)
So, the rate is 3.95%
Select a problem that a firm might have bringing out a new product or service and discuss how the firm could overcome that problem.
Explanation:
A potentially serious problem for a company is to launch a new product or service on the market without conducting marketing research to investigate the acceptance of its product to its target audience.
Marketing research is an essential tool for a company to collect relevant data and information about what the consumers' needs and desires are, what benefits they expect from a product or service, what features the product should have, the design, the price, and several other essential variables to help the company better understand the market and make the best decisions when launching a new product
. Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy. a. The personal income tax rate is lowered. b. Congress cuts spending on defense. c. College students are allowed to deduct tuition costs from their federal income taxes. d. The corporate income tax rate is lowered. e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.
Answer:
Option, A , D, E = expansionary fiscal policy.
Option B = Contractionary fiscal policy
Option C = not a part of fiscal policy
Explanation:
The expansionary fiscal policy occurred when there is a decrease in taxes and an increase in government expenditure (spendings). While contractionary fiscal policy occurs when taxes are increased by the government and there is a fall or decrease in government spendings. Therefore, Option A, Option D, and Option E are part of the expansionary fiscal policy.
Option B is a contractionary fiscal policy. While option C is not a part of fiscal policy
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 100,000 units, 80% complete as to materials and 25% complete as to conversion. Units started and completed: 290,000. Units completed and transferred out: 390,000. Ending Inventory: 40,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $57,200. Costs in beginning Work in Process - Conversion: $99,700. Costs incurred in October - Direct Materials: $828,520. Costs incurred in October - Conversion: $939,300. Calculate the cost per equivalent unit of materials.
Answer:
$2.64 per units
Explanation:
The computation of the cost per equivalent unit of material is shown below:
Cost per equivalent unit is
= (Beginning conversion cost + cost incurred during October) ÷ (Total equivalent units)
= ($99,700 + $939,300) ÷ (390,000 units + (40,000 units × 10%))
= $1,039,000 ÷ 394,000 units
= $2.64 per units
We simply applied the above formula
Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,800,000 Net operating income $ 5,000,000 Average operating assets $ 35,800,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)
Answer:
1. 28.09 %
2.0.50 times
3.13.97 %
Explanation:
Margin = Profit / Sales × 100
= $ 5,000,000 / $ 17,800,000 × 100
= 28.09 % (2 decimal places.)
Turnover = Sales / Total Assets
= $ 17,800,000 / $ 35,800,000
= 0.50 times (2 decimal places.)
Return on investment = Divisional Profit Contribution / Assets employed in the division × 100
= $ 5,000,000 / $ 35,800,000 × 100
= 13.97 % (2 decimal places.)
You’ve just secured a new client in your accounting practice, Peter's Pool Corporation (PPC), a brand new small business specializing in pool service. The owner, Peter Peck, is a terrific swimmer and pool repair specialist, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter has to submit his financial statements to his investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the PPC.
Answer: just give what u know the business is small so it can’t manage
Explanation:
ohnson, LLC’s bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to a
Answer:
Seasonal issue
Explanation:
The seasoned issue or seasonal issue is that issue which is made for extra securities held from the company i.e established and it considered those securities who are already traded in the secondary market. The bond which are outstanding and traded in the secondary markets is known as seasoned issued
Since in the question it is mentioned that there is a substantial trading volume in the past few years so this represents the seasoned issue
"The Master Manufacturing Company has just announced a tender offer for its own common stock. Master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. After the announcement of the offer, the stock closed on the NYSE up 2.50 at $18.75. If a customer had 100 shares and sold at tomorrow's opening price, what is the price that he would receive per share?"
Answer:
$0
Explanation:
As it is mentioned in the question that 64% of shares being tendered so at this condition the client has no confirmation with respect to the amount paid for the shares after deciding the tender
Therefore in the given case, the price received per share would be $0 and the other information i.e mentioned in the question is not relevant. Hence, ignored it
A consumer values a house at $525,000 and a producer values the same house at $485,000. If the transaction is completed at $510,000, what amount of tax will result in unconsummated transaction? a. A tax of $14,000 b. A tax of $15,000 c. A tax of $9,000 d. A tax of $18,000
Answer:
d. A tax of $18,000
Explanation:
If the price is higher than $525,000 which is his reservation price, the buyer will not buy the good
(1+t) > $525,000 / $510,000
1+t > 1.03
t > 0.03
t > 3%
3% of $510,000 = $15,300. So if the tax is greater than $15,300, the buyer will not buy the good . Hence, the answer is option (D) A tax of $18,000 as this tax is higher than $15,300 while other option are less than $15,300
T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2.00 each. At this level of output, the average total cost is 2.50 and the average variable cost is $2.20. Based on these data, the firm should
Answer:
shutdown in the short run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A firm should shut down in the short run if price is less than average variable cost.
for T-Shirt Enterprises, price is $2 which is less than average variable cost
Using the financial data below, prepare a statement of cash flows for the year ended December 31, 2014 for Summer Peebles, Inc. using the indirect method.
Summer Peebles, Inc.
Income Statement
Year Ending December 31, 2014
Sales $1,000.00
Cost of Goods Sold -$650.00
Depreciation Expense -$100.00
Sales and General Expense-$100.00
Interest Expense -$50.00
Income Tax Expense - $40.00
Net Income $60.00
Summer Peebles, Inc.
Balance Sheets as of December 31, 2013 and 2014
Assets 2013 2014
Cash $50.00 $60.00
Accounts Receivable, Net $500.00 $520.00
Inventory $750.00 $770.00
Current Assets $1,300.00 $1,350.00
Fixed Assets, Net $500.00 $550.00
Total Assets $1,800.00 $1,900.00
Liabilities and Equity
Notes Payable to Banks $100.00 $75.00
Accounts Payable $590.00 $615.00
Interest Payable $10.00 $20.00
Current Liabilities $700.00 $710.00
Long-Term Debt $300.00 $350.00
Deferred Income Tax $300.00 $310.00
Capital Stock $400.00 $400.00
Answer:
Summer Peebles, Inc.
Statement of cash flows for the year ended December 31, 2014
Cash Flow From Operating Activities
Net Income before tax and interest $150.00
Adjustment for non-cash items :
Depreciation Expense $100.00
Adjustment for changes in working capital items :
Increase in Accounts Receivable ($20.00)
Increase in Inventory ($20.00)
Decrease in Notes Payable to Banks ($25.00)
Increase in Accounts Payable $25.00
Interest Paid ($10.00 + $50.00 - $20.00) ($40.00)
Income taxes Paid ($300.00 + $40.00 - $310.00) ($30.00)
Net Cash flow from Operating Activities $140.000
Cash Flow From Investing Activities
Purchase of Fixed Assets ($50.00)
Net Cash flow from Investing Activities ($50.00)
Cash Flow From Financing Activities
Long term debt issue $50.00
Net Cash flow from Financing Activities $50.00
Movement During the year $10.00
Cash and Cash Equivalents at Beginning of the year $50.00
Cash and Cash Equivalents at the End of the Year $60.00
Explanation:
Under the Indirect method, Cash flow from Operating Activities is determined by adjusting the Net Profit / Income before tax and interest with non-cash items previously deducted or add to it and any changes in working capital items.
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8,200 units. You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin ratio at the projected levels, the projected change in operating income of your proposal and the projected ROI. Additionally, if the company requires a 12% return on its investments, calculate the maximum you could charge for your marketing plan.
Answer:
without marketing with marketing differential
plan plan amount
total sales 8,200 8,550 350
sales revenue $164,000 $171,000 $7,000
variable costs ($73,800) ($76,950) ($3,150)
contribution $90,200 $94,050 $3,850
margin
contribution 55% 55% -
margin ratio
fixed and ($20,000) ($23,000) ($3,000)
marketing costs
operating $70,200 $71,050 $850
income
The return on investment (ROI) from your marketing plan = $850 / $3,000 = 28.33%
If the required ROI is 12%, then you could charge = net increase in operating profits / (1 + required ROI) = $3,850 / 1.12 = $3,437.50
Accounts payable are: Multiple Choice Amounts received in advance from customers for future services. Always payable within 30 days. Estimated liabilities. Amounts owed to suppliers for products and/or services purchased on credit. Not usually due on specific dates.
Answer:
Amounts owed to suppliers for products and/or services purchased on credit
Explanation:
Amounts owed to suppliers for products and/or services purchased on credit
Accounts Payable are due to a particular creditor when it order goods or services without paying immediately which means that you bought goods on credit.
For this discussion, you are to pretend that you're on a team project that's running behind schedule. Let's say you and your project team are three months into an eight-month project and you realize that you're already 2.5 weeks behind schedule and 15% over budget. What would you do?
Answer:
Explanation:
The discussion or focus is on PROJECT MANAGEMENT.
You are on a team project that is running behind schedule. You and your project team are 3 months into an 8-month project.
There is a deficiency in both time management and money management.
For the project to be 3 months old, out of 8 months, then it's already in the execution stage.
Being behind schedule by 2.5 weeks implies that you have spent 2.5 weeks extra, achieving what you ought to achieve without or before the extra time. Discuss with your project team and make them more active in delivering their tasks. Time is crucial. Time is money also.
You're 15% over budget, hence you've spent 15% more than you should. Check the vendors of items and tools used in the project. You might have to change them if their products are too costly. Ensure proper accounting also. Do not disburse funds without the consultation and approval of team members who are finance experts.
In all, not more than 2 days or thereabout should be used in making these adjustments because time and money are equally pertinent!
Direct Materials Purchases Budget
Tobin’s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:
Units
12" Pizza 16" Pizza
Budgeted production volume 70,000 50,000
There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:
12" Pizza 16" Pizza
Direct materials:
Dough 0.55 lb. per unit 0.80 lb. per unit
Tomato 0.25 0.40
Cheese 0.70 1.20
In addition, Tobin’s has determined the following information about each material:
Dough Tomato Cheese
Estimated inventory, November 1 2,500 lbs. 1,000 lbs. 3,000 lbs.
Desired inventory, November 30 2,000 lbs. 1,200 lbs. 2,800 lbs.
Price per pound $0.50 $0.60 $0.85
Prepare November’s direct materials purchases budget for Tobin’s Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Tobin’s Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending November 30
Direct Materials Direct Materials Direct Materials
Dough Tomato Cheese Total
Units required for production:
12" pizza
16" pizza
Desired inventory, November 30
Total units available
Estimated inventory, November 1
Total units to be purchased
Unit Price x $ x $ x $
Total direct materials to be purchased $ $ $ $
Answer:
Since there is not enough room here, I prepared an excel spreadsheet
Explanation:
a sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?
Complete Question:
A sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?
a. depreciation
b. mortgage interest
c. rent
d. Utilities
Answer:
b. mortgage interest
Explanation:
The sole proprietor with a tentative loss may deduct expenses for mortgage interest, mortgage insurance premiums, and real estate taxes under the normal rules. The sole proprietor is not allowed to deduct other expenses that are normally tax-exempt expenses, including depreciation, rent, and utilities. The amount to be deducted for mortgage interest should not exceed the percentage for business use.
Which one of these is not a smart way to negotiate? Make counteroffers by phone or in person, so you can use your powers of persuasion Go in knowing the maximum you’re willing to pay Learn about the seller’s needs and try to accommodate them Add a personal letter to your offer
Answer:
Add a personal letter to your offer.
Explanation:
Negotiation is when an agreement or a compromise is reached by parties involved in a deal in order to avoid issues or argument. People negotiate for different reasons such as beating down a price , resolve a problem or dispute among parties, create a new thing in which parties involved are not able to do , or agree on how to share limited resource like money, assets etc.
Negotiation is a skill(soft)which can be learnt by people hence become a strong negotiator. These soft skills include communication, persuasion and ability to strategize . With regards to the above, the odd among the given option is add a personal letter to your offer.
The one of among the options that is not a smart way to negotiate is addition of a personal letter to your offer.
For better understanding, let's explain what negotiation means
Negotiation is simply defined as a continuous working together of two or more parties in order to reach an agreement that is mutually satisfactory especially to both buyer and seller or an others. There are three phases to negotiation which are planning and preparation, Settlement and Documentation.Negotiating Tactics includes bidding war, brinksmanship, one party away, bogey--tactic, bluffing, defense in depth, flinching, Highball/Lowball and others. Personal letter is not inclusive.From the above, we can therefore say that the answer that The one of among the options that is not a smart way to negotiate is addition of a personal letter to your offer is correct
Learn more about negotiation from:
https://brainly.com/question/9169212
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (11,500 units at $225 each) $ 2,587,500 Variable costs (11,500 units at $180 each) 2,070,000 Contribution margin $ 517,500 Fixed costs 360,000 Pretax income $ 157,500 1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars.
Answer:
1) Break-even point in units =8000 units
2) Break-even point (sales) = $1,800,000
Explanation:
Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss because the total contribution exactly equals the total fixed costs.
Break even point in units is calculated using this formula:
Break even point in units = Total general fixed cost/ (selling price - Variable cost)
Break-even point in units = 360,000/(225- 180) = 8000 units
Break-even point in units =8000 units
2) Break-even point (sales) is computed as follows:
Break-even point (sales) = Total general fixed cost/C/S ratio.
C/s ratio = (Selling price - variable cost)/Selling price × 100
= (225 - 180)/225 × 100 = 20%
Break-even point (sales) = 360,000/20% = $1,800,000
Break-even point (sales) = $1,800,000
1) Break-even point in units =8000 units
2) Break-even point (sales) = $1,800,000
Use the information for the question(s) below. Project A Project B Time 0 −10,000 −10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If WiseGuy Inc. uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest?
Answer:
PROJECT B
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator
For project A,
Cash flow in year 0 = -10,000
cash flow in year 1 = 5,000
cash flow i year 2 - 4,000
cash flow in year 3 = 3,000
IRR = 10.65%
For project B,
Cash flow in year 0 = -10,000
cash flow in year 1 = 4,000
cash flow i year 2 - 3,000
cash flow in year 3 = 10,000
IRR = 26.37%
Project B would be ranked higher because it has a higher IRR
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $173,900 April 163,500 May 148,800 Depreciation, insurance, and property taxes represent $37,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 70% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Required:Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May. Horizon Financial Inc.
Answer:
Total Cash Payments are as follows:
For March = $95,830
For April = $129,620
For May = $116,210
Explanation:
Note: See the attached Excel file for the schedule of cash payments
The expenses paid in each month can be calculated as follows:
a. March Expenses
Paid in March = (Total projected selling and administrative expenses for March - Depreciation, insurance, and property taxes for March) * Percentage of reminder paid = ($173,900 - $37,000) * 70% = $95,830
Paid in April = (Total projected selling and administrative expenses for March - Depreciation, insurance, and property taxes for March) * Percentage of balance paid = ($173,900 - $37,000) * (100% - 70%) = $41,070
b. April Expenses
Paid in April = (Total projected selling and administrative expenses for April - Depreciation, insurance, and property taxes for April) * Percentage of reminder paid = ($163,500 - $37,000) * 70% = $88,550
Paid in May = (Total projected selling and administrative expenses for April - Depreciation, insurance, and property taxes for April) * Percentage of balance paid = ($173,900 - $37,000) * (100% - 70%) = $37,950
c. May Expenses
Paid in May = (Total projected selling and administrative expenses for May - Depreciation, insurance, and property taxes for May) * Percentage of reminder paid = ($148,800 - $37,000) * 70% = $78,260
kerch co. had beginning net fixed assets of $216,566, ending net fixed assets of $211,729, and deperciation of $40,477. During the year, the company sold fixed assets with a book value of $8,014. How much did the company purchase in new fixed assets?
a) $32,224
b) $43,639
c) $41,476
d) $35,625
e) $34,293
Answer:
The closest option is B,$43,639
Explanation:
The formula for ending net fixed assets can be used to determine the value of new purchase as shown below:
ending net fixed assets= beginning net fixed assets-depreciation-cost of asset sold+new purchase
$211,729=$216,566-$40,477-$8,014+x
$211,729=$168075 +x
x=$211,729-$168075
x=$43654
The closest option is B