The behavioral approach is being applied when a corporate trainer ______. Group of answer choices gives a motivational speech to the executive team to boost morale administers an Emotional Intelligence test to match leaders and followers uses assessments to help leaders discover their relative focus on goals vs. people offers employees an in-depth look at their personality traits for behavioral improvement
Answer:
The right option is C (uses assessments.........vs. people).
Explanation:
Throughout the enterprise, the behavioral approach, which describes the conduct of managers, is used by allowing representatives to determine their attention on objectives and individuals.This highlights empirical research into observed behavioral reactions and their situational factors.Such given solutions do not concern the solution in question. Thus, the answer above is right.
Explain the role of secondary data in gaining customer insights
Identify which economic indicator should be used to track each of the following. a. The overall size of the economy the unemployment rate real GDP nominal GDP real GDP growth b. Labor market performance inflation business confidence the unemployment rate consumer confidence c. The future trajectory of economic activity the employment cost index real GDP inflation annual growth of the S&P 500 d. Wages and benefits business confidence real GDP the employment cost index consumer confidence
Answer:
a. The overall size of the economy ⇒ real GDP
The real GDP is adjusted for inflation and so would show the overall size of the economy in more accurate terms.
b. Labor market performance ⇒ the unemployment rate
The unemployment rate is best used to show how the labor market is performing because it shows the amount of people who are employed and those who are not in a given period.
c. The future trajectory of economic activity ⇒ annual growth of the S&P 500
The S&P 500 shows the performance of 500 large companies in the U.S. Their performance can be used to anticipate the trajectory of future economic activity because they influence the economy due to their large size.
d. Wages and benefits ⇒ the employment cost
The employment cost shows the wages and benefits that have to be paid to labor.
On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $11,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate. Negotiations led to Garcia guaranteeing a $39,800 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $38,600. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Answer:
$987
Explanation:
Calculation to determine the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
First step is to determine the Present value of $1: n= 4, i = 5%
Present value of $1: n= 4, i = 5%
Present value of $1=.8227
Now let calculate the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Using this formula
Amount added to right-of-use asset and lease liability=(Guaranteed -Actual)*Present value
Let plug in the formula
Amount added to right-of-use asset and lease liability=($39,800-$38,600)*.8227
Amount added to right-of-use asset and lease liability= $1,200*.8227
Amount added to right-of-use asset and lease liability=$987
Therefore the amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $987
state 2uses of sulphuric iv acid
Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 3% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $41,000, and the company has no outstanding loans at that time. Forecasted cash receipts and forecasted cash payments (other than for loan activity) are as follows.
Cash Receipts Cash Payments
July $92,000 $120,000
August 118,000 106,900
September 157,000 134,400
Required:
Prepare a cash budget for July, August, and September.
Answer:
Mike's Motors Corp.
Cash Budget
July August September
Beginning balance $41,000 $30,000 $30,000
Cash receipts 92,000 118,000 157,000
Total cash available $133,000 $148,000 $187,000
Cash payments 120,000 106,900 134,400
Interest/Loan repayment 11,100 6,602
Cash balance 13,000 30,000 45,998
Cash to borrow 17,000 0 0
Minimum cash balance $30,000 $30,000 $30,000
Explanation:
a) Data and Calculations:
Minimum cash balance = $30,000
Interest rate on borrowings = 3% per month
Beginning cash balance = $41,000
Cash Budget
July August September
Beginning balance $41,000 $30,000 $30,000
Cash receipts 92,000 118,000 157,000
Total cash available $133,000 $148,000 $187,000
Cash payments 120,000 106,900 134,400
Interest/Loan repayment 11,100 6,602
Cash balance 13,000 30,000 45,998
Cash to borrow 17,000 0 0
Minimum cash balance 30,000 30,000 30,000
Loan repayment:
In August:
Interest is paid = $510 ($17,000 * 3%)
Loan is repaid = 10,590
Total paid = $11,100
Balance of loan unpaid = $6,410 ($17,000 - 10,590)
In September:
Interest on loan = $192 ($6,410 * 3%)
Loan repaid = 6,602 ($6,410 + 192)
On January 1 of the current year, Townsend Co. commenced operations. It operated its plants at 100% of capacity during January.
The following data summarized the results for January:
Units
Production 50,000
Sales ($18 per unit) 42,000
Inventory, January 31 8,000
Total Cost or Expense:
Manufacturing costs variable 575,000
Fixed 80,000
Total 655,000
Selling and administrative expenses:
Variable $35,000
Fixed 10,500
Total 45,500
(a) Prepare an income statement in accordance with absorption costing.
(b) Prepare an income statement in accordance with variable costing.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
a) First, we need to calculate the unitary production cost under absorption costing:
Unitary production cost= (575,000 / 50,000) + (80,000 / 50,000)
Unitary production cost= $13.1
Now, the absorption costing income statement:
Sales= 42,000*18= 756,000
COGS= 13.1*42,000= (550,200)
Gross profit= 205,800
Total Selling and administrative expenses= (45,500)
Net operating income= 160,300
b) First, we need to calculate the total unitary variable cost:
Total unitary variable cost= (575,000/50,000) + (35,000 / 42,000)
Total unitary variable cost= $12.33
Now, the income statement:
Sales= 756,000
Total variable cost= 12.33*42,000= (517,860)
Total contribution margin= 238,140
Fixed overhead= (80,000)
Fixed selling and administrative= (10,500)
Net operating income= 147,640
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
Question Completion:
A. More than the effective interest.
B. Less than the effective interest.
C. Equal to the effective interest.
D. More than if the bonds had been sold at a premium
Answer:
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
B. Less than the effective interest.
Explanation:
This cash payment is the product of the bond's face value multiplied by the coupon rate. The interest expense is increased by the amortized portion of the discount for the particular period. This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance. And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.
The cash paid would be less than the effective interest at each subsequent interest payment date when bonds are issued at a discount and the effective interest method is used for amortization.
The cash payment is computed by multiplying the face value of the bond with coupon rate. Here, an increase in interest expense is seen due to the discount in the amortized part.
Thus, the payment of interest would exceed means that the interest the payments in cash due to the issuance of the bond at discount.
Learn more about bonds and effective interest rates here:
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Hugo Inc., a calendar year taxpayer, sold two operating assets this year. The first sale generated a $38,700 Section 1231 gain, and the second sale generated a $59,400 Section 1231 loss. As a result of these sales, Hugo should recognize: Multiple Choice $20,700 ordinary loss $38,700 Section 1231 gain treated as capital gain and $59,400 ordinary loss $20,700 capital loss None of these choices are correct
Answer:
$20,700 ordinary loss
Explanation:
Based on the information given if the first Operating assets generated a gain of the amount of $38,700 while the second assets generated a loss of the amount of $59,400 after been sold out which indicate or means that Hugo should recognize the amount of $20,700 ORDINARY LOSS which is calculated as :
Ordinary loss =-$59,400+$38,700
Ordinary loss =-$20,700
Therefore As a result of these sales, Hugo should recognize:$20,700 ORDINARY LOSS
At the end of the video, Keith Reinhard says that advertisers have the ability not only to lift up the brands they work for but also to lift up the human spirit. Do you think this is true? Is it their responsibility? Explain.
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On June 30, Petrov Co. has $140,800 of accounts receivable.
July 4 Sold $8,075 of merchandise (that had cost $5,168) to customers on credit, terms n/30.
9 Sold $20,398 of accounts receivable to Main Bank. Main charges a 8% factoring fee.
17 Received $4,441 cash from customers in payment on their accounts.
27 Borrowed $11,656 cash from Main Bank, pledging $15,153 of accounts receivable as security for the loan.
Required:
Prepare journal entries to record the above selected July transactions.
Answer:
July 04
Dr Accounts receivable $8,075
Cr Sales $8,075
July 04
Dr Cost of goods sold $5,168
Cr Merchandise inventory $5,168
July 09
Dr Cash $18,766.16
Dr Factoring fee expense $1,631.84
Cr Accounts receivable $20,398
July 17
Dr Cash $4,441
Cr Accounts receivable $4,441
July 27
Dr Cash $11,656
Cr Notes payable $11,656
July 27
No journal entry
Explanation:
Preparation of journal entries to record July transactions.
July 04
Dr Accounts receivable $8,075
Cr Sales $8,075
July 04
Dr Cost of goods sold $5,168
Cr Merchandise inventory $5,168
July 09
Dr Cash $18,766.16
($20,398-$1,631.84)
Dr Factoring fee expense $1,631.84
($20,398*8%)
Cr Accounts receivable $20,398
July 17
Dr Cash $4,441
Cr Accounts receivable $4,441
July 27
Dr Cash $11,656
Cr Notes payable $11,656
July 27
No journal entry
PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. In the United States, PEZ candies are produced in a factory in Connecticut. Over 3 billion of the small brick-shaped candies are consumed in the U.S. each year. PEZ candy is made from sugar, fruit flavoring, coloring, and corn syrup; the ingredients are put under pressure to form the hard tablets. About 95% of a PEZ tablet is sugar. The Connecticut location also houses PEZ's US headquarters and the PEZ Visitor Center. The Visitor Center offers birthday parties that include a staff member to host the party, goodie bags, pizza, soft drinks, and other options. When a family wants to have a birthday party, the family will work with PEZ staff to customize the birthday party.
1. Would PEZ Candy Inc. be more likely to use job costing or process costing for the manufacture of its PEZ candies? Why?
2. Give an example of each of the following types of costs that PEZ Candy Inc. would be likely to incur in the manufacture of its PEZ candies:
a. Direct material
b. Direct labor
c. Manufacturing overhead
i. Indirect materials
ii. Indirect labor
iii. Other manufacturing overhead
3. Would PEZ Candy Inc. be more likely to use job costing or process costing to calculate the cost of one particular birthday party hosted at the PEZ Visitor Center? Why?
Answer:
PEZ Candy Inc.
1. PEZ Candy Inc. would be more likely to use process costing for the manufacture of its PEZ candies.
The reason is that the manufacturing of candies involves continuous processing of materials that results into candies. The processes are not customizable for separate orders.
2. PEZ Candy Inc. would incur these types of costs in the manufacture of its PEZ candies:
a. Direct material = sugar
b. Direct labor = wages of factory workers
c. Manufacturing overhead = utilities expenses
i. indirect materials = cleaning supplies
ii. indirect labor = factory supervisor's salary
iii. other manufacturing overhead = depreciation expense of factory equipment
3. PEZ Candy Inc. would be more likely to use job costing to calculate the cost of one particular birthday party hosted at the PEZ Visitor Center. The reason is that it is a specific event. It does not involve a continuous process.
Explanation:
a) Data and Calculations:
Materials for PEZ candy include:
Direct materials:
Sugar (95%)
Fruit flavoring
Coloring
Corn syrup
Product = PEZ candies
Services: customized birthday parties
Which doctor was the first to read the patient's chart in grey's anatomy
Answer:
mer
Explanation
i think im not sure that was so long ago byee
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produced 11,297 12,205 9,276 Each chair produced uses 4 board feet of wood. Management wants ending inventory levels of raw materials to equal 20% of the production needs (in wood) for the next month. How many board feet of wood does Tucker need to purchase in February? Round your answer to the nearest whole number. Don't round any intermediate calculations.
Answer:
Tucker Company
The number of board feet of wood that Tucker needs to purchase in February is:
= 46,297.
Explanation:
a) Data and Calculations:
Production Budget
January February March Total
Units Produced 11,297 12,205 9,276 32,778
Board fee for each chair 4 4 4 4
Total board feet required 45,188 48,820 37,104 131,112
Board feet required 45,188 48,820 37,104 131,112
Ending Materials Inventory 9,764 7,421
Beginning Materials Inventory (0) (9,764) (7,421)
Purchase of board feet 54,952 46,297
Kesselring Corporation makes one product and has provided the following information to help prepare the master budget for the next three months of operations: Budgeted unit sales (all on credit): July8,400 August8,800 September12,200 Raw materials requirement per unit of output 4pounds Raw materials cost$3.00per pound Direct labor requirement per unit of output 2.8direct labor-hours Direct labor wage rate$18.00per direct labor-hour Predetermined overhead rate (all variable)$11.00per direct labor-hour The ending finished goods inventory should equal 40% of the following month's sales. The budgeted finished goods inventory balance at the end of August is closest to: (Round your intermediate calculations to 2 decimal places.) Select one: A. $454,816 B. $358,192 C. $304,512 D. $150,304
ect the degree of leverage that completes the following sentence. Thedegree of operating leverage (DOL) is the percentage change in EPS that results from a given percentage change in sales, and it equals the product of the degrees of operating and financial leverage. Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating: Praxis Corp. Three Waters Co. Axis Chemical Co. Degree of Operating Leverage (DOL) 2.0 3.0 3.0 Degree of Financial Leverage (DFL) 6.5 4.0 3.5 According to this information, which company would be considered the riskiest
Answer: Praxis Corp
Explanation:
To know the company that would be considered the riskiest, we've to calculate the degree of total leverage for each firm and this will be:
Praxis Corp:
Degree of total leverage = Degree of operating leverage × Degree of financial leverage
= 2.0 × 6.5
= 13.0
Three Waters Co.
Degree of total leverage = Degree of operating leverage × Degree of financial leverage
= 3.0 × 4.0
= 12.0
Axis Chemical Co.
Degree of total leverage = Degree of operating leverage × Degree of financial leverage
= 3.0 × 3.5
= 10.5
Based on the calculation, since the degree of total leverage for Praxis Corp is the highest, it simply means that it's the riskiest.
Presented below is information for Marin Company.
1. Beginning-of-the-year Accounts Receivable balance was $23,100.
2. Net sales (all on account) for the year were $104,700. Marin does not offer cash discounts.
3. Collections on accounts receivable during the year were $85,400.
Marin is planning to factor some accounts receivable at the end of the year. Accounts totaling $13,900 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,075.
Required:
Prepare (summary) journal entries to record the items noted above.
Answer:
Debit Accounts Receivable for $104,700; and Credit Sales Revenue for $104,700.
Debit Cash for $85,400; and Credit Accounts Receivable for $85,400.
Explanation:
The (summary) journal entries to record the items noted will look as follows:
Particulars Debit ($) Credit ($)
Accounts Receivable 104,700
Sales Revenue 104,700
(To record net sales (all on account) for the year.)
Cash 85,400
Accounts Receivable 85,400
(Collections on accounts receivable during the year.)
You are considering opening a small flower store. You anticipate that you will earn $100,000 each year in revenue. It will cost you $30,000 each year to rent the space necessary to run your business. Additionally, you will need to spend $10,000 each year on flower seeds, utilities, and other expenses necessary to operate your flower shop. You have just graduated from college with a degree in economics and have received an offer to work for a firm with a yearly salary of $70,000.
What is your anticipated economic profit of opening the flower shop?
Based on this information, you ________ open the flower store.
1. The anticipated economic profit for opening the flower shop is $130,000.
2. Based on the information, you should not open the flower store.
Data and Calculations:
Annual revenue = $100,000
Rent expense = $30,000
Cost of goods and others = $10,000
Accounting income = $60,000
Opportunity cost = $70,000
Economic loss = ($10,000) ($60,000 - $70,000)
Anticipated economic profit = $130,000 ($60,000 + $70,000)
Thus, the opening of the flower shop will produce an economic loss for the entrepreneur.
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please help with accounting homework
Answer:
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Explanation:
why do monopolistic firms exhibit excess capacity?
Answer:
Excess capacity under monopolistic competition is caused by product differentiation that leads to product variety and quality, which is beneficial to consumers. Consumers generally do not prefer homogenous products. Technically, excess capacity increases consumer satisfaction.
Explanation:
(hope this helps)
MediSecure Labs uses the weighted-average method in its process costing system. The following data are available for one department for September. Percent Completed Units Materials Conversion Work in process, Sept 1 30,000 65% 30% Work in process, Sept 31 15,000 60% 20% The department started 175,000 units into production during the month and transferred 190,000 completed units to the next department. Required: Compute the equivalent units of production for September.
Answer and Explanation:
The calculation of the equivalent units of production for September month is shown below:
Particulars Material Conversion
Units transferred out 190,000 190,000
Add:
Ending work in process 9,000 3,000
(15,000 × 0.60) (15,000 × 0.20)
Equivalent unit of production 199,000 193,000
The Goode Perk Company produces several models of coffee makers. There is little difference in the production time required for the various model coffee machines. The plant is designed to produce 160 coffee machines per eight-hour shift, and there are two shifts per working day.
However, the plant does not operate for the full eight hours: the employees take two 12-minute breaks in each shift, one in the first four hours and one in the second four hours; two hours per week are devoted to cleaning the factory and performing maintenance on the machines; one four-hour period every four weeks is devoted to the meeting of the quality circle. The plant usually produces about 3,500 coffee machines per four-week period. You may ignore holidays in solving this problem. The selling price of the product is $160.00 per machine. The variable costs per unit are broken down as follows:
- Labor $60.25
- Raw material $25.70
- Purchased component $21.50
- Variable overhead $27.50
The fixed costs total $503,000 per year.
Required:
Using the above information what are the total variable costs per unit?
The Callie Company has provided the following information: Operating expenses were $237,000; Cost of goods sold was $364,000; Net sales were $870,000; Interest expense was $40,000; Gain on sale of a building was $77,000; Income tax expense was $122,400. What was Callie's gross profit
Answer:
$506,000
Explanation:
The gross profit of a company is the balance left after the deduction of costs associated with producing or selling of the company's goods or cost associated with providing services from the net revenue
The gross profit is simply calculated as
= Net revenue - Cost of goods sold
= $870,000 - $364,000
= $506,000
Therefore, Callie's gross profit is $506,000
The income statement of Whitlock Company is presented here.
WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020
Sales revenue $7,407,400
Cost of goods sold Beginning inventory $1,920,000
Purchases 4,485,300
Goods available for sale 6,405,300
Ending inventory 1,445,800
Total cost of goods sold 4,959,500
Gross profit 2,447,900
Operating expenses 1,081,100
Net income $1,366,800
Additional information:
1. Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Operating expenses include depreciation expense of $70,000.
Required:
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Whitlock Company, using the indirect method.
Answer:
$1,146,800
Explanation:
Preparation for the operating activities section of the statement of cash flows for the year ended November 30, 2020
WHITLOCK COMPANY
Partial Statement of Cash FlowsFor the Year Ended November 30, 2020
Cash flows from operating activities
Net income $1,366,800
Adjustments to reconcile net income to net cash provided by operating activities..
Activities
Depreciation expense $70,000
Decrease in inventory $500,000
Decrease in accrued expenses payable ($100,000)
Increase in prepaid expenses ($150,000)
Increase in accounts receivable ($200,000)
Decrease in accounts payable($340,000)($220,000)
Net cash provided by operatingActivities $1,146,800
($1,366,800-$220,000)
Therefore the operating activities section of the statement of cash flows for the year ended November 30, 2020 is $1,146,800
The selection of delegates to the national convention produces _____.
eligen a los presidentes
Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, at a market interest rate of 8 percent. The bonds had a total face value of $250,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the straight-line method to amortize the bond premium.
Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.
Answer:
Dr Cash $300,328
Cr To Bonds Payable $250,000
Cr To Premium on Bonds payable $50,328
Dr Interest Expense $24,026
Dr Premium on bonds payable $3,474
Cr Cash $27,500
Explanation:
Preparation of the required journal entries to record the bond issuance and the first interest payment on December 31.
Dr Cash $300,328
Cr To Bonds Payable $250,000
Cr To Premium on Bonds payable $50,328
($300,328-$250,000)
(Being bond issued at a premium is recorded)
Dr Interest Expense $24,026
($300,328 × 8%)
Dr Premium on bonds payable $3,474
($27500-$24,026)
Cr Cash $27,500
($250,000 ×11%)
(Being interest expense recorded)
list dawn (5)habits for good delivery that a speeker need to develope
Answer:
Explanation:
Think and Speak Visually to "Create Word-Pictures"
Discover the Art of the Conversation.
Pickering Financial Management believes that the biotechnology industry is a good investment and is considering investing in one of two companies. However, one company, BrightWorid, Inc., uses the FIFO method of inventory, and another company, BioTech, Inc., uses LIFO. Because the companies use two different methods and because BioTech is a much larger company, it is difficult to compare their net incomes to see which is a better investment. The following information about the two companies is available from their annual reports:
BrightWorid, Inc.
2018 2017
Inventory $ 96,000 $ 80,000
Cost of goods sold. 1,144,000 913,000
Sales....... 1,760,000 1,660,000
Net income 197,000 190,000
BioTech, Inc. 2018 2017
Inventory (See Note), 344,000 $ 299,000
Cost of goods sold 3,864,000 4,224,000
Sales 7,360,000 7,040,000
Net income 830,000 730,000
Notes to the Financial Statement. If BioTech had used the FIFO method, inventory would have been $21.000 higher at the end of 2017 and $26,000 higher at the end of 2018.
To better compare the two companies, Pickering wants you to prepare the following analysis.
Showthe computation of BioTech's cost of goods sold in 2018 using the LIFO method.
Prepare summary journal entries for 2018 for BioTech's purchases of inventory (assume all purchases are on account), sales (assume all are on account), and cost of goods sold. A T- account has been set up for inventory. Post these transactions into the T-account. The company uses the perpetual inventory method.
Show the computation of BioTech's cost of goods sold for 2018 using the FIFO method.
Compute the gross profit percentage for 2018 for both BrightWorid and BioTech using FIFO figures for both.
Compute the inventory turnover for 2018 for both BrightWorid and BioTech using FIFO figures for both.
Which company appears stronger? Support your answer.
Answer:
Pickering Financial Management
A. Summary journal entries for 2018: BioTech:
Debit Inventory $3,909,000
Credit Accounts Payable $3,909,000
To record the purchase of inventory on account.
Debit Accounts Receivable $7,360,000
Credit Sales revenue $7,360,000
To record the sale of goods on account.
Debit Cost of goods sold $3,864,000
Credit Inventory $3,864,000
To record the cost of goods sold.
B. T-accounts:
Inventory
Account Titles Debit Credit
Beginning balance $299,000
Accounts Payable 3,909,000
Cost of goods sold $3,864,000
Ending balance 344,000
C. Computation of Cost of Goods Sold using the FIFO method:
Beginning inventory $320,000
Purchases 3,909,000
Goods available 4,229,000
less Ending inventory 370,000
Cost of goods sold $3,859,000
D. The gross profit percentage, using FIFO:
BrightWorld BioTech
Gross profit percentage 35% 48%
E. Inventory Turnover: 20x 21x
F. BioTech is doing better and appears stronger than BrightWorld. Its gross profit margin is higher than BrightWorld's. It turns its inventory 21 times as against BrightWorld's 20x, though they are maintaining similar level of net income percentages.
Explanation:
a) Data and Calculations:
Inventory methods:
BrightWorld, Inc. = FIFO (First-in, First-out)
BioTech, Inc. = LIFO (Last-in, First-out)
BrightWorid, Inc.
2018 2017 Average
Inventory $ 96,000 $ 80,000 $88,000
Sales....... 1,760,000 1,660,000
Cost of goods sold. 1,144,000 913,000
Gross profit 616,000 747,000
Net income 197,000 190,000
BioTech, Inc.
2018 2017
Inventory (See Note), 344,000 $ 299,000
Cost of goods sold 3,864,000 4,224,000
Sales 7,360,000 7,040,000
Net income 830,000 730,000
BioTech, Inc. Inventory using FIFO:
2018 2017 Average
Inventory $370,000 $320,000 $345,000
Sales 7,360,000 7,040,000
Cost of good sold 3,859,000 using FIFO
Gross profit 3,501,000
LIFO
Cost of goods sold $3,864,000
Ending inventory 344,000
Goods available $4,208,000
Beginning inventory 299,000
Purchases $3,909,000
Gross profit percentage:
BrightWorld = Gross profit/Sales * 100 = $616,000/1,760,000 * 100 = 35%
BioTech = $3,501,000/$7,360,000 * 100 = 48%
Inventory Turnover = Net Sales/Average Inventory
BrightWorld = $1,760,000/$88,000 = 20x
BioTech = $7,360,000/$345,000 = 21x
If wages are sticky, then a greater than expected increase in the price level Group of answer choices reduces the real costs of production, so the aggregate quantity of goods and services rises. raises the real costs of production, so the short-run aggregate supply curve shifts left. raises the real costs of production, so the aggregate quantity of goods and services declines. reduces the real costs of production, so the short-run aggregate supply curve shifts right.
Answer:
reduces the real costs of production, so the short-run aggregate supply curve shifts right.
Explanation:
The sticky-wage model or theory is an economical concept used to describe how in reality, wages may go up easily but slowly moves down and stays above the equilibrium because workers are resistant to nominal wage cut. This model was developed by John Maynard Keynes and he posited that, sticky-wage may lead to real-wage unemployment, as well as causing disequilibrium in the labor market.
In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
If wages are sticky, then a greater than expected increase in the price level reduces the real costs of production, so the short-run aggregate supply curve shifts right.
In the short-run, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price). The short-run nominal fluctuations basically cause a change in the level of production. In the short-run, as a result of a shift in the aggregate supply; an increase in money consequently to result in increase the level of production (output).
Monogramm just paid a dividend of $2.19 per share. The company said that it will increase the dividend by 15 percent and 10 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.7 percent. If the required return is 10.7 percent, what is the stock price today
Answer: $38.03
Explanation:
Based on the information given in the question, dividend for first year will be:
= D1 = $2.19 × 1.15 = $2.5185
D2= $2.5185 × 1.1 = $2.77035
Then, we calculate the value after year 2 which will be:
=(D2 × Growth Rate) / (Required Return-Growth Rate)
=(2.77035 × 1.037) / (0.107-0.037)
=$41.04
Therefore, the stock price today will be:
= (2.5185/1.107) + (2.77035/1.107²) + (41.04)/1.107²
=$38.03
The price of a stock often rises after a stock dividend is declared. The current stock price is $38.03.
What will be the current stock price?Based on the information provided in the inquiry, the first-year dividend will be:
[tex]D1 = 2.19 \text{ x } 1.15 \\D1 = 2.5185\\D2= 2.5185 \text{ x }1.1\\\\D2= 2.77035[/tex]
Then, after the second year, we calculate the value, which is:
[tex]=(D2 \text{ x } \text{Growth Rate}) / (\text{Required Return-Growth Rate})[/tex]
[tex]=(2.77035[/tex] × [tex]1.037) / (0.107-0.037)[/tex]
[tex]=41.04[/tex]
As a result, today's stock price will be:
[tex]= (\frac{2.5185}{1.107}) + (\frac{2.77035}{1.107^{2}}) + (\frac{41.04}{1.107^{2}})\\=38.03 \text{ dollars}[/tex]
For more information about stock price, refer below
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