Answer:
A). Indicates that more is supplied at higher prices.
Explanation:
As per the law of supply, an increase in supply would signify that 'the firms are willing to sell more goods at a higher price' because they can make more profit now as compared to the supply at a lower price. The supply and price of a normal good have a positive association and therefore, an increase in price stimulates the supply as well. However, there are certain other factors responsible for the increase in supply like a fall in costs of production, an increase in the number of producers in the market, etc yet among the given options, the first one asserts a true claim. Thus, option A is the correct answer.
Fly-By-Night Couriers is analyzing the possible acquisition of Flash-in-the-Pan Restaurants. Neither firm has debt. The forecasts of Fly-By-Night show that the purchase would increase its annual aftertax cash flow by $390,000 indefinitely. The current market value of Flash-in-the-Pan is $8 million. The current market value of Fly-By-Night is $29 million. The appropriate discount rate for the incremental cash flows is 8 percent. Fly-By-Night is trying to decide whether it would offer 30 percent of its stock or $12 million in cash to Flash-in-the-Pan. a. What is the synergy from the merger
Answer:
the synergy of the merger is $4,875,000
Explanation:
The computation of the synergy of the merger is shown below;
= Annual cash flow ÷ discount rate
= $390,000 ÷ 8%
= $4,875,000
By dividing the annual cash flow from the discount rate we can get the synergy of the merger
Hence, the synergy of the merger is $4,875,000
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:
Cash and cash equivalents
Accounts receivable (net) 5,700
Inventory l 27,000
Property, plant, and equipment (net) 67,000
Accounts pay able 46,000
Salaries payable 18,000
Paid-in capitapoints 135,000
The only asset not listed is short-term investments. The only liabilities not listed are $37000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.6:1
Required: Determine the following at December 31, 2021:
1. Total current assets
2. Short-term investments
3. Retained earnings
Answer:
1. Total current assets = $104,000
2. Short term investments = $4,300
3. Retained earnings = $27,000
Explanation:
Note: The data given in the question are not complete and merged together. The complete sorted data are now given as follows:
Details Amount ($)
Cash and cash equivalents 5,700
Accounts receivable (net) 27,000
Inventory 67,000
Property, plant, and equipment (net) 160,000
Accounts pay able 46,000
Salaries payable 18,000
Paid-in capital 135,000
The explanation of the answer is now given as follows:
1. Total current assets
Current liabilities = Accounts playable + Salaries payable + Accrued interest = $46,000 + $18,000 + $1,000 = $65,000
Current ratio = 1.6:1
Current ratio = Current assets / Current liabilities .............. (1)
Substituting the relevant values into equation (1) ans solve for Current assets, we have:
1.6 = Current assets / $65,000
Current assets = 1.6 * $65,000 = $104,000
Therefore, wee have:
Total current assets = $104,000
2. Short-term investments
Current assets = Cash and cash equivalents + Accounts receivables + Inventory + Short term investments ............... (2)
Substituting the relevant values into equation (2) ans solve for Short-term investments, we have:
$104,000 = $5,700 + $27,000 + $67,000 + Short term investments
$104,000 = $99,700 + Short term investments
Short term investments = $104,000 - $99,700 = $4,300
3. Retained earnings
Long term liabilities = Notes payable due in two years = $37,000
Fixed assets = Property, plant, and equipment (net) = $160,000
Current assets + Fixed assets = Current liabilities + Long term liabilities + Paid in capital + Retained earnings ................. (3)
Substituting the relevant values into equation (3) ans solve for Retained earnings, we have:
$104,000 + $160,000 = $65,000 + $37,000 + $135,000 + Retained earnings
$264,000 = $237,000 + Retained earnings
Retained earnings = $264,000 - $237,000 = $27,000
Suppose payments will be made for 7 1/4 years at the end of each month from an ordinary annuity earning interest at the rate of
4.25%/year compounded monthly. If the present value of the annuity is $47,000, what should be the size of each payment from the
annuity? (Round your answer to the nearest cent.)
Please help!
Answer:
The size of the payment = $628.63
Explanation:
An annuity is a series of equal payment or receipt occurring for certain number of period.
The payment in question is an example of an annuity . We can work back the size of the payment using the present value of the ordinary annuity formula stated below
The Present Value of annuity = A × (1- (1+r)^(-n))/r
A- periodic cash flow,= ? r- monthly rate of interest - 4.25%/12= 0.354%
n- number of period- (71/4×12)= 87.
Let y represent the size of the payment, so we have
47,000 = y × ( 1-1.00354^(-87))/0.00354
47,000 = y× 74.76
y =47,000/74.7656= 628.63
The size of the payment = $628.63
Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year
Answer:
$508,000
Explanation:
Calculation to determine what will be the amount of bad debt expense recognized for the year
Using this formula
Bad debt expense=(Outstanding accounts receivable*Uncollectible outstanding receivables percentage)-Credit balance)
Let plug in the formula
Bad debt expense=($6.5million*8%)-$12,000
Bad debt expense=$520,000-$12,000
Bad debt expense=$508,000
Therefore what will be the amount of bad debt expense recognized for the year is $508,000
18. When a court says that an agreement is illegal, it most likely means that the agreement: A. has not mentioned a time period for which the agreement is valid.B. does not identify the parties involved in the agreement.C. is related to buying and selling of trade secrets.D. violates public policy.
When a court says that an agreement is illegal, it most likely means that the agreement violates public policy. Thus the correct answer is D.
What is an agreement?When two individuals or parties are ready to provide consent on similar gaols to achieve the common objective with teh help of offer and acceptance indicates the occurrence of agreement.
The agreement violates public policy as it is illegal which harms the society or citizens of the country. The action breaks the law, and negatively affects the welfare of the people it is declared to be against public policy.
Therefore, option D violates public policy is the appropriate answer.
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Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,300, Work in ProcessâCutting $3,000, Work in ProcessâAssembly $10,700, and Finished Goods $32,000. During July, the following transactions occurred.
1. Purchased $62,600 of raw materials on account.
2. Incurred $60,100 of factory labor. (Credit Wages Payable.)
3. Incurred $71,000 of manufacturing overhead; $41,000 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $15,800 and Assembly $9,000.
5. Used factory labor for Cutting $33,100 and Assembly $27,000.
6. Applied overhead at the rate of $19 per machine hour. Machine hours were Cutting 1,690 and Assembly 1,750.
7. Transferred goods costing $67,700 from the Cutting Department to the Assembly Department.
8. Transferred goods costing $135,000 from Assembly to Finished Goods.
9. Sold goods costing $151,000 for $201,000 on account.
Required:
Journalize the transactions.
Answer:
Item 1
Debit : Raw Materials $62,600
Credit : Accounts Payable $62,600
Item 2
Debit : Wages expense $60,100
Credit : Wages Payable $60,100
Item 3
Debit : Overhead expenses $71,000
Credit : Cash $41,000
Credit : Accounts Payable $30,000
Item 4
Debit : Work in Process - Cutting $15,800
Debit : Work in Process - Cutting $9,000
Credit : Raw Materials $24,800
Item 5
Debit : Work In Process - Cutting $33,100
Debit : Work In Process - Assembly $27,000
Credit : Wages Expense $60,100
Item 6
Debit : Work in Process - Cutting $32,110
Debit : Work in Process - Assembly $33,250
Credit : Overheads $65,360
Item 7
Debit : Work in Process - Assembly Department $67,700
Credit : Work in Process - Cutting Department $67,700
Item 8
Debit : Finished Goods Inventory $135,000
Credit : Work in Process - Assembly Department $135,000
Item 9
Debit : Accounts Receivable $201,000
Debit : Cost of Sales $151,000
Credit : Sales Revenue $201,000
Credit : Finished Goods Inventory $151,000
Explanation:
When Costs are Incurred :
Debit the Account to which cost is accumulating and Credit cash when the cash is paid or Accounts Payable when there is no immediate payment.
When items are used in Production :
Debit the Work in Process Account to which the cost relates to and Credit the Account attached to that cost.
When there is a transfer :
Debit the Work in Process Account to which the items are flowing to and Credit the Work in Process Account from which the items are flowing.
Q2. Management is equally important to run a political organisation as it is to run an
economic organisation. Which feature of management is being reflected in the given
statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity
03.
'Objectives of an enterprise play a vital role'. These should be
(a) Expressed in measurable terms (b) Written statements
(c) Issued by top management
(d) All the above
In a marketing firm, the Financial Manager pays more attention towards an increase in
the marketing cost as compared to a 15% increase in the courier expenses.
Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above
Answer:
Q2. B
Because a management is basically Base of separation of powers where all organs get work to do
Q3. A
Q4. B
Superstition Industries has a $2,000,000 asset investment and is subject to a 30% income tax rate. Cash inflows from the project are expected to average $400,000 before tax over the next few years; in contrast, average income before tax is anticipated to be $350,000. The company's after-tax accounting rate of return on this investment is:
Answer:
12.25%
Explanation:
Calculation to determine what The company's after-tax accounting rate of return on this investment is:
Using this formula
After-tax accounting rate of return =Avarage income/Average investment
Let plug in the formula
After-tax accounting rate of return=($350,000*70%)/$2,000,000
(100%-30%=70%)
After-tax accounting rate of return=$245,000/$2,000,000
After-tax accounting rate of return=0.1225*100
After-tax accounting rate of return=12.25%
Therefore The company's after-tax accounting rate of return on this investment is:12.25%
The general factory overhead and purchasing department expenses are common costs that the company allocates to all of its products using total sales dollars as the allocation base. The equipment used to manufacture Product A does not wear out through use and it has no resale value. What is the financial advantage (disadvantage) of dropping Product A
Answer: Disadvantage of $52,000
Explanation:
Financial advantage(disadvantage) of dropping Product A will depend on if the savings associated with the drop will be more than the contribution margin that A brings in.
If the product is dropped, the fixed costs that would be dropped are: the salary of the manager, the advertising for the product and the insurance on the inventories of the product.
The other fixed costs are either general or irrelevant (product does not wear so depreciation is irrelevant)
Advantage (disadvantage) = Savings - Contribution margin
= (65,000 + 35,000 + 8,000) - 160,000
= (52,000)
Economical solar energy and energy from fusion have been identified as two of engineering's grand challenges. While work continues on these grand challenges, conservation of energy from non-renewable sources is vital. On a practical level, installing low thermal emissivity windows (low-e windows) on buildings can contribute to energy conservation. Installing low-e windows on a small office building is estimated to cost $9,000. The windows are expected to last 8 years and have no salvage value at that time. The energy savings from the windows are expected to be $2,775 in the 1st year. After the 1st year, the savings are expected to increase by $125 each year due to escalating fossil fuel costs. MARR is 12% per year and annual worth is the preferred measure of economic worth.
Are the low-e windows an economically attractive investment?
The annual worth of installing the low-e windows is $_________
Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +1.
The low-e window investment _______attractive.
Answer:
Economical Solar and Fusion Energy
The annual worth of installing the low-e windows is $_1,327________
Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +1.
The low-e window investment ___is____attractive.
Explanation:
a) Data and Calculations:
Present values:
Year Annual PV Factor PV of
Savings Savings
Year 1 $2,775 0.893 $2,478.075
Year 2 $2,900 0.797 2,311.300
Year 3 $3,025 0.712 2,153.800
Year 4 $3,150 0.636 2,003.400
Year 5 $3,275 0.567 1,856.925
Year 6 $3,400 0.507 1,723.800
Year 7 $3,525 0.452 1,593.300
Year 8 $3,650 0.404 1,474.600
Total $25,700 4.968 $15,595
Annual Worth of the Present Value of savings = $15,595/4.968 = $3,139
Annual worth of the Present Value of investment costs = $9,000/4.968
= $1,812
Annual worth = $1,327 ($3,139 - $1,812)
Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory?
OA. Employees have to be reprimanded for bad ideas.
O B. Employees are self-motivated in their work.
O C. Employees need constant supervision.
OD. Employees are always ready to leave the company.
Answer:
OB. Employees are self-motivated in their work.
Explanation:
PLATO
Employees are self-motivated in their work Employees are self-motivated in their work.
What is Theory Y of leadership?Theory Y of leadership is the theory in which a manager assumes that they have self-motivated employees in the company.
In this, manager gives them responsibility and allowed them to take their own decision for the company. They also make initiatives something by their own.
Thus, option B is correct.
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Godfrey Corporation holds, as a long-term investment available-for-sale securities costing $69,000. At December 31, 2017, the fair value of the securities is $64,100. Show the financial statement presentation of the available-for-sale securities and related accounts. Assume the available-for-sale securities are noncurrent.
GOLDFREY CORPORATION
Balance Sheet Entry field with correct answer
December 31, 2017
Entry field with correct answer Investments
Entry field with correct answer Investment In Stock, at fair value
Entry field with correct answer 64100
Entry field with correct answer Stockholders' Equity
Entry field with correct answer Less :
Entry field with incorrect answer now contains modified data
Entry field with correct answer 4900
Answer:
Godfrey Corporation
GOLDFREY CORPORATION
Balance Sheet (Partial)
December 31, 2017
Noncurrent assets:
Investments:
Investment In Stock, at fair value $64,100
Stockholders' Equity:
Common stock
Retained earnings
Less :
Unrealized loss $4,900
Explanation:
a) Data and Calculations:
Long-term investment available for sale:
Cost = $69,000
Fair value 64,100
Unrealized loss $4,900
b) The correct entry would have been to reduce the net income by the unrealized loss. However, for simplicity, this is showed as a reduction of the Retained Earnings in the balance sheet.
Toshovo Computer owns four production plants at which computer workstations are produced. The company can sell up to 40,000 computers per year at a price of $1500 per computer. For each plant, the production capacity, the production cost per computer, and the fixed cost of operating a plant for a year are given in the file P06_56.xlsx . Determine how Toshovo can maximize its yearly profit from computer production.
Question Completion:
Toshovo computer data
Plant 1 Plant 2 Plant 3 Plant 4
Plant fixed cost $6,000,000 $5,000,000 $3,000,000 $2,000,000
Cost per computer $1,000 $900 $800 $750
Capacity 15,000 10,000 12,000 8,000
Answer:
Toshovo Computer
Toshovo can maximize its yearly profits from computer production by producing at full capacity at Plants 4, 3, and 2. At Plant 1, it should produce only 10,000.
It can also decide to double its capacity at Plants 4 and 3 and eliminate its Plants 1 and 2 with high fixed costs.
Explanation:
a) Data and Calculations:
Estimated number of computers per year = 40,000
Price per computer = $1,500
Toshovo computer data
Plant 1 Plant 2 Plant 3 Plant 4
Plant fixed cost $6,000,000 $5,000,000 $3,000,000 $2,000,000
Cost per computer $1,000 $900 $800 $750
Fixed cost per unit 400 500 250 250
Total costs per unit $1,400 $1,400 $1,050 $1,000
Selling price per unit $1,500 $1,500 $1,500 $1,500
Profit per unit $100 $100 $450 $500
Capacity 15,000 10,000 12,000 8,000
Plants Units to be Profit
Produced Per Unit
Plant 1 8,000 $500
Plant 2 12,000 $450
Plant 3 10,000 $100
Plant 4 10,000 -$100
Total produced 40,000
Suppose you have just paid a nonrefundable fee of $1,000 for your meal plan for this academic term. This allows you to eat dinner in the cafeteria every evening.
A. You are offered a part-time job in a restaurant where you can eat for free each evening. Your parents say that you should eat dinner at the cafeteria anyway since you have already paid for those meals. Are your parents right? Explain why or why not.
B. You are offered a part-time job in a different restaurant where, rather than being able to eat for free, you receive only a large discount on your meals. Each meal there will cost you $2; if you eat there each evening this semester, it will add up to $200. Your roommate says that you should eat in the restaurant since it costs less than the $1,000 that you paid for the meal plan. Is your roommate right? Explain why or why not.
Answer:
A. Parents are not right
B. Roommate is not right
Explanation:
A.Based on the information given your Parents are NOT right reason been that since the two or both of the meals are free for you to eat from you should therefore eat at either the restaurant or cafeteria that you think or felt will benefits you the most at that point in time.
B..Base on the information given your roommate is NOT right, reason been that you should eat at either the restaurant or cafeteria that you think will benefits you the most which means that you can decide to eat from either of the restaurant which food is free or the restaurant which meal will cost you $2 meal after you value the $2 meal to be truly $2 meal.
Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $300,000, which includes interest revenue of $40,000 from municipal governmental bonds. The enacted tax rate is 25%.
Assuming no differences between accounting income and taxable income other than those described above:
Required:
What Southern Atlantic's 2021 net income?
Answer:
1. Dr Income tax expense $43,000
Cr Deferred tax liability $2,500
Cr Income tax payable $40,500
2. $157,000
Explanation:
1. Preparation of the Journal entry to record income taxes in 2021
First step is to record income taxes in 2021
TAX RATE % TAX $ RECORDED AS
Pre-tax accounting income $200,000
Less Permanent difference ($28,000)
Income subject to Taxation
$172,000 ×25% $43,000 Income tax expense
Less Temporary difference
($10,000) ×25% - $2,500 Deferred tax liability
Income taxable in current year
$162,000 ×25% $40,500 Income tax payable
Calculation for Temporary difference
Depreciation in 2021 as per taxation=$40,000×50%
Depreciation in 2021 as per taxation=$20,000
Depreciation as per straight line=$40,000/4
Depreciation as per straight line=$10,000
Using this formula to calculate the Temporary difference
Temporary difference=Depreciation as per straight line-Depreciation in 2021 as per taxation
Let plug in the formula
Temporary difference=$20,000-$10,000
Temporary difference=$10,000
Preparation of Southern Atlantic Distributors JOURNAL ENTRY
Dr Income tax expense $43,000
Cr Deferred tax liability $2,500
Cr Income tax payable $40,500
(Being to record income tax expense)
2. Calculation for Southern Atlantic Distributors Net income
Income before income taxes $200,000
Less Income tax expense
Deferred tax liability ($2,500)
Income tax payable ($40,500)
Net income $157,000
($200,000-$2,500-$40,500)
Therefore 2021 Net income is $157,000
hope this help
In which of the following does the seller of a product or service have the LEAST amount of control over the price?
O A. Natural monopoly
O B. Privatization
OC. Oligopoly
OD. Perfect competition
O E. Monopolistic competition
Answer:
'd' perfect competition
Explanation:
since there is a high competition and has to go according to the market. if the competetor is selling the same product in lower price the seller should decrease there price also . to attract the buyers
In a market having perfect competition, the seller of a product or service has the least amount of control over the price of such product or service. Therefore, the option D holds true.
What is the significance of perfect competition?A market having perfect competition can be referred to or considered as a market where a large number of buyers and sellers come together to trade a similar product or service. There is free entry and exit in a perfectly competitive market.
Moreover, there is no scope for price control or manipulation by the seller in a perfect competition because the seller does not have the pricing power, mainly because there are a large number of sellers dealing in similar products, and thus, the price remains the same in the whole market.
Therefore, the option D holds true regarding the significance of perfect competition.
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In the Ford Pinto Case Study, executives at Ford Motor Co. argued that “if the cost to repair the defect means a potential loss of profit, then we do not repair the defect.” In free market theory, this view makes use of
a.
Pareto efficiency.
b.
intrinsic value.
c.
tradeable property rights.
d.
cost-benefit analysis.
sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man sus man
The view of the executives at Ford Motor Co. uses cost-benefit analysis.
What is the cost-benefit analysis?The cost-benefit analysis refers to the process that is used to determine whether the decision or action is beneficial or not. The profit or beneficial effect of the decision is calculated by considering the cost that is associated with the action.
In the given case the executive consider the cost to repair the defect and observed its effect on the profit. They stated that if the cost to repair the defect causes of potential loss of profit to the company they will not choose to repair the same.
Therefore the correct option is D.
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Splish Brothers Inc. sold its accounts receivable of $70,300. What entry should Splish Brothers make, given a service charge of 4% on the amount of receivables sold?
Sheila, a widow, makes out a will leaving one-half of her property equally to two of her adult children, Mark and Paula. The other one-half of her peoperty she is leaving to her neighbor Ned. Her third adult child, Elmo was left nothing. Sometime later a court declares Sheila mentally incompetent. Sheila dies 6 months after that. Mark, paula and Elmo now seek to invalidate the will.
1. What legal arguments may be used to invalidate the will?
A. Sheila was unable to understand what she was signing when she signed the will.
B. Sheila is not permitted to disinherit any of her children.
C. Either of these arguments are legally valid.
D. neither of these arguments are legally valid.
2. If the will is deemed to be invalid how would Sheila's estate be distributed?
a. one third each to Elmo, Mark and Paula.
b. 50% to Elmo. 25% each to Mark and Paula.
c. 25% to Ned, Mark Paula and Elmo.
d. 100% to the government.
Answer:
1. A.
2. a.
Explanation:
1. In this scenario, the only legal argument that they can make would be that Sheila was unable to understand what she was signing when she signed the will. Even though the bar for mental incompetence when dealing with a Will is extremely low, they can still dispute the will under this claim. Mainly due to the fact that she was declared Mentally Incompetent by a court judge, thus giving the claim much more validity and possibility of being accepted by the court.
2. If the court accepts this claim then the entirety of Sheila's estate will be distributed evenly among her next of kin, which in this case would be her children. Therefore, the estate will be divided evenly, one third each to Elmo, Mark and Paula, who are all of Sheila's adult children.
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period: Department Direct Expenses Square Feet Maintenance $ 25,500 Milling 76,500 10,000 Assembly 105,400 15,000 The total cost of operating the Assembly Department for the current period is: rev: 12_17_2020_QC_CS-243789 Multiple Choice $91,800. $115,600. $105,400. $120,700. $130,900.
Answer:
$120,700
Explanation:
Calculation to determine what The total cost of operating the Assembly Department for the current period is
First step is to Allocate Maintenance costs to Assembly department
Assembly=$25,500 × (15,000/25 000) >= $15,300
Now let calculate the Total Assembly costs
Total Assembly costs= $105,400 + 15,300
Total Assembly costs= $120,700
Therefore The total cost of operating the Assembly Department for the current period is $120,700
Alden Co.’s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Predict future total costs when sales volume is (a) 376,000 units and (b) 416,000 units.
Question Completion:
Month Units Sold Total Cost
1 318,000 $155,500
2 163,000 99,250
3 263,000 203,600
4 203,000 98,000
5 288,000 199,500
6 188,000 110,000
7 362,000 292,624
8 268,000 149,750
9 76,400 67,000
10 148,000 128,625
11 92,000 92,000
12 98,000 83,650
Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
Answer:
Alden Co.
Future total costs when sales volume is:
(a) 376,000 units (b) 416,000 units
Variable costs $297,040 $328,640
Fixed costs 6,644 6,644
Total costs $303,684 $335,284
Explanation:
a) Data and Calculations:
Highest: Month 7 362,000 $292,624
Lowest: Month 9 76,400 $67,000
Difference 285,600 $225,624
Variable cost = $0.79 ($225,624/285,600)
Total variable cost:
At Highest Level = $285,980 ($0.79 * 362,000)
Fixed cost = Total costs - Total variable cost
= $6,644 ($292,624 - $285,980)
Check:
At lowest level:
Variable cost = $60,356 ($0.79 * 76,400)
Fixed costs = $6,644 ($67,000 - $60,356)
In the audit of notes payable, an auditor testing the ASB balance assertion of accuracy and valuation most likely would: ________
a. read directors' and finance committee's minutes for authorization of financing transactions.
b. select a sample of paid notes and trace interest expense to the general ledger account.
c. select a sample of paid notes and recalculate interest expense for the period under audit.
d. select a sample of notes payable and vouch cash receipt to the bank statement.
Answer:
I think it's c
Explanation:
Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Jasonâs mother's promise is:
a. unenforceable, because it is a unilateral contract.
b. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
c. enforceable, because Jason is giving up the right to do something else.
d. enforceable, because Jason returned to college.
Answer:
b. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
Explanation:
Note, Jason's mother only made a declaration or "promise" to give without any benefit derived from the actions of the other party (Jason).
Her statement in no way shows any legal benefit or considered been offered by the other party in return for payment.
Remember too that Jason's mother wholeheartedly or voluntarily offered to pay for his books because she was happy, and in this same way she can decide not to do so because no legal benefit was received in return.
Answer:
B. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
Explanation:
Hope this helps
Marc is 32 and married to Estella, who is 30. Estella is a stay-at-home mom to their two children, ages 1 and 4. They currently live on Marc's salary of $110,000 (after taxes) that just about meets their household expenses. They would like to make sure that if Marc dies, they replace his income for 17 years, which would match their mortgage maturity and their kids would be well off to college; fund the children's college education ($300,000); establish a retirement fund for Estella ($250,000) to supplement Marc's Social Security retirement benefits; cover funeral costs ($10,000); and establish a 3-month emergency fund. If Estella dies, they want to have enough insurance to be able to pay for child care ($36,000 per year) and housekeeping services ($12,000 per year) for 17 years, to establish an emergency fund, and for funeral costs. They have the following financials:
Marc's employer provides a year's salary life insurance. Family is eligible for Social Security survivor benefits of $55,000 if Marc dies. Household expenses would be 20% lower if either parent dies. Current savings and investments of $23,000.
Using the financial needs approach, how much life insurance would you recommend?
A. $905,500 on Marc; $778,500 on Estella
B. $1,015,500 on Marc; $756,500 on Estella
C. $487,500 on Marc; $340,500 on Estella
D. $1,063,500 on Marc; $708,500 on Estella
Answer:
B. $1,015,500 on Marc ; $756,500 for Estella
Explanation:
Marc has current salary of $110,000 with which he runs the household expenses. If Marc dies then there should be more insurance coverage because he is the only person who earns in the house. Estella is a house wife and insurance coverage for her is lower than Marc because he will still be able to continue his earning.
Classic Limo, Inc., provides limousine service to Tri-Cities airport. The price of the service is fixed at a flat rate for each trip and most costs of the providing the service are stable for each trip. Marc Pence, the owner, budgets income by estimating two factors that fluctuate with the economy: the fuel cost associated with each trip and the number of customers who will take trips. Looking at next year, Marc develops the following estimates of contribution margin (price less variable cost of the trip, including fuel) and for the estimated number of customers. Although Marc understands that it is not strictly true, he assumes that the cost of fuel and the number of customers are independent. In addition to the costs of a ride, Marc estimates that other service costs are $50,000 plus $5 for each customer (ride) in excess of 6,000 rides. Annual administrative and marketing costs are estimated to be $25,000 plus 10 percent of the contribution margin.
Required:
Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc., similar to that in Exhibit 13.15 on page 558 of the textbook. You must submit this part of the assignment as an Excel file and utilize formulas for all calculations. You will be graded on the answers provided, formulas/calculations, and presentation. If you would like feedback on this part of the assignment before submitting, please email your spreadsheet to me at least 48 hours prior to the due date.
Answer:
Poor $(14,250)
Fair $26,250
Excellent $87,000
Poor $6,000
Fair $60,000
Excellent $141,000
Poor $44,250
Fair $138,750
Excellent $280,500
Explanation:
Prepare of an analysis of the possible operating income for Classic Limo, Inc.,
Contribution MarginA Numbers of CustomersB Total Contribution MarginC=A*B Service costsD Marketing & AdminE=25,000+(C*10%) Operating Profit / (Loss)F=C-D-E
Poor $15* 4,500= $67,500- $50,000- $31,750 =$(14,250)
Fair $25 *4,500= $112,500 -$50,000 -$36,250 =$26,250
Excellent $40* 4,500=$180,000-$50,000-$43,000=$87,000
Poor $15*6,000=$90,000-$50,000-$34,000=$6,000
Fair $25*6,000=$150,000-$50,000-$40,000=$60,000
Excellent $40*6,000=$240,000-$50,000-$49,000=$141,000
Poor $15*10,500=$157,500-$72,500-$40,750=$44,250
Fair $25*10,500=$262,500-$72,500-$51,250=$138,750
Excellent $40*10,500=$420,000-$72,500-$67,000=$280,500
CALCULATION FOR SERVICE COST
Service costs=$50,000+($10,500-$6,000)*5
Service costs=$50,000+($4,500*5)
Service costs=$50,000+$22,500
Service costs=$72,500
CALCULATION FOR Marketing & AdminE=25,000+(C*10%)
$25,000+(Total Contribution margin *10%)
Poor $25,000+($67,500*10%)=$31,750
Fair $25,000+($112,500*10%)=$36,250
Excellent$25,000+($180,000*10%)=$43,000
Poor $25,000+($90,000*10%)=$34,000
Fair $25,000+($150,000*10%)=$40,000
Excellent $25,000+($240,000*10%)=$49,000
Poor $25,000+($157,500*10%)=$40,750
Fair $25,000+($262,500+10%)=$51,250
Excellent $25,000+($420,000*10%)=$67,000
Therefore the possible operating income for Classic Limo, Inc.,are
Poor $(14,250)
Fair $26,250
Excellent $87,000
Poor $6,000
Fair $60,000
Excellent $141,000
Poor $44,250
Fair $138,750
Excellent $280,500
You have been offered an investment that will pay you a lump sum of $30,000 25 years from today, along with a payment of $1,000 per year for 25 years starting one year from today. How much are you willing to invest today to have this investment in your portfolio assuming you wish to earn a rate of 6 percent compounded annually
Answer:
$5,793.40
Explanation:
The amount you invest is called the Principle Value (PV). Therefore the question requires us to determine the Principle Amount that will pay you a lump sum of $30,000 25 years from today.
FV = $30,000
N = 25
PMT = ($1,000)
P/Yr = 1
I = 6 %
PV = ?
Using a Financial Calculator to input the values as shown above, the Principle Value (PV) is calculated as $5,793.40.
Therefore, you will be willing to invest $5,793.40 today to have this investment in your portfolio
Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberry crop was small. The following data have been gathered for the summer quarter of last year: Beginning inventory (cases) 0 Cases produced 8,000 Cases sold 7,000 Sales price per case $ 115 Direct materials per case $ 25 Direct labor per case $ 40 Variable manufacturing overhead per case $ 10 Total fixed manufacturing overhead $ 192,000 Variable selling and administrative cost per case $ 2 Fixed selling and administrative cost $ 38,000 Functional Income Statement Contribution Income Statement Ending Inventory Analysis (a) Prepare a functional income statement for the quarter using absorption costing. (Round answers to the nearest dollar. Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year) Sales Answer 805,000 Cost of goods sold: Variable costs Answer 616,000 Fixed costs Answer 192,000 Goods available Answer 808,000 Ending inventory Answer 99,000 Answer 693,000 Gross profit Answer 112,000 Operating expenses: Variable selling and administrative Answer 14,000 Fixed selling and administrative Answer 38,000 Answer 52,000 Net income (loss) Answer 60,000
Answer:
Red Arrow Blueberries
RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year)
Sales $805,000
Cost of goods sold:
Variable costs 600,000
Fixed costs 192,000
Goods available 792,000
Ending inventory 99,000 693,000
Gross profit 112,000
Operating expenses:
Variable selling & administrative 14,000
Fixed selling and administrative 38,000
Total operating expenses 52,000
Net income (loss) 60,000
Explanation:
a) Data and Calculations:
Beginning inventory (cases) 0
Cases produced 8,000
Cases sold 7,000
Ending inventory (cases) 1,000 (8,000 - 7,000)
Sales price per case $ 115
Direct materials per case $ 25
Direct labor per case $ 40
Variable manufacturing overhead per case $ 10
Total fixed manufacturing overhead $ 192,000
Variable selling and administrative cost per case $ 2
Fixed selling and administrative cost $ 38,000
Variable costs:
Direct materials per case $ 25
Direct labor per case $ 40
Variable manufacturing
overhead per case $ 10
Total variable cost per case $ 75
Total variable costs = $600,000 ($75 * 8,000)
Ending cost of
+
What is one way you can meet students with common interests in an online school?
O A dedicated learning space.
O National clubs
O The OLS
O Class Connects
Answer: National Clubs
Explanation:
There are national clubs where students with common interests can meet via an online school such as the K12 online national clubs. Enrolling for the club is not a difficult process and the schedule can then be accessed from the Class Connect schedule.
These clubs offer a diverse range of interests and subjects such as engineering, sketching and others and they are led by teachers from a school which is K-12 registered and powered.
Assume you sell for $100,000 a 10 percent ownership stake in a future payment one year from now of $1.5 million. A. What are you saying about the implied return for the 10 percent owner
Explanation:
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The implied return which is the rate of return will be 50%.
Based on the information given, the dollar return will be:
= $1,500,000 × 10%
= $1,500,000 × 0.1
= $150,000.
The implied return will now be:
= ($150000 - $100000) / $100000 × 100
= 50000/100000 × 100
= 0.5 × 100
= 50%
Therefore, the implied return is 50%.
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17. Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $29,000 of cash and land with an FMV of $74,000. Her basis in the land is $39,000. Andrew contributes equipment with an FMV of $31,000 and a building with an FMV of $52,000. His basis in the equipment is $27,000, and his basis in the building is $39,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer:
SA General Partnership
The amount of gain that SA General Partnership must recognize on the transfer of these assets from Sue and Andrew is:
= $52,000.
Explanation:
a) Data and Calculations:
Contributions by partners
Sue Andrew Partner's Partnership
FMV FMV Basis Gain/(Loss)
Cash $29,000 $29,000
Property:
Land 74,000 39,000 $35,000
Equipment 31,000 27,000 4,000
Building 52,000 39,000 13,000
Total property $74,000 $83,000 $134,000 $52,000
Partner's' basis $103,000 $83,000 $134,000 $52,000