All yearly government spending is broken up into two categories; Mandatory spending which is required by law and Discretionary spending which is spending that must be approved each year by Congress.

Mandatory spending is spending that is required by current law. Most federal mandatory spending is in the form of safety net and entitlement programs, including the Food Stamp program, Social Security, Medicaid, and Medicare. Safety net programs represent “transfer payments” by which the government redistributes the income of the taxpayers by collecting taxes and providing services for those less fortunate and who do not provide any type of good or service in return. Entitlement expenditures include Medicaid and Social Security in which money that has been collected from taxpayers is then given back to those that contributed once they reach a certain age or meet other requirements. Other forms of mandatory spending include veterans benefits. For example, being a veteran means that you have already provided a service for which you were guaranteed, by law, certain benefits and payments (salary once you served your term/retirement, college benefits once you served your term, health insurance after you served your term, etc.). Because the law requires that these benefits be paid once the military personnel has served their term, these expenditures are mandatory and are automatically included in the US budget each year. The amount included for these expenditures is based on the number of citizens who “qualify” for these payments whether safety net, entitlement, or veteran benefits. Many other mandatory expenditures fall under the US budget. Over half of the entire US budget is mandatory which means that it cannot be changed without a change to the law.

About one-third of federal spending is Discretionary. This means that while this spending is for programs that are considered necessary to the operation of the US, they must be re-approved each year by Congress through a vote. The largest category of Discretionary spending is National Defense which must be approved each year. Other categories of Discretionary spending include education assistance, Interstate transportation programs, national parks, the Justice / Court system, and science, space, and technology research programs.

An appropriation is an Act which congress passes to approve discretionary spending. For example, one category of spending on education may be mandatory but congress may want to increase spending through an appropriation (or a special vote) which places the extra spending under the discretionary piece of the budget. One example of an appropriation that increased mandatory spending in the US annual budget is that of the Veteran’s Choice program. Veteran’s health benefits are required by law (they have served and part of their payment for serving is free health care after they retire). However, to receive their health benefits veterans have historically been required to utilize specific Doctors and hospitals. This is the law and therefore part of the mandatory budget. However, an appropriation was passed in 2019 which added extra funding to allow veterans to visit any Doctor they chose and be treated at any hospital of their choosing. The funding for this change is part of the discretionary budget and had to be approved by congress.



Questions:



1) Name and define the two types of spending that are included in the US budget each year.




2) What does it mean that mandatory spending is spending required by law? Give an example.


3) How much of the US yearly budget is required by law?







4) Who must vote to approve additional (Discretionary) spending each year?





5) What is the largest category of spending that must be voted on each year?





6) What is appropriation? Give an example.

Answers

Answer 1

Answer:

In the decade leading up to the Great Recession, the government kept federal spending below 20% of GDP. It grew no faster than the economy, around 2% to 3% per year. During the recession, spending grew to a record 24.4% of GDP in FY 2009. This increase was due to economic stimulus and two overseas wars.3

Explanation:

At the same time, growth slowed, which reduced tax receipts. Congress worried about the ballooning U.S. debt. No one could agree on how to reduce it. As a result, Congress enacted across-the-board budget cuts, called "sequestration."4 That finally reduced spending to 20.4% of GDP in FY 2015.5

Since then, spending has crept up again despite the sequester. Congress and the president rely on deficit spending to boost economic growth.6 But deficit spending is out of control. It rises each year, even when the economy is doing well.


Related Questions

A speculative bubble occurs when: A. Investors buy an asset that they believe the market is undervaluing. B. Investors are so afraid of taking risks that they buy only the safe assets. C. Investors bid up the price of an asset because they are overly optimistic that the price will continue rising. D. Investors ignore obvious risks because they are foolish. E. Buyers use credit to make purchases they cannot afford.

Answers

Answer:

c

Explanation:

An insurance company processes 800 claims per year. The average processing time for a claim is 5 weeks. 45% of all claims received are car insurance claims, 40% of all claims received are motorcycle insurance claims, 10% are boat insurance claims, and the remaining are house insurance claims. Hint: These are throughput values. On average there are, 20 car, 9 motorcycles, 12 boats, and some house claims in process. Hint: These are inventory values. Assume 50 weeks per year.
1. What is the average number of claims that are in process?
A. 128 claims.
B. 64 claims.
C. 90 claims.
D. 80 claims.
E. 160 claims.
2. How many house insurance claims are in process?
A. 77 claims.
B. 21 claims.
C. 72 claims.
D. 39 claims.
E. 45 claims.
3. How long, on average, does it take to process a car insurance claim?
A. 7.5 weeks.
B. 4.5 weeks.
C. 3.75 weeks.
D. 6.67 weeks.
E. 2.78 weeks.
4. How long, on average, does it take to process a house insurance claim?
A. 15.63 weeks.
B. 48.75 weeks.
C. 17.5 weeks.
D. 36 weeks.
E. 11.25 weeks.

Answers

Answer:

1. D. 80 claims.

2. D. 39 claims

3. E. 2.78 weeks

4. B. 48.75 weeks

Explanation:

1. Calculation to determine the average number of claims that are in process

Using this formula

Average number of claims in process = Lead time in weeks*units per week

Let plug in the formula

Average number of claims in process = 5*(800/50)

Average number of claims in process= 80 claims

Therefore the average number of claims that are in process is 80 claims

2. Calculation to determine How many house insurance claims are in process

Average number of house insurance claims in process = 80-20-9-12

Average number of house insurance claims in process = 39 claims

Therefore the Average number of house insurance claims in process is 39 claims

3. Calculation to determine How long, on average, does it take to process a car insurance claim

First step is to calculate the Units per week

Units per week = (800/50)*45%

Units per week= 7.2

Now let calculate How long, does it take to process a car insurance claim

Time taken to process a car insurance claim = 20/7.2

Time taken to process a car insurance claim = 2.777777778

Time taken to process a car insurance claim = 2.78 weeks (Approximately)

Therefore How long, on average, it take to process a car insurance claim is 2.78 weeks

4. Calculation to determine How long, on average, does it take to process a house insurance claim

Using this formula

Time taken to process a house insurance claim = Average number of house insurance claims in process/Weekly house insurance claims

Let plug in the formula

Time taken to process a house insurance claim= 39/[(800/50)*5%]

Time taken to process a house insurance claim= 48.75 weeks

Therefore How long, on average, it take to process a house insurance claim is 48.75 weeks

Gelb Company currently manufactures 52,500 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $75,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 52,500 units and buying 52,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier

Answers

Answer:

Gelb Company should choose to Buy the Component since it is the cheaper option. This gives a cost advantage of $28,875.

Explanation:

For each Option, include costs which are unavoidable because those would change as a result of this decision, they are relevant costs items.

Total incremental cost : Making

Variable costs (52,500 x $4.05)    $212,625

Fixed Costs (unavoidable)               $75,500

Total                                                 $288,125

Total incremental cost : Buying

Purchase Price ( 52,500 x $3.50) $183,750

Fixed Costs (unavoidable)              $75,500

Total                                               $259,250

Conclusion :

Gelb Company should choose to Buy the Component since it is the cheaper option. This gives a cost advantage of $28,875 ($288,125 - $259,250).

hello everyone i hope everyone it doing great
free point
happy Ramadan kareem

Answers

Answer:

Hello There!!

Explanation:

Happy Ramadan

Answer:

thx

Explanation:

Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $2 million per year to beneficiaries. The yield to maturity on all bonds is 16%. a. If the duration of 5-year maturity bonds with coupon rates of 12% (paid annually) is four years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 11 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation

Answers

Solution :

The PV  "perpetual" obligation of the firm  = [tex]$\frac{\$ 2 \text{ million}}{0.16}$[/tex]

                                                                     = $ 12.5 million

Also based on duration of the perpetuity, duration of this obligation = [tex]$\frac{1.16}{0.16}$[/tex]

                                                                                                                  = 7.25 years

Let [tex]$w$[/tex] be the [tex]$\text{weight}$[/tex] on the [tex]$5$[/tex] year maturity bond, which has a duration of [tex]$4$[/tex]years. Then :

[tex]$w \times 4 +(1-w) \times 11 = 7.25$[/tex]

[tex]$w=0.5357$[/tex]

Therefore,

[tex]$0.5357 \times \$ 12.5 = \$ 6.7$[/tex] million in the [tex]$5$[/tex] year bond

[tex]$0.4643 \times \$12.5=\$5.8$[/tex] million in the [tex]$2$[/tex] year bond.

Therefore, the total invested amounts to $ [tex]$(6.7+5.8)$[/tex] million = [tex]$\$12.5$[/tex] million, which fully matches the funding needs.

Select the correct answer.
How does licensing for food handling work?
O A. There is one national certification program.
B.
There are several national certification programs.
Ос.
There is one regional certification program.
D. There are several regional certification programs.

Answers

Answer:

The answer is D

Explanation:

There are several regional certification programs does license for food handling work. Thus, option (d) is correct.

What is food?

The term “food” refers to an edible and consumable material that provides the body with nutrition and vitamins to maintain itself. Plants, humans, animals, and birds all typically eat food. fruits, vegetables, legumes, dairy, and other nutrient-dense foods. The body need the food in order to function, thus it was consumed.

Food Safety and Hygiene was the handling the work was the provided in the many regional certification programs. It was the main agenda to provided the information regarding the cleaning procedures and food, safe cooking temperatures, proper hygiene, and the preparation methods.

As a result, the significance of the food is the aforementioned. Therefore, option (d) is correct.

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how can gdp per capita and poverty rates indicate standards of living in each system?​

Answers

Answer:

both measures that can be used to measure standards of living because they are both measures of how much money people have.

Explanation:

I hope this helped

The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.
Required Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
October November December
Budgeted S&A Expenses
Equipment lease expense $7,500 $7,500 $7,500
Salary expense 8,200 8,700 9,000
Cleaning supplies 2,800 2,730 3,066
Insurance expense 1,200 1,200 1,200
Depreciation on computer 1,800 1,800 1,800
Rent 1,700 1,700 1,700
Miscellaneous expenses 700 700 700
Total operating expenses $23,900 $24,330 $24,966
Schedule of Cash Payments for S&A Expenses
Equipment lease expense
Prior month’s salary expense, 100%
Cleaning supplies
Insurance premium
Depreciation on computer
Rent
Miscellaneous expenses
Total disbursements for operating expenses $19,900 $20,830 $21,666
b. Salaries payable
c. Prepaid insurance

Answers

Answer:

Kanosh Cleaning Services

a. Schedule of Cash Payments for S&A Expenses

                                                                       October November December

Equipment lease expense                                     $7,500  $7,500    $7,500

Prior month’s salary expense, 100%                               0    8,200       8,700  

Cleaning supplies                                                     2,800    2,730      3,066

Insurance premium                                                  7,200            0              0

Depreciation on computer                                              0            0              0

Rent                                                                           1,700      1,700        1,700

Miscellaneous expenses                                           700         700          700

Total disbursements for operating expenses  $19,900  $20,830  $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600

Explanation:

a) Data and Calculations:

                                                October   November  December

Budgeted S&A Expenses

Equipment lease expense       $7,500        $7,500      $7,500

Salary expense                           8,200          8,700        9,000

Cleaning supplies                      2,800          2,730        3,066

Insurance expense                     1,200          1,200         1,200

Depreciation on computer         1,800          1,800         1,800

Rent                                             1,700          1,700         1,700

Miscellaneous expenses             700             700           700

Total operating expenses    $23,900    $24,330   $24,966

Schedule of Cash Payments for S&A Expenses

                                                                       October November December

Equipment lease expense                                     $7,500  $7,500    $7,500

Prior month’s salary expense, 100%                               0    8,200       8,700  

Cleaning supplies                                                     2,800    2,730      3,066

Insurance premium                                                  7,200            0              0

Depreciation on computer                                              0            0              0

Rent                                                                           1,700      1,700        1,700

Miscellaneous expenses                                           700         700          700

Total disbursements for operating expenses  $19,900  $20,830  $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600 ($7,200 - $3,600)

a. See the attached photo for the complete schedule of cash payments for S&A expenses.

Under the complete schedule of cash payments for S&A expenses in the attached photo, the following are determined as follows:

Insurance premium paid in October = Monthly insurance expense * 6 months = $1,200 * 6 months = $7,200

Depreciation on computer = This is zero for each of the month because depreciation is not a cash expense.

b. Salaries payable = Salary expense for December = $9,000

c. Prepaid insurance = 6 months insurance premium paid – (October insurance expense + November insurance expense + December insurance expense) = $7,200 – ($1,200 + $1,200 + $1,200) = $7,200 - $3,600 = $3,600

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Farmer Brown grows Number 1 red corn and would like to hedge the value of the coming harvest. However, the futures contract is traded on the Number 2 yellow grade of corn. Suppose that yellow corn typically sells for 90% of the price of red corn. If he grows 180,000 bushels, and each futures contract calls for delivery of 5,000 bushels, how many contracts should Farmer Brown buy or sell to hedge his position

Answers

Answer:

40 contracts

Explanation:

Calculation to determine how many contracts should Farmer Brown buy or sell to hedge his position

First step is to calculate how much The farmer must sell forward

Farmer must sell forward=180,000∗(1/0.90)

Farmer must sell forward= 200,000bushels of yellow corn.

Now let calculate the requires selling

Requires selling=200,000/ 5,000 bushels

Requires selling =40 contracts.

Therefore how many contracts should Farmer Brown buy or sell to hedge his position is 40 contracts.

Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations.
Sales revenue $334,910
Cost of goods sold 149,030
Selling and administrative expenses 54,000
Gain on sale of plant assets 32,710
Unrealized gain on available-for-sale debt investments 9,080
Interest expense 6,360
Loss on discontinued operations 11,260
Dividends declared and paid 4,660
Compute the following:
(a) Income from operations -
(b) Net income -
(c) Comprehensive income
(d) Retained earnings balance at December 31, 2020 -

Answers

Answer:

a. $131,880

b. $167,310

c. $156,050

d. $151,390

Explanation:

(a) Income from operations

Income from Operations is Income resulting from Primary Trading Activities of the Company.

Income from Operations = Gross Profit + Operating Income - Operating Expenses

where,

Gross Profit = Sales - Cost of Goods Sold

                    = $334,910 - $149,030

                    = $185,880

thus,

Income from Operations = $185,880 - $54,000 = $131,880

(b) Net income

Income resulting from Primary and Secondary Trading Activities of the the Company.

Net income = Income from Operations + Non Operating Income - Non Operating Expenses

                   = $131,880 + $32,710 + $9,080 - $6,360

                   = $167,310

(c) Comprehensive income

Income from both Continuing and Non - Continuing Activities.

Comprehensive income = Net income + Non - Continuing Activities

                                         = $167,310 - $11,260

                                         = $156,050

(d) Retained earnings balance at December 31, 2020

The Income remaining after distributions to shareholders have been made.

Retained earnings = Comprehensive income  - Dividends

                               = $156,050 - $4,660

                               = $151,390

You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per share. If the​ market's required yield on similar shares is ​percent, should you sell your shares or buy​ more?

Answers

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected: May $84,000 June 100,800 July 77,000 August 86,100 September 88,000
Required:
Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.
Kailua and Company Schedule
August September
June:
$ × % $ $
July:
$ × %
$ × %
August:
$ × %
$ × %
September:
$ × %
Total cash receipts $ $

Answers

Answer:

Total cash receipts August $80,920

Total cash receipts August September $79,900

Explanation:

Preparation of the schedule showing the cash expected in payments on accounts receivable in August and in September

KAILUA AND COMPANY SCHEDULE

AUGUST SEPTEMBER

June $25,200 $0

($100800 × 25%)

July $38,500 $19,250

($77000 × 50%=$38,500)

($77000 × 25%=$19,250)

August $17,220 $43,050

($ 86,100× 20%=$17,220)

($ 86,100× 50%=$43,050)

September $0 $17,600

($88,000 × 20%=$17,600)

Total cash receipts $80,920 $79,900

($25,200+$38,500+$17,220=$80,920)

($19,250+$43,050+$17,600=$79,900)

Therefore the cash expected in payments on accounts receivable in August and in September are:

Total cash receipts August $80,920

Total cash receipts August September $79,900

A worker may prefer to be treated as an independent contractor (rather than an employee) for which of the following reasons:____________
a. Work-related expenses of an independent contractor are deductible for AGI.
b. All of the self-employment tax is deductible for income tax purposes.
c. A Schedule C does not have to be filed.
d. Avoids the overall limitation (50%) as to business meals.
e. None of these choices are correct.

Answers

Answer: a. Work-related expenses of an independent contractor are deductible for AGI.

Explanation:

Independent Contractors are allowed to deduct the expenses they incur while contracting, from the AGI (Annual Gross Income).

This therefore reduces the taxes that the contractors have to pay unlike with employees who will have to pay income tax and cannot deduct much from work.

Maui Resort Inc. determined that the balance in its deferred tax asset account on December 31, 2020, was $50,000. Management reviewed all available positive and negative evidence to estimate that 30% of the deferred tax asset was more likely than not to be realized. The valuation allowance for deferred tax assets has a December 31, 2020, unadjusted balance of $4,000 (credit). Record the entry to adjust the allowance on December 31, 2020.

Answers

Answer:

Maui Resort Inc.

Journal Entry:

December 31, 2020:

Debit Loss from Unrealizable DTA $31,000

Credit Allowance for Unrealizable DTA $31,000

To record the expected loss from unrealizable DTA and to increase the Allowance balance to $35,000.

Explanation:

a) Data and Calculations:

December 31, 2020 Deferred Tax Asset (DTA) = $50,000

Estimate of realizable DTA = 30% of $50,000 = $15,000

Allowance for unrealizable DTA for 2020 = 70% of $50,000 = $35,000

Loss from unrealizable DTA = $31,000 ($35,000 - $5,000)

b) We can liken the Allowance for Doubtful Accounts to the DTA Valuation Allowance, which is a contra-account to the Deferred Tax asset Account.  In it, the amount of the deferred tax asset that has a more than 50% probability of being lost or unutilized in the future arising from non-availability of sufficient future taxable income is accounted for.

When a crisis interferes with normal operations, the establishment may need to _____.


hold a press conference

close temporarily or scale back operations

fire all the employees and start over

hire a public relations firm

Answers

Is there a specific establishment?

Stellan Manufacturing is considering the following two investment​ proposals:

Proposal X

Proposal Y
Investment

​$730,000

​$504,000
Useful life

5 years

4 years
Estimated annual net cash inflows received at the end of each year

​$156,000

​$100,000
Residual value

​$50,000

​$0
Depreciation method

Straightminus
line

Straightminus
line
Annual discount rate

​10%

​9%
Compute the present value of the future cash inflows from Proposal Y.
Present value of an ordinary annuity of​ $1:

​8%

​9%

​10%
1

0.926

0.917

0.909
2

1.783

1.759

1.736
3

2.577

2.531

2.487
4

3.312

3.240

3.170
5

3.993

3.809

3.791
6

4.623

4.486

4.355
A.
​$252,000
B.
​$292,320
C.
​$268,884
D.
​$324,000

Answers

Answer:When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

Explanation:

In an electric motor, a commutator
a.
is made out of dozens of wire loops wrapped around a ferromagnetic core.
b.
repeatedly reverses the flow of current through the armature.
c.
is a magnet.
d.
is directly connected to the current source.

Answers

Answer:

ook

Explanation:

ook

Mann Co. is preparing an Excel spreadsheet for its 5-year, 6%, $400,000 installment notes. The notes were issued on January 1 for $421,236. Installment payments are payable each December 31. A portion of the spreadsheet appears as follows: A B C D E 1 Effective rate: 0.06 2 Cash payments: 100,000 3 Term to maturity in years: 5 4 5 Period Cash Payment Interest Expense Change in Balance Outstanding Balance 6 0 7 1 8 2 What formula should Mann use in cell E8 to calculate the outstanding balance (book value) of the notes after the second interest

Answers

Answer:

The correct formula that Mann should use in cell E8 is =E7-D8.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached excel file for the complete question with the sorted data.

The explanation of the answer is now given as follows:

The correct formula that Mann should use in cell E8 is =E7-D8. If this formula is used, it will calculate the outstanding balance (book value) of the notes after the second interest for period 2.

Additional Note:

Although this is not part of the requirement of the question, but it is provided for you to assist your further in your learning.

Note: See the below the attached excel file for the full answer and calculations of all the cells required for the amortization schedule.

For example, using the correct formula  =E7-D8 in cell E8 gives $267,301 (in red color).

Explain the definition of Human Resources Management

Answers

Answer:

Human resource management (HRM or HR) is the strategic approach to the effective management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and Employee benefits benefit systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and

Explanation:

The Oppoturnity to employ Workers and to make sure their comfortable

Why is it a good idea to turn off Wi-Fi while using a mobile banking app?​

Answers

Answer:

The fact that Wi-Fi broadcasts data to anybody in range means that your information could be at risk.

Explanation: 1  That's especially risky if you use Wi-Fi for online banking. Avoiding Wi-Fi altogether is not realistic. It's probably not even practical to save banking sessions for when you're at home or on a wired connection.

Incremental costs - Initial and terminal cash flow
Consider the case of Marston Manufacturing
Acme Manufacturing is considering a project that requires an investment in new equipment of $3,200,000, with an additional $160,000 in shipping and installation costs. Acme estimates that its accounts receivable and inventories need to increase by $640,000 to support the new project, some of which is financed by a $256,000 increase in spontaneous liabilities (accounts payable and accruals).
The total cost of Marston's new equipment is___the and consists of the price of the new equipment plus the_____.
In contrast, Marston's initial net investment outlay is____.
Suppose Marston's new equipment is expected to sell for $200,000 at the end of its four-year useful life, and at the same time, the firm expects to recover all of its net operating working capital investment. The company chose to use straight-line depreciation, and the new equipment was fully depreciated by the end of its useful life. If the firm's tax rate is 40%, what is the project's total ter)tination cash flow?
a. $200,000.
b. $464,000.
c. $504,000.
d. $120,000.

Answers

Answer:

c. $504,000

Explanation:

Total cost of new equipment = Price of equipment + Shipping & Installation costs = $3,200,000 + $160,000 = $3,360,000

Increase in working capital = Increase in inventories & account receivables - Increase in accounts payable = $640,000 - $256,000 = $384,000

Total Initial net investment outlay = $3,744,000 ($3,360,000+$384,000)

Project terminal cash-flow = Sale value of equipment (after tax) + Recovery of working capital = $200,000*(1-0.40) + $384,000 = $120,000 + $384,000  = $504,000

Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows: Custodial services 2,600 feet General administration 4,600 feet Producing Department A 9,600 feet Producing Department B 9,600 feet 26,400 feet The department costs of Custodial Services are allocated on a basis of square footage of space. If Custodial Services costs are budgeted at $54,000, the amount of cost allocated to General Administration under the direct method would be:

Answers

Answer:

$0

Explanation:

Under the direct method of cost allocation, each and every service department cost would be distributed to the producing department that depend upon the square footage of space. Also the service of service department would be used by the other service department would not be considered.

So here the custodial service cost would be distributed to the producing department A and producing department b and no cost would be distributed to the general admin department

Hence, the $0 would be allocated  

Which of the following is not true concerning account titles:multiple choiceThere is a wide range of account titles among different types of companies.All companies use exactly the same account titles.There is a small range in account titles regardless of type of company.All companies use different account titles.

Answers

Answer:

There is a wide range of account titles among different types of companies

Explanation:

An account title can be regarded as a

unique name that is been assigned or associated to particular account in an accounting system. It is very crucial to use An account title when there is a need for identification of accounts by

accounting staff , this is because the title usually conveys the purpose of that particular account. Some of the account titles that can be used are;

Cash on Hand, Petty Cash Fund, and

Cash in Bank,. In account titles;

✓All companies use exactly the same account titles.

✓There is a small range in account titles regardless of type of company.

✓All companies use different account titles.

At December 31, 2020, Carter Company had 450,000 shares of common stock issued and outstanding, 350,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on September 1, 2020. Net income for the year ended December 31, 2020, was $1,160,000. What should be Twin Rivers' 2020 earnings per common share, rounded to the nearest penny

Answers

Answer:

$3.03

Explanation:

Calculation to determine What should be Twin Rivers' 2020 earnings per common share,

Using this formula

Earnings per common share=

Net Income for 2020/Weighted Average Shares Outstanding

Let plug in the formula

Earnings per common share=$1,160,000/ [(350,000 x 8/12) + (450,000 × 4/12)]

Earnings per common share=$1,160,000/(233,333+150,000)

Earnings per common share=$1,160,000/383,333

Earnings per common share= $3.03

Therefore What should be Twin Rivers' 2020 earnings per common share is $3.03

Question 11 of 40
Why might a marketer remove a product from the product mix?
A. Because it has high sales
B. Because it isn't selling
C. Because it is a consumer favorite
D. Because it's been on the market for more than two years

need asap

Answers

Answer:

B.because it isnt selling

A circumstance where a producer discontinues selling a specific product permanently: To make room for new things, product deletion of slow-moving items is recommended. Compare with product recall. Hence option B is correct.

What is Product deletion ?

Expanding the product mix can be done in two ways: by adding new brands or variations of already-existing brands to the product line; or by adding more product lines overall.

Brands eliminate products that don't meet marketing plans or show a poor market outlook in addition to those with low sales and profits. Industry-specific product failure rates range from 75% to 90% for newly packaged items, according to estimates.

When a product is not in the right place on the market and If a product is not profitable enough, all the resources required to create it are wasted and could have been utilized to create another product or improve an already existing one. This necessitates product erasure.

Learn more about Product Mix here

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reasons as to why we carry out stovk taking

Answers

Answer:

The importance of stocktaking is clear. It allows you to regularly monitor and increase gross profit, reduce loss, improve control of allowances, and reduce waste

Explanation:

Answer:

The importance of stocktaking is clear. It allows you to regularly monitor and increase gross profit, reduce loss, improve control of allowances, and reduce waste.

Explanation:

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,960 Classroom supplies $ 270 Utilities $ 1,220 $ 75 Campus rent $ 4,800 Insurance $ 2,300 Administrative expenses $ 3,900 $ 44 $ 7 For example, administrative expenses should be $3,900 per month plus $44 per course plus $7 per student. The company’s sales should average $890 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Actual Revenue $ 52,280 Instructor wages $ 11,120 Classroom supplies $ 16,590 Utilities $ 1,930 Campus rent $ 4,800 Insurance $ 2,440 Administrative expenses $ 3,936 Required: 1. Prepare the company’s planning budget for September. 2. Prepare the company’s flexible budget for September. 3. Calculate the revenue and spending variances for September.

Answers

Answer:

The Gourmand Cooking School

1. Planning Budget for September:

                                         Fixed Cost  Cost per  Cost per  Planning

                                         per Month   Course    Student   Budget

Instructor wages                                $ 2,960                      $11,840

Classroom supplies                                              $ 270       16,740

Utilities                               $ 1,220        $ 75                          1,520

Campus rent                     $ 4,800                                         4,800

Insurance                          $ 2,300                                         2,300

Administrative expenses $ 3,900        $ 44           $ 7          4,510

Total                                                                                      $41,710

2) Flexible Budget for September:

                                         Fixed Cost  Cost per  Cost per  Flexible

                                         per Month   Course    Student   Budget

Instructor wages                                $ 2,960                      $11,840

Classroom supplies                                              $ 270        15,120

Utilities                               $ 1,220        $ 75                          1,520

Campus rent                     $ 4,800                                         4,800

Insurance                          $ 2,300                                         2,300

Administrative expenses $ 3,900        $ 44           $ 7         4,468

Total                                                                                   $40,048

3. The Revenue and Spending Variances for September (based on flexible budget):

                                        Planning  Flexible    Actual     Spending

                                        Budget    Budget                     Variance

Revenue                         $55,180 $46,280   $52,280    $6,000  F

Instructor wages             $11,840   $11,840     $11,120        $720  F

Classroom supplies         16,740     15,120      16,590        1,470  U

Utilities                               1,520      1,520         1,930           410  U

Campus rent                     4,800     4,800        4,800            0     None

Insurance                          2,300     2,300        2,440           140  U

Administrative expenses  4,510     4,468        3,936          532   F

Total                               $41,710 $40,048    $40,816        $768  U

Explanation:

a) Data and Calculations:

Sales price per student = $890

Planned number of courses = 4

Planned total number of students = 62

Actual number of courses ran = 4

Actual total number of students = 56

Data concerning the company’s cost formulas appear below:

                                         Fixed Cost  Cost per  Cost per

                                         per Month   Course    Student  

Instructor wages                                $ 2,960                  

Classroom supplies                                              $ 270  

Utilities                               $ 1,220        $ 75                      

Campus rent                     $ 4,800                                

Insurance                          $ 2,300                                    

Administrative expenses $ 3,900        $ 44           $ 7  

Actual Results:

Actual Revenue $ 52,280

Instructor wages $ 11,120

Classroom supplies $ 16,590

Utilities $ 1,930

Campus rent $ 4,800

Insurance $ 2,440

Administrative expenses $ 3,936                                                                        

Mavericks Cosmetics buys $4,347,116 of product (net of discounts) on terms of 8/10, net 60, and it currently pays on the 10th day and takes discounts. Mavericks plans to expand, and this will require additional financing. If Mavericks decides to forego discounts, what would the effective percentage cost of its trade credit be, based on a 365-day year

Answers

Answer:

15.59%

Explanation:

Calculation to determine what would the effective percentage cost of its trade credit be

Effective percentage cost=1+(.08/1-.08)]^(365/10)-1

Effective percentage cost=1.08^36.5-1

Effective percentage cost=15.59%

Therefore the effective percentage cost of its trade credit be 15.59%

if Mavericks decides to forego discounts, then, 83.80% would be the effective percentage of cost of its trade credit.

Here we are to calculate what would the effective percentage cost of its trade credit.

Effective cost of not taking discount = (1 + (%Discount / (1-Discount%)^ (365/(Total days - Discount days)) - 1

Effective cost of not taking discount =  [1 + (8/92)]^[365 / (60 - 10)] - 1

Effective cost of not taking discount = 1.8380 - 1

Effective cost of not taking discount = 0.8380

Effective cost of not taking discount = 83.80%

Therefore, if Mavericks decides to forego discounts, then, 83.80% would be the effective percentage of cost of its trade credit.

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Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

Direct materials $64,500
Direct labor 35,000
Overhead 26,500

At the split-off point, a batch yields 1,000 barlon, 2,200 selene, 2,100 plicene, and 4,000 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $24 per unit, plicene sells for $26 per unit, and corsol sells for $38 per unit.

Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.

Answers

Solution :

Total Joint Cost

Material             = $ 64,500

Labor                 = $ 35,000

Overhead          = $ 26,500

Total joint cost   = $ 126,000

Products Units SP at Split Sales  % Sales    Joint cost     Allocated Joint Cost

Barlon     1000          17     17,000   7.88%     126,000         10001.99

Selene    2200         24    52800  23.03%    126,000         29249.5

Plicene   2100         26      54600  25.02%   126,000         31771.01

Corsol     4000        38     152000   44.08%  126,000         55977.5

                                         302200   100.00%  126000        127000              

All of the following are weaknesses of the payback period:_________ (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. it uses cash flows, not income.
b. it is easy to use.
c. it ignores all cash flows after the payback period
d. it ignores the time value of money.

Answers

Answer:

c. it ignores all cash flows after the payback period

d. it ignores the time value of money.

Explanation:

Payback period as far as capital budgeting is concerned can be regarded as time that is required for recouping of funds that is been expended during setting up of an investment, or the funds required to get to break-even point. It should be noted that weaknesses of the payback period are;

✓. it ignores all cash flows after the payback period

✓ it ignores the time value of money.

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